Nitin Khanna was able to understand the fundamentals of business and earning because of his exposure to business early on in life. His dad went to the army but many of his family members were present within the business sector. As such, he was to learn about business and why it mattered and how to move in a concrete manner to be safe and realize gains each and every single day. Nitin Khanna understood a couple of key principles in his life.
One of these principles that barriers matter and scales matter as well. If Nitin Khanna were to elaborate on this point, he would state that while industries may be simple to break into at a regional level, that it would be much more difficult to scale as more resources would be needed and more investments overall. The business would have to understand how to attract customers, go against incumbents and take market share. This certainly was much easier said than done.
The more barriers that are present within an industry, the more difficult it becomes to sustain over the long term. Nitin Khanna slowly understood over his time in business how value is accrued and how it matters that individuals are able to have cashflows that will continue into the distant future.
As a business is judged by its future income streams, the more stability there is, the better. Investors would expect to see stability and growth, as real money is involved and people worked hard to invest and grow their earnings in the business.
As such, a competitive advantage such as barrier to entry becomes of key importance to a business such as the one that Nitin Khanna is involved in. As the point of a business is to make a difference in society, to serve a specific purpose and move the needle, individuals have to make certain to make sure they are able to protect their cash spitting machine.
A business has to be durable and it has to matter each day to customers. The lifeblood of a business is the customers and the cash that they bring. Protecting cash flows matter to business owners.
Read Khanna’s success story here https://yourstory.com/mystory/48e163e5d2-nitin-khanna-an-nri-who-made-it-big-in-portland-oregon