Demonstrating Traction: A Program for Business Growth

Identify the key metrics that demonstrate traction for your specific business. Consider revenue growth, customer acquisition, partnerships, and funding milestones. Before proceeding, make sure you understand the core concepts of traction. When you've selected metrics, write them down.

Research what metrics are most important to investors in your industry and stage. Tailor your traction narrative accordingly. Think about what an investor might immediately ask after reading your executive summary. Consider these questions and formulate answers.

Calculate your revenue growth rate (e.g., monthly, quarterly, annually). Each week, calculate your growth. If it drops below 10%, consider adjusting your marketing strategy.

Track customer acquisition cost (CAC) and customer lifetime value (CLTV). If CAC exceeds 75% of CLTV, re-evaluate acquisition strategy.

Document key partnerships secured and their impact on your business. What are the leading indicators that your efforts to secure new partnerships are gaining steam?

Document any funding secured, including the amount and source. Keep an updated list of funding sources and their value.

Showcase key product milestones, such as app downloads, user retention, and product launches. Are your beta testers using the product at least 3 times a week?

Draft a concise executive summary incorporating the identified metrics, milestones, and future projections. Focus on demonstrating traction and potential for growth. If stuck, start with a one sentence summary, and expand from there. Don't bury the lede!

Review and refine the executive summary to ensure clarity, accuracy, and impact. Seek feedback from mentors or advisors. After completing your draft, take two days off. Then review it with fresh eyes. Share it with someone who has experience pitching to investors, and incorporate their feedback.