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).