In 2010, WeWork opened their first space in New York City. Eight years, and many billions later, WeWork is now the most hyped startup in the world.
By definition, WeWork’s model is ridiculously straightforward. WeWork is an office leasing company…that doesn’t own any properties.
What WeWork does is this:
They take up big commercial leases. They then decorate the space in their signature style with beer and coffee on tap. From there, WeWork rents out the same office space to freelancers, startups and smaller businesses in smaller chunks and month-to-month.
By comparison, major property owner REIT SL Green — which actually owns real estate — is valued at $8.9B.
This insane level of growth has led to industry chatter that WeWork could be overvalued. In fact, others say their real valuation figure is $3B, based on revenue metrics of competitors like IWG and Regus.
Not to mention this: WeWork isn’t even profitable.
To make some sort of sense of all this, let’s take a look at their model, what they’re up to, and what’s in store for the coworking giant.
Creating efficient ecosystems
No longer a new entrant to the shared office space economy, WeWork aims to be the go-to platform for businesses.
Or as they say, in the WeWork Manifesto: “First, Office Space. Next, the World.”
Rather than just offering space, WeWork’s business model enables startups to focus on driving their business through the community of startups in their spaces.
One of its primary goals is to create an ecosystem that provides a range of services—right from free drinks to conference rooms and wireless services.
From the standpoint of managing space, WeWork has an efficiency that would make any slumlord green with envy (and that’s a compliment): WeWork has one workstation for every 50 square feet.
Crammed up space aside—the companies seem to like working side-by-side, WeWork’s disruptive model has played host to over 250,000 members across 22 countries.
Most analysts remain upbeat about its momentum, as well. Especially with its plans to open almost 400 offices across 27 countries in 2019. A move that will double the number of members year-over-year.
Co-working to ‘co-living’
The next business vertical is the co-living one with their WeLive concept. Their first one opened in 2016 right above an existing WeWork office on 110 Wall Street in New York City.
With WeLive, WeWork offers furnished, move-in apartments with a similar ethos to the office space—just show up with your bag and you’re ready to live.
The rents for these apartments will be inclusive of internet connection and cleaning services, with similar short-term month-to-month leases.
The company’s “WeLive” business model can be a high growth segment for WeWork. The co-living vertical might offset any decline in demand from commercial businesses.
But are they profitable, though?!
No. We mentioned that. But they don’t necessarily want to be. And they are hacking their top line revenue substantially.
An increase in occupancy rates has led WeWork to squeeze more revenue out of existing markets. Rapid expansion also played a major role in revenue growth.
Strategic choice or not, WeWork continues to book losses and burn cash. In the first six months of 2018, WeWork posted losses of $723M on revenue of $764M.
This does not concern investors as they are looking at the huge market opportunity available for WeWork. Japan-based Softbank, one of the largest investors in WeWork, has invested a whopping $4.4B in the company.
(That’s another story we will tell another time. Including how CEO Adam Neumann rode with the Softbank boss and signed a $3B investment deal on a digital cocktail napkin right there.)
The money backers expect WeWork’s valuation to reach $35B in the next round of funding.
This would put WeWork above other unicorns including Airbnb ($31B) and SpaceX (approx. $22B), making it the second-most valuable start-up in the United States behind Uber.
5 Bad Habits That Sabotage Success You Need To Avoid
(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)
At first glance, it would appear like everyone working in real estate has type-A personalities. After all, success is practically dependent on being organized, always prepared, and having a keen attention to the little details and always being ready to go.
In actuality, being prepared 100% of the time and remembering every important detail is easier said than done (and totally exhausting) so we make mistakes from time to time. After all, we’re only human. But sometimes those honest mistakes can turn into bad habits that chip away at our success.
Here are some bad habits that can seriously inhibit your chances succeeding professionally.
1. Putting Things Off Until Later
We’ve all procrastinated at some point in our lives – some of us more frequently than others – but getting into the habit of ignoring your responsibilities can cause you a heap of stress and heartache down the road.
If you’ve got a deadline looming over your head that you don’t want to do, don’t put it off – get it done so that you can get back to doing things you enjoy. I find if you put the “pain in the a$$” tasks first, it really clears your mind to be more effective doing all the other ones.
It’s that old saying of “get out of your comfort zone”, which also applies to the simplest things we do.
Everybody is a little late every now and then. Things happen beyond our control that can hold us up. But if you’re someone who’s constantly late for your appointments, you’re sending the message that you don’t care about your clients’ and team members’ time.
Not only are you probably annoying the other parties present, you could be costing yourself a big contract because you left a client waiting.
3. Poor Communication Habits
The key to succeeding in real estate is networking and staying in touch with your clients and connections. But if you’re known as the person who never returns an email or isn’t reachable by phone, you’re not doing yourself any favors.
Most people want to work with someone they can depend on. And even if you don’t have the answer, it’s better to respond by telling them you’ll get back with them rather than no response period.
Additionally, if you can’t make the time to reply to an email or return a call, you’re essentially telling your clients and team members they’re not important.
Lastly, being as clear as possible while communicating can also be a lifesaver. There are so many times where people think they hear what your saying but they aren’t fully.
In fact, a lot of times, the message is heard differently from its actual meaning. Talk about confusion! Now, I’m not saying you have to repeat yourself, but make sure you are really being clear when you are defining next action items.
4. Spending Too Much Time On Your Phone
Chances are, if you’re guilty of being a procrastinator you’re also probably guilty of losing focus throughout the day thanks to your smartphone.
For many people with focus-related problems, social media sites like Facebook and Instagram become massive time wasters. Break your cell phone habit by keeping your phone out of arm’s reach.
That way, you won’t be able to pick it up on a whim and check out social media when you’re supposed to be working. This is a tough one, but practice makes perfect!
5. Working Inefficiently
Work smarter, not harder. Don’t just dive into a task without coming up with a plan first. Think about ways to approach projects so that you maximize your productivity and get more done in less time. And most importantly, stay away from things that distract you.
You don’t have to be a type-A personality to succeed in the office, but you do need to make an effort to prevent yourself from falling into negative patterns of behavior. By nipping one or more of these bad habits in the bud, you’re well on your way to becoming the office superstar.
Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here.
Brain Hacks: Is The Real-Life Limitless Pill Real?
In the 2011 movie “Limitless,” actor Bradley Cooper’s main character takes a drug that hacks his brain like nothing else, giving him supernatural focus abilities.
If we’re doing a poor job of explaining it, just check out the trailer here…
Apparently, there’s more to it than just fiction. Turns out the shit’s actually real.
ABC did a report last year on a secret pill supposedly super-charging young entrepreneurs used to stay ultra-productive. Known as “Nootropics,” a hybrid group of supplements that allegedly make you “smarter” without any side-effects.
Nootropics supposedly increase dopamine flow within the brain and fights excessive daytime sleepiness. And—allegedly—will have you all like…
According to Erin Finnegan, a then-30-year-old entrepreneur, the drug gives her the boost to keep up with her hectic schedule.
“I would not give them up willingly,” she told ABC. “The additional focus that I can have with them, yes, it does sustain the speed I am going at now and the many things, I would have to take a couple things off my plate if I wanted to keep going without them.”
Per Wikipedia, Nootropics—or smart pills or “cognitive enhancers”—are loosely defined as “drugs, supplements, and other substances that may improve cognitive function, particularly executive functions, memory, creativity, or motivation, in healthy individuals.”
But taking it a step further beyond an umbrella term for focus pills. According to a 2015 Thrillist report, there’s an actual pill known a “Nuvigil” that the movie’s based on.
Beginning with one 150 mg pill in the morning, happiness and alertness waves washed over me. Quickly. But I wasn’t as jittery as I expected. Prozac is a familiar reference to Nuvigil, and I have plenty of experience with the former, but it was nothing like I had ever experienced before. My brain waves—usually jumbled, misfiring, and inconsistent—felt untangled and clean, like a futuristic room full of glowing servers from Dubai, if you will.
NBC covered this a few years ago, as well. “I would get to work and I would be on fire,”Jonathan Reilly, an LA-based biomedical engineer said. “I was able to see more possibilities.”
“These drugs are being used in industries where there’s less room for failure and immediate results are expected,” NYC career coach and author Roy Cohen said in the report used in the NBC video. “These people thrive on accomplishment—it’s in their DNA. It’s incredibly seductive to have this potential for guaranteed peak performance.”
(Yes, it’s a few years old, but definitely worth a read.)
But there’s more to it than peak performance. Unlike the more general, almost white label Nootropics category, Nuvigil doesn’t come without side effects (you’re technically supposed to have a subscription). Ranging from nausea to diarrhea, dry mouth and even suicidal thoughts.
Glass didn’t get that, though. “No, I didn’t,” he wrote. “Not once.” However he did say he had trouble sleeping along with feelings of lethargy.
The outside of my body felt like what the inside of my brain usually feels like: exhausted. I was mentally alert with a tired outer shell; I was lethargic and my muscles wanted to remain idle … It was a constant…“blah” feeling. Nothing is bad but nothing is good, all at once. Call it a muted euphoria.
But did it do its job? Glass says yes. And no caffeine crash, either.
My overall focus? Relentless. Writing, I found, became a superhuman trait…I felt words and their synonyms flow from my fingers like lightning and I was typing verbatim what I was thinking. I felt articulate, concentrated. And I wasn’t the only one. My editors noticed too; all week I was complimented on my creativity and quality/volume of work.
In other words, on the pill and it’s #SharkSeason.
Outside of obscure websites, there’s still little legitimate info available on cognitive enhancers. There’s limited coverage from mainstream media. Just go ahead and Google “Nootropics” and see what you find.
(You’ll find a lot of junk websites, making all sorts of claims.)
Which begs the obvious million dollar question—is it safe?
NYC neurologist Dr. Richard Isaacson told ABC, yes, but also added by saying it’s hard to generalize. “They may interact with other things … so that’s why we always recommend discussion of approval by a treating physician.”
Even though the use still occurs on a very hush-hush level, the use is definitely happening. And it looks like it’s here to stay. The global Nootropics market is expected to hit $6B by 2024, according to a research report distributed on Business Insider’s Markets Insider platform.
Eric Matzner, founder of Nootroo, the self-stylized “Gold Standard In Nootropics,” told ABC it’s the future. “We’re talking about … a new type of biology where we’re taking these things into our own hands but also to try and proactively go from baseline to above,” Matzner said.
Geoffrey Woo, CEO of Nootrobox—another Nootropic—echoed Matzner’s futuristic sentiment in a 2016 Bloomberg report.
“What we want to unlock is the next-level thinking that makes us human,” Woo said in the hilariously titled These Bro Scientists Want to Sell You Mind-Hacking Pills. “In a way, it’s almost arming humanity against artificial intelligence and robots.”
Humans vs. AI. Alrighty then. We’re wrapping this one up. Up and at ’em, #WealthGANG.
Facebook VP Julie Zhuo: This Is The Fastest Way To Get Promoted
It’s the million-dollar question: How do you get promoted so you get that pay raise? And how do you move up the ranks quickly?
Facebook VP of Product Design Julie Zhuo knows a thing or two about that. After graduating from Stanford University, Zhuo interned at Facebook, worked her way up and became a manager at 25.
In her new book, “The Making of a Manager: What to Do When Everyone Looks to You,” in which she shares professional advice she wishes she’d received earlier in her career.
Ten years in, Zhuo is now a top Silicon Valley executive. What’s the best way to advance quickly? Well, here’s what she told CNBC in a recent interview.
Share your goals….
“My advice for how to get your manager to notice you is to be really explicit about what your goals are. What do you care about? Where do you see yourself in three years? What are the skills that you want to learn and grow?”
Speak it into existence…
“Tell your manager, ‘Hey, I’d like to get promoted. What do you think it takes for me?’ What do you think are my gaps? What are the skills that I need to grow, to get better and to be able to take that pay raise or be able to perform at the next level?”
“Think about where you’d like to be in three years or five years. Then try boiling it down. So, if you want to get [somewhere] in three years, what does that mean the next year needs to look like, or the next six months?”
“I think this has to be a dialogue with your manager. It’s something that you talk about together, because maybe you want to do this [thing], but your manager thinks it’s going to be more realistic for you to work on these skills first.”