Wework finally be bankrupt But I believe there are ways to revitalize that business

The original business model of Wework is about getting revenue from short-term leases for small business owners by making long-term contracts with building owners. There are three mistakes in this business model made by the CEO of WeWork.

Long-term strategy and economic modeling for operation is the key for success but they ignore 

First, Wework makes long-term contracts with building owners for around 20 years. CEO of Wework didn't consider uncertainties of the long-term business landscape against variations of macroeconomics. Since COVID-19, macro-economics has been drastically changed and interest rest is inclined by Fed. The long-term contracts are getting more pressuring on WeWork's balance sheet. As far as I know, there was a tremendous amount of debt that they should pay back with high interest. To revitalize their business model, they need to figure out how to cut off their debts and restructure their long-term contracts without being under the loss of company cash. This is the first step that WeWork should take to be able to revitalize its business operations.

Lost timing in transforming business model after COVID-19 was the critical reason for their failure

Second, They got lost the timing for transforming their business model within the era of COVID-19, in which most workers and companies were transformed into "Remote working procedures" due to the spread of the contagion. Also while the Fed increased interest rates, customers for WeWork, which are lots of startups and small business owners were out of cash and didn't have the status to pay rent fees for WeWork. Right after COVID-19, WeWork should transform its business models and structures that can fit and work within the era of COVID-19. I assume that this is the critical factor for their failure.

They shouldn't IPO to get positive cash flow. This makes more bigger tragedy 

I think the third mistake they made was about the IPO in 2021. They shouldn't IPO and restructure their business model with a whole new model and level and get Private Equity investments to make positive cash flow to be able to revitalize their business model. I assume they believed if they had positive cash flow then they could revitalize their business operation. But it didn't work that way. With these three mistakes by Wework, I have learned a lot from their story. Even though Wework become bankrupt I still believe there are lots of ideas to be able to revitalize their business operations in positive ways. I truly think that the only asset that Wework has for now is the culture and brand of Wework. The other things are gone to zero-valuation level. It is the time to re-write the story of Wework. I am not sure who is going to do that but there are still possibilities left for them. Let's see how it goes.

One lesson that I learned from the failure of Wework is that investment cash isn't the success factor for a startup But a business model and operation that can predict through long-term macro-economics with insight is the key that every startup should have. I learned every startup founder should consider what potential risks might be coming to them and be ready to defend and mitigate against those risks.