Shersten Maxim
owner of the company "Sitka Zakhid"
Chernivtsi
Achieving the resilience of a business in the marketplace is a challenging management task that uses unique techniques to maximize productivity with the least amount of effort. However, creating a well-functioning and orderly system is only one side of the problem of increasing business viability, which most naturally intertwines with others. When customers are given the opportunity to choose from different companies selling the same product, the first question they have is which one is the best? So what makes a product better than the rest? Maxim Shersten, owner of Sitka Zakhid, will share his experience.
Had to build a factory
The company was founded with 2 people and a machine tool. A friend had machines that twist the net, and I had the opportunity to sell it. When everyone did what he could, they realized that you can go beyond the scope and make a profitable business. After 2 years, we opened the first branch in Kiev, and then a branch a year in Ukraine. For 10 years, the company expanded, income grew and the number of branches increased to 12.
Ten years later, we realized that we only produce one mesh segment and sell many. Competition and market analysis led to the decision to open its own production of other types of products. So I had to build my own factory. Now we produce: sectional fencing, chain-link mesh, Armopoyas masonry mesh, wire, chains.
I come from Chernivtsi, that's why I wanted to establish a plant not far from my home. True, it was very difficult to find such a large territory, and so that you did not have to do everything from scratch. We have already searched for a construction site in adjacent areas. But fate smiled, and we found an abandoned plant that stood near Chernivtsi for more than 30 years. When we came there to make repairs, there was a forest everywhere, trees grew on the roof and on the road. You know, it was like in scary movies where abandoned buildings are shown.
For six months, we cleaned and cleaned everything, made repairs and delivered equipment. Everything was very fast and well-coordinated work helped to launch the plant in a short time.
Equipment replacement
First, we bought cheaper machines, since the turnover was large. We had to replace all suppliers with our own production in six months. In our conditions, when many young people travel to Europe, the human factor plays most of the production on inexpensive devices - and this is a problem. Two years later, understanding came and the opportunity to replace cheap machines with high-tech ones. The new equipment made it possible to produce quality goods with a small number of people. We now have the most modern equipment in Europe for the production of sectional fences. The output per person increased by 9 times in some nodes.
For example, the welding site employed 20 people making 10,000 sections / day, now there are 9 people working making 30,000 units. The efficiency of welding replacement resulted in a 6.6-fold increase in productivity. We compete in price in Ukraine and sell goods through our branches to such large chains as Epicenter and export about 10%. We plan to increase the share of exports to 50% as early as next year.
Defeated seasonality
In fact, the net is not a unique product, it is also very seasonal. There is a saying “Prepare the sleigh from the summer - you will go in the winter”. In our business, on the contrary - you need to prepare the net in winter in order to sell well in spring. The snow is melting, the sun is shining brightly and everyone is rapidly changing fences. My successful actions:
- saved by the correct work with suppliers in the winter;
- we tried to build friendly relations with clients;
- a large network of branches, occupied the segment of small and medium-sized wholesale. Thus, they became closer to customers;
- have created the largest product line in Ukraine to date. We are like a big consumer supermarket where you can buy everything from bread to batteries;
- we always have and have had a desire to develop.
I always have the excitement to defeat competitors and occupy new territories, I set myself goals in the game and achieve them. Perhaps football, which he played in his youth, helped, and also his father instilled an entrepreneurial streak. He always thought globally - if you sell it in wagons.
Childhood was difficult, a period of restructuring. I think that from the 90s to the 2000s were the most difficult years. Using my father's example, I saw how easy it is to take off and how quickly you can fall. There were times when there was nothing to eat. I think this experience has shown how important it is to appreciate what you have. Therefore, I do not throw money, but use it wisely. I can't call my childhood easy, but it gave me a good start.
Am I a company owner?
You create a company, hold many positions in it, but you don't feel like a business owner. For the first time I felt that I am an owner in the middle of my studies at the “School of Business Owners” project.
I remember very vividly the moment - 11 o'clock in the evening, I sit at work, as always, and ask myself the question “Why am I alone? Why should I work for everyone? ”. Thoughts appeared to give or donate to someone
then the company, just to unload a little. I really worked on everything. Although the structure and responsibilities were written on paper, in fact, no one was responsible for anything. I, out of my kindness, did not “squeeze” the employees. I saw - like a man is working, what could I say. Then a bunch of "jambs" come out and I sit at 11 pm - "rake it out".
So I turned to Visotsky Consulting. When Vysotsky was taking the organizational test, I realized that the questions were just for me. They touched upon the problems of my company and I wanted to find their solution on the project.
During the passage of the School I was able to systematize all the departments and put people responsible for the results. I got 4 directions in business: in Ukraine through our branches, through trade networks, export, production. Only after the separation from porridge did the company turn into a structural one.
I realized that I had a too complex structure, which neither I nor the employees fully understood. Only due to the separation of directions, it became easier to understand the processes and analyze the work performed. Yes, and it became easier for the employees - now everyone understands their area of responsibility and together we hit the same “point” for the result.
Crisis moments stimulate
Of course, my staff didn't want to change. I am glad that during the systematization of the business I “didn’t flinch” and managed to say goodbye to some. It is strange that those “irreplaceable” ones, without which I could not imagine the company, have gone.
The main thing is to see the pros. When employees left, I took on their areas and automated even better. Having taken the position of the head of the sales department, I saw that he was calculating the cost price and, in general, was doing a lot of his own work. I sat down, thought about how to optimize the work in this area and gave the task to the programmer. Thus, the work became systematic very quickly. But the question arose "What did I pay the manager money for?" I believe that moments of crisis stimulate development.
Optimization of work
We are all lazy people, so optimization solutions were found very quickly. The owners' job is to think. During this year we have fantasized so much that my programmer walks green.
Previously, people in our country counted manually the cost of products, there was a high probability of error. Now we are using 1C. For example, for the sector of panel fencing you need: wire, paint, locks, plugs, packaging. We drive into the program all the components and the required amount for the manufacture of the sector. Next, we get an algorithm in which updating prices changes the total cost without unnecessary calculations.
In addition to this report, we have combined data on competitors. With the push of a button, we see the ratio of our price to competitors and are constantly in the market. This easy process frees up several hours on each customer.
We recently won a € 10,000 tender from the EBRD to optimize the production site - panel fencing. There will be a computer near each machine and promptly transfer digital production data to the office. Data is now handwritten on paper. This is a pilot project and if successfully implemented, we will launch it in all other areas. That is, we are not chasing today's profit, but the prospect of working with a bank and obtaining new loans.
Company rules
The company has a very young team, with an average age of 29 years. I am one of the oldest among them. Branch managers gather in different cities. We share news, explain the intricacies of implementation or work. At the last meeting, we discussed the system of discounts for clients, because we are completely changing the system. If earlier the manager himself could decide what discount to give the client, now there will be a single rule for everyone. I do not open branches for a franchise, so it is very important to meet like this.
Recently, we launched a championship for the largest increase in income between the branches. We have divided the dealerships into 2 leagues: large and small - for the reliability of the results. Which team fulfills the monthly sales plan gets a corporate bonus. Whoever wins for the quarter gets the right equipment. I realized that in every department there is something missing, someone a loader, others a truck.
Earlier, I rewarded managers for successful work, but I realized that the development of the material base of the branch would be more effective. After all, the larger and better the base, the easier it is to work and get maximum results.
Branch opening rules
Initially, we worked for western Ukraine and transported goods to the central one, on order. After analyzing the data, we got an estimate - how many customers there are in each region. We looked where the weakest sales area was and opened a branch there. Of course, by calculating the ratio of the size of the city and the profitability of opening a representative office.
At the opening of several branches, I arranged tours. I rode around Ukraine for 10-14 days and analyzed my work. After the SCB, a leader appeared, now he controls the process every 2 months. I have an office on the territory of production, but I rarely go to the plant itself.
