Narayana Murthy's mantra on how to win investors' trust

Bring the bad news early to win the trust of investors - this was a piece of advice Infosys chairman Narayana Murthy offered small business entrepreneurs.

"Bring the bad news early and pro-actively to your investors. I always say, let the bad news take the elevator, good news can take the steps," he told an SME (small and medium enterprises) event organised by ICICI Bank in Mumbai Monday evening.

Mr Murthy, who returned to the struggling Bangalore-based IT giant as executive chairman last month, said investors will trust an entrepreneur for his honesty.

"So as long as you are willing to be open to bring the bad news to the investors, then they will trust you," the Infosys chief said.

"If they trust you, then you can take bold and tough decisions," he said and advised small business owners not to be "hesitant" in updating investors.

The IT industry icon asked entrepreneurs to derisk as much as possible and predict revenue pipelines with precision. Infosys, which has seen a decline in its topline and giving weak guidance to investors, last month recalled Mr Murthy back to an executive role five years after his retirement.