Results matter. I’d much rather hear from an entrepreneur about their traction metrics than an idea with no results yet. Once the team and product are in place, it’s time to focus on traction. TechCrunch has a piece up titled Want to Raise a Million Bucks? Here’s What You Need where the author provides five categories of initial traction milestones for startups:
- B2B SaaS: 1,000 seats at $10/month (or the equivalent $10k/month revenue with a higher priced SaaS offering)
- Enterprise Application: 2 paid pilot contracts for at least $100k combined
- Social: 100,000 downloads/signups
- Marketplace: $50k revenue/month
- Ecommerce: $50k revenue/month
Here’s an idea: start a Traction Club for startups in your city that exceed these metrics. Make metrics a badge of honor and get more people talking about results, not ideas.
What else? What are your thoughts on these five categories and amounts as initial major milestones for startups?