December 11, 2023

Your traction slide needs to describe the risks you design in your business

when i work The traction slide is often a sticking point for early-stage startups in how they tell their story. How do you show traction when you haven’t brought a product to market yet, or when your revenue is more of a trickle than a downpour? To answer this question, consider what attraction means to a startup.

In short, traction is evidence that your company’s chances of success are increasing while the risks inherent in the business are going in the opposite direction. Traction proves that what you’re doing is working.

I like to think of the process of building a company as de-risking in stages. Maybe it’s a way to think about your appeal: What risks have you eliminated from the business so far?

When you first start a business, you probably have nothing. You have resources like your mental capital (training and experience), your social capital (friends, contacts, people you can rely on) and your motivation (desire to run this business in the first place). You also probably have a little actual capital, whether that’s money raised from three friends, family, and fools or your own savings. You also face virtually unlimited risks. At this stage, no company can guarantee success.