Episode Summary: Ep. 498 - Shanaz Hemmati - How a Tech-Savvy COO Turbocharged Growth with Smart Operations
Release Date: August 5, 2025
In this insightful episode of the Second in Command Podcast, host Cameron Herold sits down with Shehnaz Hemadi, the Chief Operating Officer of ZenBusiness. Shehnaz shares her extensive experience in scaling a tech-driven company, emphasizing smart operations, customer-centric strategies, and effective leadership. Below is a detailed summary of their conversation, highlighting key discussions, insights, and actionable advice.
1. Introduction to Shehnaz Hemadi and ZenBusiness
Shehnaz Hemadi opens the discussion by introducing ZenBusiness, a comprehensive platform designed to assist entrepreneurs in starting, managing, and growing their businesses. Founded in 2017, ZenBusiness aims to simplify the often complex processes involved in establishing a company, offering a variety of services that cater to the evolving needs of entrepreneurs.
Notable Quote:
"Our idea from the beginning was how can we make this a one-stop shop for entrepreneurs who are just thinking about starting their journey..."
— Shehnaz Hemadi [02:37]
2. ZenBusiness's Services and Growth Strategy
Shehnaz elaborates on ZenBusiness's growth trajectory, highlighting their initial focus on entity formation services, such as creating LLCs across the US. The company conducts extensive market research and surveys to understand customer needs, enabling them to expand their service offerings strategically.
Key Points:
- Initial Services: Entity formation (LLC creation), registered agent services.
- Expansion Strategy: Driven by customer feedback and market research to introduce relevant products and services.
- Target Audience: Diverse group of entrepreneurs, with increasing engagement from individuals under 35 years old.
Notable Quote:
"We regularly and constantly do market research and surveys to determine what the next service that's most valuable to our customers we need to think about."
— Shehnaz Hemadi [06:47]
3. Customer Service and Handling Reviews
A significant portion of the conversation focuses on ZenBusiness's commitment to exceptional customer service. Shehnaz emphasizes the importance of maintaining high customer satisfaction through regular feedback mechanisms like Net Promoter Score (NPS) and online reviews.
Key Points:
- Customer Support Excellence: Dedicated to providing world-class service to retain customers.
- Handling Negative Feedback: Actively address low-rated reviews by reaching out to dissatisfied customers to understand and resolve their issues.
- Continuous Improvement: Use customer feedback to enhance services and address any operational shortcomings.
Notable Quote:
"Customer support for us at our company is always been a pretty major part of what we do and how can we provide an excellent world-class service."
— Shehnaz Hemadi [10:18]
4. Automation and Operational Efficiency
Shehnaz discusses the role of automation in ZenBusiness's operations. By leveraging technology to handle repetitive tasks, the company ensures that their customer support team can focus on more complex customer needs, enhancing overall efficiency.
Key Points:
- Automation Initiatives: Streamlining processes like state filings to reduce manual effort.
- Use of AI and Chatbots: Implementing advanced tools to provide faster customer responses.
- Ongoing Development: Continuously seeking opportunities to automate and improve operational workflows.
Notable Quote:
"Automation is also always been big for us because we all come from a technology background."
— Shehnaz Hemadi [15:47]
5. Hiring Practices and Company Growth
ZenBusiness has experienced rapid growth, raising approximately $275 million to date. Shehnaz highlights their strategic hiring practices, focusing on adding employees only when necessary and ensuring new hires align with the company's goals and culture.
Key Points:
- Mindful Hiring: Avoiding unnecessary expansion by assessing the true needs of the company.
- Leadership Criteria: Hiring based on passion, expertise, and cultural fit.
- Growth Management: Maintaining a balanced workforce that aligns with the company's capacity and objectives.
Notable Quote:
"We've been in a great growing path and are always our problem, always been. We have a lot that we want to get done that we don't have enough capacity for."
— Shehnaz Hemadi [17:37]
6. Early Tech Experience and Lessons
Shehnaz shares her early career experiences with Excite.com during the nascent stages of the dot-com era. She reflects on the lessons learned from witnessing uncontrolled growth and the importance of maintaining profitability and strategic focus.
Key Points:
- Experience with Excite.com: Gained insights into the pitfalls of rapid, unprofitable growth.
- Lessons Learned: Importance of aligning company growth with profitability and strategic objectives.
- Application to ZenBusiness: Applying these lessons to avoid similar mistakes and ensure sustainable growth.
Notable Quote:
"What we were just talking about is how companies grow massively. Just because they think that the more people they have or the bigger they are or faster they grow, it shows the success of the company, which to me that's not the case."
— Shehnaz Hemadi [19:51]
7. Leadership and Personal Growth
Discussing her role as COO, Shehnaz emphasizes the importance of continuous learning and adaptability. She adopts a "just-in-time" learning approach, focusing on acquiring skills and knowledge pertinent to current challenges rather than speculative future needs.
Key Points:
- Continuous Learning: Emphasizing on-the-job learning to address immediate operational challenges.
- Delegation: Empowering direct reports to handle meetings and decisions, minimizing unnecessary involvement.
- Leadership Development: Making herself available to support and enable her team’s growth.
Notable Quote:
"It's about learning and how much you love doing something. And I truly like being in this role and having to do so many different things and pay attention to so many different things."
— Shehnaz Hemadi [25:16]
8. Funding and Future Plans
ZenBusiness has successfully raised $275 million, with the latest Series C round securing a $1.7 billion valuation. Looking ahead, the company remains open to various growth pathways, including potential IPOs or strategic acquisitions, depending on market conditions and business needs.
Key Points:
- Funding Milestone: Raised $275 million to fuel growth and technological advancements.
- Future Directions: Exploring IPOs or mergers/acquisitions to escalate the company's next phase.
- Strategic Flexibility: Remaining adaptable to market dynamics and organizational goals.
Notable Quote:
"We are always open to ideas. We definitely are working toward getting this company to a next phase and we'll see what the market dictates."
— Shehnaz Hemadi [32:12]
9. Advice to Younger Self
Concluding the episode, Shehnaz offers valuable advice to her younger self and aspiring professionals. She underscores the importance of building a robust network of mentors and advisors, which can significantly expedite personal and professional growth.
Key Points:
- Network Building: Establishing a network of mentors and advisors for guidance and support.
- Mentorship: Actively mentoring others to share experiences and insights.
- Proactive Learning: Seeking advice and learning opportunities tailored to current challenges.
Notable Quote:
"If I knew better, I would have tried to build a kind of a network, a small network of mentors and advisors, somebody who I could call or email quickly and talk through stuff."
— Shehnaz Hemadi [33:18]
Conclusion
Shehnaz Hemadi's approach as COO of ZenBusiness exemplifies the blend of strategic foresight, operational efficiency, and a relentless focus on customer satisfaction. Her experiences and insights provide valuable lessons for aspiring COOs and business leaders aiming to drive growth and build resilient organizations.
You've been listening to the Second in Command Podcast, brought to you by the COO Alliance. For more insights from top-level COOs, visit cooalliance.com.