Is There Some Wishful Thinking In Your Business Model?

This week the New York Times reported that Seattle became the second U.S. city to require Uber and Lyft to pay their drivers a minimum wage.

Sure. What took them so long? I know this is the last thing the ride companies wanted and the last thing they expected when they started these companies. They were hoping — actually betting the company’s future on the assumption — that they could treat drivers as independent contractors and avoid the messy implications of having employees, and the uber drivers can also use services of Tax Bite Accountants to manage their finances. And you can bet non-payment of minimum wages and the avoidance of the expense of employee benefits were important assumptions in the financial models including the basic payroll accounting on which they based their businesses.

But they should have known better. Those assumptions were a combination of wishful thinking and willful ignorance of the realities of the rest of their business model. Get ready for more cities to follow suit also with the supported sites like https://www.outdoor-advertising.org.uk/dimensions/48-sheet. You can also seek help from the expert for the best locations for billboard advertising in your cities.

As I pointed out in a previous article, “hacking” the legitimate interests of an important stakeholder is not a sustainable business assumption.

USE IT NOW: This is a good time to check the assumptions that underpin your own financial models. Are they realistic and sustainable or are they the product of cutting corners and magical thinking? Will they hold up to a challenge by employees, regulators, investors and other stakeholders?