Do you already know the financial and other parameters that your ideal customers share? Then you know your Ideal Customer Profile all. How to do that correctly, we explain it for you in this walkthrough.
What is a Total Addressable Market (TAM)?
What is your market potential if you only focus on more of your ideal customers? You wouldn't think it's an easy task, especially if you then also want to get to know the entrepreneurs behind those companies better. But it is well worth investigating.
Focusing on that market potential, also known as the Total Addressable Market (TAM), offers many advantages. By focusing on building collaborations with companies with the ideal characteristics, you can enter the market more focused, get scale and network advantages, and, as a company, you can focus more on your strengths. In other words, achieving growth becomes easier.
How do I discover my TAM?
In our previous post, we already showed how to find the financial and other parameters that define your ICP in opentheboxand. We will continue to work with those exact parameters here. In this example, we are developing around 73 family businesses. this article from De Tijd.
Here we see that our ideal customers, for example, are usually Holdings (NACE code) In addition, they all have an equity of between 10M and 1B. A negative gross margin is not a bad thing, because these customers often invest in the long term. As a result, their operating profit is slightly more negative than the rest of the market. Nevertheless, they are financially healthy (not surprising, given the high equity). It is often about Public Limited Companies, and most entities are located in the Flemish provinces (excluding Limburg) and Brussels.
What do I do once I know my TAM?
Once you know your TAM, you can enter the most important parameters in the Advanced Search module by openthebox.
For example, with our parameters, we find 642 new companies that meet the same parameters. Not all of these companies are family businesses, but almost all of them are investment vehicles. Further filtering is necessary if you only want to reach family businesses, but you're already a lot closer than you're to the start, where you have to search among more than two million companies.
You're already sweet with this section for almost every other market.
Want to take a look at it for yourself? Take a look at our investment vehicle search.
