How to establish and run a Company “Elon Musk's 5 Rules”

 

 

How to establish and run a Company “Elon Musk's 5 Rules”

 

Depending on how well you want to do and particularly if you're starting a company, you need to work super-hard. So what does super-hard mean?

When people started their first company, they might start taking risk at once or they forbade taking risk. They should take intermediate step by keeping some back hand and should fund half investment for running a business.

 

Validity of product or service

 

One has to choose to make sure that whatever you're doing is a great product or service.

It has to be really great. Unless it's like some new industry or new market, if it's an untapped market then you have more ability to invest in right way. The standard is lower for product or service. But if one is entering anything where there's an existing marketplace against large entrenched competitors, then product or service needs to be much better than theirs.

 

It can't be a little bit better, because then put you in the shoes of the consumer and they say why would one buy it as a consumer?

Once is always going to buy the trusted brand unless there's a big difference. So a lot of times entrepreneur will come up with something which is only slightly better and it can't just be slightly better.

 

Joining a group that help one to grow

It's got to be a lot better. The other thing I'd say is that if you're creating company or if you're joining a company, the most important thing is to attract great people. So either joins a group that's amazing that you really respect, or if you're building a company you've got to gather great people.

 

How talented and hardworking co-workers are working with?

 

I mean, all a company is a group of people that have gathered together to create a product or service. So depending upon how talented and hardworking that group is, and degree to which they are focused cohesively in a good direction, that will determine the success of the company.

So, do everything you can to gather great people if you're creating a company.

 

Do not necessarily follow the guidelines of all developed companies

A lot of companies get confused. They spend money on things that don't actually make the product better. So for example, at Tesla we've never spent any money on advertising. We put all of the money into R&D and manufacturing and design, to try to make the car as good as possible. And I think that's the way to go. So for any given company, just keep thinking about are these efforts that people are expending, are they resulting in a better product or service?