Many modern startups find that they cannot get their ideas off the ground because of prerequisite financing issues. Handy’s CEO Oisin Hanrahan was in a very tough position when he decided to pivot toward a different business strategy. Handy’s business model is relatively simple. The business finds jobs for cleaners and handymen. It then collects a booking fee. The business got into trouble because of the onboarding process that it uses. These were the costs associated with training new employees.
Oisin’s co-founder had been struggling with him over the direction that they needed to take the business. There were severe concerns over whether the business would be able to grow in the immediate future. There were worries that the niche that they were working in wouldn’t be able to raise enough capital to sustain itself. It wasn’t an issue with their business as much as it was a problem with the nature of the market that they were working in. At the time it seemed that even extremely successful niche markets were failing.
Hanrahan and his co-founder eventually did find a way to help their company survive. They ended up implementing their new onboarding process across every market they were working in. Handy’s ability to spend most of its earnings in the immediate future allowed it to gain a competitive edge within the markets it was operating in. These are usually telltale signs that a business is about to enter into a bubble. That was the case here. Handy’s strong management protected it from a complete financial collapse. The company was eventually able to outlive its biggest competitor. Handy was given a valuation of 500 million dollars at the end of 2015. The company looks strong on the books. It seems to have room for stronger growth in the future. Visit the website https://www.handy.com/services for more info.