PRINMAN 565

Elon Musk manages companies such as Zip2, PayPal, Solar City, SpaceX, Tesla, Boring Company, OpenAI,
Neuralink, and Twitter using his cooperation, extreme work ethic, and great teams he was able to lead
these companies to success. The following are some of his secrets to success and learnings as a
manager:

I. SECRETS TO ELON MUSK’S SUCCESS

1. Work like hell.

Elon Musk has an unwavering work ethic. When Elon Musk and his brother co-founded PayPal, they
lived and slept in a small office and showered at the local YMCA. "Work like hell," he said in an
interview. You only need to put in 80 to 100 hours per week. This increases the likelihood of success. If
other people work 40-hour weeks and you work 100-hour weeks, you know that even if you're doing the
same thing, you'll accomplish in four months what it takes them a year."

2. Don’t follow trends, create them.

The most successful businesses concentrate on developing new innovations. They do not attempt to
outrun the competition. "Stand out by focusing on what makes you unique rather than chasing others."
Elon's businesses all solve huge problems in emerging markets with little competition. When he co-
founded PayPal, it was the world's only email money-transfer solution for a time. SpaceX is the first
private company to send a spacecraft (Dragon) to the International Space Station. Tesla is the world's
leading electric vehicle manufacturer. In his commencement address at USC, Elon advises, "Don't just
follow the trend," and his actions have certainly followed this advice. Focus on innovation rather than
competition to reap the greatest rewards. Strive to be so innovative that there are no competitors. Look
to innovate and create a monopoly if you want to create and capture long-term value. Monopolies, by
definition, transcend competition and are the source of the greatest business profits.

3. Really like what you do.

When you really like what you do it enables you to find the energy to persist through the challenges that
a growing business will undoubtedly face. Elon Musk is famously a workaholic - he boasts of working
120-hour weeks to keep production of the Tesla Model 3 on track - but he seems to have been enjoying
himself in doing the work that he does.

4. Be ready to take risks.

Elon recommends taking risks when you are still young as obligations only increase over time. The best
time to be an entrepreneur is when you’re young. “Once you have a family it gets much harder to do
things that might not work out.” It’s worth keeping in mind that Elon started SpaceX and Tesla with a
young family so his family obligations have certainly not slowed him down. With greater risks, such as
those needed to carve out a new niche, comes the potential for far greater rewards. Musk poured so
much of his money into SpaceX and Tesla that he had to borrow money from friends to cover his living
expenses. However the risk of pouring his money into his companies paid off. Today SpaceX, Tesla, and
Solar City are thriving and Elon is several billion dollars wealthier than he was before. As you get older,
risk-taking also impacts your family and children. Not to mention, you'll have much less time on your
hands. Instead, take risks now when you don’t have these other obligations or time commitments.
5. Plan for success, but prepare to fail.

There’s no crystal ball for success. Elon Musk explained: “If something is important enough you should
try even if the probable outcome is failure.” If you care about something, you should put every effort
into following your dreams. At the same time, be ready in case it doesn’t work out. It’s easier to recover
from a failure if you already have a backup plan.

6. Do something important.

Success and satisfaction with your work are not all about making money. Elon had more money than he
needed at the age of 27 but he has pressed on, working like a madman because he recognizes the
importance of his work, and changing the world in the process. Elon recommends being bold and
choosing to do something important. Not only can working on important projects give you great
financial rewards it can also provide the satisfaction that comes with knowing you are changing the
world for the better.

7. Focus on signal over noise.

Tesla has never spent any money on advertising. They focus instead on investing in R&D and design
since these will help make the car as good as possible. Musk doesn’t waste his resources on advertising.
Instead, he asks himself: “Will this activity result in a better product or service? If not, I stop those
efforts.” A top-quality product will lead to lots of great word of mouth. Focus on that first and success
will follow.

8. Seek out constructive criticism.

Elon Musk discusses several of his success secrets in one of his interviews. One success tip that he
mentioned that many people likely avoid is seeking out criticism. No one enjoys hearing what they may
be doing incorrectly, but by seeking this information from people you trust, you can gain valuable insight
that you can use to make improvements. As he stated: “I think it’s important for people to pay close
attention to negative feedback and rather than ignore negative feedback, you have to listen to it
carefully. Ignore it if the underlying reason for the negative feedback doesn’t make sense but otherwise,
people should adjust their behavior. I’m not perfect at it, for sure, but I do think it’s really important to
solicit negative feedback, particularly from people who have your best interest in mind.”

There's always room for improvement. As Musk explained, “It’s very important to have a feedback loop,
where you're constantly thinking about what you've done and how you could be doing it better. I think
that's the single best piece of advice: constantly think about how you could be doing things better and
questioning yourself.”

9. Love your stakeholders like your family.

The best leaders treat customers and coworkers like family. Elon Musk, regularly expresses gratitude to
customers through Twitter. It may seem like small gesture, but people take notice. “Our most valuable
asset is our people,” he explains. “If we take care of them, then they take care of the business. What we
do for our people is what we do for your customers. The wins for our employees create wins for your
customers.”

10. Strive to be significantly better than the competition.

Put yourself in the shoes of the consumer, Elon says. “They are going to buy the trusted brand unless
there is a big difference.” So if you want to set yourself apart from the competition we don’t just try to
be a bit better but instead strive to be significantly better.

11. Be extremely tenacious.

When SpaceX and Tesla were on the verge of bankruptcy, it was their determination to keep going that
saved them. Elon poured all of his money from the sale of PayPal into these companies in order for them
to survive, and his perseverance saved them from insolvency. Elon's perseverance and hard work in
making every company he has worked with a success remind me of Steve Jobs' quote: "I'm convinced
that about half of what separates the successful entrepreneurs from the non-successful ones is pure
perseverance."

12. Read to lead.

School may end but self-education never has to. “You don’t know what you don’t know. You realize
there are all these things out there,” says Musk. If you want to know what you don’t know it’s a good
idea to read up.

II. ELON MUSK’S LEARNINGS AS A MANAGER

1. Stay open to new ideas.

Musk has an uncanny ability to see beyond current trends and statuses to see what could be. That
openness enables him to collaborate with his team in an environment where there is no such thing as a
"bad idea," instead cultivating an open-minded spirit to encourage sharing and the anticipation of the
next great idea.

2. Don’t be afraid of failure.

When Musk makes bold decisions, his team is inspired to do the same. Fear is an emotion that prevents
us from doing things that will assist us in achieving our goals. It's natural to be afraid of new challenges,
but understanding the dangers of complacency can help employees overcome their fear of failure.
Naturally, a good leader must encourage that courage by emphasizing innovation over immediate
results.

3. Find a mentor.

When it comes to developing a leadership style, mentors are invaluable. Someone who has achieved
goals you are still working on can provide you with real-world, actionable advice on how to become a
better leader. But what if you can't think of anyone who would make an excellent mentor? Do as Musk
did in similar situations: read biographies and books about leaders you admire. Musk selected de facto
mentors from a seemingly limitless library of great leaders, including Benjamin Franklin, Steve Jobs,
Albert Einstein, Isaac Newton, and, of course, Nikolas Tesla.

4. Learn to say no.

As a leader, you must sometimes take a step back and say no when something no longer serves your
personal or organizational goals. Although "No" is obviously a negative word, it is an excellent
opportunity to clarify your intentions and redirects employees to a more positive path. Knowing when to
say no is one thing; knowing how to cushion that statement with a better option is an example of
masterful leadership.

5. Keep learning and stay curious.

Musk's leadership style includes a strong emphasis on lifelong learning. Recognizing that learning never
stops, remaining curious, and seeking out new sources of information means that no one in Musk's
circle is content with what they already know. Instead, simply asking how things work or inviting others
to share their experiences can lay the groundwork for developing a love of learning. After all, Musk said,
"If you read a lot of books and talk to a lot of people, you can learn almost anything." A good leader is
both confident in their own abilities and curious about what others have to offer.