The portion of the market that can be realistically captured early is known as?

The term that refers to the portion of the market that can be realistically captured in the early stages is known as the Serviceable Obtainable Market (SOM). This concept is critical for startups and businesses as it identifies the segment of the market that is both reachable and feasible for them to target based on their current resources, capabilities, and market conditions.

SOM is derived from a more extensive market analysis, where the Total Addressable Market (TAM) outlines the overall revenue opportunity available if a product or service is sold to the entire market. The Serviceable Available Market (SAM) narrows this down to the portion of TAM that can be served by a company's products or services, considering the geographical and product constraints. SOM is the most focused and practical segment, representing the immediate market share a startup can realistically aim for within a shorter time frame. This understanding aids in strategic planning, resource allocation, and setting achievable sales targets.

Focusing on SOM enables entrepreneurs to develop actionable marketing strategies and sales plans tailored to their capabilities, ultimately directing efforts towards achievable goals rather than overly ambitious targets that may not be feasible in the early stages of the business.