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Your Market Might Be Too Small

9 Oct 2026 · 1 min

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In this segment, Eric Deeran emphasizes the importance of assessing your Total Addressable Market (TAM) when scaling a local home‑service business. He illustrates the point with a scenario: a company earning $100 K per month operating in a single state (e.g., Connecticut). If the typical cost per acquisition call is $200 but spikes to $500 as ad spend increases, that surge signals the market pool is too limited. The recommended response is to broaden the TAM—target a larger geographic area or additional customer segments—to sustain growth without prohibitive cost escalation.

Chapters

And so number 2 is we need to look at what your TAM is. So meaning what is your total addressable market? So for instance, let's say you're doing $100K a month in a local home service market, like you're trying to scale past a certain point and you're targeting home service companies in Connecticut or in like one local state, right? In that instance, your pool of people is only so big to where if you see your cost per call where it's normally at $200 a call, if you try to push spend and then it automatically goes to $500 a call, that typically means that you just need to widen the TAM.