Category Archives: Start-Ups

Starting a Business with No Financing

A lot of small business owners want to grow their current business or start another one. However, companies require money to operate. Few people have the cash on hand to start a business or grow one from the ground up. Financing is a common strategy for business owners today. However, there are a lot of disadvantages to financing your business. Not only does it reduce the amount of time and money that you can later spend, but it also restricts cash flow going forward. A lot of your money will be spent simply paying down the current debt in your business. This is not a good thing if you are looking to drive future profits in the business.

Financing Basics

There are a lot of things to consider when you are financing a business. Over time, financing can be a great tool for you to grow. However, it adds another element of risk that many people are simply not ready for. If you want to take your business to the next level, there are ways to do it besides simply going out and borrowing money. Start by finding ways that your current customers could pay more for your product or service. This is a great start to earning more from your current customers.

Start offering more upgraded products or services that would sell at a premium. Over the past few years, many companies have found that this is one of the easiest ways to take advantage of their current customer base. Over the long term, learning how to drive more out of your customers is essential to business success. Start today instead of simply borrowing money to solve your problems.

Tipping Made Handy That Much Better

In the past few months, there has been an ongoing conversation as to whether those working in service industries should get paid tips for their services. Some restaurants and business have done away with tipping and paid these employees more to compensate for the lack of tips. Other businesses have encouraged customers and potential customers that their employees should be tipped more often, but there is no definitive guide to whether these people should be tipped or not. Handy has decided to make a tipping feature for their app to make it both safer and more convenient for customers to tip cleaning professionals.

Handy essentially acts as a forum, message board, or bulletin board in the sense that people are able to list handyman services on the app. The majority of the listings come from actual home cleaning professionals, with the other twenty percent distributed among plumbers, carpenters, painters, and other people who perform services on, with, around, or under a home.There has been a push recently towards businesses becoming more oriented towards small, centralized jobs, better known as “gigs.” The growing “gig economy” has allowed Handy to flourish, along with similar apps such as Uber. Handy has been compared to Uber in the sense that many people working towards completing gigs such as driving people around or cleaning one’s home.

Handy never takes money as a fee or any form of service charge from its customers — only from the cleaners themselves. The average Handy cleaner earns approximately twenty dollars an hour, which around twenty percent is taken to help upkeep Handy. This is the only time that Handy charges money. Any money that is given as a tip will not be subject to this twenty percent tax.

Mr. Umang Dua and Mr. Oisin Hanrahan founded Handy when they were bunkmates at Harvard Business College. Fortunately, it turned out very well for them. Handy has always made an effort to be oriented towards customers for ease of use, rather than towards just making money. Handy is free to download, and very highly reviewed by everyone who has used Handy.

How Handy Raised $50 Million to expand its services to a bigger market

Handy is the ideal consultant that helps to connect people who want to hire household services and get quality and value for money. The company has in its stable prescreened experts who do home cleaning and provide handyman services. Every day, Handy matches hundreds of clients with the right service provider. Clients get connected to the right service provider within one minute of login. The aim of the company is to provide the most trusted professionals who offer household services.

Funding for $50 Million

The startup provides on demand DIY and cleaning jobs. The recent third round of funding led by the Fidelity Management will help Handy Company to expand its businesses operations to more than 28 cities.

Currently, this in demand home service provider prides in having achieved its target of $50milion during the Series C round. Fidelity Managements, Research, and other participants such as Revolution Growth, Highland Capital, General Analysts and TPG Ventures carried out the funding.

This New York based entity has now achieved a total investment of $110 million from the latest third round of funding which netted $50 million. The funding will help the company expand to other countries as well and deliver a variety of services to those in need.

The funding generated from investors aims at stabilizing the company position within the market in home services around and the US. Hardy plans to expand across 33 markets before the year ends. The expansion to other markets will help the company achieve its target of giving a better experience. Though the business is known widely for its cleaning services, it is planning to expand beyond this and has been in talks to acquire competitor, Homejoy.

With the right connection to service providers, Handy generates more than 10000 related tasks and bookings, making it among the highly sought service providers. In future, the company plans to offer other services such as casual rental hosts and vacation services.

One of the added services this year from the company includes delivery and assembling of Ikea furniture. As of June, Handy had booked closely over a million orders from clients seeking affordable and quality home services. A higher percentage of these bookings were made by loyal customers who keeps coming back for the great services.

Sultan Alhokair Seeks Out The Seeds Of Growth

Starting a new business is scary and exciting, and many great ideas fall to the wayside for lack of funding. Using the proper strategies will help gain the capital that a new business needs. Smart and successful investors, like Sultan Alhokair, use a number of criteria when making a decision on their investments.

Sultan’s career in investing began with his schooling at the Northeastern University in 2009. His studies included the fields of Financial Accounting, Family Business Management, and Small Business Management. He has developed his skill and knowledge in the fashion investment arena, and is currently at the Retail Group of America where he is the Project Manager. He also involves himself with Valia Investments as a venture partner.

When Sultan Alhokair is seeking new properties, he looks into the sustainability and profitability of the business. To win over the investors, it is important to take these pointers from Sultan on how to attract the attention of potential investors and seal the deal on your business investment proposition.

Set Up A Five Year Plan
Create a plan that explains and shows the ideas, aspirations, and projections for a five year term of time. This will show investors that there is thought, passion, and a long-term commitment to the project.

Envisioning A Return
Map out the plan for the payment of the investments. Showing the plan for returning an investor’s money is always a welcomed sight for the capitalist. Investors are looking to get their investment back as soon as possible. When there is a plan in place, the investors feel more at ease and secure.

Tell A Story
The presentation that one brings before investors needs to tell a story. Investors want to know that there is more to the project than simply revenue. Project creators need be energetic, enthusiastic, proud, and devoted. A product or idea with a story is always much more interesting than a flat white board presentation or power point presentation.

Customer Response
Organize the customer response and sales for the project. Showing the investors that the public is interested in the product will help to sway the vote of the skeptical investor. When a new business gives an investor positive customer feedback and high levels of customer demand, the potential for swaying that investor is high.

New businesses can benefit from using Sultan Alhokair’s guidelines to convince investors to take a chance on a new investment. Keeping presentations professional and to the point, will turn the heads of investors and get a new business the capital that it needs.