Defining Your Target Market

Investors need to understand exactly who your customers are and why this market represents a significant business opportunity.

Market Segmentation Framework

TAM (Total Addressable Market)

The entire market opportunity if you captured 100% market share

"All restaurants globally spend $X billion on management software"

SAM (Serviceable Addressable Market)

The portion you can realistically reach with your business model

"Independent restaurants in North America represent $X billion"

SOM (Serviceable Obtainable Market)

What you can realistically capture in the near term

"We can capture 2% of independent restaurants in our initial 5 cities"

Customer Personas

Key Persona Elements

Demographics

  • • Company size/industry
  • • Role/title
  • • Geographic location
  • • Budget/spending power

Behaviors & Needs

  • • Current solutions they use
  • • Decision-making process
  • • Pain points and frustrations
  • • Success metrics that matter