It is all about traction and revenue.
Discover the importance of business traction in our simplified guide. Learn to define your product, understand your customer, deliver value, and identify the benefits for your organization. Overcome challenges and unlock your startup's potential with sustainable revenue and customer-focused strategies
The fact is only 10% of startups and organizations enjoy long-term survival. A common hurdle many businesses is gaining significant traction. But the question that they need to ask is: how can you achieve this traction and is your business properly aligned to support it? This post aims to get you thinking about the key components of traction, helping you devise a plan and a tactical roadmap to achieve it.
Let's start with the basics - what is traction? In simple terms, traction is when customers use your product or services. It's not about the numbers, growth or velocity, but about reaching an understanding of the elements that help you achieve traction. It isn't about the sophistication of your technology or innovation, it's about customers finding value in your product or service.
As you aim to achieve traction, consider the following questions to create a discussion within your organization and leadership:
1. What is your offering or product? Define the product not from the technical standpoint, but from the customers' perspective. Can you describe your product or service in a simple sentence that encapsulates the customer it serves, the value it delivers, and how it's consumed?
2. Who is your customer? Gain clarity about your customer profile. Do you understand their needs, how they operate, what difficulties they encounter, and how your product can add value to their lives or businesses?
3. How is value delivered? Define your value proposition and delivery method. Understand your delivery chain and identify all the stakeholders involved. Can you clearly communicate how you provide value to your customer?
4. What’s in it for the organization? Define the benefit to your business. Understand how you make money from your customer transactions. Have you considered all costs involved, including marketing, sales, support, and delivery?
In a nutshell, whether you're looking to raise funds, operate sustainably or plan an exit, traction is vital. Focus on achieving sustainable revenues and traction, and your future objectives will be easier to reach.
If you find your organization grappling with revenue challenges, product design problems, and a lack of customers, face these issues head-on. Investing time in understanding your traction is far better than finding excuses for a lack of results. Embrace these moments of difficulty, for it is in these times that real leaders are born.