Hey - Marc here.

Happy Saturday morning Motivated B2B SaaS Founders.

Here's at least one tip to keep in mind as you grow your B2B SaaS company

Today's issue takes about 6 minutes to read.

In today’s issue, I share some key takeaways from an interview between Roshan Cariappa, the host of the StartUp Operator Podcast, and Kalpit Jain, CEO at Netcore, where they talk about how Kalpit bootstrapped his customer engagement platform to near $100MM.

Now enter the show!:

How Netcore Started:

Netcore started in 1997 during the early days of the internet in India. Netcore originally served as a technology company for its parent company India World where they leveraged open source technology which allowed them to provide cost effective solutions to their customers (hence bootstrapping). Netcore’s first product was mail servers they created for their employees as a way to avoid having to pay for costly Microsoft Exchange or Lotus Notes accounts.

Fast Forward to:

2006: They formed their bulk SMS platform that allowed customers to send SMS messages to their customers

2008 and 2009: Netcore entered the email marketing space. Their ecommerce customers wanted a more cost effective means to communicate with their customers via email (as opposed to just SMS).

2015: Consolidated the Netcore Suite of products through forming their Marketing Automation Platform which they call a Customer Engagement and Retention Platform.

2020: Netcore acquired Hansel.io to optimize funnels with no code

2022: Netcore acquired Unboxed an AI based product discovery platform aimed at enhancing their customer’s experience

2023: Netcore is expecting to IPO as their next milestone.

Today, Netcore is Asia’s largest email marketing company sending over 20 Billion emails a month and is focused on continuing their international expansion into North America.

Challenges

Growing your B2B SaaS company doesn’t come without its challenges. The model that Netcore has employed started with an SDR team that generates meetings for their account executives and then having their account executives provide the demo or the POC for the customer while working to move the opportunity to a close. A model where the SDR and BDR team are able to help buyers move from prospect to customer with minimal friction is easier said than done Kalpit says, but it can be done and has worked for them. (Systems and Standard Operating Procedures are important here).
Can you actually provide the solution to the customer while they are in the evaluation phase? Many Mid Market or Enterprise brands have trouble providing Proof of Concept (POC’s) at scale which can make it easier for a customer to enter a long term agreement with you. Kalpit mentions that Netcore’s ability to do this is one of the reasons why they have experienced their success to date. Again this is not always easy when much of the sales cycle is conducted by people as opposed to a self-serve solution.
Aligning marketing and sales so that they have a common number they are accountable for. In SaaS organizations marketing departments might get frustrated that sales is not converting their leads and sales might get frustrated on the quality of leads that marketing provides. Ensuring marketing and sales are working together toward the same number as opposed to solely different metrics enhances the chance of success.

Advice to Other Founders (Advice to founders on Building to Last)

Customer conversations is where the real learning comes from. This is where you as the Founder should be paying attention as this intel is what will be used to drive your product roadmap.
To differentiate yourself in a competitive market you need to understand first that competition is good. At the same time: try to differentiate by asking yourself how to provide a solution that is fully owned and supported by one platform so you are not entirely dependent on third party integrations in order to bring in revenue.
Be Customer focused as opposed to competition focused or investor focused. Build what customers want to use first and you will increase your chances of success.
Build an organization with the idea that it will be “Built to Last”. An IPO may be a milestone on your journey but you need to have a vision for the organization beyond that.
Be customer focused and be employee focused. Both allow you to bring sustainable growth to your business in the long run (it’s not just about raising capital).

Bonus (Advice from Kalpit for Founders when the Economy takes a downturn)

1. Hold your ship tight. Don't let people go because of investor pressures. Maybe you stop hiring. But if you have motivated staff, they will help you accelerate growth when the storm is over.

2. Look at your costs very closely in a downturn (where the money is being spent and where are you not getting your best ROI).

3. Focus on Improving your sales efficiency (the rate at which you close deals). It can help you take pressure off

Recommended Books by Kalpit:

1. “The Infinite Game” by Simon Sinek (the Netcore Philosophy is based on this). This is great for Founders who want to build a sustainable long term organization.

2. “Start with Why” by Simon Sinek. This helps Kalpit to not forget the core essence of why he is building what he is building at Netcore.

3. “Built to Last” by Jim Collins. This helps you look at your 25 year horizon and helps you think long term.

TL:DR

Kalpit was able to successfully build his company by developing systems and a thought process which focused on thinking long term. If he has used systems and a sales structure to successfully grow his organization, then why can’t you develop Standard Operating Procedures (SOPs) that do the same? What are you waiting for?

P.S. Here is a link to the full interview if you are are interested in listening to the full episode https://podcasts.apple.com/in/podcast/ep-178-building-to-last-kalpit-jain-ceo-netcore-cloud/id1509369847?i=1000566503525

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See you again next week.

Whenever you're ready, there are 4 ways I can help you:

1. B2B SaaS Sales SOPs Templates here. (Do it Yourself)

2. 1:1 SOP’s Call (Consultation Call for Guidance)

3. Create your own custom SOP's with our help here. (Done with you Service)

4. Work 1:1 with me to create customized Sales SOP's to remove yourself from the sales process and virtually guarantee that your investment in your next salesperson ensures they will hit their number? (Done for your Service)