Netcore has been my second profi-corn. Its 22-year existence can be split into two parts – the first 10 years or so where we did not grow because of my inability to create commercially viable products (other than a mailing solution for enterprises). In the second period, post 2007 or so, I got out of the way and brought in professional management to help build the business. That worked wonders. Netcore’s growth over the past decade has been spectacular – funded by its profits.
Netcore has stuck to a single focus – solutions for B2C companies. It started with SMS and email, and over the past few years expanded to a complete marketing technology (martech) stack. We made many mistakes en route, but none serious enough to kill us. We weathered many storms, but never deviated from the focus on ensuring profitable growth. Netcore has been led by 3 CEOs over the past 13 years who echoed this belief on profits.
I may make it sound easy, but it has been anything but that. When one sees competitors raise and splurge money, there are moments of self-doubt. I have had potential investors tell me that I was sacrificing growth for profits. I had never thought of this as a trade-off, but I do take criticism seriously and have introspected on this many times.
My conclusion is that each company has a certain DNA and that replicates the founder’s core beliefs. By nature, I am a fiscally conservative person. Once in my life in Netcore, I took the “cash burn” path (with my own money) and chased valuation – before my wife (who has been more than my equal in both IndiaWorld and Netcore) brought me back on track. For me, growth means being profitable, and being profitable ensures growth. They are two sides of the same coin. It’s not an either-or when it comes to profits and growth.
Tomorrow: Building a Profi-corn (Part 4)