When he joined Google in 2001, the company had already raised $25 million in funding. Yet, Schmidt didn't walk into a lavish corner office. Instead, he found himself sharing a workspace with four engineers.

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“Eventually, I was given an eight by 12 office where my desk was a door which I’ve retained,” he recalled. Schmidt still keeps that door as a desk in his office today as a reminder of what it takes to build a successful company. It symbolizes the frugality and focus that helped Google grow from a scrappy startup to a tech giant.

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Why Frugality Matters in Startups

He also shared stories of Page and Brin's practical approach to money. In one instance, Schmidt had to lend his car to one of the cofounders because theirs broke down. Even after raising millions, their focus wasn't on upgrading their lifestyle but on making Google successful.

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Founders who focus on appearances – like renting a shiny office space or splurging on unnecessary luxuries – are often missing the point. Instead of burning cash on status symbols, great founders channel their resources into areas directly contributing to the company's growth.

“I can always tell when we’re dealing with a proper founder when we start with how are they spending their money. And so whenever I go into a startup that has beautiful offices and really nice chairs, I cringe because that means they haven't quite figured out it's not their money,” Schmidt pointed out.

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