A company is just a bunch of people coming together to create a product or service. There’s no such thing as “a business,” just a group pursuing a goal.240
How talented and hardworking that group is, and the degree to which they are focused cohesively in a good direction, will determine the success of the company. If you’re creating a company, or if you’re joining a company, the most important thing is to attract great people.241
A company is essentially a cybernetic collective of people and machines. This collective is far smarter than an individual.242 That’s what a company is, and there are different levels of complexity in the way companies are formed.243
Obviously, one person can’t build a whole rocket, engines, launchpad, and everything. That’s impossible. We have thousands of people at SpaceX. By piecing it out to different people and using our collection of computers, tools, and machines we can make lots of rockets, launch them into orbit, dock with the International Space Station, and more.244
People sometimes forget a company is just a group of people gathered together to make products for fellow human beings.
As long as they make great products, the company will have great value.245
To create a company, you have to convince others to join you in your effort. You have to convince them there is a reasonable chance of success and if there is success, the reward will be commensurate with the effort.
If you’re going to create a company, the first thing you should try to do is create a working prototype.246
When starting a company, create a demonstration, a mock-up, or a sketch. This helps people envision it. Try to get to that point as soon as possible, then iterate to make it as real as possible as fast as possible.247
It doesn’t sink in for people until you actually have a physical object they can use. Even when you can show something works on paper, and the calculations are clear, it’s not the same.248
Anything can look good on PowerPoint. If you have an actual demonstration, even in primitive form, it is much more effective in convincing people.249
Fundamentally, if you don’t have a compelling product at a compelling price, you don’t have a great company.250