Simply a unique idea and an efficient and cooperative workforce are not sufficient for a developing startup. For the beginners it is important to gain traction for your emerging startup. To newcomers who need a refresher, traction is an assessable number of customers that reveals the potential of your startup to the probable investors.
However it is not an easy job to increase traction. There are different ways of doing it but the most difficult part is all the ways are unique and specific to each startup. Gabriel Weinberg suggests different ways of augmenting traction. He concluded to the methods after having spoken to many startup founders.
There are the traditional ways of advertising through newspaper and other print media, radio as well as televisions. The more out of the box ways could be organizing some publicity stunts to attract the attention of prospective users or customers. You could always give ads on websites that are renowned and more accessible. Some have tried mentioning about their startup in different blogs or building community that helped them gain a lot of traction. Make your products open source. This will help in spreading the news by the word of mouth.
It is up to you to find out which method fits in best with your company. It also depends on the type of investor you are targeting at. Every startup needs to develop a new plan for acquiring users. But the other difficult part is how do you realize whether the amount of traction you have gained is enough to convince an investor.
Mark Peter Davis of DFT Gotham Ventures says ‘hockey-stick’ growth rates imply how consistently your traction is gaining. Therefore this is the growth you would want to achieve which in turn is determined by the Marketing Equation. Marketing Equation is the relation between the value of a customer engaging in the startup’s products and the money spent in acquiring the customer. It is best if the customer lifetime value is a lot greater than the cost of acquisition.
There are no fixed regulations as to the amount of traction required that marks the growth of the startup. But the more traction the better it is. Remember every company is unique and you cannot judge your traction value by observing others.
[alert style=”green”]Small Tip: Read ‘Establishing connection with the media is essential‘[/alert]