Elon Musk's Formula for Successfully Growing Companies Faster
There is no denying the many ways in which Elon Musk is unique. There is also no denying the fact that you can learn something beneficial from him.
By Manish Dudharejia •
Opinions expressed by Entrepreneur contributors are their own.
Elon Musk needs no introduction.
Let me start by saying I am a huge fan of Elon Musk and the energy he brings to the business world. His major companies include: Tesla, SpaceX, Boring Company, HyperLoop, Solar City, and Giga Factory.
All Musk companies have a major theme, vision and technology.
These companies all have one major theme in common; they are set on pushing boundaries. In fact, this innovative concept has practically become synonymous with Musk's name.
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Combined with groundbreaking technology and a strong passion for improving life (both in and outside of Earth), Musk's unique vision is one of the most valuable contributions in bringing humanity to the next level.
One his quotes has always stuck with me: "If you get up in the morning and think the future is going to be better, it is a bright day. Otherwise, it's not."
Musk, the most influential entrepreneur today.
Musk is the most influential entrepreneur of our generation. His approach has inspired many others to try new things and to make a real difference in the world. So what is it about his formula that is so special?
Related: 7 Takeaways in the Success of Elon Musk for Young Entrepreneurs
Well, truth be told, it's really not that complicated. The bulk of his strategy can be traced back to several key cornerstones.
Musk is committed to challenging convention.
One of the traits that makes Elon Musk so influential is his keen eye for understanding human truth. In essence, human truth encapsulates the deeper meaning behind universally-accepted status quos. In other words, it is the common thoughts and feelings that unite us all.
Musk's formula for innovation starts by identifying the what and the why of certain pain points in day-to-day life. One of his more recent ideas, from SpaceX towers, aims to change the very perception of air travel.
What is human truth?
The human truth of air travel is that most people do not genuinely enjoy spending hours on a cramped airplane. Travelers like to get to their destinations as quickly as humanly possible. Musk's ambitious plan is to create a revolutionary rocket system that transports passengers from any one city to another in under an hour.
For instance, a flight from New York City to Los Angeles would take roughly 25 minutes. Perhaps the best part of the plan; tickets will cost as much as a typical economy-class ticket. If you haven't seen the videos, definitely check out part one and two.
Related: Here's What You Need to Know About Elon Musk
This is not Musk's only idea (both past and present) to challenge convention. Throughout each idea, the driving force effectively finds inefficiencies and works to create solutions that have never been done before. In many cases with Musk's ideas, have never even been fathomed.
Musk understand everyone involved is a vector.
Recently, Dharmesh Shah, founder of HubSpot, got the opportunity to meet and converse with Musk at a dinner for legendary founders at Sequoia Capital. Like so many others, Shah wanted to know what Musk does to create a successful company. Shah asked him: "What's your advice to build a great company that grows every day?"
Musk is a physics man, and his response reflected this fact perfectly. He told Shah to think of it in simple terms of getting a company from point A to point B. Each person within an operation is a vector that exerts energy to achieve this goal. Everyone has a quantity of both magnitude and direction.
Related: 5 Learnings From Entrepreneurial Journey of Elon Musk
A company's progress is determined by the sum of all these vectors. If some vectors are exerting energy in one direction, while others are doing so in a different direction, the impact will be sub-optimal. For example, if an employee is exerting a force of 10 in one way, and another is exerting a force of 10 in the opposite, the total impact is zero.
For a company to achieve maximum impact, all vectors must be exerting energy in the same direction. In short, for a company to thrive, all parties must be consistently devoting their efforts to a common vision.
Firmly align team goals with customer needs.
One of the biggest problems that plague many companies is a misalignment with internal team goals. When this is the case, misalignment with the customers' needs is all but inevitable. Maintaining common goals within a company gets more and more complicated throughout growth; even more so when third-parties are introduced to the mix.
One of the basic human truths Musk factors into his business plans is that all people want a positive end-to-end customer experience. A stellar end-to-end customer experience involves outstanding products, sales strategies, and service options. Throughout each venture, Musk's primary goal is to ensure these components happen.
Related: Elon Musk Personally Cancels 'Super Rude' Customer's Tesla Model
Perhaps the best example is with his famous Tesla car. Many of the major car companies we know follow a common business model. While most have their own stores, a good portion of the sales aspect comes from third-party dealerships. Throughout this process, the unique brand values are being filtered through a number of different visions and mentalities. In turn, it becomes incredibly easy for core values to get lost in translation.
At Tesla, the authentic products are exclusively sold at their own stores. There are no outside dealerships involved to aid the sales cycle. Service options are available from branded Tesla centers. The Tesla computer system within the cars conducts all of its own updates and is equipped with technology to seamlessly guide users to the nearest Tesla charging stations.
If a user wants to sell their vehicle, they can do so through the Tesla website. At no point in the customer experience does the user need to branch out to any outside parties for assistance. When this is the case, keeping team goals aligned with customer needs is much easier and branded values do not run the risk of being muddled by external mindsets.
Conclusion.
Elon Musk has already made a significant impact in improving the way we live. His superlative knowledge and dedication to the greater good is truly a once-in-a-lifetime phenomenon.
Related: How Billionaire Techpreneur Elon Musk Starts His Day
However, his core ideologies can be applied to virtually all business models. In 20, 50, or 100 years down the road, my hope is that more people catch on to his profound philosophies and continue to push human development to a brighter future.
