When I talk to early-stage founders, there's a tension that comes up again and again. You're told to pitch a massive Total Addressable Market (TAM) to attract investors. But in the day-to-day reality of building, you're focused on landing a few real customers. That is your Serviceable Obtainable Market (SOM), and it is what actually matters early on.
I once worked with a founder building a SaaS tool for logistics. His deck led with a $500 billion market size. But when I asked who was actually using the product, it came down to two small regional couriers in the Midwest. The TAM number looked impressive, but the SOM had no clarity. Investors can sense that kind of disconnect instantly.
On the other hand, I advised a fintech team targeting compliance tools for early-stage startups. Their market looked small on paper, but they owned it. Real users, real feedback, and clear plans to expand. That kind of focus makes the story feel both believable and scalable.
This is the pattern I keep coming back to. Dropbox started with engineers. Airbnb went after travelers attending big events. Facebook was just for Harvard students. They each dominated a small corner of the market first, and that gave them the traction they needed to scale.
So yes, share the big picture with investors. Just make sure your story starts with where you are now. A strong SOM gives you credibility. A clear TAM gives you vision. You need both, and they have to connect.
Start focused. Prove value. Then show how it grows. That is the story that gets taken seriously.