Entrepreneurs (both legacy and start-up founders) are often faced with the dilemma of when to let go. Sanjiv Mehta, former MD, Hindustan Unilever (currently executive chairman, L. Catterton India), says it is important for entrepreneurs to understand when and how to let go. “The skills you require to grow the business from 0-10, the skills you require for taking the business from 10 to 100 and then beyond are different. It is in the interest of the founders that in each stage of the journey they self-introspect, understand where they need help and bring in the right skill sets they need if they don’t possess it. That applies to legacy founder businesses too. “If you want to professionalise and those skills are not there with the family, you have to let go,” explains Mehta. “You can’t bring in a great professional and not empower them,” he adds.
Mehta also emphasizes the importance of governance. He says the founder may have the right ethics but for the game to become bigger, one also needs good governance. “Ethics are important in governance, but they are not similar. Your intent may be right, but you need to comply with regulations and the law of the land in letter and spirit. You need systems, processes and talent. That is how a great small business could become a great big business, else you would struggle.”