I am currently creating a business plan for a future business. This is my first time creating a business plan and I am confused on what a traction section in the business plan looks like for a business that does not exist yet.
Startups.com has shared some example business plans here for anyone struggling with their own plan: https://www.startups.com/library/expert-advice/top-4-business-plan-examples
Hi,
For a business that does not yet exist you would have to put a projection in your business plan. Then put what tool you would use to create the traction that will generate the sales.
A traction is therefore what you will or are using to create the traffic to your product. How well are your clients buying into the product and what success are you seeing from what you have been putting out.
From what I am understanding from traction it would means that your product would have to be off the ground already .
As a retail branch manager for almost 40 yrs I had to create branch marketing that would generate the sales to give my branch the profit that was projected for the period.
Some of the things you can look at to create that traction is
a) Discount on particular product/products for a specific time.
b) Cold calls with specific follow up schedule
There are others but feel free to set an appointment.
Without history, no traction.
Traction is a measure of the output of a working business model, so no historical data, how can you measure it?
As you are doing business, you need to be agile, should not follow things that are not logic
If traction not available in a normal way, show that you had done similar output (deliverable) prior to the new business. Use this to create evidence of why your business model works.
The traction section needs to show your business' growth (in sales, users, subscribers...) on a monthly and/or yearly basis. You can take numbers from other similar industries or competitors and use those to project your specific business numbers in a fairly accurate way. For example, e-commerce websites usually (depends on the field/products) has a conversion rate of 1%-2%. If you know how many people will be visiting your website each month (based on marketing budget for example), you can tell how many of them will become buyers/subscribers.
The above is a general description - but it depends on your specific business. Also, if you are creating a startup (not a regular brick and mortar store), then DONT do a business plan, rather create a BMC (Business Model Canvas).
I've successfully helped over 380 entrepreneurs, startups and businesses, and I would be happy to help you. After scheduling a call, please send me some background information so that I can prepare in advance - thus giving you maximum value for your money. Take a look at my reviews: https://clarity.fm/assafben-david
