Simon Cowell: From Idol to Inventor

The man behind American Idol talks about what it takes to succeed as an entrepreneur and why his new show focuses on product creation

by Stacy Perman

British-born high-school dropout Simon Cowell is perhaps one of the most recognized figures on American TV. Best known as the acerbic judge on the Fox (NWS) show American Idol (his signature phrase: "I don't mean to be rude, but..." is also the title of his 2004 memoir), Cowell claims that at heart he's a serial entrepreneur.

Cowell got his start at music giant EMI Music Publishing in London in 1979, where he honed his ability to adroitly identify hit-making pop stars. The entrepreneurial bug bit, and he went on to form several record labels as well as a TV production company, Syco.

In 2001, Cowell hosted a TV singing competition in Britain, U.K. Pop Idol. The U.S. version, American Idol, has been a ratings winner since it debuted in 2002. Two years ago, Cowell launched the operatic pop group Il Divo, composed of four young opera singers of different nationalities.

Cowell is now on the prowl for talent of a different sort: In March, his next competition show, American Inventor, will debut on ABC (DIS). Fledgling entrepreneurs from across America will compete to see who can come up with the best new product concept. The winner will receive $1 million and the opportunity to develop the idea into a business. Following that, Cowell will be executive producer for Fox's Duets, which will pair professional singers with celebrities in a competition, à la ABC's Dancing with the Stars.

The man you love to hate recently spoke by phone from London with BusinessWeek Online Staff Writer Stacy Perman about entrepreneurialism, success, reality TV, and the new show that will combine them all. Edited excerpts of their conversation follow:

You're best known as the tough judge on American Idol, but do you consider yourself a music man or an entrepreneur?

An entrepreneur. I've always treated the music business as a business. Whether I'm making TV shows or signing artists, you have to do it by the head and not the heart -- and I run my businesses that way.

You recently re-signed with American Idol for five more years, and this season seems to be stronger than ever. How do you account for the continued popularity of Idol, particularly when other reality shows are losing their audience?

No. 1, it's a great TV show. The second reason is that it only runs once a year so I don't think the public is bored with it. Thirdly, it's probably the most realistic reality show I've seen on American TV.

There are so many under the banner that have no reality in them. My idea is to make the audience believe that they are looking through the keyhole. That is the true definition of reality TV.

Do you find a difference in entrepreneurialism in America and Britain?

I think America is a hard nut to crack. But once you get a toehold it's a great place for an entrepreneur because people are so enthusiastic, and you have the most enthusiastic audiences in world.

What would you consider essential to being a successful entrepreneur?

Work hard, be patient, and be a sponge while learning your business. Learn how to take criticism. Follow your gut instincts and don't compromise.

What role has failure played in you career? For instance, your label Fanfare Records went under in 1989, and your reality show Cupid was canceled in 2003.

When I was 30 the company that owned Fanfare went bust, and I effectively lost everything. I had to move in with my parents. In hindsight, it was the best thing that happened in my life because I learned the value of money: not to borrow money and not to live beyond my means. And I learned that getting there is more fun than being there. But one thing that I have always been able to do is to own up to my mistakes and not blame others.

As for Cupid, we compromised. We allowed other people to make decisions for us, [but] I don't blame anybody but myself for allowing that to happen.