PRODUCT BUILDER

Preliminary product specification checklist

• Summary – what is the idea being suggested?
• Problem statement
  • User personas – who is the solution for?
  • User stories – what is the user trying to accomplish? Problem description
• Designs – what does the solution look like?
• Functional specs – what are the technical details behind the solution?
• Problem-solution fit

• Does the product solve the problem? Check with potential customers:
  • Is this really your problem?
  • Would you prefer the product as the solution for your problem?
• Market
  • Total addressable market (TAM)
    The TAM answers the question, who could (purely theoretically) buy the product and includes the total expenditure that is spent on the service that the product provides. He describes the proceeds that would theoretically be possible if the company had an all-encompassing monopoly with its product. All factors that could prevent the company from reaching this state are disregarded when calculating the TAM. In particular, competitors, production or delivery capacity restrictions, language barriers or geographical distances are ignored.
  • SAM: Serviceable Addressable Market
    The difference to the TAM arises by excluding the segments that cannot be operated at first. This could be due to the fact that these segments have slightly different needs or that they are too far away for delivery.
  • SOM: Serviceable Obtainable Market
    The SOM is the part of the SAM that can be operated realistically. It answers the question, who will buy the service from us or which part of the SAM is most appropriate for our business model? The SOM thus shows which sales can be achieved in the company’s first growth phase.
    The following factors must be taken into account when calculating the SOM:
    • Who is served with the value proposition
    • Who can be reached with the initial marketing and distribution
    • The current competitive situation
    • The initial production capacity