The startups are required unique for their ability to scale like no other company. For example, it must be regarded that those categorized as “unicorn” only took an average of 6 years to reach a valuation of one billion dollars. These companies use technology to make their products and services more accessible to the world.
They include Didi’s 2012 founding, which is worth more than 64,000 million US dollars. Also, Byte Dance (a TikTok subsidiary), created in 2012 with a value exceeding 140,000 million US dollars. China Shein clothing brand was also started in 2008. Airbnb was founded in 2008 and is valued at 47.300 million. As with many others, they went through a traction cycle until they could consolidate their growth.
The definition of traction is pushing forward, but in the world of startup, pulling refers to progress. This means you can show that your product/service has reached a certain level of acceptance in a large market and that your business model is sound. You also have evidence that you plan for sustainable growth. Investors find this attractive when raising capital because it proves that your idea does not just exist on paper but has real potential to succeed in the market.
It would help if you were a startup to drive. So at G2 Consultores, a firm specializing in startups, we explain what this means for your company to go.
- GrowthYou have three options in maturation. You can grow, go back or stay static. If you find yourself in the two last options, you will most likely be overtaken. However, if your pull is positive, it means you are growing and that your company has progressed.
- This is a blueprint of concept you can be sure that your product or service is in demand and that you have a real business.
- The royal road to income and profits are essential for the company and attractive when it comes time to raise capital.
- Get Financing –Investors desire to see consistent traction, which is crucial for measuring company value.
Profitability, revenue, traffic generated, and the number of registered users are some of the most critical metrics that can be used to check and drive traction.
It takes a lot to create traction in your business. To process this, you will have to use strategies such as a marketing or commercial strategy to help feed your sales funnel.