In today’s issues, I want to talk about 3 lessons I learned from the tv show WeCrashed. This show is about the true story of the rise and fall of the co-working space company called WeWork.
If you haven’t checked out the show WeCrashed yet, you should. The company was evaluated at $47 billion before everything came falling down.
There were a lot of reasons WeWork didn’t make it. I want to cover a few things that stood out to me and make you think about your business too.
Adam(the CEO) kept justifying spending by saying we need to keep growing. At some point, you need to start making a profit.
The investors were not happy that he kept spending, while in reality, they realized his all-in mentality might eventually turn a profit. In the end, this mentality destroyed his company.
It’s important to know why you want to grow.
Adam was a master at persuasion and selling. He had a knack for selling benefits, not features. When he was luring investors in, he wasn’t talking about desk size, or how comfortable the chairs were.
He was selling the idea of community. You could meet your spouse, business partner, or best friend at a WeWork location. This is how he got people to buy in. People buy with their hearts, not their heads.
This was a pro and con for WeWork. Playing the long game is extremely beneficial, but you have to see a finish line somewhere. Without ever knowing where the end is, you are chasing something you will never reach.
This is what made him successful but at the same time stopped him from turning the corner and becoming profitable and sustainable.
This show gave me perspective on what can go wrong when you aren’t focused on the right goals.