I created a $100M empire...using this (TAM) formula | Ep 317

The Game with Alex Hormozi

Alex Hormozi

Business, Education, How To, Entrepreneurship

4.9 • 4.8K Ratings

🗓️ 20 July 2021

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

A formula for success! But.. what is TAM anyway? Today, Alex (@AlexHormozi) talks about the 3 ways to increase your TAM, and when it might be the right time for you to increase the size of your opportunity, quality, delivery, etc. in regards to your prospects and business.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(1:22) - #1: Go upmarket

(2:34) - #2: Go adjacent by changing business or helping similar companies

(4:44) - #3: Go downmarket

(7:31) - Transition from improvement offer to appeal to more people

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Transcript

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0:00.0	Mozination real quick, if you are a business owner that has a big old business and wants to get to a much bigger business,
0:06.1	going to $50, $100,000 plus we would love to talk to you.
0:09.5	And if you like that or would like to hear more about it, go to acquisition.com and you can plan anywhere on the page
0:14.3	and talk to one of our team and see if we can help you get there.
0:18.3	Welcome to the game where we talk about how to get more customers, how to make more customers, how to keep them longer
0:22.6	in the many failures and lessons we have learned along the way.
0:25.1	I hope you enjoy and subscribe.
0:26.7	If you're stuck in your business right now, a lot of times you don't need to do it about to show you.
0:31.7	But if you've reached a point and you were focused on a niche, right, and you're getting to the $1 million or $3 million or $10 million mark,
0:38.3	there may be a time when it might be time for you to increase the size of your total addressable market, which the short hand for that is TAM.
0:46.5	So in the investment banking world or the finance world, they call the TAM, the total address market.
0:51.5	And that's one of the first questions they're going to ask you about your company if you wanted to sell someday.
0:55.1	They're like, well, okay, you've grown.
0:56.9	Well, how big is the market that we're going after?
0:59.0	Because if you're going after a tiny market, they realize that there's an invisible cap on the business that they, you know, they're going to say,
1:05.3	okay, well, this doesn't, this isn't a massive opportunity.
1:07.6	And so when you increase your TAM, you literally increase the size of your opportunity.
1:11.9	But instead of doing, you also change the nature of your delivery and your prospect.
1:15.5	So it's something you should do with a great amount of care.
1:17.5	That being said, what I want to do is take you through the three ways to increase your total addressable market and some of the considerations around that.
1:24.1	All right. So the first way that you can increase your TAM, and this is one that a lot of people don't look at or more afraid of.
1:30.3	And this is probably one of the most profitable ways to do it.
	...

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