Serious question, why do so many founders skip the basic market size math?

I watched a pitch at a local incubator in Boise where the founder said their TAM was 'everyone with a phone', which is a great way to get laughed out of the room. Has anyone found a simple, non-scary way to explain this step to new founders?

4 comments

4 Comments

the_thomas1mo ago

Honestly, that example is painful. The real issue isn't skipping the math, it's wishful thinking. You have to tell them to start with their actual serviceable market, like "people in Boise who order groceries online." That's a real number you can find and work from.

the_jennifer1mo ago

Yeah I used to think that way too.

evan_green529d ago

Forgetting about churn.

murphy.aaron1mo ago

Yeah, I read that exact advice somewhere.