Saving Home Cleaning Services Despite Legal Standards

The home cleaning services sector has been greatly ignored in the past decade. The emergence of companies who will send workers to home or office spaces for cleaning, maintenance, and even furniture assembly have seen some challenges. These challenges are causing some companies to throw in their cleaning towels and file bankruptcy.

One such company is Homejoy Inc. Founded by Cheung siblings, the company had hoped to forge ahead in an otherwise uncharted sector. The company saw much success in raising a very healthy 38 million in venture capital. Although many think they had too high goals that would eventually prove to be their downfall.

Homejoy’s goal was to offer home cleaning services in five different countries. This is a huge goal even if the company is well established in its sector. Homejoy concedes that this placed unbelievable strains on their financial standing, but also state that their main reason for filing bankruptcy went far beyond that.

Another company in this sector, Handy could have offered some tips. This company had start up revenue of 50 million, but kept its operations local, saving money. When Handy did choose to explore other venues for their services, they did so with research and making slow strides into infiltrating new regions.

This type of approach may have aided Homejoy in staying stronger for a longer time period, the Cheung siblings have also cited that many lawsuits have threatened to make their contractors full time employees. This would raise labor costs as well as reconfiguring the business as a whole.

This is also a concern for companies like Handy. Keeping the business entirely on the internet and maintaining the contract for hire employees are what s helping other companies avoid filing for bankruptcy or facing employee challenges. Homejoy may also be facing greater challenges because of the international scope of their business.

Handy remains a wholly American made and run business. They operate through cell phones and internet. The rules are a bit different because of the pure nature of how the business s structured. Homejoy may be able to salvage their business if they are willing to focus on one country for their services. This would allow them to develop a home base and strengthen their core business.

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