Chief Executive Officer Oisin pronounced oh-Sheen, Hanrahan lived in dread with regard to his weekly startup’s meetings. The meetings were scheduled at the company’s apartment cleaning NYC Home-base. He looked at presentation after presentation, demonstrating how poorly his startup was fairing. Persons, too, were giving him those “You should have known better” type of looks.
The startup, Handy, at this point and time was experiencing changes. The changes involved how it took on new cleaners. This is a change that he as CEO had embraced. He was determined to launch the procedure in twenty-eight various marketplaces.
Umang Dua, the company’s co-founder, did not prefer the plan, mentioned above. His primary concern was that individuals would more than likely not complete the process of filling out the application form, without the help of a human-being. The application process which the CEO recommended, was for the cleaning candidates to provide their backgrounds on-line. The new system, of virtual application was launched in the Miami and Washington, D.C. marketplaces in January of 2015.
The debate was still occurring as to the new system, when in November of 2015 the company closed the deal on its $50 million Series C. Venture Capital Funding Request. The additional funding was quite welcome. It provided relief; however, at the same time some adversity. There was a great deal of previous venture capital discussions centered around hiring additional personnel.
A number of venture capitalists informed the two entrepreneurs that they were concerned, prior to putting more funding forward; that they may be left with a raw deal, if they went ahead with the second phase of the operation. The entrepreneurs were not alarmed by the skeptical behavior of the VCs. There were many similar organizations who struggled in regard to raising necessary funds.
The two entrepreneurs, were decisive in implementation of their virtual strategy—with respect to the entirety of the organization. Hanrahan believed the virtual element could save their company, Handy.com, millions of United States dollars, annually. The startup then proceeded with its plan of action and began to launch the system within all marketplaces, during the latter portion of January.
The onboarding plan fell short—by forty percent. Handy was required to disregard and cancel thousands of bookings. Demand was high; however, supply was limited. Cleaners, were not applying. The effect had that of a Domino effect—customers complained to that of a non-favorable level.
The company focused on growth and becoming a presence within the market as a measure or metric of its value. In so doing, it put quite a bit of funding toward keeping this measurement rising favorably.
Something had to give. When the bubble finally burst with respect to startups and venture capital funding— the preceding event was a way for Handy to practice a more disciplined approach. This was a welcoming reprieve.
Two years prior, the big question of investors was: Is this a huge concept? Currently, though, the investors were posing two questions: Do you have a plan as to how to grow from the standpoint of profits, and Can you do so without a great deal of funding? The idea then was not to keep filling the bank with the cash provided by investors.
The entrepreneurs needed to determine how to go from a growth stage to that of profitability and whether they could actually do it. In 2016, the company felt the uncertainty that they may not have either skill.
The on-demand cleaning industry was coming into focus in 2012. The company was launched during this time, after the financial crisis was coming to an end. The venture capitalists were interested in the preceding style industry. The two entrepreneurs competed against other promising start-ups, inside the industry.
In 2015, one competitor lost its shirt. The two entrepreneurs felt concern when its competitor folded: What did that say about what may happen to its organization. It was good news and then it was not so good of news. A year earlier, the folding competitive start-up could have probably asked for more venture capital funding—and now the picture was totally different. The entrepreneurs decidedly made it their focus to that of maintaining its business. During the period of time, the company experienced growing pains. Yes: there were complaints and adjustments were made. There were no-shows, persons who cleaned who did not know really what they were doing. Liability issues such as flooring that was harmed by reckless cleaners. The entrepreneurs are expressive in stating, every issue that could be considered a problem, was presented at their respective door-step.
Demand became prevalent. Workers were hired. The two entrepreneurs hired customer service professionals, who took control of customer complaints, on a shift basis. The customer service operation became too croweded inside the New York office. The entrepreneurs moved customer service operations to outsources in Missouri and Florida. In doing so, they were able to realize a reduction, with regard to payroll, of fifty percent. The reduction saved the company millions of dollars, on an annual basis.
The entrepreneurs, had originally intended for matters to move more constant, from one market to the next. However, the long-term factor was virtual on-boarding. Persons who administered on-boarding in markets wherein self-service was not acknowledged were concerned as to the safety of their respective jobs. The rollout was not done in a cautionary manner—due to the fact it seemed everything became a fiasco of sorts.
Hanrahan remained calm and stayed with his course of action. He truly did not see any other way to handle the matter. The company’s technicl experts continued to work on the new self-serve platform. As a result, of their efforts, the onboarding completion rate stopped decreasing. After, the efforts were made, the company started witnessing tremendous favorable percentages. It was also useful, after all, that Handy’s prime competition had not made it to the finishing round.
The company instituted more chat-bots for customers to address, prior to reaching a human representative as well as its on-boarding initiative. The company was able to minimize its payroll even more. The company, too, decided to not expand its market-base to anything over twenty-eight markets. The preceding decisions put profits into the company’s pocketbook.
The true dynamic is to optimize services and attain more cleaning jobs for the cleaning professional. Success at the end of the journey is what truly matters most and Handy, despite a painful growth process has realized that success.