In the world of start-up companies WeWork story is like a warning about being too greedy and wanting too much too fast. It’s a bit like when you eat too much candy at once and get a tummy ache. WeWork used to be super popular and was worth a lot of money, like $47 billion! They said they’d change the way people work, but it turned out they made some big mistakes.
How It All Started
WeWork began in 2010 and was really good at renting out cool offices to people. They made these offices look fun and said they were for creative people and small businesses. People liked the idea of working in these places.
But, they grew too fast and spent too much money. They borrowed lots of money, like $18 billion, to make their offices, and it was a big problem. They also didn’t do a good job of telling people how much money they were making, which is important.
How Did They Fail?
WeWork wanted to become a big company and be on the stock market, which is like a place where companies sell a part of themselves to get money from people. But, when people looked closely at what WeWork was doing, they found out they were making a lot of silly decisions and spending too much money. So, WeWork’s value dropped, and they couldn’t go on the stock market anymore.
Then, when COVID-19 happened, people had to work from home, and no one needed WeWork’s offices anymore. They didn’t make much money, and they had a big money problem. So, in 2021, they had to ask for help from the court and filed for bankruptcy. It’s like when someone spends all their allowance and needs help to pay their bills.
In 2019, WeWork had ambitious plans to go public. Going public means they wanted to start selling shares of the company on the stock market so that people could invest in it. However, as they prepared for their Initial Public Offering (IPO), the problems started to become more evident.
The scrutiny over WeWork business practices intensified, revealing a culture of extravagance and questionable decision-making. The company’s valuation began to plummet, and the public offering plans were unceremoniously shelved. It was a major blow to WeWork’s ambitions.
What We Can Learn
We should learn from WeWork mistakes. It’s not good to be too greedy and grow too fast without thinking about the money. We also need to be honest and make good choices when we run a business. And it’s very important to be nice and fair to people who work with us.
What’s Next for Co-working?
Even though WeWork had problems, co-working places where people share offices are still a good idea. People like working in friendly places with others. But because of COVID-19, things are changing, and more people work from home. So, co-working places need to change too and find new ways to be helpful to people.
In the end, WeWork’s story is a big reminder to be careful when we want to grow too fast, and it will shape how we do things in the future.