Before you learn from the test results of your prototype and develop a business model, you need insights into your market. A clear and well-founded market analysis gives you the necessary foundation to successfully develop your impact startup and create a product-market fit.
You’ve come to the right place if …
- you want to found an impact startup or are already in the middle of it with your team.
- you know your target group exactly.
- you can clearly name the problem, the solution and the impact.
- you have all the resources to develop a prototype.

Not quite ready yet?
Then select the appropriate chapter here
This chapter helps to …
- the size and dynamics of the market.
- analyze market trends and external influencing factors.
This is about the development and implementation of your business model and the financial aspects of your solution.
We deal with the impact-oriented area here.
Step-by-step market analysis
A thorough market analysis helps to understand the potential and positioning of your product. It provides important insights for product development and the business model. It provides you with insights into market size and dynamics, competitors and alternatives as well as customer segments and needs.
1. identify the problem you want to solve
In order to clearly identify the problem you want to solve, ask yourself the following questions:
- Problem and USP: What problem are you solving? Which features and benefits are particularly important? This clarity will help with market analysis later on.
- Impact perspective: How does your solution differ from conventional solutions in terms of social or environmental benefits? Describe your positive impact clearly and concisely.
Ideally, you have already discussed the problem in the chapter “Problem and target group analysis: How validation works for impact startups” and analyzed your solution in the chapter “Solution design for impact start-ups: How the reality check for solution ideas works” clearly defined. If not, look at it from the following perspectives:
2. determine your Total Addressable Market (TAM)
The Total Addressable Market (TAM) is the total market that you can theoretically reach with your impact startup. It is calculated as follows:
Total number of potential customers x average annual turnover per customer
To calculate the TAM, you should research current industry reports, market statistics and publicly available data, for example from government agencies or industry associations. Also ask yourself the following questions:
- How broad is the total addressable market really?
- Which offerings are actually part of your impact start-up’s market?
- Who could theoretically use the offer, regardless of the current range?
3. define your Serviceable Available Market (SAM)
TheServiceable Available Market (SAM) is the part of the TAM that you can realistically reach. In other words, you determine how many people in the total population you could reach if resources were not an issue. It is calculated as follows:
Number of reachable customers x average annual turnover per customer
To calculate the SAM, narrow down your target group, e.g. by geography, demographics or industry. Consider your product specifications and sales capacity and ask yourself the following questions:
- For which specific segments within the TAM is your solution particularly effective?
- What are the geographic, demographic or psychographic limitations of the market?
- Are there any technical or logistical factors that influence your reachable market?
4. estimates the Serviceable Obtainable Market (SOM)
The Serviceable Obtainable Market (SOM) is the market share that you can actually achieve with your current resources and capacities. It is calculated as follows:
Realistically achievable market share x SAM
Analyze your competitive situation and market position for the calculation. Ideally, you have already reviewed existing solutions in the solution design — in the chapter “Solution design: Finding a solution with which a startup can create real impact”. Also check what resources are available to you to gain market share (e.g. sales, marketing budget, partnerships). And ask yourself the following questions:
- How much of the SAM can you realistically achieve with the current resources?
- Which competitive factors influence the achievable market share?
- How long will it take to achieve this market share?
5. clearly distinguishes between TAM, SAM and SOM
To ensure that your market analysis is reliable, you should clearly delineate the three calculated values. Make sure that there is no overlap and define clear criteria for each area. Document the assumptions and sources used to make the analysis comprehensible. Also ask yourself the following questions:
- Are there clear, non-overlapping criteria for TAM, SAM and SOM?
- Can you clearly delineate each area?
- Have you made sure that you are not anticipating parts of the SAM in the TAM?
6. analyzes market trends and external influencing factors
Now it is important to include other influencing factors such as industry trends (e.g. technical developments or legal framework conditions) and social trends that could increase your impact (e.g. sustainability funds or social innovation). You can then analyze possible external risks (e.g. regulatory changes, economic fluctuations) that could influence the market. Also ask yourself the following questions:
- What trends could influence the success of your impact start-up?
- What external factors should you keep an eye on in order to be able to react to changes?
- Are there any political or legal developments that could influence your target group or your solution?
Next chapter: Checking assumptions
Another important step has been taken: You have carried out a market analysis for your solution and looked at trends and other external influencing factors.
Next, we recommend checking your assumptions by talking directly to the target group and collecting feedback. We will do this in the next chapter.