Create Business Traction
Traction is the action of pulling something over a surface. In entrepreneurship terms, a startup's business gains momentum when its product or services sell and its customers and revenues grow. In investment terms, the higher a startup's business traction, the lesser risk the business, the more investment it would attract.
How to create business traction then? I believe entrepreneurs should have a vision of their future goal to persevere and actualize, and a near-term mission with a business plan and action strategy to deliver value. Business traction can be measured through eg a solid team, a strong advisory board, strategic partners, getting sales and revenues.
If a startup's goods or services can make a difference by filling a gap in the market, its supply should generate demand. If a startup can also manage its brand by distinguishing it from other undertakings, it can fix the price of its goods or services well above costs. A modern profitable startup business is a business of creativity or innovation, marketing or brand management, and acquisition or exploitation of intellectual property.
Through university education, public awareness, vocational training, concessional facilities, and risk financing, public agencies can nurture a vibrant startups community. Strategic quasi-public research centres and big businesses having an ecological system of their own can also showcase to startups the innovation and technology trend, and how to monetize on it. I believe such public and private partnerships would create overall business traction of a city like Hong Kong, aspiring to become an innovation and technology hub!
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