Handy co-founders Oisin Hanrahan and Umang Dua had a bumpy 2016. Through the end of 2015 business startups had been hyper focused on pursuing growth over profit, pushing entrepreneurs to build and expand as investors happily funneled money into their burgeoning businesses. Under this funding model growth and market share reigned supreme, encouraging companies to spend their way to the top of their prospective markets, but 2016 saw the bubble of never-ending funds burst, leaving companies to focus more on profit as the driving force behind the creation of their businesses.
The realization that higher customer density was necessary to improve the financial stability of the company came shortly after Homejoy, their biggest competitor in the on-demand house cleaning industry, folded, leaving Handy as the only real player in the industry. The change in their funding model forced the company to focus on improving their business in their current markets and the lack of competition gave them room to stumble without another company swooping in to take over their customer base. Handy was able to focus on providing exceptional NYC home cleaning service and reducing expenses, putting them in a position to grow their business the old-fashioned way – through referrals from happy customers. Handy isn’t ruling out further investments just yet, but as they are poised to move into profitability in 2017 any move they make in the future will be from a position of financial strength.