The Cult Of We Book Summary

The Cult of We tells the tale of We Work, a highly publicized American corporation that rented out offices and rose to become the most valued start-up in the world before being shown to be a vastly expensive operation that was actually losing a million dollars each day.

In the worlds of finance and journalism, the WeWork story had a significant impact. As the CEO of the most valuable startup in the world, Adam Neumann was an expert at masking a failing company behind false valuations. In 2019, his firm abruptly came to an end due to his unnerving hunger for expansion and a lack of strategic planning.

WeWork could have succeeded today, but it was prevented by a lack of cohesion in its leadership and a get-rich-quick scheme with little more than empty rhetoric as support. Eliot Brown’s book The Cult of We examines the history of WeWork and how its CEO conned renowned organisations and investors for more than ten years.

Table of Contents

Understanding how to market your dream can lead to a fantastic existence.

Without a question, Adam Neumann had excellent communication skills and was skilled at persuasion. He first met Miguel McKelvey, subsequently co-founder of WeWork, back in 2006. Miguel had no desire to amass enormous wealth. But Adam persuaded him enough for him to agree to the wild excursion they were about to take.

They first offered computer enterprises and independent contractors ready-to-use workplaces. Despite being successful, they quickly sold their interest to the landlord. It was time to grow and start searching for new premises to lease. Joel Schreiber was sold a share of the company for $15 million after the founders pitched him their idea and said it was worth $45 million.

Later, they were pitching venture capitalists on themselves as a tech business that offered renting services to boost their worth. Neumann compared himself to the next Steve Jobs and the business to a physical version of Facebook. Everyone became addicted, and WeWork rapidly grew throughout Europe and Asia.

Naturally, the two fell behind in their progress, and Miguel withdrew. Neumann persisted in seeking irrational growth nonetheless. He went to Softbank CEO Masayoshi Son to request finance, which he was granted. Actually, Softbank valued the business at $47 billion, and American investors weren’t too far off either.

Always strategically prepare for expansion, and never lose sight of your company’s essential principles.

The issue with WeWork is that Neumann sought to grow at a rate that was well beyond his capacity. The founders grew throughout Asia and Europe. And this was before they had a well-established firm and established methods. People were investing in this company without doing any research because the euphoria persisted to that point.

In fact, WeWork aimed to build a cutting-edge workplace like Google’s, where employees could take advantage of free food (including vegan alternatives), a free gym, happy hours, and other perks. Naturally, the business was losing $1,000,000 every day rather than producing any money.

Another issue was the growth of numerous markets. Everyone was distracted from the primary business strategy, which consisted of providing spaces for individuals to work in, by the abundance of gratis services offered. The biggest wonder of them all is that, up until a certain point, neither investors nor organizations like American or Asian banks failed to recognize the flaws in the company.

Everyone ignored the fundamentals of WeWork and plunged right into investing because Neumann was so good at imagining a bright future and formulating expansion plans. All of these factors combined to expose WeWork in 2019, when the company’s valuation dropped by billions over night.

In business, reason must always prevail over feelings.

With relation to WeWork, Adam Neumann had begun to develop megalomaniacal views. He tried to expand the company’s business ventures, go after new markets, and provide supplementary services. Additionally, he requested 20 to 1 voting power, which was granted.

But when Softbank stopped providing funds, the business was forced to find another source of capital. They therefore submitted an IPO prospectus. On August 19, 2019, WeWork went public, and the results were disastrous. Neumann abruptly resigned from the board as the firm was made fun of by the whole financial community.

In essence, his ego and desire to grow too quickly were the main causes of his failure, which is why it’s critical to maintain mental clarity and to utilize strategic thinking in business. A smart leader respects his firm with extraordinary care and doesn’t merely party with every event, unlike Neumann, even if work-life balance is crucial.

The Cult Of We Book Review

“The Cult of We: A New Understanding of Community” is a book by John Skeats that explores the concept of community and its role in shaping the individual and society. The author argues that traditional communities have become fragmented and that a new form of community, “The Cult of We”, is necessary for personal and collective growth. The book explores the benefits of this type of community and offers practical strategies for individuals to create and strengthen connections with others. Throughout the book, the author provides insights and examples from a range of fields, including psychology, sociology, and philosophy, to support his arguments. Overall, “The Cult of We” is a thought-provoking and insightful read for anyone interested in the role of community in shaping the individual and society.

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