Startups Like WeWork And Oyo Are Learning The Language Of Profitability The Hard Way

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Blame this on:
👉🏻 Poor planning
👉🏻 Sheer exuberance
👉🏻 Reckless attitude
👉🏻 Lack of Compliance

But most of all, blame this on:
👉🏻 Immature management

P.S.: Drawing parallels of such #startups with #ITServices firms holds little ground.#SVGPoV https://t.co/vKYwCoJ9yf

— Sanchit Vir Gogia (@s_v_g) January 14, 2020

Here’s why I say so (1/5) :

Poor planning

Any company when it decides to let go of 15% of its workforce (not as a routine attrition but to cut costs & become profitable) has:

a) failed to balance its revenue & cost structures

b) is under pressure & acting out of desperation

— Sanchit Vir Gogia (@s_v_g) January 14, 2020

Here’s why I say so (2/5) :

Sheer exuberance

Any company that has only recently launched new territories, hired people and is relocating their senior management to expensive locations for expansion – all this while they bleed and forecasts fail – is showing signs of exuberance.

— Sanchit Vir Gogia (@s_v_g) January 14, 2020

Here’s why I say so (3/5) :

Reckless attitude

When a car is speeding at 80 kmph, well over the prescribed speed limit of 50 kmph, the driver is taking a balanced risk & can brake to safety in case of emergency. But when the same car is at 150 kmph, the driver is sheer reckless.

— Sanchit Vir Gogia (@s_v_g) January 14, 2020

Here’s why I say so (4/5) :

Lack of compliance

Now think of same car & driver from (3/5) on a road where there are speed tracking cameras & checkpoints. The driver will keep under the prescribed speed limit. Scenario of the other road with no checkpoints needs no explaining.

— Sanchit Vir Gogia (@s_v_g) January 14, 2020

Here’s why I say so (5/5) :

Immature management

Now, think of the same car & driver from (3/5) in the hands of a driver with a learning license, hence little experience of driving. No, doesn’t mean he/she cannot drive well, but the question is, should they be on the road alone?

— Sanchit Vir Gogia (@s_v_g) January 14, 2020

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Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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