So before you start any business, you have to know how much money is in the market because it excites you, because if you’re not excited about starting a business, you wouldn’t follow through with it. This is known as TAM or total addressable market, the TAM for an energy drink, for example, that 5 billion people will be able to access.

If just 1% of these people buy a product once a week. That’s 250 million units sold a year. And if you make $1 per sale, that’s about $250 million a year for big entities like government a TAM any TAM, lower than 2.5 billion wouldn’t work. For really large companies who are looking to innovate their business units. This would be an acceptable TAM, but for an individual, a $2.5 million TAM would also make sense.