Entrepreneurship and Small Business (ESB) Certification Practice Exam

In which stage do sales gain momentum?

1. Traction

2. Growth

3. Monetization

4. Prototype

The correct answer is: Traction

The stage where sales gain momentum is during the Traction phase. This phase follows initial product development and focuses on building a customer base and acquiring users. During Traction, a company typically refines its product-market fit and begins implementing strategies to increase visibility and sales. Marketing efforts increase as the business seeks to establish its presence in the market and attract a larger audience. The Traction stage is characterized by key metrics showing improved sales figures, user engagement, and market interest. It is often marked by the company receiving feedback from early users, which can lead to product improvements, better targeting of marketing campaigns, and ultimately, increased sales. This phase is crucial, as it transforms initial concepts and prototypes into an operational business generating revenue, setting the foundation for further growth and expansion. In contrast, the other stages focus on different aspects of a company's lifecycle. The Growth phase follows Traction and emphasizes scaling operations and expanding market reach, which might not necessarily indicate an immediate increase in sales momentum as the business is still reinforcing its processes. Monetization is about generating revenue from a product, but it presupposes that traction has already been gained. The Prototype stage is an earlier phase involving product development, where sales are typically not yet a primary focus.