Cleaning Company

When the leadership of Handy Home Cleaning Inc.’s leadership began focusing on creating and maintaining profitability they chose a difficult path. Co-founders Oisin Hanrahan and Umang Dua wanted to keep investors happy while becoming more profitable. They needed quality staff in the 28 markets it served. Receiving a $50 million capital funding infusion helped, but still left many questions unanswered.

Implementing the online onboarding strategy throughout the company helped eventually, but initially registering of new workers plummeted 40% and with demand much more than their staff could handle, they had to cancel bookings by the thousands. But foregoing short-term profitability to improve their infrastructure helped them build a solid foundation. While growth and market penetration was the focus initially and attracted over $110 million in investments, quality service is now the focus.

The founders met while attending Harvard Business School and both saw on-demand cleaning as an enormous unclaimed market. But then competitors began to appear and compete for customers. When those competitors began to fail it was both bad news and good news for the company. They worried they might have ever-estimated the market, but the lack of competition allowed them to focus on sustainability. They also went through growing pains that included structural issues and snowballing demand. So they focused on improving their services.

Eventually the online onboarding system began working as designed and the company also made the difficult decision to begin using chatbots to help with customer service. The combination has improved the quality of the service and profits. Handy’s leadership also stopped expanding into new markets beyond the 28 they already served. This helped by increasing customer density in those markets. Its gross margins have more than doubled to 20%. As a result, 2017 is expected to be a great year for Handy Home Cleaning. Check out