What Business Owners Can Learn From Tesla.
I do not want to mess with ya. You are the talk of the town. The stores are filled with people wanting to buy you. Your CEO Elon Musk is a stud. He founded PayPal, started Space X, and is now CEO of You.
Why are Tesla cars the talk of the town? Here are 5 things entrepreneurs can learn from the success of Tesla Motors.
1. Be innovative. Design a product or perform a service that speaks for itself. If your stuff is flat out outstanding, it will make marketing it so much easier (so much less stress!). Word of mouth is so huge.
CEO Elon Musk said, “never produce a bad product.” He even discontinued the Tesla Roadster because he could not stand “100%” behind it. The Tesla car is beautiful. It’s sleek. The interior is amazing with all sorts of technology that comes with it. People say it is wicked fast. When people take it for a test drive, they are literally blown away about how cool it is. Consumer Reports Magazine caves it a score of 99 out of 100. They even went so far to say that it is the best car in the world. Driving a Tesla makes people think that they are taking part in the wave of the future. Everyone who owns one tells their friends about how cool their car is.
2. Get strategic partners. Wait. Get the right strategic partners. Ever hear the expression 1 + 1 = 3? When you align your business with the right people, it is so much easier to take your business to the moon. I’m talkin ‘growing exponentially. The deal is you need to find these people and seek them out (try social media and live events.)
Tesla has 4 key strategic partners. The first two are the federal government and each state. The feds will give you a $ 7500 tax credit if you buy a car. The state of California will give you a $ 2500 credit as well. (Review this info with your tax professional) Tesla is using “other people’s” money to make itself more affordable to the mass market.
The 3rd and 4th partners are Tesla’s financing partners: US Bank and Wells Fargo. Tesla has worked with both banks to make the monthly payments more affordable. They have extended the financing period. Now your monthly payment goes down.
Tesla has even said that they guarantee a resale value of 50% of the purchase price of the model S car. Elon Musk is even giving his own personal guarantee. He wants Tesla to have the highest resale value of any luxury sedan. He is putting his own money behind it. How’s that for a guarantee?
3. Diversify your product line. Do not just sell one thing. This may help you smooth out the ups and downs of your cash flow. Think about what else you can sell to your customer – or an adjective target market that may be interested in what else you have to offer.
Tesla is also an OEM (original equipment manufacturer). They sell batteries to Daimler for its Smart Cars. Tesla’s core business is selling cars – but they have found a way to find some additional sales.
4. Find a way to make your product or service serve a greater social cause. If people feel that your product can help a greater cause rather than just themselves, they will be really motivated to buy it. People want to change the world and can get really get inspired when they are participating in something larger than themselves.
Many people think that the Tesla cars are friendlier to the environment. No gas – all-electric – zero fuel emissions. (I know there are reports about greater use of electricity and people talking about what Tesla is going to do with all of those batteries.) But the bottom line is that many people think that buying electric cars is better for the environment.
5. Find a way to save your clients money. People will spend money if they feel that they could save money down the road. The more money people could save, and the longer they could save the money, the more motivated they could be to buy your stuff.
The Tesla car is all electric and people do not use gas. They just recharge at super charging stations. So in the customer’s mind, they feel like they could save $ 50-300 bucks a month depending on how much they drive.
So those are my 5 ideas. Why do you think Tesla has been so successful? Do you own one? Have you ever been in one? Leave a comment below and share your perspective.
This is for informational and educational purposes only and should not be considered as a solicitation or offer to purchase or sell any securities, including Tesla.
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