Handy is a company that offers cleaning and handyman services via their app on smart phones. They offer a 60 second booking process, secure payment, and a 100% money back guarantee. Handy claims to be the most convenient way to book home services. It was founded in 2012 by Oisin Hanrahan and Umang Dua. Both attending Harvard Business together, they generated the idea for Handy while rooming together in their Cambridge, Massachusetts apartment. Hanrahan and Dua had already seen that this was a good way to implement the ubiquity of smart phones in their business, in hopes of over turning the market.
Although their business idea was well received by customers, potential employees, and investors, there were still challenges to overcome up ahead. Hanrahan and Dua were able to raise $110 million in venture capital, and was in a growing market of businesses of their kind. With growing popularity of businesses in their market, Handy.com encountered competition. They were presented with a “land grab” between rivals like Homejoy, Mopp, and Exec. However, they were eventually able to eliminate the competition, as they would usually outspend them, and were able to acquire Mopp and Exec.
When Handy began spending more that planned every month, they sought to sacrifice growth for profitability. Handy worked on ways to improve their customer satisfaction rate, in response to the many negative reviews they receives in Apple’s App store. They did this by updating the system for their call center, hiring more qualified “pros,” and deciding not to expand their market any further than it already was. This stabilized their means of profitability, and could serve them well in future investment ventures.
Handy’s economics are looking better with each quarter. More than 50% of its growth is organic or through referral channels. As a result they yielded a 33% decrease in the average cost of acquiring customers. The company as a whole has seen a margin jump from 7 to 20%. Their monthly spending has decreased, and they plan to flip the extra earnings to profitability sometimes during the 2nd half of 2017. The lessons Hanrahan and Dua learned earlier on their path of attaining venture capital helped give them a better hold on the fate of their company. For more info. visit https://www.handy.com/cleaning-services/new-york.