Our strategy? Simplicity!

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Pitch

ServersCheck offers an industrial (IoT) solution to monitor our customers’ critical infrastructure. It is a complete, affordable, open, scalable and modular platform in use by more than 7,000 companies and organizations worldwide. Our USPs include competitive pricing, but the modularity, scalability, and simplicity prevail.  

Facts and Figures

We are a multinational with just a small team on the payroll; we primarily subcontract most of our work. ServersCheck enjoys an annual digit double while not having had to rely on external funding and this since its inception in 2003. Now active on four continents, Europe, US, Asia, and the-newly opened branch in Australia, ServersCheck is looking to grow in the Pacific, as well. We originally designed our platform for the IT industry and have since deployed it in many other but with a primary focus on telecom, health care and industrial sites.

"Because we let customers pay upfront, we probably miss out on deals, but I'd rather lose a deal than my company."

2001. The technology company Netmining is well-run by young, humble, but driven, entrepreneurs and things are going well. The company wins national and international prizes—until suddenly a takeover worth billions is announced in the technology sector, like a thunderbolt in clear skies. Netmining’s biggest contract is shut down. A special Board of Directors makes the difficult decision to dismiss everyone except one person. It was a heavy blow as Founder and CEO, but it was either that or declare bankruptcy. Once Netmining found a safe haven, I decided to start over. On the back of a beer coaster, I listed a number of criteria that my next venture should meet. I did not know what I would do, but I did know how.

These were the ironclad conditions written on my coaster:

- It must become a global enterprise. I am a pilot with wanderlust, so I want to travel the world, for pleasure, but also for work. If things go bad somewhere, then things usually are going better somewhere else. I spread the geographical risk.

- The focus must be on sales and marketing. All other things, such as product design and development, production and support, must be outsourced.

- The product can take many forms, but a market must already exist. I want a product in a proven market with active competitors. No more evangelizing, and no first-customer dependency.

- There must be many customers instead of a few big ones. If one drops off, then it will be a lesson, not a drama.

- I want few permanent staff and as little overhead as possible. I want to ensure flexibility so that I can handle a setback.

Making up such a list is a good idea every starting entrepreneur.

About Money and Venture Capital

Start-ups appear in the newspaper when they have raised a large sum of capital—or because they have gone under. It seems that raising money has become an end to itself. But raising money is anything but a measure of success. One of the most important lessons as a starter is that you begin to dilute as soon as you take on venture capital.

An investor is the most expensive form of capital. You also have customers; they are the cheapest form. Instead, first make sure that your customers pay and that you have good cash flow. If you then need additional funds to grow, you can make a capital round on your conditions—not the investor's. But before talking to investors, look at other financial instruments (loans, grants, …). With investors you have to relinquish part of your business. Are you ready to do that? Furthermore, I personally prefer an industrial venture capitalist to a financial one: he also gives you smoother access to your target market instead of handing out just a paycheck with expertise or a network.

 Investors can serve to fund your growth. But as a company, you can also take a number of steps to secure an income. For example, ServersCheck customers had initially to pay their orders in advance. As global sellers, we cannot ensure payment is collected from, say, Uganda, once we already shipped our products. We probably miss out on deals, but I'd rather lose a deal than my company.

You can never say for sure that you will not need investors. My only motto is to build as compelling a dossier as possible. Be profitable, have customers. That way you stand strong when you knock on their door. 

Simplicity

Our strategy for this year is simplicity—in the way we interact with customers, with partners, and internally. Simplicity all down the line. I paraphrase Albert Einstein who said, “everything must be made as simple as possible but not simpler” meaning: uncomplicated products & operations without compromising on functionality or capabilities. Don’t underestimate this; as a company it is a difficult task and it never ends. As you develop your company and product, you unwittingly build additional layers of complexity. So you have to go back to the drawing board and rethink everything to make it easier, not more complex. Our internationalization strategy is also very simple: always listen to our customers and follow them. We go where our customers take us.