Warsha Joshi  00:03

Hello, hello, hello, and welcome to another edition of The Power Hour with Dare to Scale. My name is Warsha. I am a coach, business coach for founders’ CEOs. I’ve been doing this for a very long time as most of you know, and I specifically coach second generation’s CEOs, because that’s one of the greatest ways to contribute to the local economy by helping businesses succeed and transcend generations and create legacy businesses.

 

So today is a very critical topic. Now, this is a topic that has been an ongoing scenario for the last two editions if you have joined us. And if you haven’t, please go back and listen to those two as well to see where this particular topic started. And we keep going back into it. And mainly because just as a chance meeting, I met with, Surabhi, who is our guest speaker today.

 

Surabhi and I met through another network that we’re part of, and it literally within minutes of sitting down for a chat, we almost like zoomed in on this particular topic and realize that how deeply passionate we are about this topic in helping business owners do what they do to build that amazing business. (And I can see that my video is lagging a little bit. So bear with us. Everything was sorted so far).

 

In the meantime, I want to say a big hello, and a big welcome to Surabhi Shenoy. Thank you for joining us, Surabhi. Please say hello to our viewers today.

 

Surabhi Shenoy  01:44

Thank you, Warsha, so excited to be here. The topic that we clicked on, is so close to my heart. And I wish I can educate as many entrepreneurs. The things that I’ve tried, tested and worked great got grilled, almost, if I can make it easier for somebody, my job is done. And I think you do the same for from your own experience. So here we are today trying to make a difference in our way.

 

Warsha Joshi  02:20

You bet. So first of all, let me do proper introductions. Surabhi is a CEO’s coach. Why is she a CEO’s coach and why Surabhi’s story completely resonated with me is because see before turning coach, Surabhi is a twice, exit and build run successfully exited to businesses. And that wisdom that goes with having that experience behind you is invaluable. And knowing from her own experiences, now, Surabhi, thought well, what can I do to impact business owners a little bit more in my own way. And that’s when she says, well, whatever experience that I have gained, I’m gonna start importing that how wonderful it is to be welcome to the world of business coaching, it is one of the most rewarding fields out there. And it’s one of the most impactful fields out there as well. So, again, welcome to this amazing world of business coaching.

 

Surabhi Shenoy  03:28

I couldn’t have said it better, Warsha. So thank you for that. And it’s been a journey. It’s been a journey of almost 20-22 years, building businesses, growing them, struggling through them. And then finally finding my wisdom. And a lot many people played an important role in that. I mean, I cannot take even a bit of credit, just by myself, right? I mean, I always say we stand on the shoulders of giants, people who have worked before us and imported their knowledge and then walked in my experience as my advisors, mentors, and made it slightly easier for me, you know, but as I started receiving their experience and their wisdom, my journey became slightly easier and more pleasurable rather than me feeling I’m fighting the battles all the time.

 

After selling the second business after exiting the second business. I actually thought I’m going to be submitted tired. It’s used to creating that impact that it almost gets addictive right that we want to be useful when we’re not breathing on this earth. I want to give back and the drive doesn’t go down even if the business is not anymore with you. Did you experience because you have done the similar thing, so you’re still in the business?

 

Warsha Joshi  05:04

Yeah, absolutely, I still run a business, it’s going to be 14 years old, early next year. So yes, every single step, every single day is a new day, every single day, we somehow add when I wear my business owners’ hat on, my founders’ hat on, while I have a brilliant team backing me, we cycled through that emotion at least once every 24 hours. So being, oh what and that overwhelming sense come through to say, where is this going? What’s the next step? What is the biggest step? Which absolutely brings me back to today’s topic is maximizing value, building value in your business, building wealth in your business, and how these are critical pillars in eventually maximizing the valuation of your business.

 

Surabhi Shenoy  05:58

So the question they would ask me is, yeah, sorry.

 

Warsha Joshi  06:04

No, no, it is. And that’s one of the reasons why I actually put valuation in the title of this event. Because while we are today, talking about building, maximizing the value in your business and building wealth, eventually these are critical pillars when your business is being valuated. And most business owners in the early stages, and now I’m talking about strictly brick and mortar businesses, old school businesses, if you will, they very rarely look at that as long-term goals. Yeah, yeah. Bill for life. Totally. And I’m just gonna take a tiny bit of a pause and address this.

 

One of our listeners has put up a question to say, what is retired anyway? So true, what is retired anyway? Because there’s no that word doesn’t exist in most of our minds now, because it just I would, interestingly, this is, this is what I was, I was talking to Evan, as most of our wonderful listeners already know, Evan, and I have built and work together within Dare to Scale, along with our associate coaches.

 

Just yesterday, I was having this chat with him to say, I want to be working, I want working income in quotes, but I want to be delivering and doing what I do what I love to do, till my last breath. I mean, if I 50 years down the line, pass away, while talking on stage, I think I would love that, because there’s no such thing as retired, and then do what because the call constantly is, and then do what is always there. Is that like, is that for you as a way because the word retired doesn’t resonate?

 

Surabhi Shenoy  07:54

Yeah, and not at all. I mean, that was my fancy idea. Because when I was in the business, its kind of was once you take a decision that you want to exit, you know, you want to quickly exit because patience is not a virtue. It’s not any, any entrepreneur’s virtue, per se, you know, because if we were patient, we wouldn’t be doing what we do, right?

 

So if the idea comes, then we want to want to have the results as quickly as possible. And I believe that because we are so driven, that demand is right. But at the same time, there is always a place where you need that stillness, to figure out what’s important. And having a goal is one thing, but having the right goal is totally different thing. And I have so many conversations, where, you know, people are inspired by brands that are built over generations, and I want to be that brand, they say. And I want to encourage today’s entrepreneurs, that that’s great, but how about you creating your own brand for the future? You know what I mean?

 

So being inspired by previous generations and brands, but that was a different generation and era, we came out of depression, and we were struggling for money and basics, you know, and today, that’s not the case. Today’s millennial and Gen Z is definitely not in that era.

 

So what business would you be built today for that generation may not be may not follow the same line of path that those big brands followed, successful companies followed and where they are today. So they themselves are reinventing at a much faster pace than we can imagine sitting here. So yeah.

 

Warsha Joshi  09:51

Digressing a little bit and but I want to pick up your point, mainly to say that and because you said the word inventing or reinventing, I want to go a step further and say, at every phase, in every century, every decade, everybody has gone through their level of invention, innovation. And that’s why we are where we are today. It’s somehow invention, innovation has suddenly been the buzzword for the last couple of decades. And yet, if we weren’t always inventing, or if we weren’t always innovating, something, we wouldn’t be here. So I want to put back innovation to every single business that it was started. Because at every phase, we’re wanting to do something better.

And I just made a note over here to say what, again, what is success, and for me, success is that constant quest for knowledge, it is about the quest for constant improvement. So we move away from the perfection stage, and we go to constant innovation, constant improvement, what we did yesterday can be done better today.

 

Literally, if we look at it like that, what a wonderful world nevermind world to live in. But also, if we just look at our businesses, what a great way to look at a business like that. It’s about constant continuous improvement –  Kaizen.

 

Surabhi Shenoy  11:29

I’m a big fan of that, very good.

 

Warsha Joshi  11:31

Totally. Okay, let’s get on to today’s topic. Because I am very keen to know what your thoughts are on that, and what are some of the things that you’re contributing. And I want to build that, along with my take on what I do for creating legacy businesses. So I’m going to hand over the mic to use survey to talk about what does maximizing value in your business even mean, because for a lot of people, those could just be words, and yet, those are words of wisdom. So over to you. Go for it.

 

Surabhi Shenoy  12:09

I’m going to take a step back and first talk about why is this even important topic? Why one should even care? And then we will get into once you get that that was the benefit of this? Why should I care about this point? Because most of the entrepreneurs think I’m barely fighting the battles of today, and barely keeping up with what my business demands? And the growth that I see. What is she talking about value?

 

Right now, it’s not even on my horizon, you know, but in my personal life experiences, and then observing through that lens more so, what I realize is, life is very unpredictable. First, you know it, I know it we have lived it. Yes. So you never know what situation business is going to be. And therefore you as a consequence of it isn’t going to be the situation right?

 

I want to give you an example here. I know somebody a company was being built over the last 15-16 years, been doing very well, they are almost market leader in their own region, and space. Now a global brand, much deeper pockets, much, much more stable and proven success track record. Once they enter the market, and they approach this company, this business, doing a handshake, saying that we would like to partner with you, because you guys know, the market, you understand the language, the culture, and it will be so much easier for us to shake hands and get in the business together. These guys are super excited as the company right, great, we’ll get more capital will get more opportunities, the business will grow, etc, etc, then what comes is we would like to take this much stake. And this is what we are willing to pay for it, for a period of time right?

 

Now when they look at that number, it’s a heartache for them, it’s an angry moment for them. We work such so much blood and sweat in this business. And these guys are valuing it at this price. Now, the back is on the wall, right? Because if they accept this offer, it’s peanuts. If they do not accept this offer, the brand big brands is going to enter the market and either become a competition or shake hands with somebody else. So either ways, it’s a big competition for these guys. What do you do? Yeah, is it an opportunity or is it a calamity? I feel the grief on their side at the same time, what do we do and no entrepreneur. See, this is all about having a freedom to decide freedom to do what you like to do. And suddenly, you know, somebody else is dictating the terms, and you never signed up for that. So it kind of goes against why you started the business, right? But sorry to say, you didn’t care enough in the beginning, if you would have been careful that I want to build value in my business from day one and monitor that number, I would have done better.

 

Warsha Joshi  15:36

Just to just share my slightly different take on that to say, most when you said at that stage, in the beginning, maybe you didn’t care enough. And I want to put that slightly different spin to say, most people even may care enough. They just don’t know enough. Because as new business owners, or even seasoned business owners, when we say seasoned people who’ve been running their business for 3, 5, 7, 10 years, may know it, but maybe they don’t know where to start.

 

So it’s a little bit of both care factor, sure. Because in the beginning, that’s the last thing on your mind like Evan, and it was Evan who says, no one jumps out of bed to maximize valuation, it is about building for life. It is totally true. And Evan, thank you for joining the conversation on the sidelines today.

 

It is it really is about most people don’t know most business owners don’t know that is one of those, those larger pictures out there. So whether they care or not, they probably don’t even know they should be caring about something. That’s all, please over to you.

 

Surabhi Shenoy  16:52

But like I said in the when I started on this point, right? I mean, first I want to talk why is this important? Because when I talk about it, most of the entrepreneurs have that reaction that why should I even care? I have so many problems to solve right now. That this is not on my horizon. Coming back to the point. Okay, maybe choice of words? I didn’t mean that they don’t care. It’s a kind of, yeah, it’s not on the priority for them. I mean, I was there at one point in time. So I understand.

 

While being here is there are many opportunities. Even today, in 2018, I can say that 2018, there was a big report survey done 53% of business owners and I’m talking about businesses that are built for like 53, Warsha 53% of business owners would like to exit their business in next 10 years. But they don’t know how. They think my daughter, my son will take over.

 

But I’m also tell you the same report said that four out of five head of children say that they don’t want to join that business. Yes, they rather, they say that, that you sell the business or you exit the business, get the money, invest in my business come to my business as a mentor. Rather than pulling me into that business which I may not be interested it may not be relevant today. It doesn’t excite me. So that’s where the legacy part is going.

 

Now, what I’m getting at is life can throw many opportunities or many situations where you may want to, you may want to have your value. But because it’s not a last minute thing, it is not something that you start doing. Yeah is done tomorrow.

 

Second part when I say when I kind of mentioned why should they care? I always ask this question to my entrepreneurs, right? People I talk to when you bought a property when you anybody when they buy a property, what is the first thing that you will look at? What is the first thing that we look for? Is the value of that property. Is it that value going to increase? Isn’t it so we think that we are going to buy this property only if in 10 years is going to give me much higher better returns.

 

Now when that is the asset that you want to acquire and you’re so careful about it, you buy small little shares from a company that is listed in the stock market. You are owner of very teeny tiny part of that company. And you look at the stock market. Is my stock price increasing? You’re jumping on the chair right is it is the market going up? Is my stock, is the company that I purchased is increasing.

 

And here is 100% of equity stock of a company which is more assume your control, unlike property, unlike the stock that you bought, and you don’t really look at the value of that shed, isn’t it? That’s why I want to wake up, I want to wake up all this world, in terms of all entrepreneurs like me where I was at one point in time, that, please, let’s pay attention to this aspect of from the beginning. Earlier you start, the higher the chances of you increasing the value systematically, even if you do not ever sell. Even if your legacy is willing to take over and build it further, you get better investments, you get better debts, you get better opportunities. And when you focus on that number, suddenly, the whole business gets built in so much more calmer, predictable, stable way. And then you sleep peacefully, you retire, or you do not retire. But yes, you build a solid foundation. And then that gives you a sense of ease.

 

So that’s my reason why I think and these are plenty, I mean, I can go on how many stories and case studies I can tell you.

 

Warsha Joshi  21:12

I know, this is this is brilliant, you’ve set a wonderful, you’ve set the scene for why focus on maximizing value. And similarly, I talk about why building wealth, if they go hand in hand, and one is a result of the other, so cash generation becomes an easier scenario when we’re building value within your business. And yet, most business owners also don’t prioritize on actually building value in your business or rather building wealth in your business, then it becomes a game of generating cash and spending cash to scale it sort of with a short-term view, if you will, not so much putting that legacy building that next 10 years, 15 years, 20 years view on the picture today.

 

So I love that what we’re both talking about works as a as a consequence of each other, if you will, one lens to the other. It’s a cycle, it’s a circle, it’s that the yin and yang scenario when one works, the other works to support the other. So it’s just these two topics go hand in hand so beautifully within your business. So, Surabhi, what are maybe two or two or three areas in your business, that one can even begin to look at as building value.

 

Surabhi Shenoy  22:59

Yeah, there are many. And if I must prioritize and give you here. I think nothing beats, finance, financial numbers, financial stability is the most important aspect of your business. If that is secured, everything else works.

 

And when I say finance, I’m talking about revenue. Now, it’s not just revenue, right? Your revenue could be increasing, you could be growing year on year, but diversified revenue for example. So how is that revenue increasing also is important. How diversified otherwise, one industry stops one type of customers one geographic goes away. And suddenly you’re, you know, toppling down. So diversified revenue, very important aspect.

 

Now your profits, your gross profit will tell you how your sales are doing? Your marketing campaigns are running? What’s your branding? You passionately talk about Brand Promise, Warsha, I know that.

 

So when we’re talking profit, I’m talking about profit from what? So your gross profit and if your sales are actually showing that profit, right? And your net profit, then your operational efficiency comes in the picture. If, for example, okay, your revenue is growing steady, your numbers show that your revenue is growing steadily and your profit, your fixed costs should remain same. Most of the fixed costs should remain same, your sales and your operational delivery cost can increase. But other than that your fixed costs should remain said you’re the same office, you’re mostly same HR, same recruitment team, same admin, it shouldn’t increase most of these things shouldn’t increase.

 

Now, if your profit is not going, considering that fixed price and increasing slightly better than it should have increase. It actually tells me so clearly about the financial discipline of the organization. It tells me it shows in the leadership straight, then a no to add any value or we’ll look at it. I mean, any, any budding wants to look at your business, purely health of the business, these are clear telling points. And it works beautifully.

 

So I’ll say revenue diversification in multiple ways, right? Not just as profit. And I think both of us dance to the tune of cash is king, right?

 

Warsha Joshi  25:28

Yes.

 

Surabhi Shenoy  25:32

See, look, it’s very simple to me, in my mind, right? Growth needs cash. And it’s easier to bigger well, then make it rain. So if you have cash in the pocket, cash in the bank, cash in the business, liquidity I’m talking about, then you can grow.

 

There is a beautiful article actually written by Harvard Business Review HBR how fast your business can afford to grow. Maybe I would like many as many people to read it because it talks about people aspire to grow, but then they look at I don’t have money, I don’t have money to develop new products innovate, I don’t have money to do marketing, I don’t have money to do sales. So you cannot grow because you don’t have liquidity, you don’t have extra cash. So, for me cash, third part liquidity most important thing, right. So, these are some of the financial numbers that are extremely important.

 

Second comes as a competitive advantage, I think, I will read that because it takes no time to commoditize today, all information is available. If you are winning in a particular industry or particular place, then what is stopping somebody else to create a copy that right? And just replicate? And do it better? Because they are not struggling through the cycle of inventing something or creating something thinking through something?

 

Now, in that case? What’s your competitive advantage? You should know it? Don’t even declare it to people, but you should know it. Because, yeah, that’s where you can claim your money. That’s where you can rate charge better. You know, I’ve been in services business, we had products, but we had services, that’s the diversified revenue channels, right?

 

So most of the services, and this is my experience today working with all other entrepreneurs, if they are in services, they tend to think, what competitive advantage can I create? Right, because everybody’s doing it, I’m also doing it, what competitive advantage I can create, but it’s, that’s where they that’s where innovation should come in.

 

People think innovation is building rocket, no, it’s not it’s in the books, it’s in the your Excel sheet, you must look at it and get paid that bill that competitive advantage, it could be speed of delivery, it could be some cutting edge technology, it could be cost of ownership being reduced, like we used to work with open source technology, right, we would go to bank and we would say cost of ownership comes down drastically. And we had a small team who would deliver at speed.

 

So if you want something done like that, you call a big, you know, CMMI companies, they will take three months, six months, you call these guys, they will do it in two weeks, one month, whatever. So you know, so that gave a competitive advantage.

 

So even the smallest of the services company, you still should force yourself know your competitive advantage and build around, build your HR policies, build your build your incentive system, but all of that around that competitive advantage so that it’s known to everybody and it’s kind of cherished in the company. If you are in the business where you can create intellectual property some kind of something that is unique to you and people would want that that property, then you become a really great target for investor or even handshake right, any kind of partnership.

 

Warsha Joshi  29:17

So that I want to add on that one point that you said about, if you are in a business where you can create intellectual property, I go step further and say that IP, that you’re unique way of doing things, if you will, can be built in every single business out there every single industry out there every single profession out there just requires that creative thinking to say what is that one thing that I control? What is that choke point, that me as a company, me as a as a business owner in my organization controls and how can we prefer I like that to the point where it is so well defined and well differentiated, that handshake, those investors will come for that one thing, because by controlling that choke point by creating that IP within your organization, you are essentially controlling that section of the market.

 

Surabhi Shenoy  30:20

Yes. And I’m going to that add, I think that’s where, see, thinking is a hard job, right? It’s the most difficult job. And sometimes we get lazy to think. But in my experience, that’s where a coach is required to push, I’m not giving up unless and until you tell me what’s your competitive advantage, and it forces you to actually sit

 

Warsha Joshi  30:52

And help them actually build it help. If you can’t see the competitive advantage, the one of the biggest trends that I see in my role as a coach is really to say, I can see it, I’m going to lead you to that path where you can see it, and then I’m going to hold your hand to actually build it within your business and own it, own it to the point where no one else does it better than you can.

 

Surabhi Shenoy  31:17

Yes. Your Brand Promise, you know, what you always and it’s so important and when it is made as a focal point and you bet organization around that. You definitely have always been having an upper hand and say in the marketplace. So yeah, I think so finance, financials, competitive advantage. And third, if I made it then your operational efficiency, nice. Because when I say cash is king, and when I say that you need liquidity, because growth is attached to that. You have operations, which are just lazy and all over the place, you lose it.

 

Warsha Joshi  32:10

Yes. And realizing that operations are all over the place, because sometimes in the thick of it, most companies almost look at that. Isn’t that how things are done anyway? Aren’t we busy being busy. And it really is to say that busy being busy. And if they are all over the place actually recognize that for what they are, Admit and accept and recognize that improvement can be done even over here, because that’s where your actual cash is hidden. And Evan, and I do a lot of work on this in stripping that down to say, let’s see why your every single Phil every single peso, every single penny is hidden in your business. And let’s bring that out. Because if it’s hidden is pulling away, and it’s at that either you’re leaving money on the table, or it’s literally dribbling away out of your business. So great point on operational efficiency.

 

Surabhi Shenoy  33:07

And I say for two things. One is I Okay, the way you said it, bang on. So many business will have so many different pockets, and the money will be hidden in so many different pockets. And yes, I forgotten that I have this pocket and have that pocket and it could be here and it could be there. So business typically when I say it’s easier to dig a well, then make it rare. That’s what I’m talking about, right? This is what I’m talking that when we’re in debt from your own pockets, and you will have so much simple proper tax planning, proper facility from the bank, negotiating with them for your interest and other cost. All of these actually will work towards you having more money in your hand to invest or not. It’s up to you. Second point, I think operations also need to be built in my experience. It takes question is will it work without you? Will your company work without you? Yeah, most of the answer is no. Most of the time, somehow the image that they have taken in their head, which is a human only say it’s wrong. Sorry, but strong words, but it’s like I’m riding a tiger on the power hour, so,

 

Warsha Joshi  34:29

Go for it.

 

Surabhi Shenoy  34:31

I’m writing a tiger and if I get down to the tiger Tigers want to bite my back, you know, so I don’t want to get down because they see everybody doing it. It’s never challenged. That is how it should be done. Question is that the biggest question is that most of my CEO that I’m working with always start on the point. I don’t have time for coaching. If you tell me sir me to do x, I have no time to go back. I said, Okay, we’re going to start first thing, my first exercise to all my clients is Warsha. I need your timesheet I free from six. Absolutely. Because then, right and trust me, I don’t even do anything. In your months done, they only start seeing the pattern. And they realize, what am I doing? And they start circling around that these things shouldn’t be done by me. Because first there is so much repetition. I want their headspace completely empty of operations so that we can talk strategy so that we can talk about growth. Otherwise, how are you going to get creativity of any sort to actually look at? Where’s my money stuck? Or what’s my brand promise or what’s my, it’s impossible.

 

Warsha Joshi  35:50

So, thinking creatively thinking, I said, you’re speaking my language now thinking creatively think strategy. And it is because that’s what as a founder, you should be thinking about, and I use the word should, because I know she has a very strong word as well. And I deliberately use that over here is because if you are not focused on that, then you are not fulfilling your role as the head of the business, like you are meant to be, because people are looking at you for leadership, people are looking you at you for the big vision, people are looking at you to set the tone, set the path. But if you are literally counting pebbles on your path, you have no idea where the path actually is how you have no hope of actually leading your people to success.

 

Surabhi Shenoy  36:36

You give a proper vision in terms of levels, you know, so I totally agree with you. So I hope I answered your three question, three points. You comfortable?

 

Warsha Joshi  36:52

I’m gonna summarize that. And say, your first point was the first area was finance. Yes. Finance will check your finances. Yeah, revenue profits can financial stability. Second was? Yeah, second

 

Surabhi Shenoy  37:15

Advantage.

 

Warsha Joshi  37:18

Competitive building your competitive advantage. And the third? Yeah, and the third is operational efficiency. Three very key areas on even beginning to know where to maximize value, where to bring out the value. When I say maximize, maybe even let’s start with recognizing where value can be built within your businesses. So and I want to take it a step further, to say, the one place where I start, as most people know, who I work with, is strategy. Because if you find there’s a problem with cash, go back to strategy, because the answer is over there, either in the, in the definition of that strategy that you have built for your business, or the complete lack of a strategy, because most people think I have a great product, and I know where to sell it, who’s gonna buy it, and I know approximately how much to sell it for. And bam, there’s my business.

 

So that in many cases, even five years down the line, 10 years down the line, most recently, I came across a business Good, good 12 years down the line, where is the overall big picture strategy. So if you don’t know, then you will struggle with these areas to even recognize what value building even is. So start all the way back to strategy to say, Hang on, let’s actually look at what this business even means. What gap does it address in the market, because if you don’t know what gap you’re addressing in the market, you will constantly on that. That little treadmill, if you will, but you’re so busy, not actually moving anywhere, you’re not going anywhere. So you get tired, you get burnt out, you get the feeling of FOMO.

 

But the other the other thing that I want to add over here is, so I’m just going to give my couple of areas where I like to look at when we say what is it to build, build, recognize, build value and recognize build wealth in your business. Second one is, who do you bring in into your business? Who are your people? How strong is your leadership that you’re building within your business? It does leadership in your business still mean just you? Or do you actually build that talent, allow that talent to grow, nurture that talent to grow through the ranks and say, I am now focused on building a leadership team because tomorrow you have someone potentially coming in for that handshake or potentially coming in to say, well, I’m going to invest or buy you out right now. You’re essentially putting yourself in the market, on the on the market, not your business, because the minute you exit, if you don’t have a strong leadership team, an actual accountable CEO in place, who is driving your strategy forward, you are not building value in your business, you have no hope about building wealth in your business.

 

Surabhi Shenoy  40:23

You have yours, you summarized it, and you put it and you prioritize points, absolutely. In that order. The we are talking here maximizing value of the business, you are not part of it, we are talking business, we are not talking you. We are now if you have to be all in sales and marketing and operations, and you know, admin, it’s impossible.

 

Warsha Joshi  40:55

It’s totally, and just one of those examples I want to give a just recently, Evan and I were in a in a very long coaching conversation with a longtime client of ours. And it’s a well-established business. And it just, it takes a while for business owners to get that it’s important for you, as a business owner to know exactly how every area in your business works. It’s absolutely important. So then you know who to bring in to replace you? Yes. But it’s even harder for business owners to understand that while you must know everything that happens in your business, you are not supposed to be doing everything you got.

 

Surabhi Shenoy  41:40

When you said harder, it’s hard for business owners to know. I just want what came up in my head right now. So now I’m looking at coaching as my third work, I can’t call it as a business per se. The greed and temptation was to impact as many businesses versus just build my own and create that impact, right? So but then for me, myself, after burning all these businesses, after me claiming all these experience and knowledge and understanding, yeah, I personally had to go through who am I, what’s my offer, I started with, I’m going to be a profit coach, I’m going to be your business advisor to finally settling down on because I’m going to work with the person who was most responsible and required in the whole business, therefore call myself CEO coach. So for me, but I knew the importance of me having that clarity, before I go to market and start talking about what I’m offering, right. So I’m so with all the entrepreneurs and your point that it’s hard, but it has to be done. That you cannot be, there’s no easy way around this.

 

Warsha Joshi  43:02

It is hard. And in fact, one of the largest chunks of our journey with people who we work with business, especially building, bringing in the second generation, or even the original founders through is dealing King yourself from your business. Because when we are talking building value and building wealth in your business, it’s important that you dealing yourself from the business, many business owners even years later, still identify the business as themselves.

 

Surabhi Shenoy  43:34

And if I can be with one point, what what’s holding you back, it’s one reason for that,

 

Warsha Joshi  43:44

Oh, emotional entanglement. This is mine. I have built a just yesterday. And this is something it’s been a pet peeve of mine. And I’ve even written it in a book and Evan and I wrote in a book is to say, stop calling your business your baby it is.

 

Warsha Joshi  44:06

Over and over and over again. People actually start giggling when I started saying that. And I said you think my message is penetrating, thank goodness, because the minute you say your business is your baby, you’re not allowing the business to grow. You’re not allowing yourself to grow. You’re not allowing the people within your business to grow because you are actually emotionally placing and level of control on your business where you’re unable to let go. And the more you let go, the larger and the more stronger it’s going to become. The larger and stronger it is, the more successful it is in sustaining all the people who are stakeholders within your business, whether it’s your team and their families, you’re literally putting food on people’s tables.

 

So it’s you to be able to emotionally mature and listen to your coaches when we talk about and we really help them step by step to say how do you de link yourself Do not detach yourself, D link yourself. So you get an external view and actually work on your business. These are just buzzwords now work on your business, not your business. What does that even mean? To begin? Originally linking yourself and allowing your business to flourish and give it what it wants? Not so much only to give it what you think it wants, or what give yourself what you think you want. So there are different levels we dig into.

 

Surabhi Shenoy  45:30

Yes, 100%. I also add to the point that stop calling this is my family. It’s not your family, your family’s at home? Absolutely.

 

Warsha Joshi  45:36

It is. Wrong expectations. I love it.

 

Surabhi Shenoy  45:41

I tell them that you’re this is an army, us, Army, us, you protect them, you save God and don’t send them anywhere where they are, you know that they’re not going to really thrive and flourish, at the same time, ensure that they know who’s talking and what needs to be taught, and who makes the decisions. They can brainstorm. But then finally, there has to be one decision maker responsibility. You bet somebody and you listen, and then you just follow because it’s it becomes so much of in tangled web of nobody taking any responsibility for decision, right?

 

Warsha Joshi  46:18

And a lack of a clear message. And lack of clear direction also is a very strong byproduct of that. And again, should we wait, which seems like we’re digressing for the listeners. And yet we are not? No, we’re not I don’t believe we’re digressing at all, what we are doing is we are addressing some of the burning issues out there that we can see head on to say, if you see this happening in your business, this is directly adversely affecting the value that you’re building in your business. Absolutely.

 

So be aware of that open your eyes go in with it with your eyes wide open. So while it may look like we’re not talking about maximizing value, these are all points that actually adds to the value. So it’s actually a brilliant discussion, I think and work I love that we both bringing our own experiences, our own points of perspectives to this, though it just a so critical when it comes to eventual success of businesses. There are many aspects, of course. But these two acts, aspects have rarely talked about in depth. Yes, because most people focus on what is your immediate burning fire today that you need to put out?

 

Surabhi Shenoy  47:41

They can’t see like you said pebbles under the feet. Right? I mean, they’re just counting that.

 

Warsha Joshi  47:46

Yeah, totally. So again, just as a quick reminder to people who win. Now listening to us for close to an hour, this is the Power Hour by Dare to Scale. We come live webinar and I usually come live and then occasionally we have brilliant guest speakers like this. Thank you for joining us. Keep continuing and keep bringing in some of your questions.

 

I see a few questions usually come through in as soon as we announce the event. Few questions come through on our email yourcoach@daretoscale.com

 

A couple of questions that came through Surabhi, you, okay, if we address a couple of questions. Yeah. One of the questions actually came through was I think we have addressed but I want to just put it out there and just say, how are they different building value and building wealth?

 

Warsha Joshi  48:41

How are they different? How is building value in your business different from building wealth in your business? Do you want to take it and we’ll both take it but I’ll hand the mic to you.

 

Surabhi Shenoy  48:49

Why don’t you start with your favorite topic?

 

Warsha Joshi  48:52

They are. So to me, building value is initially it might look like an intangible. So, building wealth is something that is so tangible you can actually touch the feel it so building wealth is a is a product of very strongly building value in your business. They must go hand in hand like earlier, I was talking about the DNN Yang so if the black and white swirls within the circle, one leads to the to the result of the other and when you have that wealth built in, you can then reinvest to continue building and adding to the value that you’re always already building in, which then lends itself to building more wealth soup to more liquidity to more ability to build wealth. So for me, they are they are different because they tackle with different aspects. One just feels a little intangible because most people think, Okay, I’m building the value in my business and then what, how do I know? You know, when you have better liquidity when you You know, when you have a stronger, larger goals to reach for and you know, when you have organically build the wealth to reinvest to go reach for those bigger milestones that you’ve built? Yes, that’s how I would put it.

 

Surabhi Shenoy  50:16

Yeah. And just to expand on the value aspect of it. Typically, when you when you think of value of a business, you’re talking about something as tangible and proceed. Yeah, no, yeah. Rather, I’m sorry. I mean, intrinsic and proceed. I mean, an intrinsic, then you have tangible and intangibles. So this is going a little bit in the technicalities of it. But yeah, if you if you just look at I’m gonna say it in Indian context, but it’s applied everywhere. If you started your company with share some first share capital, and your value of each share was 10 rupees. After doing whatever you were doing is, what was the value today? That’s your book value? Your accountant, your CPA, your auditor will give you that right? And if that 10 has become less than great, yeah, if and if you monitor that, then you constantly understand if your business value of your business, intrinsic value, the book value of your business is increasing.

 

Now, we’re not talking about webserie. Yeah, tangible value. When I’m talking about intangible value, we are talking about your compensated advantage, your marketing, your leadership team, your discipline, financial discipline, your cash in the bank, are you cash positive? How many times do you borrow? Are you are you? What’s your working capital ratio? Let me put it that way. Right. There are many ratios that one can monitor. And it helps sometimes people think I’m a 40 people company, I have my revenues barely this why should I even care? But you must care, because the smaller you are, these numbers make more sense and your decision making gets a framework, you know, otherwise, we are looking at how should I decide? He said that she said that? What what what should I be doing right? These numbers can actually guide you. So when we look at intangibles, these are covered.

 

Now we are having to proceed. What is the market’s understanding of your industry is understanding of your business? I met somebody I want to create a company which will do PR or services. Yes. You know why? There are like 1000s and billions of people who are doing these PR services here in Dubai, what’s new? Give me why. And then he will he told me about automation and what software is going to make? Right? Okay, so he’s thinking of a competitive advantage. He’s thinking of a need, and therefore he’s doing that. Now, if you look at the market size of it, there is a ceiling. How many people are coming in? How many people it’s only for Dubai, it may not be UAE maybe it may not be applied all over the globe? So there is a limit to that already put in? Yeah. But if you’re if you’re actually building something which which the perception of that product or that service is as large as the globe is, the value suddenly becomes? You bet.

 

So then that’s the value, right? I mean, we are talking very when you talk wealth here, we’re talking liquidity, we’re talking money in the bank, cash positive assets, build all of that, when I’m talking value, I’m going lot beyond that, How stable is your business? One year? You didn’t, you got really great contract, and therefore you did that when you can’t sustain it next year, because it was a fluke. So you kind of doubt and then what do you do with these resources that you acquired to get get that service? Give that service? Right? It’s a doomsday actually. I mean, it’s almost Yeah. So in my in my I mean, even with me, if customers give me one year contract, I will negotiate heavily if you give me a three year contract. Yes, because that stability, my second year’s revenue is already kind of booked. Yeah, of course. COVID kind of situations can change things, but Right, right, so we can at least go with chances of this happening or better. So I talked about when I talk finance, I’m talking about stability, I’m talking about predictability, and that gives a confidence to the business owner. So it’s an emotional stability that you get right as an entrepreneur.

 

Warsha Joshi  54:39

They’re bringing it to the thinking this is I’m very, very happy. You’re talking about this because even being the fractional CFO. This is exactly what he talks about. And then when I wish there were times when we can actually record some of those conversations. inserting How? How that exactly like you were you were literally breaking it down to make it easily digestible, to take that very abstract view. And now make it super tangible to say, This is why you do it because this is how you go home and get a good night’s sleep.

 

Surabhi Shenoy  55:21

Yes, because I’m an engineer, right? I was not trained for this. I didn’t know what debit and credit is which way where you know what number goes in which column? So for me to understand this, somebody had to break it down for me. Yeah. And I was blessed and lucky enough to have that person, that advisor, who did that, for me, my bias reports actually made me understand my business better than I had ever understood it before. I started looking at those numbers. So for me now is my responsibility job here is to break it down to the next entrepreneur who doesn’t know this. Because he comes in, he’s a product or service person, right? He’s not a finance person at all. So that’s, that’s where it makes starts making sense for them.

 

Warsha Joshi  56:07

You bet it does. So there’s just one of the there are several questions over here. But one I definitely want to address at this stage is, again, this was this was something that has come through within our conversations to say, at which point is a great time to start thinking about this. So we have already talked about it, we both talked about this, I’m just going to take it straight away from before you even go get a trade license to run your business. That’s when you actually start talking about this. This is this is not and is it ever too late. Never, it is always the right time to talk about it. Because it it’s like I usually say it is it’s about from this point on. Forget about fine. We’ve made mistakes in the past, I refuse to call them mistakes, I refuse to call them failures, because if you hadn’t done that you wouldn’t be where you are today. We learn from it, and we move on. Yes.

 

So this point on anytime is a great time to think about identifying and maximizing value in your business, identifying and extracting the hidden sources of cash to a bid to be able to build wealth in your business. When is the ideally the right time to start about the minute you think I have a product, I think I can sell it. And I think I can turn this into a business. That’s when you first start thinking about what does business even mean? Because so far, if I were to summarize this survey, our entire hour long conversation really has been about learn how to run a business first, you have a great product, you’re already good at that we get it. Now learn how to run a successful stable business which will outlive you. So is that a fair assessment. So over to you, if you want to add to that when is a great time to start thinking about building value?

 

Surabhi Shenoy  58:09

I think entrepreneurs being driven and focused and have those innate ability. And that’s why they jump into this. Just the conscious awareness of this, this this aspect of business changes everything for them. No, nothing new, nothing extraordinary has to happen. The moment you say that today, my equity, my price of my one share is 10 rupees or 10 drums, and I want to increase it, suddenly everything starts getting dictated by that one goal. Absolutely you do identify your numbers differently, you relate to them differently, you make changes accordingly. You start D linking yourself the way you said it and start building your team, trusting people, and most importantly, clarity, right? Even when you get that clear clarity, your team does get it definitely. And that’s all as required. So time is today.

 

Warsha Joshi  59:12

Time is today. You bet this from this point on. What you said reminded me or whatever usually says as well is awareness is cure the minute you are aware of something? Yes. Most times the answers are something that we already know. Maybe we don’t want to look at it. Maybe we don’t think we have the answer. Maybe you think that answer might not actually be the answer. Does it matter? Because the minute you’re aware the answer is already there in front of you. So awareness is cool. So be aware that this is an area to be looked at. You’re already on your way. Yeah, Prime Minister day seven. So yeah, this is this has absolutely been a brilliant conversation. And, guys, thank you so much for joining us today. Oh on this call, you know, Power Hour will continue conversations like these will continue. And do join in. Because the whole point of running a power hour for the last two, three years for both Evan and I has been to bring up conversations that are rarely talked about and should be. That’s why earlier I said, we like strong words on Power Hour, because most of us shy away from being judged when we talk about specific strong areas, or topics.

 

Surabhi Shenoy  1:00:33

Everything about you is there too, right?

 

Warsha Joshi  1:00:38

So I’m just gonna say what’s on your mind? Because if not here, then well, if not today, then when just it’s that that bold ambition that we have in us, is the whole point of drawing this out in into the open and say, just say it as it is, and where it goes from there.

 

Surabhi Shenoy  1:00:59

This will be great.

 

Warsha Joshi  1:01:00

Thank you so very much for joining us.

 

Surabhi Shenoy  1:01:02

It’s been such a pleasure to be here and share my thoughts ideas and bounce them off. And we really click good with good.

 

Warsha Joshi  1:01:14

I see another Power Hour happening in the near future. What do you say?

 

Surabhi Shenoy  1:01:20

So many things not yet said here, right?

 

Warsha Joshi  1:01:23

I mean there is so much to talk about in such a rich conversation. When we when we really pick this area, particularly, which is not delved into too much.

 

Surabhi Shenoy  1:01:34

It’s like the best thing is we are actually live with this. We are not coming from we are not coming from a coaching school saying we will do this right. Middle of the night, in the bed on the bed, thinking how am I gonna do the salaries? How am I to take care of these costs? Emotionally, then, yeah.

 

Warsha Joshi  1:02:00

So that was 37 years, I’ve been doing this for 37 years, I will live was from the age of 16. I will live this in real life. So yes, 99% of what we spoke about should be you and I, we have lived it. And that’s why we do what we do. Because if we can save that 1% of heartache and headache for someone else, bring it on. Why not?

 

Surabhi Shenoy  1:02:23

So tell us later on breathing on this earth I want to give back and that’s my way I think that’s the path for me now. Very important is so much for having me, because I really enjoyed the conversation.

 

Warsha Joshi  1:02:37

And as you know, we are live streaming on LinkedIn live. We’re live streaming on YouTube and live streaming on our Facebook pages. And also importantly, this entire conversation will now be uploaded as an audio version, as a podcast on the Dare To Scale show. So as soon as this is done survey, I will share the link with you feel free to spread the word and get people to listen in and share their thoughts. 100% speak to you very soon again, and speak to you everybody, our wonderful listeners. Thank you for joining us and keep those questions coming. See you next time.

 

Surabhi Shenoy  1:03:13

Thank you