Handy’s Effort to Strike a Strategic Balance between Growth and Profitability

For several months at the beginning of 2016, Tuesday mornings brought shivers and butterflies to Handy’s CEO, Oisin Hanrahan. Mr. Hanrahan had to explain to the co-founders why the strategy he had advocated for was performing so poorly. Mr. Hanrahan strategy entailed rolling out an online onboarding system in all the 28 markets of the company. Co-founder Umang Dua was against the idea and argued that even qualified applicants could not complete the application process via the online platform without assistance from a trained personnel.

The two entrepreneurs agreed to carry out a limited test run and find out what will happen. Therefore, they rolled out the online onboarding process in both Washington D.C. and Miami in 2015. While the two co-founders were contemplating implementing the system in all of the company’s markets, Handy.com closed its Series C venture capital financing and raised a record $50 million. The new funds created some form of relief and strengthened the financial muscle of the company.

Implementation of the online onboarding process

Hanrahan predicted that implementing the online onboarding strategy throughout the entire market would reduce unnecessary expenditure for Handy. However, after the implementation process, the demand surpassed the available professionals. The company had to call off thousands of bookings. The two co-founders moved swiftly and hired several hourly workers to solve incoming problems and complaints from clients. They also recruited more technicians to meet the high demand for cleaning services.

About Handy’s co-founders, Hanrahan and Dua

Hanrahan and Dua studied at Harvard Business School, and the idea of establishing Handy (formerly known as Handybook) came while they were sharing a room in Cambridge, Massachusetts. The two entrepreneurs launched Handy in 2012, and within the next two years, the company had become a huge success. In 2015, Handy increased its addressable market by acquiring Mopp and Exec.

 

 

 

 

 

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