The Dirty Game of Valuation-Witness the Reality with Eustan Ventures

The Dirty Game of Valuation-Witness the Reality with Eustan ventures

It has been a long talked about argument. But, now it is time for us to show the world the actual real faces of the various business websites.

Now the question may arise that how does it affect me. Well, it does and it burns my veins and gut to see these people draining out wealth from the country for just a valuation. Also, they set bad examples for the upcoming entrepreneurs.

Meet the Culprits

Various e-commerce websites, online food ordering websites, transportation network companies have expanded their businesses but has anyone tried digging deeper to find out how actually they have expanded. These businesses and these services were actually set up to provide easy and convenient services to people. And this is what the goal of these businesses was.

But lately these companies have shifted their goal from achieving wealth to achieving valuation.

How Should it Actually have Worked

These companies were set up so that people could have convenient delivery of items at home. Now, it was easy to order something online and receive it at home. You won’t have to go those extra miles to get things to your place. And people loved it actually. Getting things at your doorstep is what everybody wants and is even willing to pay bucks for.

You feel hungry, go online, search for food ordering websites and choose from a panel of food restaurants and get it all at home without going outside. You could actually eat from best restaurant while being in your sweat pants. Sounds amazing, isn’t it? And if food is delivered at your doorstep, why would you deter at all paying some extra bucks.

Same goes off for e- commerce websites and other automobile networking sites providing you cab right outside your door to take you to your destination.

How it is Working in Real

Besides the convenience that these companies offer to people, they have changed all their goals and rather have become a menace. Let me explain how.

I am very sure you must have seen people shutting off their shops and businesses of these normal shopkeepers going down. Reason is that these people do not have extra money hand. If they buy something at 50, they cannot sell it at 40.

But these ecommerce websites receive investments from investors. All they need is a tag of valuation to attract them towards their firm for investing and their purpose is served. So, they provide goods at a much lesser price and provide various discounts to attract the buyer. This raises their valuation no doubt.

But these companies themselves are hollow on the inside as their losses faced are tremendous.

Also, when people find goods at much lower prices than at showrooms, why will they buy from these shops. All they do is just have a look at the item in real before ordering by visiting these shops. And so, businesses of these honest and hardworking shopkeepers have suffered.

They have literally led to bankruptcy of a large no. of independent and self- sufficient businessmen. Many have joined other firms, others have approached unfair means of earning by becoming criminals.

So, in totality their virtual gain has caused themselves and other innocent businessmen a large amount of real loss.

Their Fate in the Long Run

The funniest part is these firms act on a business plan that is highly inspired by termites. They eat the foundation of their firm and what happens to a log infested by termites, it becomes weak and breaks down. Same is the fate of these companies. They work on a wrong business model and end up axing down their own roots. And their empire falls off.

Such is the reality of these brands. And what happens to the large amount of employees that go home with these companies shutting down, that is an entirely different story.

Furnish a Good Business Plan

The basic logic here is that you don’t have to provide fake discounts to people to let your company drown financially but with raised valuations. Your concern should be providing people with services at convenience at reasonable yet acceptable prices.

Don’t follow the herd and provide incentives out to attract people. If your services are good enough, people will not think twice before getting something from your company and paying some extra bucks for it.

Be an honest businessman and be brilliant enough to learn from other’s mistakes witnessing the fall of various companies who had a bad business plan.

Need of the Hour

These companies are being parasites to the nation. They are sucking up capital and facing losses leading to capital dumping. They fake their valuation by showing no. of buyers but how they got so many buyers is the question of the hour. Also in this rush, they sell fake items with same brand names as original.

There are a lot of loopholes in their business plan.

But why should the nation and the common businessman of the country suffer because these people were lazy and greedy enough to get this done.

Here is Ashish Kumar from Eustan Ventures raising voice against this dirty system.