Conduct Market Research

Conduct Market Research

Before you build anything, you need to understand your market—how big it is, how fast it’s growing, and what your potential customers actually care about. Market research is not about writing a long report, it’s about getting answers that help you make better product and business decisions. This guide shows you how to do that, with simple tools and real examples.

Understand the TAM, SAM, SOM Framework

TAM, SAM, and SOM help you define the actual size of your market.

  • TAM (Total Addressable Market) is the global demand for your product or service. Think: what if everyone who could use this, did.
  • SAM (Serviceable Available Market) is the part of the TAM you can reach based on your business model, geography, or target segment.
  • SOM (Serviceable Obtainable Market) is what you realistically expect to capture in the next 2–3 years.

Example:
If you’re building a telemedicine platform for U.S. therapists:

  • TAM = All mental health consultations globally
  • SAM = All teletherapy sessions in the U.S.
  • SOM = Your estimated market share based on your go-to-market plan, say 1% of U.S. teletherapy sessions

How to estimate:

  • Use reports from Statista, IBISWorld, or McKinsey
  • Google “[industry] market size [year] site:statista.com”
  • Use Crunchbase or PitchBook to look at competitor traction and back-calculate market size

Tool Tip:
Use TAM SAM SOM Calculator by Slidebean or build your own in Google Sheets

Market size matters, but market growth matters more. Fast-growing markets give startups room to grow and make mistakes. Look for:

  • Annual growth rate (CAGR)
  • Emerging sub-segments
  • Recent behavior shifts (e.g., remote work, AI adoption)

Tools to use:

Pro Tip:
If the number of startups in a sector is growing and more deals are happening each year, that’s usually a strong sign the space is heating up.

Research Customer Segments

Now zoom in on who you’re building for. A market is not just a number, it’s made of people with behaviors, needs, and spending habits.

Build 2 or 3 proto-personas to start. For each persona, answer:

  • What problem do they have?
  • How are they solving it today?
  • What are their demographics and digital behaviors?
  • What products do they already pay for?

How to find this data:

  • Read forums (Reddit, Quora, Hacker News, StackExchange)
  • Watch YouTube videos and comment sections
  • Check Amazon reviews for similar products
  • Use SparkToro to see what your audience reads, watches, and follows online
  • Analyze competitors’ customer reviews on G2 or Capterra

You don’t need fancy surveys yet. You just need to find real language used by real people.

Study the Competitive Landscape

Your market includes both direct competitors and substitutes. Make a list of:

  • Top 5 companies doing similar things
  • New startups in the space
  • Tools your customers already use

For each competitor, check:

  • Pricing and positioning
  • What users love or hate (read reviews)
  • Their distribution model (self-serve, enterprise, partner-based?)
  • Their traction (web traffic, social followers, funding)

Tools to use:

Pro Tip:
Put this in a spreadsheet and use it as your “battlefield map.” It will help you identify positioning opportunities and white space.

Synthesize and Document Insights

At this point, you’ve gathered:

  • Market size and segments (TAM, SAM, SOM)
  • Growth signals and trend data
  • Clear customer personas and behavior patterns
  • An understanding of competitors and alternatives

Now write a 1-page “Market Snapshot” with bullet points that summarize:

  • Who you’re targeting
  • Why the timing is right
  • What makes your approach different
  • How big the opportunity really is

This becomes your internal playbook and an investor-friendly slide if you pitch.

Final Thought

Market research is not a one-time report. It’s an ongoing loop. The more you learn, the sharper your product decisions become. Early founders who actually understand their customers and market are the ones who adapt fastest and survive longest.

Don’t overcomplicate it. Start with what you can Google in a few hours. Then go talk to real people. That’s where the truth lives.

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