Strategic Links London

Getting Traction-Proof

You have got your solution validated, then?

  • You developed a solution that may work
  • You engaged users and clients to verify if the solution works for them
 

Great, and now you are going to seek money to bring it to the market, right? Well this is the hard time, but the greatest difficult are yet to come.

Better you be aware: only for regulated products in regulated markets like healthcare you can expect investors to take the risk of testing markets.

Sell it then we may discuss!

  • In markets not under strict regulation traction is mandatory before invest
  • Traction means a stable flow of new leads steadily entering the sales cycle and become paying clients
  • When a solution cannot be applied in lack of certifications and or regulatory approvals, then traction is not possible.

Only God deserve trust, everyone else better bring data!

What to do when traction cannot be validated without a regulatory application passed cannot be matter of trust. People may trust you, but you may recall as the most capable of acquiring trust are the scammers. 

If you are not a scammer, then you are expected to not to play around with trust.

The game isn’t over.

There are methods to assess if you have a high probability to hit the goal of get authorised. Some of them are obviously part of our job, what you need to know here is a way to stay in the game exists and you may seize it.

The bad news is that is not cheap. You may be tempted to do without it, or to engage low price providers for that, but what if you fail? 

If you are not in the regulatory field then we have a good news for you: you may start selling to exhibit traction!

Why traction?

Let’s make it clear, when a solution shows sales traction, it means you guys have been able to:

  • Set in place an even, also if not smooth, leads generation process.
  • And after that you have been capable to effectively run a sales process, even if not efficiently.
  • Last but not least, you are proving users are perceiving more value than any other possible option by the solution.

Even if they churn, ok this is not great, but if the churn’s reason are properly addressed and can be fixed investing in the product development, in that case investors can buy it.

Being there is a stage next to success, if you still humble.

Did we already say that to dominate the Marketing and Revenue Generation processes is all but not simple?

Here the reason why traction is so important! If you guys have been able to be in control of your revenue generation, the risk of failure is lower. That boost the valuation but also a dramatically smoother investor engagement. 

If you didn’t have the possibility to demonstrate if your business’s processes work yet, then you may get in trouble with investors.

Pre-money, or clearer, pre-revenue investment may arrive by Business Angels, but they are also getting more and more careful with it. 

Let’s clarify this: The acronym FFF is still working. Family, Friends and Fools are among the early stage investors everywhere: You may get your inner circle believing in you -very important-, then you may crush into few unaware person with a good amount of dollars who may want to get their life’s deal -this is nice to have- (sometimes very nice). But if you think everyone is eager to partecipate in your wonderful just-born company then you may encounter disillusion.

But be happy:

Getting NO is the norm, and if you have got some YES then it may only mean you met FFF people. But it’s great you have been able of igniting trust.

The trouble starts if you don’t get a clearer view of the rule of the game now! If you keep thinking that you only need to tell people the value of your business and they will be greedy of jumping on board!