One of my key businesses here locally is basement waterproofing. The “total addressable market” would be how many homes with basements are in the area that my company serves. There are 3.5 million people in the area we serve, 3.2 people per household = homes – apartments and multi-family homes – homes with slab on grade, etc. X the average sale = my addressable market.
How big is your addressable market?
Now I know that not ALL the people in my state will be calling for my service at once. So I want to know how many people are calling for my service right now, (or this year). I call this the current “available market”. I have a method of knowing this and I can tell how much market share I have right now, and make plans for marketing and growth accordingly.
What is your available market this year?
I also know that I can change my addressable market by adding services or expanding the area I serve, and I can change my available market by marketing more and getting more people to buy what we offer right now.
Each business has various dimensions to consider, but understanding the landscape your business operates in is important for a leader to make useful decisions. Don’t you think?
What metrics are you using to find your “available market”? Oh and Congratulations on Baja!
That’s cool!