Handy CEO Oisin Hanrahan was under pressure after his strategy had backfired. It was the strategy that his co- founder Umang Dua had resisted, but Oisin championed for it until the co-founder accepted it. Oisin`s plan changed the way the organization employed its cleaners, a strategy that made it difficult for qualified candidates to apply for jobs.
Emotionally Painful Decisions
During the recent meeting with venture capitalists, the investors expressed their fear of investing in the company. At that time the CEO was surprised because he could see other companies raising capital but his business performance could not convince venture capitalists to invest in it. However, the duo took the assumption that they had only that chance to raise enough capital.
The only move that was remaining was rolling out Oisin`s online onboarding strategy in all its markets. Luckily for Oisin, Dua accepted the deal. The company had to cancel several bookings because demand for cleaners was higher than they could supply. As a result, customer complaints increased significantly.
The duo agreed to sacrifice whatever was necessary for the benefit of future growth and profitability and saving more millions. The decision was reached after realizing that spending hard to gain a competitive advantage was no longer feasible because somebody else would be willing to spend more than the competitor.
The Success Story
Months later, employees of the company began to quit their jobs because they felt that their jobs are at stake. However, the duo remained confident that their plan would soon become profitable. Monthly later, their engineers had completed the online onboarding platform (see, https://www.handy.com/) and almost immediately, its rating rose by more than 10%.
Although using the software led to the sacking of over 42 employees, replacing people with software is a unique and emotional decision which can be made by the most experienced entrepreneurs. Although the CEO took a risky decision, finally it paid off, and since then the firm has consistently reduced the cost of acquiring a new customer by over 33%.
About Handy Inc.
Handy is a leading platform for connecting clients in need for household services with excellent and independent service providers. The company links thousands of clients to professionals weekly and has a fast booking process, secures payment system and guarantees their customers a 100% value for their money.