For the two “big guys”, the biggest problem is how to make every dollar that goes out bring double profits.

Amazon and Tesla are two of the oldest and very famous technology companies in the industry. Both companies have experienced certain fluctuations in profits but they are still not worried.

The bosses of the two corporations, Jeff Bezos and Elon Musk, believe that losing money is a certain path that will lead to success and they will continue to cooperate with potential companies without being too concerned about profits. profit. Here are four ways to spend money that have helped create billionaire empires for people like Jeff Bezos and Elon Musk.

1. Invest early to strengthen your position in the market

This lesson applies primarily to new technology and media companies, especially Facebook and Google (now Alphabet). It’s a familiar management idea known as “first-mover advantage,” which originated during the internet gold rush of the late 1990s.

Facebook became a social networking site with global coverage for many reasons, but the most important factor is that the company launched early and attracted enough capital to have the opportunity to invest in public products. new technology to serve millions of people. Accordingly, this approach can lead to continued growth and expansion when the need for new investment declines or is significantly reduced because the business is now much larger.

However, Amazon did it another way: whenever they had the potential to make a lot of money, CEO Jeff Bezos would cut prices or enter new businesses, pushing growth even further to achieve short-term profits, as he declared in his first letter to Amazon shareholders in 1997.

Jeff Bezos boldly invests when others are still hesitant. Photo: CNBC

2. Borrowing capital to invest will create future opportunities

Few people know that there was a time when Elon Musk was penniless and lived day by day thanks to money borrowed from friends. Until now, despite holding Tesla shares worth up to 39 billion USD, Elon Musk is still living and investing in business with borrowed money.

Or Netflix also suffered heavy losses when investing too much in projects. However, this setback was quickly forgotten when the company reported profits of $245 million in the first half of 2017.

A company representative shared: “We are in no rush to push profits up too quickly because we want to ensure that the company is investing heavily to continue to lead in internet TV worldwide.” Netflix is ​​continuing to invest in creating long-term relationships with customers.

Unprofitable investments in the early stages are considered smart investments and will be profitable in the future – in Netflix’s case, they attracted a lot of new subscribers and recouped their capital with subscription money. customers pay – however, for this to work effectively, Netflix or any business must be able to predict when investment will need to slow down.

3. Persistence will pay off

Elon Musk is also very famous for his work principle: “Perseverance is very important. You should not give up unless you are forced to.” Musk believes that to be successful, people will need to work “half-dead.”

According to Musk, working harder than others will improve your odds of success. “If someone else is working 40 hours a week and you’re working 100 hours a week, even if you’re both completing the same thing, you should know that you’re going to get there in four months,” he says. And it took them a year.”

Success doesn’t come easily. Elon Musk was once “ousted” from two companies he co-founded, Zip2 and PayPal. Both Tesla and SpaceX were on the brink of bankruptcy as a result of the 2008 recession, making many people think Musk would fail again.

Musk’s success is partly due to perseverance. Photo: ABC News

But he learned from his previous mistakes to go up and stand on the empires he created. Any of us can look to Elon Musk’s experience to find inspiration and achieve our own financial milestones.

4.  Speed ​​is the “secret weapon”

A large company with tens of thousands of employees and billions of dollars in profits was defeated by a group of dropouts eating noodles while starting a business in a garage? If you don’t think this is possible, look at Amazon’s success.

In 1994, Amazon entered the book market, where Barnes & Noble is hegemonic. If Barnes & Noble also sells books online, Amazon will be wiped out within a blink of an eye.

Understanding this, Jeff Bezos determined that the only way to win is to grow quickly. They need to be fast enough to outpace Barnes & Noble, in case this giant decides to join the online sales war.

Ultimately, this strategy of the Amazon billionaire was successful. It wasn’t until 3 years later that Barnes & Noble just opened its first online store, but is much slower than Amazon.

Therefore, if you are a startup entrepreneur or a new working student, being agile with the times is also the way to make a difference.

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