WEBVTT 00:00.170 --> 00:11.180 In this video, let's talk about another kind of target market the som som serviceable obtainable market. 00:11.210 --> 00:12.860 What does obtainable mean? 00:12.890 --> 00:18.650 Well, you see let's say you have a restaurant gourmet restaurant, but there's a gourmet restaurant 00:18.680 --> 00:20.000 next door. 00:20.030 --> 00:22.550 And you know, they're kind of established. 00:22.550 --> 00:26.420 And, you know, probably people are going to try a little bit of everything, right? 00:26.420 --> 00:29.300 So if there are two gourmet restaurants. 00:29.630 --> 00:29.960 Mm. 00:29.990 --> 00:32.510 Well, probably you're going to capture half of the market. 00:32.540 --> 00:33.020 Right. 00:33.020 --> 00:40.610 Because people are going to go to that other restaurant half of the time, or maybe because you're new 00:40.610 --> 00:46.970 and you have expertise, let's say in search engine optimization marketing, but not social media marketing. 00:46.970 --> 00:51.650 You know, that the people on social media, you just won't be able to reach, because maybe the other 00:51.650 --> 00:55.190 restaurant next door has a great social media marketing strategy. 00:55.190 --> 01:00.920 And so you're thinking, okay, I'm going to just get people to search and find me on Google, okay. 01:00.950 --> 01:05.180 So you suddenly don't have the total serviceable market. 01:05.180 --> 01:09.590 You have only the serviceable market that you can target. 01:09.590 --> 01:15.410 So when you're calculating your som serviceable obtainable market. 01:15.440 --> 01:24.410 The competitor analysis takes a big role because you look at okay, here's my target serviceable market. 01:25.670 --> 01:29.000 How many competitors are in my serviceable market? 01:29.450 --> 01:32.810 How realistic is it that I outcompete them? 01:32.840 --> 01:37.280 Of course you wish that, you know, you take 100% of the market, but it never happens, right? 01:37.310 --> 01:40.460 We never take 100% of any space. 01:40.460 --> 01:42.050 There's always like a pie chart. 01:42.050 --> 01:45.140 And so you might think, okay, I have five competitors. 01:45.350 --> 01:47.630 They're well liked. 01:47.660 --> 01:50.660 It's not going to be possible to just jump over them over time. 01:50.660 --> 01:53.180 You can have interesting differentiation. 01:53.180 --> 01:58.670 Like they may be all gourmet in Italian food, but you're a gourmet in a different kind of food. 01:58.670 --> 01:59.570 Okay, great. 01:59.570 --> 02:00.800 So you're different. 02:00.800 --> 02:05.270 Suddenly that gives you more of an opportunity. 02:05.270 --> 02:09.620 But maybe still, you're not expert in search marketing and social media marketing. 02:09.620 --> 02:12.020 And maybe they have some great famous chefs. 02:12.020 --> 02:14.690 So maybe people come there just for the chefs. 02:14.930 --> 02:17.480 So you it's a little bit of a push and pull. 02:17.510 --> 02:22.880 Maybe if you have the great chefs that puts the flavor in your side of the court. 02:23.240 --> 02:29.270 But generally speaking, you look at competitors and you think, okay, if the the serviceable addressable 02:29.270 --> 02:36.560 market, let's say, is $1 million for the restaurants, let's just for example, and there's five competitors 02:36.740 --> 02:39.290 and they're all established and we are new. 02:39.320 --> 02:41.240 Well, it's not going to be even a fifth. 02:41.240 --> 02:46.610 We're going to capture maybe a 10th or 20th in the first year, but later we're going to capture, hopefully 02:46.640 --> 02:48.890 we work up to break even with them. 02:48.890 --> 02:54.590 And so it's going to be the obtainable market is because there's five competitors that are pretty even 02:54.710 --> 03:03.950 20% of the serviceable market, and that's actually the realistic market that you're ending up with, 03:04.550 --> 03:10.910 not the Tam, the pie in the sky, the gajillion dollar market globally. 03:10.940 --> 03:15.620 It's good to dream, but it's not real. 03:15.710 --> 03:17.990 The serviceable market is closer. 03:17.990 --> 03:21.020 But in reality, you have all your competitors. 03:21.020 --> 03:25.190 You have limitations of your own capabilities. 03:25.190 --> 03:29.180 Sometimes you have a bad designer or no designer on staff. 03:29.180 --> 03:34.280 So like your visual designs for your website or your menu won't be as good as not attractive. 03:34.280 --> 03:36.660 Or maybe some of your marketing isn't good. 03:36.660 --> 03:41.160 All these things your competitors are also doing, you're trying to get a little better. 03:41.160 --> 03:42.030 They're getting a little better. 03:42.030 --> 03:42.540 You're getting. 03:42.570 --> 03:47.400 And so you're never fully out competing them, even though we dream of it. 03:47.580 --> 03:55.980 And so that's why the obtainable, serviceable market is really realistic to base your company projections 03:55.980 --> 03:59.700 on, because you never want to say, like, here's the total market. 03:59.700 --> 04:06.300 And if we just capture 1% of this market and the market is $100 billion, then we're going to have $1 04:06.300 --> 04:09.180 billion business if we just capture 1%. 04:09.180 --> 04:13.590 That's why people kind of laugh at that, because you never capture that. 04:13.710 --> 04:14.820 It's impossible to calculate. 04:14.820 --> 04:21.480 You got to go through your Tam, narrow it down to your Sam and then narrow it down to your Sam. 04:21.480 --> 04:24.450 And that's really the realistic market, right? 04:24.480 --> 04:30.240 So that's the more sophisticated, more realistic view of how to calculate your target market. 04:30.240 --> 04:35.130 And by the way, now you also know how to do that because you can either take the top down or the bottom 04:35.160 --> 04:38.310 up approach to to calculate your Tam. 04:38.310 --> 04:40.770 You know how to narrow that down to your Sam. 04:40.770 --> 04:44.310 And you also know how to narrow that down to your CRM. 04:44.310 --> 04:48.870 So now you're equipped with exactly how to calculate your target market.