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Eric Schmidt, the former CEO of Google, is a master strategist who turned visionary ideas into tangible success. In a candid discussion, Schmidt shared one of the core philosophies that shaped Google’s rise and offers valuable insights for any business leader or entrepreneur.
Photo: Phelan M. Ebenhack
The Unlikely Perfect Business Plan
Schmidt recounts the story of Google’s early business plan, crafted by Salar Kamangar. In hindsight, it was stunningly accurate—an extremely rare feat for any corporation. Schmidt humorously described it as “probably the only business plan ever written for a corporation that was actually correct.”
The reason? It wasn’t just about short-term projections. It combined a bold five-year vision with actionable one-year goals, rooted in a deep understanding of the future landscape.
Start with the Future, Act in the Present
Schmidt’s advice for businesses is deceptively simple: envision what the world will look like in five years, then focus on actionable steps to move toward that vision in the next year. This blend of foresight and execution is what allows companies to remain competitive and innovative.
Take Google as an example. In the early 2000s, the team anticipated the explosion of online search and advertising, as well as the growing importance of user-first design. By staying ahead of these trends and acting swiftly, Google dominated the search engine market and revolutionized digital advertising.
The 100 Million Rule: Focus on the User
Schmidt emphasizes the importance of building an audience before worrying about revenue. “If you can get an audience of 10 or 100 million people, you can make lots of money,” he explained.
This principle is at the heart of Google’s mantra: “Focus on the user, and everything else will follow.” By prioritizing the user experience, companies build trust and loyalty, which eventually translates into sustainable monetization.
For instance, Google Maps didn’t initially generate revenue. Instead, it focused on creating an indispensable tool for users. Over time, it became a cornerstone of Google’s ecosystem, monetized through integrations with local businesses and ads.
Hard Goals, Not Simple Goals
Schmidt is a firm believer in setting ambitious, hard goals rather than simple, incremental ones. By pushing the boundaries of what seems possible, teams are driven to innovate and achieve more.
For Google, hard goals meant indexing the entire web, making search instantaneous, and providing reliable answers to billions of users daily. These weren’t easy feats, but they laid the foundation for Google’s dominance.
Lessons from Schmidt’s Playbook
Dream Big, Act Small: Envision a bold future, but focus on achievable steps in the present.
Put Users First: Prioritize the needs of your audience before focusing on monetization.
Set Hard Goals: Push your team with challenging objectives that inspire innovation.
Build Scale: In consumer businesses, a large, engaged audience is the key to success.
From Vision to Reality
Schmidt’s leadership at Google proves that success doesn’t happen by accident. By combining long-term vision with relentless execution, he helped transform Google from a promising startup into one of the most influential companies in the world.
Whether you're an entrepreneur, a team leader, or an aspiring innovator, Eric Schmidt’s approach offers a clear roadmap: envision the future, set bold goals, and focus relentlessly on the user. As Schmidt would say, “Get the direction right, and then run hard toward it.”
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