Infosys Co-founder NR Narayana Murthy: “Entrepreneurs must focus on controlling costs right from day one”
NR Narayana Murthy, “father of the Indian IT sector” said that Indian companies have improved a lot since the economic reforms of 1991. However, the best can be still done with better training of the independent directors.
Founder of Infosys Ltd, N.R. Narayana Murthy on November 3, 2020 said that a business plan of five years, extendable up to 7-10 years is must for entrepreneurs to become profitable in their ventures. The role of venture capitalists and private equity firms should extend to mentoring entrepreneurs, helping them overcome challenges, connecting them with prospective customers and employees, and fine-tuning their strategy and action plan, said Murthy.
“I believe in topline growth with concomitant healthy bottomline growth. I believe in leadership by example in austerity and sacrifice. I believe in getting the best value for money for every cent I spend," he said. Murthy spotlighted the essentiality of deferred gratification and sacrifice among entrepreneurs to succeed. “Entrepreneurs must focus on controlling costs right from day one," he added.
“The only thing that will be permanent will be good ideas with a differentiated value proposition," said Murthy. The good days of VCs pumping in money may not last forever.
Founders of startups must build confidence and trust among every stakeholder in the company to succeed and survive the business cycle. , Murthy said. He called on them to focus on innovation to make their products indispensable for their customers, more affordable, and of better quality.
On corporate governance, Murthy said Indian companies have improved a lot since the economic reforms of 1991. However, the best can be still done with better training of the independent directors, better accountability for the directors, more transparency for the shareholders, better rules for chief executive officer (CEO) compensation, and more transparent whistleblower policies.
NR Narayan Murthy is one of India's pioneers when it comes to tech, business, and entrepreneurship. The Co-founder of India's second largest IT and services company, Infosys, is often described as the "father of the Indian IT sector". During his second stint in 2013-14, Infosys doubled its revenue growth to 11.6% from 5.8% in 2012-13 and improved its operating margin by 200 basis points.