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Navigating NetCore – The Past Year

August 24th, 2009 · 3 Comments

Running a business is exciting and challenging at the same time.  There are many decisions one has to make and live with the consequences if they turn out to be wrong. In the past year or so, we at NetCore have faced many such decision points. I want to share some of these  moments and the thought process that went into each of those decisions. Hopefully, this can be good learning for entrepreneurs and managers.

Last November, we faced a moment of truth. The burn rate (revenue minus expenses) was very high. And one of our revenue streams (mobile ads) slowed down dramatically. October was our highest revenue month, and November was our worst month.  The next month wasn’t looking good either. And all around, there was talk of the impact of the economic slowdown hitting India.

Continuing on the same trajectory would have meant that the burn rate would have gone higher, and it would have put a lot more pressure on the other revenue streams. While we had a certain business plan, it was time to re-evaluate quickly and do a significant course correction. Else, we could just end up becoming a black hole for investment money (which in this case was my own).

Continued tomorrow.

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3 responses so far ↓

  • 1 Ananth // Aug 24, 2009 at 10:35 am

    What next ?

  • 2 smitha // Aug 24, 2009 at 3:25 pm

    One of the obvious reasons for burn rate would have been wages, since running expenses would not be significant in a typical IT company.

    Assuming the above, what was your solution? a simple percentage wage cut?

  • 3 Saurabh // Aug 24, 2009 at 4:38 pm

    I believe that was the time to create another revenue streem with the corrction and modification in existing one…

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