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Definition: Total addressable market

Christina Hernandez Sherwood, eMed Editor, MedCity News

Definition: Total addressable market

Total addressable market, or TAM, refers to the universe of revenue opportunities for a product or service. For a healthcare entrepreneur who has developed a software program for diabetes patients, for instance, the TAM would be anyone with diabetes or pre-diabetes and a personal computer.

To narrow down the TAM, entrepreneurs must also consider the served available market (how many people can be reached with their sales channel) and the target market. For more information on TAM and related terms, read The Startup Owner's Manual by Steve Blank and Bob Dorf.

Photo by reynermedia

Definitions are a weekly feature on eMed for current and aspiring healthcare entrepreneurs.

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