By definition, an early-stage impact enterprise has a limited track record that allows an investor to assess its growth potential. Thus, indicators of traction are key to assessing whether the company has momentum and the entrepreneur has the drive, skills, and persistence required to grow an early-stage enterprise. The entrepreneur should be able to answer the following questions:
• What key milestones have you reached?
• What has been your biggest challenge to developing traction to date? How have you or how are you working to overcome it?
• What are your next key milestones?
• Can you provide customer references?