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Most start-ups fail not because a business idea is bad, but because they fail to scale up, says Google Executive Chairman Eric E Schmidt. Making a dramatic back-stage entry for a tete-a-tete with a group of tech start-ups, organised by Nasscom, Schmidt’s key advice to young entrepreneurs in a start-up mode was: “Do not run out of cash. Cash is life”. He said many a time take start up entrepreneurs take limited view of their business model, and don’t scale up their business in line with customer expectation. “This has led to many a crash,” he said.
He said finding a partner in business life could help entrepreneurs withstand the rigours of the start-up stage. Citing his association with Google co-founders Larry Page and Sergey Brin, Schmidt recalled that in the early start-up days of Google the three had passionate arguments about the business model and that helped them to fine tune the business.
One key reason for Google’s success from a start-up stage to a global MNC has been the focus on hiring smart people, he said. “I am not sure I will be able to get a job in Google today,” he added on a lighter note. Even for acquisitions that Google has done over the years, a key parameter is acquiring talent, he said. “The quality of technical people in Google sets it apart from its competitors”, he said.
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Schmidt said while attracting talent it is important to understand that most people care more about impact of their work and not about money or power.
Responding to a query on attributes of a great tech CEO, he said it is combination of passion and ability to excite people to drive that vision. He voted Apple founder Steve Jobs as the best CEO he has worked with.
He exhorted Indian start-ups to ride the mobile wave. “Build applications for the mobile,” he said. Schmidt said every business in India can be run more efficiently by use of data analystics. That offered a big business opportunity for many start-ups. “New jobs will come from innovation,” he added.
