Handy’s Shifting Goals between Growth and Profitability since Its Launch In 2012

In 2015, Handy’s co-founder Oisin Hanharan proposed an online onboarding system that began operating in January 2015.The model’s application was in stages and worked in branches in Miami and Washington DC. By November 2015, Oisin and Umang Dua were yet to fully implement the system in all of the 28 divisions after the closure of the 50 million dollar Series C funding for capital. The hesitation for the full application of the system was a result of several talks with prospective investors who questioned Handy’s potential of attracting future funding.

The two co-founders then decided to fully implement the online onboarding system as the last strategy of their already falling business. The move led to plummeting of the firm’s onboarding by more than 40 percent, and a rise in customer complaints, which resulted in the closure of the client service telephone lines. In 2016, the administrative staff resolved to address the company’ dropping income value by refocusing their efforts on profit creation instead of growth.

Hanharan and Dua established Handy in 2012 after completion of their education at Harvard Business School. Handy’s inception into the business faced competition from existing enterprises such as Homejoy. In 2015, Homejoy went out of business and left Handy with adequate space to shift their focus from growth to profitability. Handy’s first major challenge in the industry was in reducing the $1.5 million it spent on providing NYC home services by improving their services and products and launching call centers to replace the online software customer service platform.

By 2014, Handy recorded a growth of more than 50 percent in net sales and a decrease of 33 percent in service and product provision processes. In October 2015, Handy’s overall gross margins increased from 7 to 20 percent. Hanharan and Dua estimate that Handy will have increased profits, a new service vertical and new branches in other cities. Dua stated that he is positive the company will overcome all the challenges that are usually faced by start-up enterprises.