Handy, a cleaning company based in New York City, was established by Umang Dua and Oisin Hanrahan. Like most startups, this company was facing major challenges and had to restructure to make profits.
Handy’s strategies to increase profits
This company adopted effective strategies to maximize profits and meet the demands of their clients. The first plan they implemented was an online onboarding process of hiring employees. With the plan costing over $110 million dollars, it attracted many other stakeholders such as Joel Carter, an investor in a local firm known as General Catalyst Partners. Most business competitors were envious as they viewed this plan as a competitive strategy to capture more customers. Fortunately, for Handy, each time they required money to fund this project, there was always an angel investor.
Around 2012, when this company was starting up, access to capital was a major limiting factor. However, Dua and Oisin’s determination did not waiver. Being in a competitive market, they were up against companies such as Homejoy, Exec, and Mopp. With most of their competitors giving in to the competition, Handy bought Mopp and Exec while Homejoy was dissolved, leaving Handy.com as the leading cleaning company. As demand for services increases, Handy employed over 100 customer associates who worked tirelessly to meet the client’s demands. In mid-2015, the company laid off over 50 percent of their employees as they adopted a program that involved outsourcing the customer service (see, https://www.handy.com/services) department from call centers in Missouri and Florida. Through this plan, Handy was able to reduce structural expenditures and improve service delivery.
Currently, the company is doing well enjoying over 50 percent growth in referral channels. This has resulted in 33 percent reduced the cost of acquiring customer service. Additionally, discounted bookings have also lowered to 7 percent. With burn rates falling and gross margins increasing, the company is expected to increase profits in the coming months.