I created a $100M empire...using this (TAM) formula | Ep 318

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 20 July 2021

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

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 Podcast where we talk about how to get more customers, make more profit per customer, and keep them longer, and the many failures and lessons we have learned along the way to $100M in sales. We've got roll-up-your-sleeves kind of hustle with a little bit of cleverness and a lot of heart.

Timestamps:

(1:39) -The first way is to go upmarket

(2:51) - The second way is to go adjacent by either changing nature of the business or helping companies similar to yours

(5:01) - The third way is to go downmarket

(7:48) - One of the ways that you can make your opportunity appeal to more people is by transitioning from an improvement offer, which is where you help people do better.

Follow Alex Hormozi’s Socials:

Transcript

Click on a timestamp to play from that location

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.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Alex Hormozi, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Alex Hormozi and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.