You can't build skyscrapers on balance sheets made of sand.
This timeless truth echoes loudly in the business world, where too many companies prioritize rapid growth at the expense of solid foundations. One of the most glaring examples of this is WeWork, a company that, for a while, embodied the perfect storm of ambition without structure. In 2019, WeWork became the darling of Silicon Valley, soaring to a $47 billion valuation and positioning itself as a disruptor in the commercial real estate industry. Its founder, Adam Neumann, marketed the company as more than just office space, calling it a "community" and promoting ideas like "conscious capitalism." It seemed like a dream: office space as a lifestyle, backed by billions of dollars in funding. But the reality? It was a classic case of revenue masking unsustainable operations. In 2018 alone, WeWork reported losses of $1.9 billion, a staggering amount for a company that had such a promising outlook. Their aggressive discounting strategies and unrealistic lease agreements propped up their occupancy rates, but the numbers didn’t add up. While traditional office spaces require 80-85% occupancy to break even, WeWork was offering short-term rentals with long-term lease commitments, creating a mismatch that would eventually come crashing down. By the time WeWork attempted its IPO, the market saw through the glitter, slashing its valuation from $47 billion to less than $10 billion within a matter of weeks. The company eventually filed for bankruptcy, marking the downfall of a business model built on hype and overextension.
The rise and fall of WeWork serve as a potent reminder: Profit isn’t greed, it’s the oxygen that keeps a business alive. Without profitability, businesses can’t invest in innovation, expand effectively, or maintain healthy partnerships. WeWork mistook revenue for success, and in doing so, failed to recognize that profitability was the cornerstone on which lasting growth must be built.
The story of WeWork is not unique; it’s a cautionary tale for any entrepreneur or investor who overlooks the core principles of sound business management. Many startups and established companies alike often confuse revenue growth with long-term success. The focus becomes on scaling at all costs, more locations, more employees, more customers, without ensuring that the financial structure is solid and sustainable.
At Ekamya Prosperity, we believe that true business success is a blend of scaling with purpose and grounding your vision with financial and operational clarity. Scale is powerful, but only when it’s built on a bedrock of due diligence, thoughtful strategy, and long-term sustainability. This approach ensures that the business not only grows but thrives, enduring the test of time and market fluctuations.
Why Should Growth Be Grounded?
Clarity in Business Model and Strategy: A clear, actionable business model isn’t just important; it’s essential. Understanding how your revenue will be generated, and how you plan to maintain profitability, forms the foundation of any successful business. Without this clarity, businesses risk overextending themselves and mismanaging their resources.
The Right Kind of Investment: Seeking investment is a vital step in scaling, but the terms and type of investment matter. Sustainable growth requires a clear strategy for utilizing capital to support expansion, rather than throwing money into unsustainable growth. This is where many startups, like WeWork, fall short, they prioritize rapid expansion over ensuring that every dollar invested is contributing to a sustainable return.
Focus on Cash Flow and Profitability: At Ekamya, we emphasize that businesses must always keep an eye on their financial health, particularly their cash flow and profitability. A company that focuses only on revenue growth without managing costs and profitability will eventually run out of runway. Without profitability, expansion becomes a dangerous gamble.
How Ekamya Prosperity Helps Build Resilient Businesses
True prosperity isn’t just about reaching the top, it’s about staying there. At Ekamya, we believe in fostering businesses that grow with resilience, which requires a foundation of strategic guidance, mentorship, and capital deployment aligned with long-term vision.
Mentorship Rooted in Real-World Experience: Ekamya doesn’t just invest in businesses; we partner with founders to help refine their strategies and enhance their operational efficiency. Our mentors are seasoned entrepreneurs and investors who have been in the trenches and understand the importance of a sustainable business model. This mentorship ensures that companies don’t just chase revenue but also maintain their financial health and operational integrity.
Tailored Strategies for Sustainable Growth: We work closely with each business to understand their unique challenges and opportunities. Whether it's optimizing pricing models, building stronger financial systems, or refining product-market fit, we ensure that growth is not just fast but sustainable. We guide businesses through the complexities of scaling, all while ensuring that profitability remains a key priority.
A Founder-First Approach: We believe that business success starts with the founder’s mindset. Understanding a founder’s vision and leadership style is crucial in ensuring that the business grows in the right direction. Our founder-first approach means that we work closely with entrepreneurs to align their personal vision with their business strategy, ensuring long-term success for both.
Ekamya Prosperity is built on the belief that entrepreneurship should be about more than just growth for growth’s sake. True success is built on a foundation of careful planning, operational efficiency, and sound financial management. Scaling should be purposeful and sustainable, rooted in the belief that you must first build a solid foundation before reaching for the sky.
If you’re a founder seeking to build a business that lasts, with clarity and resilience at its core, let’s have a conversation. Reach out to us at gaurav@ekamya.com, and let’s explore how we can scale your business the right way, the Ekamya way! Because true prosperity isn’t just about reaching the top. It’s about staying there.
