 Hi everyone, this is Anali. Thank you all for coming out some time for attending today's webinar on the episode 8 of BX Academy Business Excellence Mentoring and Coaching. Today's episode is on maximizing business valuation for business excellence. To all the attendees out there, please type in any questions you might have in the Q&A section and we'll try to answer as many as possible at the end of the session. I would now like to welcome our speaker, Mr. Gaurav Mariah, Chairman and Founder of the Franchise Indian Group. A very warm welcome to you. Thank you. Thank you, Sonali. Thank you very much and welcome friends and welcome to another edition with BusinessX. I am Gaurav Mariah, Chairman of the Franchise Indian Group and also leads BusinessX. BusinessX is a part of Franchise Indian Group, which works with especially startup and mid-sized companies in terms of how they can scale, how they can look for a new investor, how they can get the right valuation and also look at exit. We are also a mid-market exit specialist. I do a particularly lot of work in the exit planning space where we guide companies if they're looking to exit the business. So today's topic is really about how do you really build a business valuation? Why it is important and why are we encouraging? Franchise India actually is the first company which started about seven years back, BusinessX, with our valuation tool called BizEquity and started encouraging a lot of small businesses to start going and valuing themselves. It is very, very important because when you go through the whole process of business valuation, you will be able to get a lot of insights about your company and that would enhance your focus on which areas you need to really do that. So knowing the value of your business is helpful in giving you biggest insights and also insights about your business operation, how efficient they are. You know, sometimes we feel that we have built a great business when we start doing the valuation and look at a little bit deeper into that, you find that a lot of areas need work. And today's discussion is really about how do you really put a very focused action plan if you want to look at enhancing your business valuation. So wherever you are today and if you look at for two years or three years and this can be different reasons. It can be reason capital, it can be looking for an exit, it can be looking for a next partner or any other thing. If your idea is to build your value over the time, then this session can be very important for you. So let's start with what are the key insights you need to really get. One, you need to really understand what are the key value drivers in your business, who is driving the value in the business. Second, also understand all the characteristics of your business. What is your strength areas? What is the core strength area of the business? What is your profitability quotient? How can you increase your cash flows? How you can bring consistency in business. Also, it gives you a very different and new perspective of why you want to be in this business and what is the next goal for the business to go to next level. Sometimes you've been running the business for a certain way of doing things and the markets would have changed or the consumer has changed or priorities have changed or it looks like it's changing. So if you don't give your business a fresh perspective, a lot of businesses I've seen that get into fatigue. They get into fatigue and they start declining and this is one of the very important areas and today if you really see in this whole world, some business get exceptional valuation and some businesses don't get any buyer or any valuation purely because they are not looking from a fresh perspective of what their business stands for and who they want to address and so forth. Now let's get into the purpose of valuation. Why people want to really get into the purpose of valuation? First is to really define the overall valuation of the business which is purchase price. How do you define a purchase price? What is a tangible, intangible assets in your business? Second is financing. Even if you're doing debt or equity, you need to be very sure that what kind of a financing option, how your business is valued and what kind of financing option would suit your business at that stage. Even if you're going for a debt raise or if you're going for an equity raise, both would need effective valuation to be done and you need to have a strong professional who can really bring that valuation. Even if you're looking for any kind of a buy-sell agreements within existing shareholders, if you want to transfer some shares or acquire some of these shares, that is also not happening especially in the startup space. A lot of founders come together later and somebody wants to exit and there has to be a certain amount of internal buy-sell agreements. They all should be valued at different stages of valuation. Merger and acquisition in sales obviously that's very important and when you're looking for any kind of a merger or even in some cases, merger acquisitions happen without any cash being translated which means that it is purely an equity swap. Those areas also you need a strong valuation to be done that and if you're really looking to sell the business completely, 100% ownership or partial ownership, then your business would need also value. A lot of people ask me even in the state of gifting your business to your family members. So father transferring the business to son or you're transferring to your wife or something like that, valuation would be required at that stage also while there are different norms where you can release from a tax component viewpoint but you still would need to do your valuation of the business and finally if there is a certain amount of dispute in the business between shareholders or stakeholders that is a time also a certain amount of valuation would need to be brought in. So it's very important you really have to see any stage you are in the business and if you're not valued a business, you don't know your business enough. That's very, very important. So please engage a good consultant, a good valuation firm. You can even reach out to BusinessX. BusinessX is a company which has a very big fintech tool called BizEquity. Go out and check bizequity.com. There we work with, you know, especially small and mid-sized companies for creating their business valuation. We have separate teams also which go into deeper understanding of businesses and then we bring in the right valuation up. Now very importantly before we go to determine that how we can set our valuation up and what is the future buyer looking at? I mean especially if you're looking to sell and even if you're looking for any kind of partnership or a raise of money or something like that how do you really improve your valuation case? And this doesn't happen in a day. You need to put yourself at least in a 12 month or a 18 month program and this 12 month and 18 month program can need maybe a good consultant or a coach around with you to help you improve your business valuation case. But just from a perspective viewpoint even before we go into understanding what are the 10 things required if you are looking to improve your valuation, let's understand what is people looking at your business and their perspective. Anybody who looks at your business it might be for an acquisition or partnership or investment, it is looking into the future. It's not looking into the past and this is one of the mistakes a lot of business owners or entrepreneurs do when they come to us, they're presenting the past, they're not presenting the future. Half of the pitch decks really are all about talking about that. Smart startups and companies are very clear about talking the future. They are talking the future, they're telling what is now going to be done, what foundation you've laid to really achieve the future. And this is one of the areas which I feel that the legacy business lack, they are doing because there is a lot of past behind it. They have success stories and things of that nature, but there is no plan for the future, how the business is going to be done. So they're surviving, they're doing well, they have a history, they have a great brand equity, they have a loyal customer base, but there is no definite growth plan which may be coming. So first define the future which is very, very important. Second is predictability of the business model and this is something which is especially in these times becoming very, very disturbed. A lot of good businesses, we'd had a term sheet for a big company, a big business restaurant company before this COVID happened and I was very hopeful the term sheet would really come in, but the business has seen in the last 14 months because it opens up, it goes down, it opens up, it goes down and the company which was planning to invest into that has actually withdrawn it because there is no predictability of how it looks like for the next two to three years, especially in that format, particularly that format, while I think some of some other businesses would still have a predictability like dark kitchens or a smaller formats or even some other thing, but the business format we were discussing on that lost that predictability. So how do you really define your business model that it has a continuity and certain amount of cash flows and margins continue to improve? That's something which is very, very important. Put your maximum focus on bringing that predictability. Third is unlock value. What is the unlock value you have in your business and how you want to see that next two to three years you want to unlock that? It can be the brand itself which can be extended to many other lines which we do through licensing, sometimes franchising. Sometimes you have great business and that business can be extensively franchised because in the category you are in, franchising has been done by your competition and you have not done that. So there is an unlock value which sits in your business. It can be your brand which can be future extended to multiple products. It can be even strategic location. It can be something which has a very strong unlock value. Keep asking your business and say what is great about your business which you have not really captured. Something which sits in your business but you have not captured. Like we are doing with one of the big pharma brands. I mean this was a pharma product which is very generic. Everybody knows that product. Everybody consumed that. Now they are diversifying because they have a lot of SKUs and very popular company runs about 170, 180 SKUs and I am encouraging them to go into a full blown of pharmacy business because they have their good private liven really set. A lot of pharmacies out there are actually struggling to create their private label. They are already sitting on 170 odd products, popular product, market leader, distribution which is available across India. They are distributing to all the pharmacies all over India. So there is no reason they would not create their own retail interface or direct to consumer business which is a digital pharmacy or something like that. So obviously they would have to really make the equation between their private label and what they have but it is very clearly a strategic value. Otherwise they are running as like a commodity, very popular brand but it's become a commodity and they are only getting what I call distribution margin or wholesale margin but if they shift into being integrated operator and start creating their own network and loyal network, the business would change and it would also give them opportunity to produce next line of products which can come in and they have their own funnel of distribution which is loyal to them and they can do that. So sometimes you need to really see what your business is telling you where is the unlock value which is there in your business. Leadership. Leadership is also very important. Who is leading the business? How your leadership is defined? Who are the key people? What are their vision about the company? How they are collectively what I call binded by common purpose. That's very important. If you are not binded by common purpose you are not very linked with the larger goal of the enterprise and structure that would also not work. I like this culture of in lot of startups. They are small companies but they are very clearly binded by goals. Their leadership is very clearly defined. Sometimes the large companies are more confusing because they don't have that defined leadership. They have departments which are there but they don't have what I call a collective leadership mindset. That's why I keep making this comparison that these legacy businesses, old businesses are very finding extremely difficult to survive in these current environments while these early startups companies which come to the fresh culture thinking different kind of leadership practices are able to attract a lot of capital and so on. So how do you really shift that focus? And it's hard. It's hard to do that even in my own company. Even if I try to bring this change it becomes very difficult because we are also 24 year old company. Some of my businesses which I invested early they have a very different leadership style. Some businesses which have been there all it just becomes very very difficult to change because it's a mindset and mindset runs through every single person in your organization and that's very very important to change them. Strategic competitive advantage what is your competitive advantage and how that would be going to flow. What is your growth plan? What is the growth plan for next four or five years? What are new products you are bringing in? New markets you want to go the new channels you want to do that. There is only three ways, only three ways I understand growth. If you are looking for growing a business there are only three ways. To find any new products you can bring in. Second, new markets you can go and new channel you can find to reach your customer. Only three days. I don't confuse myself whenever I set with a strategy or any business I coach I would only talk about these three things. This is my starting point I say give me show me what products we can bring in from your stable and if you have not done that and your brand stands for those products and you can still extend yourself with that product. Suddenly that's a growth idea. Second, new markets you with limited to one market which other markets we can really go and third is new channel which we have not used to reach out to our customer. Another thing which is very important is how do we achieve more with less. Now this is very clearly if there are two companies say let's put up this restaurant as an example. If you have a big restaurant you are doing certain sales and you have a certain beta performance bottom line and somebody who has a letter lesser resources much smaller restaurant much lesser people also have the similar kind of profitability margin I would prefer this business. Any day. Sometimes just deploying more resources to achieve the numbers is not great achieving numbers with less with the lesser resources lesser deployment of assets if you are able to sweat out more and get better margins that businesses to me are more profitable and more valuable in the market. So that's where clearly so it's essentially how you can achieve more with less that's the question everybody is asking everybody is asking and that's where technology companies played a very important role and that's why they were so valuable because they were achieving more with less and the conventional companies were not able to do that because they were very much loaded to achieve the same kind of numbers they had to deploy much more resources to do that. And finally what is a purpose driven path for you what is a purpose larger purpose next five to 10 years what purpose you define what your enterprise is going to stay for and purpose is changing the earlier purposes was purely about shareholder value to be driven now it is changed it has become an order of first understanding connecting with your customers then your employees then your suppliers then your communities and finally the investor it's actually drastically changing how larger companies are now changing the viewpoint on that it was earlier it was all about shareholder value or investor value which was the purpose for enterprise it was always what to create wealth it was always about to create incomes but now apart from that it is more about how you are connecting with your customers how they think about you how your employees are thinking how your communities are thinking and finally the investor look at the program which is run on now these days on LinkedIn run by Detol and they have actually created a beautiful campaign which they are recognizing individuals so this is a journey which great brands are doing great brands are talking and building communities and these are communities of people who think alike and have they've done initiatives like that and this program if you're not gone see this is a great program which they're running everybody is going out and posting on LinkedIn and say I've been also given this Detol salute for doing my contribution in this whole difficult period but to me this is really what building community this is building about like-minded thinking people and the loyalty Detol would enjoy post this with the brand with these people who think alike would be phenomenal great job done I mean I think as a marketer I would say it is a phenomenal job sometimes easy ideas simple association simple reach creates much bigger impact than a large big propaganda campaigns which would not be able to do that so it's a great if you've not done that just go out and see this campaign which is currently going on a lot of people are doing that now let's go on the 10 points which I will go quickly this is a 30-minute webinar so I normally try to finish in 25 minutes and then 3-4 minutes if I can wrap it up and we can have some Q&A questions and if you have any questions please go out and start asking in the Q&A box and Sonali would pick it up these questions in later stage so 10 points in order first is about how strong stable your management team is essentially if you are looking for an exit and if you are looking for investment in your business they would have a different mindset when we are looking for investment I am looking for founder his capabilities his ability to scale and a lot of these things I would look at it if I am raising I would look at the company I would say I will give more marks to the founder and his management team to do that but when I am looking for an exit and I am valuing business I would like to look at minus find founder the management team how the management team is see that there is a huge difference in terms of business if you are going for a capital raise then founder his background his pedigree his management team organizational structure is bottom but he is the most important but when I am looking for exit the business I don't want to look at founder because he is going to go out of the business I want to see outside him how the business is not dependent on him rather at that stage if the business looks too dependent I will put up a lesser value of the business so it changes on how you really approach the business that's very very important so how your management team is designed and if you don't have that management being structured today start working on that get your key roles get your key things and critical parameters which are your main value drivers in business and get your leadership team on that second demonstrate sustainability of your earnings now this is again sustainability has been used overly everywhere even I use it in almost all my webinars but sometimes it's misunderstood it's misunderstood because it's just not about the revenue it's not about the revenue sustainability sustainability of your competitive advantage that in next five years also you will be having advantage over your competition that's more important to me and second you will still be relevant over next and your sustained growth would come through so you really have to see a lot of other points of your business to really demonstrate that sustainability it's just not about the revenue I've seen companies which have demonstrated five six is our consistent revenues but they were not they were losing every single day their competitive advantage they never lost the revenue so to say but they were losing their competitive advantage the brand was slowly not becoming relevant to the target group they stand for it was shifting very fast sometimes you still continue to be there but you are no more that essentially a relevant brand left in the market so how you're going to be a competitive having a sustainable competitive advantage over the next few years that would be very important another thing which is very important how developed your systems and procedures are and this is one of the areas which we work extensively especially we work with a lot of franchise and retail kind of companies so how our systems and processes are developed we have a full team which works on a lot of putting operating structures training structures defining every single thing in your business what I call idiot proof so which means that become a function and anybody would do that so these are very important part of your valuation systems financial discipline now this is another big area which comes to you know a question mark so in India we are talking about producing the maximum number of unicorns in the last year and these are all investments if you see are going to certain kind of companies right and why it is not coming to conventional businesses why conventional businesses on the other side of the economy that all dying out and not able to attract the right kind of capital and so on and this companies are getting so it's not really about the profitable equation it's about how well your financial discipline is defined right so family run businesses are sometimes are not very structurally I mean they know their finances they are disciplined on that but they are doing it for driving their own family value over that so they're not driving the enterprise so they always would really you know so to say if you put an equation they would have sales they would have expenditure they would have them as a family in between which is withdrawing a lot of money and then the profitability right so so it's it's really defined and if you look at the new age businesses they have very clearly professional roles in the business everybody even if you are not the shareholder you just a professional in the business you don't have beyond that your financial discipline is very right you allocated your budget you allocated your resources allocated your expenses very clearly defined so it will be more valuable to me going forward that's where people like to really invest a lot of times we have presented some traditional businesses to venture funds private equity and they don't like the financial discipline they don't like the financial discipline the structure is not so very clear so they would shy away from these companies and actually India got that investments 3-4 years back a lot of investments came into family businesses and most of them really burned their hands I mean look at day in capital investing into a brand for Lilliput it was a you know it was a great combination the kind of company which you really like to have sit on your your investment side and how many doors they can open up for you it's a shame that the company went into a bankruptcy closed down the entire piece and they had disputes between purely because of the financial discipline I was called by the company the main capital and they used to do every Thursday they started early they used to look at business from little distance and they gave the full freedom to the founder and then they found that there was so much of irregularities in the business and so they started coming you know I still remember somebody who used to sit on the board because it was next to our office Lilliput and he used to come and meet me and see the books and he used to really tell me that how frustrated he is on what has happened in that business and they tried their best to really save that because a lot of investment was riding but eventually nothing was to be saved and if you see the brand has shut it was truly India's first kidsware brand a great success story initially great brand great consumer recall everything was right but because of the financial discipline mismanagement or promoter interest too much in business the business really collapsed minimize your own expenses as I said I mean don't really run your own expenses too much create a difference between your executive role and your shareholding let your shareholding make dividends as they go along and keep your own personal expenses a little longer then is a transition pattern how you want to transit this business you know how do you really want to transit to where it is today and where it needs say you're seeking funding and building the value then how you would build a great transition phase that you slowly slowly slowly bring in a great efficient leadership team in the business and if you were just exiting the business how you would transit the business and what is the phase of that transition has to be very clearly defined another thing which is very important is that how diversified your customer basis this is very big question if you look at a company which has maybe looks very interesting because the cost of acquisition is low you're only talking to five companies and here is a company which is talking to maybe 500 do the same revenue but to me truly this company would be more valuable while there would be parameters of their cost of acquisition is higher they have to go and service much larger audience but if I form a risk to viewpoint I will see I will see it has a lesser risk while this looks from up from a PL viewpoint sometimes more attractive because you are dealing with only five you are servicing them well and but the valuation wise I would like to have this company because it has much wider customer base even if you have lost 100 you still have one and if you really see in this COVID period companies like these survive a lot of companies which were based on this I know a lot of media firms and sizing firms which have four or five big accounts and they were just about that and these were no more no more spending and certainly your business collapse we have seen businesses going down because they were too dependent on few of their clients only they were just supplying to big big company and the business was going well like say I was a packaging manufacturer and the only client I have is say a next FMCG company that's about it I don't have any other customer I'm very happy because they give me the best price I have a great I don't have to bother I just work with them relationship and for reason they go down you know normally if you're working with a big multinational doesn't happen but if they go down you have no other business which is there rather than if you work supplying to a lot of other players say you're in a food packaging and you're applying to many other companies also you much the worst consumer base more valuable to me business model then comes a brand equity everybody talks about brand I've spent so much money to build the brand and so on for what is a brand equity what kind of market reputation you really enjoy you need to really see what is to understand what is you know brand equity itself right first is how much it really bring the difference if this was not branded and this is branded what difference it is creating in your price that's a difference to me what good will your brand really brings it what kind of leadership it enjoys what kind of consistency it has what kind of relevance it has to the customer so all these are very very important aspects when you're doing your you know valuation of your brand diversity of your suppliers also you cannot be dependent on only few suppliers if you have diverse a lot of suppliers that also helps you to do that and finally the last point which I have is that how your prices are stacked up how stable they are your team your lease your vendors anything even in your location where you're currently operating how stable that is going to be if there is instability or any kind of risk which comes in there and I think would reduce your valuation so those are points which are early points while it needs a lot of in depth understanding in terms of how you do your valuation so I like to invite Sonali if Sonali you have any questions for me I'll be more than happy to take sure thank you so much for a wonderful session and a very insightful session as well we do have quite a few so I'll just take up the ones very quickly the first question is can valuation be done very new businesses as young as six months old or one year old valuation can be done at the idea stage also you know so it's a it's valuation obviously at what stage your business is eventually it would all depend on earnings of the business I keep repeating that it is all the earnings but how do you define how your business is going to stack up what is it going to do in three months from now three months three years from now five years from now it's available so you will have different stages of valuation absolutely any given time of time the next question is does higher valuation mean better business in a just absolutely absolutely 100% if it is directly proportionate to what you have I mean end of the rate it's about the valuation is to compare with your what I call capital capital is your debt and equity what equity you have whatever you are able to put more to your equity base that's your valuation right so equity is your base equity and this is what if you have a business which has certain amount of debt say you have 50 lakh rupees of debt and it balances your equity sitting there so equity is your base equity and whatever valuation the performance of business would sit on this and this would this becomes your you know total value of the business right the next question is is business valuation mandatory if you are looking to raise capital from 100% business valuation is mandatory I would say it should be mandatory for all businesses not necessarily even they are looking for any kind of capital raise or doing that I call business valuation as an exercise to really know your business value you know sometimes you're doing your own business and I know how hard Indian entrepreneurs work they work the hardest they work seven days all then dating and they're not even making return on their own they're not making return on their own time forget about the valuation of the business a lot of people I know as traditional retailers you know so they used to go to their businesses they had stocks line of 10 crores and making more businesses which had no meaning to me it's not even justifying sweating out the capital I used to joke with a lot of retailers especially these jewelers and other places I say take the money out put into any other passive asset class and sit at home or sit at the beach at Goa then what you're doing now and you all they're worried about what needs to be done so people don't have really understand what they're trying to do because they're traditionally going on and they have the comfort of certain incomes coming to them it doesn't justify so sometimes when you start doing valuation you start doing why am I doing this what is going to be the future of this that's very very important absolutely sir the next question is how often should we get our business valued is three years a good window there can be some changes made in the business as well during the time good question I think if business has not significantly changed in any parameters then you can put maybe two years to do a business valuation but if it is changed significantly like it happens with early stage companies they move very very fast every three months they have different gold sheet which has come in so they need to continue to do it in six months or one year it's not really getting a fresh valuation it's just about tweaking your numbers how you see the numbers now how your margins have improved so everything would really cost of sales have come down so everything is a parameter so when you start doing valuation you get these all fundamental parameters and then you need to really see how can I do incremental change in these parameters the next question is does changing the business model also affect the business valuation of a company yeah significantly as I said achieving more with less so ask yourself if you can go to your business tomorrow and say I want to do the same thing but I don't want to have the same infrastructure being there even if you had one week of thought process and everybody can do it especially today is time with technology with everything else if you can go out and say I can achieve this with much lesser resources available make your business much more valuable much more valuable so we don't ask this question this is very important question you need to ask sometimes common sense is more important we keep hearing these webinars and listening to everything but we leave the common sense common sense is very clearly if you can achieve the same purpose of businesses to create some kind of a profitability if I can achieve that same profitability with doing less it can be less time being deployed you know equipment anything sometimes say you're producing something which you're working hard and you have factory which is struggling and all that and I think and you go out and outsource this entire thing to somebody who has much larger capability available much efficient structure to do I remember when I started my career I used to have started a magazine and my magazine used to be printed in the local machines in a local company in printing press in Chandigarh 7 days 7 days to produce only 2,000 copies 7 days and 7 days my younger brother used to go there and sit there and see the print and it's coming right it's binded right then we used to ship it to Delhi and then circulation used to happen and then we started growing and then we had 4,000 copies required 5,000 we started 10 days then he started saying give me even at once then we used to have fights with him because his factory was only doing our work he cannot take our work so he is spoiling his customers we used to break our time in the night he start taking other jobs so then we decided we got tired and said let's shift to somebody else there must be somebody else which can do better job and we went to Thompson Press which is the biggest press in India this is early 2000 and they used to do the same work actually 45,000 copies in 3 hours so if you really see the same thing has changed I am doing 45,000 copies 3 hours my team goes in the night puts the entire thing we don't even go to the factory they directly ship the files there and the printed stuff comes in the morning at 7 o'clock to us and we have the entire thing so what has happened I have really changed the resources deployed for that whole piece and that has become more efficient so I have now 7 days more to sell advertisement more really it's not about 7 if I have to say 7 days more to do the same job because I have to close my magazine now I have 7 days more I just have 3 hours to print this entire thing so even I can 3 hours before also I can take the advertisement to come because I can send it to printing so a lot of things change when you start looking at different perspective a lot of people run these micro factories micro operations, micro structure they feel that they are in control but actually no stop your factory close that business focus on the customer you will become more efficient and more who is asked every time you buy any product from Unilever and Titan have you asked is it produced by Unilever answer is no, you just buying the product somebody else is producing so this is very very important next absolutely the next question we have is how does the value of a company change with the number of founders and is the first investment important no but initial is who is bringing what is important who you are changing with also is important so if there was first founder was very critical to that business and you change with something who is not as competent as that then obviously it will change but if you change it with somebody who is even more competent then why should it change again it's very common sense thing people are investing on initial business who are you investing on you are investing on founders their journey, their mission, their goal their background and so on because there is no other thing to read when somebody comes to your boardroom and presents you you have nothing else to read like I build a business which is called a bodybuilding India it was the first supplement company and I was the first lead investor in that business I was doing a seminar and somebody came to me a doctor and said look I have an idea I want to start a supplement store and at that time what would I see he was a doctor, he was a practicing doctor he believed in that, he was himself very focused on supplements he done a lot of research he is another partner who is also a surgeon and his father used to run so I saw that very clearly these two gentlemen are very committed they are professionals, they are doctors they understand the subject well they are also very serious about telling authentic stuff and some one of them has a background on this piece so I invested into business, created a model and everything took that business to about 75 stores and 90 on that business and at that time they had about 65 stores a good online presence and so on and nothing actually they opened up the bank account after that when we started investing in the business and it went to the last time it was running at a 30 crore with the decent 10% 12% EBITDA and this journey is only 4 to 5 years so really speaking this is how and I actually went out and sold to one of the promoters, one of the doctors itself, my steak and I encouraged him that to buy out now you need to have certain positioning that you can bring in the future investors so that you have enough available equity free equity, sometimes this is another mistake a lot of founders do they choke up their equity they don't have free equity if they don't have free equity what are they going to offer to everybody else the next question that I would like to quickly take up is can a solo premier also go for valuation for his company yeah why not you can go for a valuation for your company if you have a strong idea you can go for that valuation for business uh different stages of it's uh if you're running businesses obviously you're not you're not you're not your future how it is going to be but be very realistic on valuation don't chase a number in your mind let your business design what it deserves sometimes entrepreneurs chase a number in their mind right I think I should be 250 crore value because I heard that similar company was solving that it'll make any sense to me because sometimes you're not reading your own numbers right it's not telling you the real facts absolutely and uh lastly uh an attendee has asked to provide the name of the marketing campaign uh that was running on LinkedIn that you mentioned earlier in the webinar actually did all did all the which we use uh hand wash uh so they have legally launched a campaign for people who uh have been active on this uh and did some service on this COVID period and things that so actually uh like say Sonali would have done an effort so the did all would send her uh a bottle with her picture on that rather than having any celebrity so and that can be available on the shelf also so it's a very simple idea very very simple idea but it's community building it's building community so it's changing of the big organizations think uh they are changing the way they look at the customers they look at the employees they look at suppliers and the communities and the last they're looking at investors so it's it's very different it's very good campaign I really know that this is a perfect timing it's it's uh it's a good way to really build community base uh very strong positioning for did all and uh and it's also demonstrate leadership they're fresh in thinking their leadership so it's a good campaign which uh I saw I mean I yesterday saw some of my actually employees and ex-employees uh been putting that so it came on on that so I just then started researching a lot of them people I saw are doing that so it is a a good way of uh uh running that campaign absolutely with this sir I'll just wrap up the Q&A session and thank you so much for answering all our questions very patient like always we have actually exceeded the time limit for the webinar but uh thank you so much once again Gaurit sir anything you would like to say in the end thank you very much and thanks for for coming on these webinars uh franchise indias will continue to engage our in our community which is about small businesses mid-sized businesses that's what we are known for and that's what we always would be known for we're very focused on that part of the audience and I feel that 97 percent of India is about small and medium enterprises and uh so think fresh think fresh in your business don't really whatever has been done is done just take a break put yourself in one day and say can I do this in a different perspective can I do this with much lesser resources and then you see that your business would change in the way you think at look at businesses would change and uh I have done it in one of my companies I was running in that particular company 84 people team and uh and the business was while top line was great and everything is okay no margins, no profitability and so on so I'm trying to look at how can I do the same business with 20 people and uh and bring that they make a profitability and when you are profitable you can look after better things you can look a lot for your your more better value for your customers your better engagement your better for your employees everything is then much better right so stretch businesses actually stretch everything around that right so you have to really look at uh uh fresh perspective to your businesses and if you are interested to get any sport on valuation any sport to help you scale the business any any advice you need to even exit your business please reach out to us at uh uh business x uh to Sonali and we'll be more than happy to assist you thank you very much thank you so much Garib sir and thank you to all our attendees we really hope you were able to add some value to your lives through this session and as Garib sir said if you have any questions any concerns please reach out to me or if you have any feedback or you need the recording of this session I'll be more than happy to help you and we'll see you next Saturday at 11 a.m. with another session uh session in the series BX Academy thank you so much