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Brendan Rodgers is satisfied with the progress achieved by his Liverpool team during 2013 and is confident that the club's supporters sense an upward trajectory at Anfield.
The Reds drew 2-2 at Newcastle United on Saturday and now sit in third place in the Barclays Premier League after losing just once in their eight fixtures so far this season.
While erring on the side of caution with regards to a potential finishing position, the Northern Irishman explained how and why his side will evolve into challengers.
"It was a massive job, coming in here. The opening five or six months were difficult," said the boss.
"But since January, I think in terms of points gained, we are in the top three in the country. Hopefully that is an indication that we're doing well and that the club is in order.
"I still think there's a hell of a lot of improvement for us to make, but in the main we're a tight unit, and we just need to keep moving forward.
"We're here to compete. Liverpool is one of the great institutions of the game. We're never happy when we don't win, but you have to have a sense of perspective as well.
"To challenge, we need to rely on our coaching, and on bringing players in who are hungry. That's key.
"You need players that are hungry to succeed, players that are at an age where they're not just happy to be a Liverpool player, they want to win as well.
"There will come a time when we start looking at when we can challenge, but we can't get carried away. The club finished eighth the year before I came in, and we finished seventh last year.
"We have stabilised the mentality, there's a strong culture at the club now, and I think the supporters can see the direction we're going in."