Startup City Magazine

'Workday': The Best Platform for Entrepreneurs

Workday, a financial management and human capital management software vendor based in California,  has set up a benchmark for the upcoming entrepreneurs across the world. In the IPO held last week the initial filing by the company  was $21- $24 and later it was on rise to price range varying between $24-$26.The final decision of the IPO was priced at $28, and on the very first day it closed at $ 48.69, which has soared 74 percent of the initial IPO. The valuation of the company is priced over $7 billion with great expectations, reports Seeking Alpha.

There is always a notion that companies which sell like hot cakes initially tend to lose their popularity, Workday has assured people of its stay in the market. Thanks to the co-founders, David Duffield and Aneel Bhusri, who started their initially venture PeopleSoft at a tender age. Three mantras can be followed seeing them.

Firstly, Duffield and Bhusri did not force the investment bankers in the market, instead a deal was finalized depending on the current position based on its prospects. When fundraising is quite often, entrepreneurs let the market decide its price. When the price determined is higher than the value expected, it shows that investors are ready to pool an amount as the sustainability of the company is better than the others. When few notable entrepreneurs have approached in the company, like in Workday investors can spot their monetary returns without fail.

Still, as Arik Hesseldahl at AllThingsD points out, Workday is a story of what may be possible in the next several years. “A more accurate measure of that potential is bookings — essentially the combined value of multiyear contracts. By that measure, Workday is more impressive: Bookings are on track to break the $500 million mark this year,” he writes.  

Secondly, in the earlier times tech IPO’s had a disastrous time as they faced market risks, (or eg Groupon and Zyanga). With Workday, there is 100 percent payback guarantee. Moreover currently the environment favors entrepreneurs with business models fetching profit in the long run.

Entrepreneurs have their new professors in entrepreneurship, being Duffield and Bhusri. This is because the size of the opportunity is the final lesson that can be inculcated seeing them. The company is known for its stream in human resources, but Workday is growing in all spheres. Software appeals to customers worldwide and we can witness it with the growing customer base of the company which is a strong foundation for the future. Entrepreneurs who focus on building large markets irrespective of the target revenue will prevail in longer in the market.

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