What does pulling mean for startups?
This represents the evidence that your product or service has started its adoption rate in a large market.
The startups are considered unique for their ability to scale like no other type of company and for example, it must be considered that those categorized as "unicorn" only took an average of 6 years to achieve a valuation of one billion dollars. They are companies that took advantage of technology to be able to promote themselves and transcend by modifying the industries in which they are developed.
Examples of them can be: Didi founded in 2012 whose value exceeds 64,000 million dollars, the most valuable unicorn company in 2021, Byte Dance ( TikTok subsidiary) and created in 2012 has a value of 140,000 million dollars or the clothing brand China Shein , created in 2008, which has a value of 15,000 million dollars or Airbnb , created in 2008 and whose value is 47.300 million dollars. These companies, like many others, went through a traction process as their main objective until they consolidated their growth.
Traction means pushing forward , in the world of startups pulling means progress, it represents the evidence that your product or service has started that rate of adoption in a large market, that you have validated your business model and that you start with sustainable growth . Situation that is attractive for investors when raising capital, since this shows that your idea is no longer mere paper, but that it has a real chance of success in the market.
If you are a startup, you have to drive as a mandate, so at G2 Consultores, a firm specialized in startups, we let you know what it means for your company to drive:
- Growth: in the maturation process you have three options, you grow, you go back or you remain static. If you find yourself in the last two you will surely be overtaken by someone else, if you pull it means that you are growing and therefore your company is progressing.
- Proof of concept: validation that there is a real demand for your product or service and that there is real business.
- A royal road to income and profit - These two are not only vital to the company but attractive when it comes to raising capital.
- Get Financing - One of the most important metrics for measuring company value, from seed capital to the latest rounds of funding, investors want to see consistent traction.
Some of the most common methods and metrics to drive and record traction are profitability, revenue, traffic generated, number of registered users, active users, or customers achieved to give a few examples.
Creating traction in your company requires a lot of focus, you need to implement strategies such as a commercial or marketing strategy to feed the steps in your sales funnel.
- You may be interested: 3 strategies for startups to sustain their growth