The financial model that we are using works primarily on the trading of money and other commodities that we trade together with each other to perform various transactions and since there is not any other alternative this is the model that is being used today.
This model has been working since the past ventures but these days many individuals are asking that should they maintain constant connections with their potential IPO companies or they should seek a new model and began to work in that area.
Benefits of IPO
Countless examples tell the story of success in between different companies during an IPO and maybe Airbnb’s can be another example of the same story. The company should take all the possible scenarios into account and maybe take a poll and the users what they want and decide based on those considerations.
Drawbacks of IPO
Although there are more stories and experiences of successful IPO’s, still you have to understand that this is a risky move and whether or not it is going to work is still into considerations. Some companies can benefit from going public because extra investments can work in the companies’ favor, maybe Airbnb can also benefit from similar investments.
Making a Progress Plan
If a company is on the right tracks it is very easy for plans to go out of budget and endanger all the previous work that the company has done that is why making a progress plan is necessary and investment is a major part of it, just as important as reaping in profits. This procedure is common to all companies. Aaron David states that “it looks to be increasingly evident, which means more planning is being done to make sure that Airbnb makes the positive step for the organization.
Make Progress Plans for The Long Run
There have been many cases that show that improper planning on a weak system may render the ability to make a profit in the long run but, companies like Airbnb’s system already has over 150 million users and more than 6 million ads, Airbnb also has multiple Users investing constantly, which Airbnb uses to make a lot of good progress extremely quickly.
If we look at the current growth rates and the plans they are following, it is safe to assume that we will be seeing a lot of growth from Airbnb in the future. The concept of ride-sharing is under a lot of debate, while most plans are good, the plans shown by Airbnb might be able to give a new and fresh perspective on the issues.
These days Airbnb is constantly in the news describing that the company is renting thousands of dollars of places on rent which is not usually expected of Airbnb but according to Airbnb normal people hold the majority of postings and 76% of them only have one posting, while only 4% have more than ten listings.”
Communication director of Airbnb stated that there is a vast majority of the host that are local individuals, but still, there is around 80% of licenses are being held by big companies and many other real estate agents which is not fair and everyone should benefit from visitors in Barcelona.
So far it has been a bumpy ride for Airbnb but it is allowing many young entrepreneurs to go into the field of real state and housing and maybe we the next wave of entrepreneurs will come from Airbnb. Aaron David himself states that property booking via Airbnb isn’t going anywhere for the time being.