Say, you have a non-AI SaaS product with a $5M ARR. A competitor has come into the market with a new AI SaaS product addressing the same target customer. You have to defend your turf and refurbish your SaaS product with AI to get the renewals.
There is a commonly held misconception among operators who do not understand positioning: We don’t want to invest in Positioning. We will be selling the company.
Perhaps you have come to the conclusion that you will not seek further funding. Instead, you will look for an Exit.
Founder-led sales is acceptable for the Seed round. It is NOT acceptable for Series A or beyond. At the minimum, you need a Repeatability Hypothesis to raise a sizable venture round.
There’s a common problem with Founder-led Sales: Positioning changes on the fly on a daily basis.
What problem does your product solve with a unique unfair advantage? What ideal customer has that problem? These questions are at the heart of Positioning.
I see segmentation errors left, right and center. As such, I see sloppy TAM models left, right and center too. Segmentation requires a precise profiling of your ideal customer with a host of parameters each of which can individually slash your TAM down by 10%.
More often than not, an honest Total Available Market (TAM) analysis yields small or medium sized markets. This could range from $50M, $100M, $200M to $500M.