 When I consult for startups or established small businesses, one topic often takes center stage… TRACTION. In business, getting traction means gaining measurable progress and momentum in attracting customers, generating revenue, or validating your product or service. It signals that your idea resonates with the market. Without traction, even the most innovative products or well-designed services risk fading into obscurity due to lack of market adoption or investor interest. Traction demonstrates product-market fit — the alignment between what you offer and what customers actually want. It provides early evidence that your business model is working and that there is real demand. This momentum is essential not only for growth but also for credibility. Investors, partners, and stakeholders often evaluate businesses based on their traction, making it a prerequisite for securing funding and scaling operations. How to Quickly Build Traction.There are many ways to build traction, and some work better than others based on your industry, target customers, etc. However, here are several effective strategies I’ve seen work to build traction:
So What Counts as Traction?The best example of traction is paying customers. You may measure paying customers in terms of the number of paying customers, monthly recurring revenue (MRR), or annual recurring revenue. If your product or service is not yet ready for delivery, preorders can demonstrate traction. Like paying customers, you can track your preorders by a count or potential revenue. Depending on the type of product or service you offer, another sign of traction can be active trials, proofs-of-concept (POCs), or letters-of-intent (LOIs). Signing up a strategic partner can also constitute traction. For example, if you are selling a cloud computing solution, signing a strategic marketing agreement with one of the large public cloud providers could show traction. Finally, getting noticed in the marketplace could be a form of traction. Winning industry awards, receiving positive reviews, or getting press coverage are all positive. The Takeaway.Getting traction is about proving that your business can deliver consistent value to real customers. It’s not just about hype or vanity metrics — it’s about building sustainable growth and validating your path forward. Businesses that prioritize traction early are far more likely to survive, thrive, and scale in competitive markets.
What about you? How have you gained traction for your business? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers
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 We are all inundated with data and analytics at work. We have plenty of information, but are often left feeling like we lack knowledge about how much progress we’re making on a project or initiative. All the key performance metrics (KPIs) in the world don’t help – you need just a handful of the pertinent metrics. So which metrics should YOU follow to measure progress? Your Industry and Business Model Dictates Your Metrics.Key performance metrics (KPIs) vary significantly depending on your company’s industry and business model, as each has different drivers of success. However, regardless of industry, the right KPIs enable you to measure progress, make informed decisions, and align strategies with goals. Obviously, we can’t discuss every industry, but let’s look at a few popular industries and the best metrics to follow for each… Metrics for Product-Based Businesses.For product-based businesses, especially in manufacturing or retail, critical KPIs include:
Inventory turnover reflects how efficiently your company manages stock and demand. Gross profit margin reveals profitability after production costs, while COGS helps track production efficiency. Additionally, return rates and supply chain lead time are important to assess quality and operational effectiveness. Metrics for Service-Based Businesses.In contrast, service-based companies focus more on human capital and customer satisfaction. Key metrics include:
These help measure how effectively services are delivered and how clients perceive the value received. For consultancy and agencies, revenue per employee and project margin are also important to gauge performance. Metrics for SaaS.If you work at a software-as-a-service (SaaS) business, recurring revenue models mean different priorities. Important KPIs include:
Tracking active users and engagement rate can also indicate product adoption and potential for upselling. A low CAC and high LTV indicate efficient growth. Metrics for e-Commerce.E-commerce companies track similar metrics to retail, with emphasis on digital engagement. Key KPIs include:
Traffic sources and cost per acquisition (CPA) are essential for evaluating marketing performance. Fulfillment metrics, like delivery time and order accuracy, are also critical. Metrics for Financial Services.In financial services, risk and return are central. Metrics to track are:
To understand your profitability and risk exposure, look at your return on equity (ROE), net interest margin (NIM), and non-performing loan (NPL) ratio. To gauge scale and trust, focus on customer growth rate and assets under management (AUM). The Takeaway.Ultimately, the metrics you follow must align with your strategic objectives. For any business, tracking a mix of financial, operational, and customer-focused metrics ensures balanced performance monitoring. Your choice of metrics should reflect not only your industry but also your company’s growth stage, competitive landscape, and core value proposition.
What about you? Which metrics do you follow? Please comment – I’d love to hear your thoughts. Thanks, Tom Myers |
AuthorTom Myers is an accomplished business leader with over two decades of success building organizations from the ground up with multiple successful exits. He holds strong expertise in designing and implementing winning strategies, change management, improving operations, driving business development through sales, marketing, PR, and strategic partnerships, and effectively building and leading teams toward a common goal. He has effectively served in C-suite and Board positions in for-profit and non-profit organizations, and currently offers Fractional CXO and advisory services via V2R Ventures. Special thanks for images from rawpixel and 123rf .
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