WeWork, the coworking space company, has recently filed for bankruptcy. Once the world’s most valuable startup, WeWork’s bankruptcy news comes as a major surprise for many—but it shouldn’t have!
According to readily available data, 13,125 cases of business bankruptcy cases were filed in the United States during 2022. Bankruptcies are often related to financial challenges and market conditions. Examples include excessive debt, cash flow management, rising costs, and reduced revenue due to any number of reasons—aggressive competition, market saturation, sudden market changes, supply chain disruptions, and more. (Read about the factors affecting WeWork’s situation here.)
Also, don’t underestimate the effect of leaders’ decision(s) on a company’s financial well-being. I gleaned this significant leadership tip from WeWork’s experience.about:blank
Leadership Tip
Your business plan requires a solid set of assumptions that must be regularly monitored. As a leader, you have to anticipate, then quickly adjust to, any assumption changes that have not yet materialized.
In most business situations, I believe being proactive wins over being reactive any day of the week. I also believe that exceptional leaders can see beyond what they’re looking at.
That means don’t be satisfied with examining a few factors that make up your business results and conclude everything is alright. Look harder, well beyond the obvious factors, to find the problematic areas. They might not be easily seen, but they could be on the horizon.
How do you see beyond what you’re looking at? Through these actions:
- Stay out of the day-to-day minutia of your business.
- Find time to quietly think and look ahead.
- Listen to what’s going on around you.
- Ask challenging questions of yourself and others.
- Pay greater attention by continuing to learn from others.
Having the ability to see beyond what you’re looking at doesn’t come naturally to many; it’s a skill that requires developing. If you need help developing it for yourself, I invite you to have a meaningful conversation with me. Simply send an email to randy@LeadersEdge360.com indicating you’d like to learn more.
