Khalid Muhmood - Using the Family Holding Company to invest in Education [The Business of Family]
The Business of FamilyShow Notes
Khalid Muhmood is from the UK and through the family business holding company Dragonfly Education Group, is an operational investor in education.
He has been active in the business of education since 1994 when he and his wife, Arabella Peters, co-founded Apollo English and then the British University Vietnam. Since then they have invested in a number of businesses all focused on education.
Khalid and Arabella see themselves as the founding generation of their family enterprise and intend to never sell their Dragonfly Education hold co. They’re actively involving their young children in business conversations and laying the foundation for generational wealth, legacy and impact.
Standout Quotes:
"What's your biggest headache?"
"Learning from successful family businesses; so many of them do not load up on debt" - [Khalid]
"The future of education is blended, that means you've got to incorporate online with offline" - [Khalid]
"Sophisticated multi-generational families.. have taken generations to figure out that they need to separate the Governance from the Operations, and that the family needs to be excellent stewards and owners first before they can consider playing an active role in Operations" - [Mike]
"A well-run family business is difficult to beat, especially during downtimes" - [Khalid]
"Why trade anything in, when we've found purpose?" - [Khalid]
"If you’re building any business, I'd say that 'Focus' is the thing that's often lacking, especially if the entrepreneur at the beginning thinks they have to say yes to everything" - [Khalid]
"Look for the good in life... because it really helps you enjoy the journey" - [Khalid]
Key Takeaways:
If you want to be truly in control of your journey in a business, you need to be the owner, not the manager.
At the very beginning, the vision was simply to get the business to survive.
It's only when you move from surviving to thriving that you can ask, "what do you want to do?"
When asked "what is your biggest headache?" at an event, many of the entrepreneurs answered "My father".
If you're not happy with 60000 pounds per year, then any more money might not change anything.
Khalid describes the challenges of Covid-19 as a learning period for the business as a whole.
Finding a way to create balance and incorporate online with offline learning is pivotal, that will be the future for the family business.
Khalid and his wife, Arabella involve their kids as much as possible in the family business even at the early ages of 8 and 10, with some tests to determine their level of interest and perception of the business as a whole.
In the future, the key role for the kids is going to be "Good Owners"
The stewardship role is critical
One of the tips to help foster togetherness among children is that if one of them does something wrong, punish them all.
Other points to note is to never elevate one sibling above the other and to always leave them to sort out their arguments without being the judge.
Khalid shares that the preferred investments taken by DragonFly are those in which a controlling stake can be bought.
A major mistake that was made at some point was accepting an offer from Nokia when it should have been turned down because it was distracting from the core competency of the business.
Khalid shares that his source of knowledge includes mentors, peer to peer learning, and mistakes.
From Khalid to his kids: Look for the good in life because it really helps you enjoy the journey.
Episode Timeline:
[00:49] About Khalid Muhmood and the inspiration for starting the business of education
[06:01] Khalid explains some of the reasons behind the choice of Vietnam as a location for starting the business
[08:59] What was the vision at the time of starting the business
[15:03] The new vision for Dragonfly Education Group
[19:41] How did the business hold up in this period of Covid19, do you have an interest in online learning?
[24:34] Is there a vision of bringing your
More from The Business of Family
Scott Peppet serves as the President of Chai Trust Company LLC, the private trust company that serves as the family office for Sam Zell and his family. Equity Group Investments, a division of Chai trust, provides investment management services on its behalf.
Peter Evans is an advisor, consultant, and speaker to legacy families, family offices, and multigenerational enterprises all around the world. Peter creates the opportunities where affluent families have the greatest chance of flourishing.
Srinath Rajam is a Director at TVS & Sons, Chairman at Kwik Patch, and one of the four sons of the high profile TVS group of companies. The TVS Group is a long-standing family business, running for over 110 years, which has interests in everything from auto components through to finance. Now after over a century in business, the TVS group has decided to amicably separate. Srinath talks about this historical event and how by keeping it amicable, it sets the stage for the next phase of growth.
Chris Powers is the Founder and Executive Chairman of Fort Capital and the host of The FORT podcast. Chris is a serial entrepreneur with more than 16 years of real estate development and investment experience. Since founding Fort Capital, the company has invested over $1.4B in Class B industrial, commercial, multifamily, student housing, and residential and land development projects.
Anthony Contrucci is a proud 5th Generation member of the Schrage Family. He serves in many roles within his broader family enterprise including his role as President and Board of Director of First Bancshares, Inc. (FBS) a bank holding company located in Merrillville, Indiana. FBS’s primary operating asset is Centier Bank. Founded in 1895, the Schrage family has owned and operated the financial institution for 126 years. From humble beginnings, today they are the largest private, family-owned bank in the State of Indiana with approx. $5.8 billion in total assets, over 60 branches, and in excess of 900 associates.