One of my favorite ideas from my friend Sandy Kory is that “great product-led companies create their own TAM”. His latest post is on this topic, that worrying about deep TAM analysis is a distraction for early companies:

Is TAM really that bad? The problem is that at the seed stage, looking for TAM will push a startup towards existing markets & existing budgets. This can take a startup away from finding the best early adopters for a disruptive product. It can also stifle the long-term orientation needed for startup greatness.

The beauty of software startups is their potential for alchemy over a long time horizon. TAM is an output of a disruptive software startup, not an input.