Handy.com is New York based cleaning agent that has been faced with some daunting decisions on its growth. The start-up company (https://www.handy.com/cleaning-services/new-york) was stranded on how to expand the business and at the same time keep investors happy. Earlier this year the company faced a big challenge after they had rolled out their online onboarding process in all of its 28 markets. They had first tested the idea in January 2015 in their Miami and Washington markets. Before they had decided to launch the service in all of its markets, they received some $35 million in funding. This was quite relieving for the firm but also created some stress.
The investors were now skeptical of the validity of such investments. This was when the company decided to roll out on boarding to all of its markets. This brought a huge challenge since the launch plummeted over 40 percent. Handy had to cancel thousands of booking to inadequate cleaners. The customers’ complaints skyrocketed due to the shortcoming. This was just another stumble on the company as it had changed focus from growth to profitability.
They had a lot of competition from firms like Homejoy, at some point, it was a land grab against this well-founded firms. The Homejoy went out of business as of July 2015, and this was kind of an advantage to Handy as they did not have any competition for the market with the aggressive unit economics like those of Homejoy. Handy still had to make some major decision to raise their profitability at the lowest input possible. It had to retrench a significant number of workers and straighten the kinks in the onboarding system.
Handy has had a rough time as a startup. But it has been able to remain on top of the turbulent market and remain relevant in the changing dynamics of making a start-up successful. The company had to appreciate the fact that for a startup to be successful today, growth is not the only metric to focus on.