Consider all indicators that contribute to traction

Does having good numbers mean you'll definitely get more money for your business?

Unfortunately, no!

Business owners think they'll quickly get more investment if they reach a particular goal, like making $3M annually.

But it's not that simple.

What your business made in the past (like revenue and growth) is important, but it's already happened.

Investors are more interested in what will happen next with your business.

They look for various factors beyond just milestones when deciding to invest further.

They're interested in the company's potential for future growth, its business model's scalability, and its founding team's strength and vision, among other things.

Simply reaching a milestone, no matter how impressive it may seem, isn't a magic key that unlocks additional funding rounds.

Let's look at three different businesses, each making $3M in ARR:

Company A:

They doubled money every year, which sounds great. But the money came from different products and customers. It's messy and complicated to grow bigger like that.

Company B:

They are doing really well, too, with lots of customers and growth. But all their money comes from a very niche market. It's hard to see how they could become much bigger.

Company C:

They have lots of customers and are growing fast. Most of their money comes from one area they can keep selling to in a way that works repeatedly. They've already planned how to move into new areas smoothly and why those steps make sense.

Remember!

Don't just focus on your past success when considering getting investors interested.

Think about the future and how you're going to keep growing.

That's what really grabs their attention!