Kontist TAM - Germany

Goals

Determine the total addressable market for Kontist, a banking app that was developed to help freelancers calculate and set aside their tax payments in Germany. To estimate the TAM, obtain available statistics that can be used in the following TAM calculation methods: top-down, bottom-up, and value theory. This research will be used to validate the company's business model and formulate its brand positioning.

Early Findings

Kontist TAM - Germany

  • Based on a 2016 survey, there are around 7 million to 13 million freelancers or independent workers in Germany.
  • The percentage of independent workers in Germany is around 25%.
  • As of January 2018, a Statista report mentioned that there are around 328,830 German freelancers in cultural careers. This is the highest job choice among German freelancers based on the report (screenshot link).
  • Next are the freelancers that are working in other legal, business, and tax advisory jobs with 146,200.
  • Healing freelancers in Germany came in third with 145,250 individuals.
  • Around 15.48% freelancers in Germany mentioned that accounting concerns are one of their biggest challenges.
  • The usage rank of the Kontist app in Germany is around 13,447.

Summary of Findings:

  • Our one hour of research provided the estimated range of the number of freelance workers in Germany and other statistics that can be used to calculate the TAM of Kontist in Germany.
  • However, the freelancing-related statistics found for Germany were limited and might not be able to cover all types of TAM calculation methods.

Proposed next steps:

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We propose to continue with the research to provide 3-5 additional statistics around freelancing in Germany. We will then provide a rough estimate of the TAM using the most applicable calculation method based on the data that were already presented above and the additional statistics.
We also recommend undertaking additional research to provide 2-3 trends in the freelancing market in Germany. For each trend, we will indicate what the trend is, why it is a trend, and provide examples of companies that are manifesting this trend or industry experts that are mentioning the trend.
We also recommend proceeding with additional research to provide 3-5 challenges that German freelancers encounter in their jobs. For each challenge, we will provide a 2-3 sentence overview to describe what the challenge was, the impact of the challenge to their work, and any solution that was explored to address the challenge.