What It Takes: Lessons in the Pursuit of Excellence

by Stephen A. Schwarzman

By the time the professor stopped talking and passed the microphone to me, I had decided these students needed a reality check. If you are going to start a business, I told them, I believe it has to pass three basic tests. First, your idea has to be big enough to justify devoting your life to it. Make sure it has the potential to be huge. Second, it should be unique. When people see what you are offering, they should say to themselves, “My gosh, I need this. I’ve been waiting for this. This really appeals to me.” Without that “aha!” you are wasting your time. Third, your timing must be right. The world actually doesn’t like pioneers, so if you are too early, your risk of failure is high. The market you are targeting should be lifting off with enough momentum to help make you successful. If you pass these three tests, you will have a business with the potential to be big, that offers something unique, and is hitting the market at the right time. Then you have to be ready for the pain. No entrepreneur anticipates or wants pain, but pain is the reality of starting something new. It is unavoidable. Real companies don’t just happen. Raising money and recruiting good people is very hard. Even when you are small, though, and your resources most constrained, finding the right people is the most important thing you can do. You typically won’t have access to the best, who are working elsewhere at much higher compensation levels. You have to make do with the people you get. That mean...