Walk Don’t Run: How We Built a Resilient Business

When I co-founded GSoft in 2006, I didn’t build it with a crisis in mind. It’s tempting to look towards the past with frustration, but it’s also important to recognize the ways in which our business practices have brought us to where we are today. Although GSoft’s numbers are unlike what we’d projected, COVID-19 has highlighted how a lot of the priorities ingrained into our business DNA have allowed us to remain secure even amidst periods of uncertainty.  

We’ve never been perfect, but since day one, we’ve strived towards building GSoft into a sustainable business that lasts. Here’s a look into some of the key practices and transitions that I believe have contributed to GSoft’s resilience over the years.  

Shifting a Service-Based Model to a Product-Based Model  

GSoft wasn't always what it is today—a key difference between then and now lies in the scalability of our operations. Initially, we used a service-based model, essentially building software for clients upon request. Eventually, we began to channel our entrepreneurial vision and understanding of our customer's technology needs into creating products. That's why, in 2009, GSoft transitioned into a product-based model, and in 2017, we ceased offering consulting services altogether. This allowed us to focus entirely on product development, notably for our flagship products ShareGate, which helps companies adapt to cloud technology, and Officevibe, an HR tech software that gauges employee engagement. Being a multi-product company has allowed us to reach as many industries and meet as many customers’ needs as possible.  

The benefits of a product-based model lie primarily in scalability. Once you develop a product that addresses customer demands, there’s no limit to the number of units you can sell. If this sounds appealing to you, you're not alone—this business model is often sought after. However, there's a caveat: the most critical step, creating a product, is the hardest, which is why companies struggle to transition from service to product, us included.

Sharegate V1 failed, and rather than salvaging it, we scrapped and re-coded it entirely.

The production process is undoubtedly challenging, but the robustness of your product is its own reward. The profit is beneficial, yes, but the true feeling of success comes from knowing that you're making sales because your product is solving complex problems while providing a positive user experience for numerous customers around the world.  

Valuing Your People  

We're a software company, but at our core, we're people driven. We're proud of our ideas, strategies, technologies, practices and processes, but we understand where they come from: our people. This mentality has been ingrained in us since we started GSoft, and it's why our workplace culture has always been a top priority. It's unbelievable what you can achieve when you provide the right work environment. We're proud of our culture and know that it's played a major role in our success. Engagement stems from a great culture, and engaged people create better products— it's that simple.  

What we didn't know over a decade ago is how critical our culture would be during a pandemic like the one we're currently going through.

When you're going through a crisis and nothing goes according to plan, you need people who are willing to put in the effort and make the necessary sacrifices to stay on top of things. It's all interconnected at the end of the day: when you support your people, they support you in return.  

Prioritizing Client Volume  

GSoft’s vision of the workplace fosters a willingness to help as many people as possible. Today, we cater to over 13,000 clients, the majority of whom are SMEs, in multiple industries. In turn, this has allowed us to democratize our business by providing our products to as many organizations as possible at a very competitive price point.  

Although some have suggested that our strategy leaves money on the table, COVID-19 has illuminated the merits of our approach. 

GSoft's pricing model mitigates the turbulence typically associated with depending on just a few big customers to survive, which reduces overall financial uncertainty. Also, prioritizing a large client base means that, while some clients in specific industries are being hit harder and understandably taking this time to prioritize spending elsewhere, our business remains relatively steady. Overall, the multi-industry nature and volume of our clientele are allowing us to merely put our growth on pause, rather than stopping it altogether.  

The Kraft Dinner Approach   

Simply put, the Kraft Dinner Approach involves paying yourself just enough to cover necessities (like a good box of KD) and allocating the rest of your money towards savings; you’re growing your bank with your own capital. It’s nothing glamorous. It requires patience and a willingness to make lifestyle sacrifices for a long-term goal, but it aligns with my personal business priorities of sustainability, liquidity, and resilience. Here I mention liquidity rather than profit because, beyond making financial gains, it’s important to retain capital, whether it be for a new product or unforeseen circumstances. This emphasis on saving and putting profits back into improving GSoft was what allowed us to make the crucial transition from being service to product-based, and it’s keeping us financially secure even amidst this economic turbulence.   

During these times, staying cautious seems like a no-brainer, but for a long time, business and tech media narratives were centered around stories about entrepreneurs putting everything on the line and raising millions of dollars in VC funding. In contrast, GSoft has always remained self-financed. The cautious mentality that we developed during our Kraft Dinner days has stayed with us throughout the years.    

Here at GSoft, we’re risk takers, but not the kind you read about in the news.

Once again, the risk-taking we employ isn’t glamorous. But it yields something more tangible: sustainable growth and long-term resilience.    

Looking to the Future  

The reality is, there is no singular ideal way to run a business. GSoft represents a niche: we’re a self-funded SaaS technology company and therefore, our business model cannot be applied to most. However, regardless of what industry you’re in and regardless of whether you’re VC or self-funded, considering scalability, thinking long-term, putting people first, and prioritizing sustainable growth is always beneficial.  

Ultimately, my approach can be summarized by the idiom: prepare for the worst, hope for the best.

Although right now, many of us are taking things day by day and weathering the rollercoaster of uncertainty, I believe that companies will emerge from this situation stronger, and more resilient than before.