Introduction
Every founder dreams of growth. But growth without a roadmap? A gamble. Defining your Serviceable Obtainable Market (SOM) is that roadmap. It transforms hope into a SEIS growth strategy you can trust.
SEIS and EIS schemes offer fantastic tax relief. Yet, many UK startups flounder. Why? They don’t know exactly which slice of the market they can realistically capture. That’s where SOM comes in.
A clear SOM fuels:
– Realistic targets.
– Focused marketing.
– Investor confidence.
With a robust SEIS growth strategy, you sharpen your pitch. You allocate limited resources wisely. And you connect with the right investors—fast.
What Is Serviceable Obtainable Market?
SOM sits in a family of metrics:
– Total Addressable Market (TAM): The broadest view. Think all potential customers, no barriers.
– Serviceable Available Market (SAM): The slice you can serve with your current model and geography.
– Serviceable Obtainable Market (SOM): The bit of SAM you can actually capture, given your resources and competition.
So, why does SOM matter for your SEIS growth strategy? Because it’s not a guess. It’s a data-driven estimate. It reflects your sales capacity, marketing budget, team size, and the strength of your proposition.
SOM vs TAM vs SAM at a Glance
| Metric | Definition | Use in SEIS Growth Strategy |
|---|---|---|
| TAM | Whole pie. All potential demand. | Big-picture potential. |
| SAM | Your reachable pie slice. | Focus on reachable segments. |
| SOM | The realistic slice you can win. | Core of your SEIS growth strategy. |
Why SOM Matters for Your SEIS Growth Strategy
Imagine pitching to an investor. You say, “We’ll own 50% of a £200m market.” Impressive. But is it believable? Investors will raise an eyebrow. Now imagine you state a SOM of £5m, backed by real data. They lean in.
Clear SOM helps you:
– Set achievable milestones.
– Allocate marketing spend sensibly.
– Build confidence with investors.
When you nail your SOM, your SEIS growth strategy takes off. You avoid the trap of chasing every customer. You go after the ones most likely to convert.
How to Calculate Your Serviceable Obtainable Market
Let’s break it down. Four simple steps. These underpin any sound SEIS growth strategy.
Step 1: Define Your Total Addressable Market (TAM)
Ask yourself:
– Who are all potential customers?
– What’s the overall revenue potential?
– What’s the real need you solve?
Use industry reports, government data (see the UK Government SEIS/EIS Overview), and competitor analysis to nail your TAM.
Example:
Selling a productivity app to SMEs across Europe.
TAM = number of SMEs × average app spend per year.
Step 2: Narrow to Serviceable Available Market (SAM)
SAM = subset of TAM you can serve today.
Consider:
– Your business model.
– Product fit.
– Geographic reach.
Example:
You currently serve UK SMEs in London and Manchester. That cuts TAM into SAM.
Step 3: Identify Your Competitive Edge
This is golden for your SEIS growth strategy:
– Unique features: What do you offer that others don’t?
– Pricing edge: Can you undercut or offer better terms thanks to SEIS/EIS incentives?
– Operational strength: Do you have fast delivery or stellar support?
Analyse barriers to entry and competitor weaknesses. Be honest. This will ground your SOM in reality.
Step 4: Calculate SOM
Now for the formula:
SOM = SAM × Market Penetration Rate
If SAM is £8m and you estimate 12% penetration:
SOM = £8,000,000 × 0.12 = £960,000
That £960k is your SEIS growth strategy target. It guides budgeting, hiring, and funding rounds.
Key tip: Use real-world data—past sales, pilot projects, early adopter feedback—to refine your penetration estimate.
Integrating SOM into Your SEIS Growth Strategy
Once you’ve got your SOM, weave it into every plan. Here’s how:
- Marketing: Focus channels that reach your core segment. No more scattergun tactics.
- Sales: Prioritise leads within your SOM. Set quotas that reflect realistic close rates.
- Product Roadmap: Build features that address top pain points in your SOM.
Leverage Oriel IPO’s Commission-Free Model
A standout in your SEIS growth strategy is cost control. Oriel IPO’s commission-free platform means you keep more of that vital seed funding. No surprise fees eating into your cash runway.
Curated, Tax-Efficient Investment Options
Our platform vets startups under SEIS/EIS criteria. You get quality leads. Investors get clarity on tax incentives. That alignment accelerates deals and strengthens your SOM capture rate.
Educational Resources and Automation
We don’t leave you guessing. Oriel IPO offers guides, webinars and insights on SEIS/EIS complexities. Plus, tools like Maggie’s AutoBlog help you produce targeted content—boosting your visibility in front of investors.
Case Study: Somerville Tech’s SEIS Growth Strategy
Somerville Tech wanted to raise £500k under SEIS. They:
1. Calculated a SOM of £1.2m in the London SME software niche.
2. Focused ad spend on LinkedIn groups of finance managers.
3. Used Oriel IPO to pitch commissioners with clear tax benefit timelines.
Result? They hit 80% of their funding goal within six weeks. A tidy win.
Refining and Iterating Your Strategy
Markets shift. Competitors pop up. Your SOM should evolve. Revisit every quarter:
– Review sales data.
– Adjust penetration rates.
– Scale the team or marketing as needed.
This loop keeps your SEIS growth strategy lean and mean. You don’t chase every trend. You stay laser-focused on the market you can actually win.
Conclusion
Mapping your Serviceable Obtainable Market is the keystone of any smart SEIS growth strategy. It brings certainty to a chaotic early stage.
With Oriel IPO’s commission-free funding, curated SEIS/EIS opportunities and educational resources, your path is clear. No fluff. No hidden fees. Just a solid plan to capture the market you can realistically own.
Ready to kick off your SEIS growth strategy?
