And finally, they want to know how you will defend against copycats and competition that will inevitably enter the market if you are successful -- your unfair advantage.
New ventures requesting funding without credible operational and financial leadership will likely be declined. Keep in mind, however, that the relationship between traction and investors can also be tricky, as investors want to make money.
The reasoning behind developing traction is to grow the business while meeting specific company goals and objectives.
Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan.
After all, creating value for users is a prerequisite to being able to capture value from them, and capturing value from users is a prerequisite to optimizing your cost structure.
Often enterprise customers or even consumers test a new channel by signing up for a few small transactions or trial products.
By creating business traction, new companies can attract potential investors and gain a competitive edge in their industry. The problem is that traction means different things to different people.