Mahesh also decided he wanted to leave a legacy behind, so he dissolved the partnership and introducing a corporate structure was the only way out.india Updated: Jul 15, 2008 02:57 IST
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When his accountant - who was also a friend - died, Mahesh Shetty went into shock. He realised his operations should not depend so heavily on an individual. He also decided he wanted to leave a legacy behind, so he dissolved the partnership and introducing a corporate structure was the only way out.
He knew that convincing twelve of his business partners to corporatise the operation would be a huge challenge, since the profit-sharing arrangements would change. Eventually three of them quit, but Shetty pressed ahead.
No one wanted to invest in a coaching class. Shetty was literally booted out of a bank when he went there to ask for a loan. Venture funds also stayed away.
The industry has a high attrition rate, so Shetty tries to counter this by paying well and offering performance-based incentives.
Outstanding personal qualities:
Appetite for risk: Shetty knew that corporatisation would dent profits at first. But he also knew it was the cost of developing up a brand.
People-centric: Shetty pays his staff well. As a result, many teachers have been at Mahesh for much of the past 12 years. He gives section heads a free hand.
Ambitious: Shetty aimed high from the start. At every stage, despite obstacles, he was not willing to settle for less than what he had first set out to do.