Each build and iteration of your product shows traction. Making note of the different stages of a product’s evolution (alpha, beta, full launch) marks an important step in the development of your business, and an opportunity to show what you’ve learned in the process.
Baker recommends framing your traction in terms of different stages of product in order to “shorten your x-axis” and paint a better, more accurate picture of your progress.
In addition to building a product, showing growth in your team is an important indication of traction. It’s often said that investors “bet on the jockey, not the horse,” and for many, that is their true philosophy.
For an early-stage startup, the founding team and initial employees are crucial to success. It is important to hire slow, fire fast to ensure an efficient use of your startup’s time and resources in its critical growth phase.
Great talent is a reflection of you as an entrepreneur as a recruiter and salesman of your own vision, as well as a reflection of your business’s potential. Attracting top talent to a startup company over other opportunities shows that other intelligent individuals see and value the market opportunity you are presenting.
In addition to drawing great talent for the team itself, an entrepreneur should strive to achieve social proof and backing from other high-powered or influential individuals.
Creating Traction
Ok, so now you know different ways to show traction. But how can you build that traction, and specifically drive traffic and attract users? DuckDuckGo founder Gabriel Weinberg explains that there are several different strategies that have been used successfully, including traditional and nontraditional PR, Search Engine Marking and Optimization (SEM/SEO), blogs, viral videos, and more.
Social Proof
Social proof is the endorsement for your business by others. The value and legitimacy of your social proof is proportionate to the value and legitimacy of those endorsing you. Social proof typically comes from four different sources: advisors, customers, the media, and investors.
Having credible advisors is a welcome sign to investors that your idea has merit. Often, a company’s advisors have secured investment in the past and bring that positive influence to the business. Their name is important to them, so their support really boosts credibility.
Customers also boost a company’s legitimacy. Big name customers can be flaunted on website pages, within articles, and in pitch books to other customers. The bigger the customer, the easier it is to mobilize other customers in addition to demonstrating market demand.
Being covered in a reputable media outlet speaks to credibility as well. It shows that at least somebody thinks you are newsworthy, and the more reputable the better. Just like big name customers, important media placements can be flaunted to demonstrate the worth of your product.
Finally, investors provide a huge endorsement in the form of their hard-earned cash. If someone entrusts your business with their money with the expectation of a return, it is a very good sign for other investors – regardless of amount.
