Connect with us

Performance & Growth

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.

Manish Dudharejia

Published

on

elon-musk

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.

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.”

Related: Elon Musk’s Lessons On Getting To Mars

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?

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.

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.

Related: 5 Habits That Made Elon Musk An Innovator

Musk understand everyone involved is a vector

dharmesh-shah-and-elon-musk

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.

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: How To Market Like (Elon) Musk

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.

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.

This article was originally posted here on Entrepreneur.com.

Manish Dudharejia is the Co-Founder of E2M, a full service digital marketing agency and MoveoApps, a mobile apps development company. Manish is passionate about technology, marketing, and start-ups.

Company Posts

How Partner Elite Helped My Business Grow

David Seinker, CEO of The Business Exchange, talks about his journey with Raizcorp’s Partner Elite division and how it contributed to the growth and success of his business.

David Seinker

Published

on

partner-elite-raizcorp

I started out in corporate property but later decided to launch my own business helping entrepreneurs connect with investors. My first office was in a business centre (now one of my competitors) which was extremely full with a waiting list. I realised I could provide what they were offering but add something new and exciting with a networking angle, and so The Business Exchange was born.

When I first started the business four years ago, I approached Allon Raiz and subsequently joined Raizcorp’s Partner Elite programme. The team at Partner Elite have been very influential from a strategic point of view. We have also received important marketing guidance from Raizcorp in terms of public relations, media exposure and the website, and even the aesthetics of our workspaces. Allon has also given us airtime on his TV show The Big Small Business Show. I have appeared on the show a number of times, and Allon has interviewed some of my tenants which has been a real value add.

Partner Elite has really helped me with business processes, and introduced me to their Flowcode system – a really clever, unique approach to building strategy and creating processes. It’s been very relevant in terms of what the business needs and I am already seeing the benefits.

Related: How Allon Raiz Went From A Failed Business To Raizcorp And All The Lessons Along The Way

My journey with Partner Elite has definitely helped me to grow as a person. I have a much clearer understanding of my weaknesses, and how to deal with them and turn them into strengths. When I started on the programme, a key thing that came out of the panel interview was that I wasn’t as good a listener as I could be. I believe there are many entrepreneurs who don’t listen enough and think they’re always right, and I remember Allon asking me, “Would you rather be right or would you rather be rich?” We’ve done a lot of work on listening and also on leadership skills which is an ongoing process.

When I originally approached Partner Elite for investment, I thought I would acquire a certain sum. Their investment in The Business Exchange, to date, is 22 times what I initially asked them for. They have supported me through my growth and have ensured that, not only did I have the funding, but that I expanded commercially and strategically.

After starting with one business centre, we are about to open our fifth in Mauritius and are looking to expand further into Africa. We now have almost 10 000m2 of property in our portfolio. In terms of staff, we started out with just me and a receptionist but we are now employing 30 people. Our revenue has grown and so have our profits. The next big development in our journey will be buying property instead of leasing it. That will be a big diversification for us.

I have had – and am having – a great journey with Partner Elite. It has provided me with a platform to test myself, bounce ideas off others and strategise. It has added a lot of value and I don’t think I’d be in the position I am without it. I highly recommend joining Partner Elite if you are serious about your business and you want to grow.

To find out more about Partner Elite, please visit www.partnerelite.co.za.

Continue Reading

Company Posts

Sasfin Is Gearing Your Company For Growth

How trade and debtor finance solutions can enable business growth beyond self-imposed ceilings created by cash flow restraints.

Sasfin

Published

on

By

sasfin finance

When an entrepreneur running a manufacturing business approached Sasfin for Trade and Debtor Finance, he had four things going for him: Experience, reliable customers, orders and a relationship with Sasfin. When other banks let him know via email that his financing had not been approved, he approached Sasfin, knowing the organisation would take a deeper look at his company than a spreadsheet analysis.

“He approached us because we had a working relationship with the business and they were looking for a facility that would enable them to purchase the stock they needed to fulfil their orders,” says Linda Fröhlich, Head of Business Banking, Sasfin.

“They didn’t have any assets, but they did have those orders, which meant they could bring their debtors to us and we could advance cash against them, getting them started.”

Solutions to enable growth

Today, Sasfin offers a full suite of inter-connected products designed for entrepreneurs and SME owners, but the bank, which operates under the slogan, ‘Beyond a bank’, was built off a base that began with trade and debtor finance.

Related: CEO Michael Sassoon Shares Sasfin’s Successful Strategies To Stand The Test Of Time

“Sasfin’s founder, Sydney Sassoon, went into trade finance in the 1960s because as a textile importer he recognised the need for trade finance amongst SMEs and importers,” says Linda. “It takes an entrepreneur to understand entrepreneurs. This business has never been about products — it’s about the best solutions to enable our clients to grow their businesses.”

When Sasfin first launched trade finance it was because of the challenges around importing goods: The time it took for the shipment of raw materials to arrive, manufacturing to take place, the finished article to be sold and then a further 60 days for payment was crippling for SMEs.

Not only were no facilities available that understood that time frame, but traditional overdrafts require security and are not designed for specific needs. Trade and debtor finance on the other hand work hand-in-hand and provide SMEs with the most valuable commodity: Cash.

Cash is King

“Through trade and debtor finance, we can finance the purchasing of your goods and I can give you terms that fit your cash flow cycle,” says Linda. “Now that’s meaningful for the business owner. Yes, we charge for the facility and the risk we carry, but if you have to make a payment upfront to an exporter, you can also negotiate discounts and off-set a portion of the discount you will receive from the supplier to our fees, which is win-win.

“More importantly though, the biggest challenge that SMEs face is cash flow. Cash flow is king, and that’s where trade and debtor finance comes in. If you borrow money that enables the growth of your business, the finance cost is part of the cost of your sales. The upside is that you have access to cash, enabling growth.”

Many SME owners are familiar with the challenges of growth: You work hard, build your client base, get traction in the market, and suddenly you’ve signed a large order or client whom you can’t service without assistance, because your own cash flow doesn’t cover the raw material costs of the order.

“This is true across all product-based industries,” says Linda. “Instead of slowly building cash reserves to grow the business organically, or waiting between 30 days and 60 days for clients to pay, we advance our clients up to 80% of the value of fulfilled invoices, enabling business owners to grow beyond a self-imposed ceiling created by cash flow restraints.”

Related: Think Beyond The Box

Gearing up

Over the years, Sasfin has watched its clients grow from strength to strength.

“One of our SMEs started out with a R5 million facility. Today they’re operating a R50 million facility and continue to grow. That’s the power of cash flow,” says Linda.

“There’s always a good time to gear-up the growth of your business, where it will enhance the growth and profitability of your company. If the time is right, a financing solution that suits your needs can make all the difference.”

The benefits of trade and debtor finance

  • Converts sales with proof of delivery into cash for day-to-day expenses
  • Extended terms of repayment, with up to 120 days for local purchases and 150 days for imported goods
  • A fully disclosed factoring facility or a confidential invoice discounting facility
  • Match sales to repayments, enabling cash flow management.

Continue Reading

Performance & Growth

My Business Is Growing… What Now?

Unplanned growth can be disastrous for a business, particularly a start-up where most of the departments consist of one person – the founder – or where the business has been based in one city or town or focusses around one service or product for some time.

Published

on

business-growth

It is a known fact that most growth and change are uncomfortable – especially in business. However, when your business grows, you grow with it and so will the business revenue, employment numbers and contribution to the country’s economy. Planning for growth is not only a good way to stay motivated through tough times in business, it will equip you for when the moment of growth arrives– to take your business to the next level.

Make the mind shift

James Cash Penney, founder of JC Penney, said:

“No company can afford not to move forward. It may be at the top of the heap today, but at the bottom of the heap tomorrow, if it doesn’t.”

Business growth should be actively pursued and be a constant part of your business planning acumen. Frequently ask yourself and your staff members: Where do we want to go to next, and what will we do to get there?

Take time out to plan

Research and planning lead to informed decisions which will be critical for your business growth. Consult all stakeholders – external and internal – through meetings or Strat sessions. Whether you bill by the hour, or bake by the truckload, it is critical to remove yourself from operations at least twice a year to take figurative stock of your business growth. This process requires you to be quiet and give it the importance it demands.

Related: Growing Globally – Supporting SMEs On The International Stage

Reasons for growth

Studies have shown that the top five reasons for growth include:

  • To increase the business’ market position
  • To increase profitability
  • To improve the use of company resources, better economies of scale
  • To increase frequency of use or number of users
  • To remain in business.

Know your obstacles

Know what challenges you may face on your journey to growth and be ready for them. Listing the obstacles will bring reality home and help you prepare for how to tackle these obstacles. Think of creative ways to sidestep these barriers to growth by being flexible.

Be brave

Continuously look for planned, achievable and sustainable growth opportunities. Calculate the risk, be mindful of the pitfalls, but do take up new growth opportunities in your business. See growth as the opportunity – that big break – you have been waiting for in your business, and it just could be that. Start slow or small but do continue to grow your business. In the words of Virgin’s Richard Branson: “There are people in this world who choose to see the glass half empty instead of half full… Personally, I see any glass half full as an opportunity to top it up, start a conversation and perhaps spark a great new idea.”

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending