5 lessons startup founders can learn from tech mogul Elon Musk

Elon Musk is one of the biggest names in the tech world and is often in the limelight. Just recently, Musk was making headlines for announcing that his company Neuralink had successfully implanted its brain chip in another human patient. Apart from Neuralink, Musk is also the boss at X (earlier Twitter), SpaceX, Tesla and xAI.

Musk’s entrepreneurial journey began back in 1995, when he co-founded Zip2 with his brother. A year later, Musk was ousted from its board of directors and went on to find X.Com which merged with Confinity later on to form PayPal. Today, Musk owns six major companies and has a large empire.

Along with this, the Tesla owner also never shies away from talking about his life experiences in interviews and social media. A quick glance at his timeline would tell you how active he is on X, and how sometimes he even announces major updates through his handle.

If you are a young startup founder, or an aspiring entrepreneur, read on. Here are top 5 business lessons that you can learn from tech mogul Elon Musk.

1. Never be afraid of taking risks

Elon Musk enrolled at Stanford University with the intention of pursuing a PhD in applied physics and materials science. However, he left the program after just two days to launch his first company, Zip2.

“I decided to go on deferment,” Musk had explained in a podcast with Kevin Rose 11 years back. He had added that he figured that if he starts a company and it doesn’t work, there is always the option of going back and graduating. The department chairman predicted he wouldn't hear from Musk again. "He was right," Musk admitted in the podcast and added, "I haven't spoken to him since."

This exemplifies a crucial lesson: traditional education is important, but one should never be afraid to take risks.

It is true that education provides valuable knowledge and skills, real-world experience and seizing opportunities can be just as important. If you have a compelling business idea and the drive to pursue it, don't be afraid to take a calculated risk. School will always be there, but some opportunities won't.

2. Hardships are a part of your journey

The early days of Zip2 were marked by significant sacrifices and hardships. These are explained in detail in Musk’s biography that was published by Walter Isaacson last year.

Initially, Musk and his brother, Kimbal, worked out of a tiny, dilapidated office. They stored their clothes in a small closet and showered at a nearby YMCA. They often ate cheap meals from local fast-food joints and worked tirelessly, with Musk sometimes sleeping in the office on a beanbag chair.

This experience underscores the reality that the entrepreneurial journey is often full of challenges. Success doesn’t come easy, and startup founders must be prepared to make personal and professional sacrifices.

3. You are never too young to start

More often, startup founders and budding entrepreneurs are discouraged by the society from doing certain things simply because they are “too young.” However, Elon Musk's early interest in technology and entrepreneurship set the stage for his future success.

At the age of 13, he taught himself programming and created a video game called Blastar, which he sold for USD 500. Musk’s early ventures into game development and his ambition to start an arcade business with his cousins shows that it is never too early or too late. If you have an idea and are confident about it, just go ahead and start.

For aspiring entrepreneurs, it’s important to cultivate curiosity and a passion for learning from a young age. The skills and knowledge acquired early on can serve as a strong foundation for future business endeavors. Don’t wait for the perfect moment, begin experimenting and learning as soon as possible.

4. Hire the right people

The people you hire will run your business. And this is one of the most critical lessons that Musk imparts. According to Musk, hiring the wrong person can be catastrophic, wasting both time and money.

In 2017, Musk told company review website Glassdoor that hiring great people is extremely important. He had said that hiring talented people is “90 percent of the solution as hiring wrong can cost you so much.”

He had also talked about the need to hire individuals who are better than you in their respective fields, as this elevates the entire company.

“We challenge our people leaders to hire people that are better than themselves, therefore making the company better with each hire,” he was quoted as saying by CNBC..

Musk’s approach to hiring the right talent highlights the importance of building a strong, talented team. As a startup founder, you should take the time to personally interview candidates and ensure they align with your vision and values. Surrounding yourself with capable and motivated individuals can significantly enhance your chances of success.

5. Never be afraid of criticism and focus on your product

If you are trying to build something, criticism will follow. And Musk strongly believes that one should actively go and seek negative feedback as it helps you to be better. He

In an interview at the WSJ CEO Summit in 2020, Musk stressed upon the importance of seeking negative feedback. He added that constructive criticism from customers and non-customers alike can provide valuable insights and drive continuous improvement.

CEOs should strive for perfection in the products they create or the services they offer, Musk said and noted that they should actively seek out negative feedback from all sources—both from customers and those who are not customers.

Musk had also advised CEOs to spend less time on administrative tasks and more time making their products as amazing as possible. He believes that a product should be so exceptional that you, as its creator, genuinely love it.

He had said that CEOs should "spend less time on finance, spend less time in conference rooms, less time on PowerPoint, and more time trying to make their product as amazing as possible."

This lesson, thus, talks about the importance of being a perfectionist about the quality of your product or service. Don’t settle for mediocrity; strive for excellence and be open to feedback that can help you achieve it.

Thus, Elon Musk's entrepreneurial journey offers a wealth of lessons for startup founders. By valuing real-world experience, embracing sacrifices, starting early, hiring the right people, and focusing on product innovation, aspiring entrepreneurs can navigate the challenges of building a successful business.