Navigating Challenging Economic Times
Part 1 – Elon Musk
Successful CEOs and founders are often faced with the challenge of navigating through uncertain economic times. In an email from Elon Musk, CEO of SpaceX and Tesla, to his team, he addresses the dire economic situation ahead and the vulnerability of their company, particularly due to their heavy reliance on advertising.
Musk emphasizes the need for diversification in revenue streams and highlights the development and launch of Twitter Blue Verified subscriptions as a priority. He acknowledges that without significant subscription revenue, there is a real possibility that Twitter may not survive the upcoming economic downturn. To mitigate this risk, Musk sets a goal of having roughly half of their revenue come from subscriptions.
This email serves as a reminder that even successful companies face challenges and must adapt to changing economic conditions. By exploring alternative revenue streams and reducing reliance on a single source, companies can increase their chances of weathering economic downturns.
As aspiring entrepreneurs and business leaders, it is important to learn from the experiences of successful CEOs and founders. Their insights and strategies can provide valuable lessons on how to navigate challenging economic times and ensure the long-term sustainability of our own ventures.
Click here to view the email Elon Musk sent to his Twitter Employees
From: Elon Musk
Date: Nov 9, 2022
To: Team
Sorry that this is my first email to the whole company but there is no way to sugarcoat the message.
Frankly, the economic picture ahead is dire especially for a company like ours that is so dependent on advertising in a challenging economic climate. Moreover, 70% of our advertising is brand, rather than specific performance, which makes us doubly vulnerable!
That is why the priority over the past ten days has been to develop and launch Twitter Blue Verified subscriptions (huge props to the team!).
Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn. We need roughly half of our revenue to be subscription.
Of course, we will still then be significantly reliant on advertising, so I am spending time with our sales & partnerships teams to ensure that Twitter continues to be appealing to advertisers.
This is the Spaces discussion that Robin, Yoel and I hosted today: [Link to Elon Q&A: Advertising & the Future removed]
The road ahead is arduous and will require intense work to succeed. We are also changing Twitter policy such that remote work is no longer allowed unless you have a specific exception. Managers will send the exception lists to me for review and approval.
Starting tomorrow (Thursday), everyone is required to be in the office for a minimum of 40 hours per week. Obviously, if you are physically unable to travel to an office or have a critical personal obligation, then your absence is understandable.
I look forward to working with you to take Twitter to a whole new level. The potential is truly incredible!
Thanks,
Elon
Reference:
Authors: Lora Kolodny, Lauren Feiner
Publication Date: THU, NOV 10 202211:29 AM EST | UPDATED THU, NOV 10 20228:13 PM EST
Title of Article: Elon Musk’s first email to all Twitter employees
Source: CNBC
URL: https://www.cnbc.com/2022/11/10/read-elon-musks-first-email-to-all-twitter-employees.html
To see an in-depth analysis of this email, click on this link https://wordsoftitans.com/index.php/2023/11/26/the-brilliance-of-elon-musks-emails-insights-into-the-mind-of-a-successful-ceo/