There are many paths to success in the business world, but each of them requires a relentless pursuit of self-development, a constant expansion of entrepreneurial horizons, and a willingness to change. It is in the harmony between internal development and external actions that successful startups are born. Konstantin Maloroshvilo, an experienced entrepreneur and winner of the Top People Russia-2023 award in the Best Retail Manager category, will tell us how to successfully launch a business.
Your biggest project is the iGorod chain of stores. Why mobile equipment?
Let’s start with the fact that I was interested in technology as a child. From the age of 13 I was reflashing and updating popular Nokia and Siemens gadgets, and then selling them on Avito. But the impetus was a trip to the USA under the Work and Travel program. It was the 2010s, and I fully appreciated how far the domestic mobile market was lagging behind the American one, and it was the trend of the time! It became obvious that bringing equipment from the States and selling it to Russian users could be very profitable financially, which is how I came up with the idea of doing this.
How did your business develop further?
I started with an online store, and later it grew into a retail network of 20 or more outlets. If we are talking about profitability, at the first stage I received about 70,000 roubles. For comparison: the average salary in the country at that time was 15 thousand. It was an impressive sum, but I decided for myself at once that I would invest as much as possible in development – hiring staff and opening stores. It used to happen that in a month we started several outlets in different cities, and our profit at that time was already 350,000-700,000 roubles.
Did your company attract investments and bank loans?
No, at none of the stages of development did I use outside capital. Only funds from profits.
Did you manage your network on your own?
Initially yes, but at some point I hired a new manager, and soon he became my partner. Thanks to our cooperation and his fresh perspective, the company showed tenfold growth.
In those years, there were a lot of mobile equipment stores opening, what was your trick?
Let’s put it this way: I quickly realized that a large share of income comes not from the sale of the main product, but from related products and additional services. Some things may seem insignificant at first glance, but in fact they give high profitability. Think of “islands” – small retail outlets in shopping centers where you could buy all sorts of accessories for smartphones. In 2011, when we first introduced such a thing in the country, it was something new. Moreover, we were one of the first (or even the first) to launch a cell phone exchange program. This is standard practice now, but back then it turned out to be a very promising niche.
Another interesting area for us was exclusive phone numbers, which represent a significant segment of the market. Let me explain. Imagine that you want to have a phone number for your business, the cost of which reaches hundreds of thousands of rubles, but at the moment you cannot afford it. However, you can use this number by renting it for a symbolic sum of 10 thousand rubles per month. This also turned out to be very profitable.
Where do you get such extraordinary ideas from?
Many in the USA, as well as the idea of selling gadgets in principle. In general, I often draw inspiration from foreign trips, I especially appreciate America, it is there that I find a lot of creativity.
How are things with iGorod now?
In 2017, we decided to change our development strategy and formed a franchise.
Unexpectedly. A successful business, business processes adjusted to automation and such a change of activity. What is the reason for such a dramatic change?
I have achieved all the financial goals that I set initially. Moreover, I built the business in such a way that it could function in full without my active participation. On the one hand, I am pleased to realize that I have the opportunity not to be involved in the project around the clock, and this is undoubtedly an important achievement for me as an entrepreneur. On the other hand, I realized that I’m not burning with this idea anymore, which means it’s time to give way to an entrepreneur with an unfocused vision. I am absolutely sure that a business should be run by a person with burning eyes, otherwise he will simply not motivate the staff to achieve new goals.
Weren’t you sorry to part with your favorite child?
I wasn’t. The brand is functioning, stores are opening under our trademark, the network is expanding. And I did not leave it, I just changed the format of my presence – now I am mainly in charge of strategic issues. By the way, many of our top managers have become partners, these are people I trust and who are leading the business upwards. This means that I can safely entrust development to them and concentrate on new projects myself.
What sphere attracts you now?
Real estate. I think the reasons are obvious – real estate has the largest market volume, not only in Russia but also abroad. Whatever happens in the country and the world, demand in this sphere is growing steadily and outstrips supply. This means that there are new opportunities that can be taken advantage of.
And how successful was your project?
Judge for yourself: at present, our agency is deservedly in second place in Orenburg in terms of the scale of activity. Judging by the way this year has started, we have every chance to take the first place. There are more than seventy agents working in the team, and every month they make hundreds of transactions.
Do you sell real estate only in Orenburg?
The agency is localized in Orenburg, but we sell properties all over Russia and abroad. There are a lot of deals related to Moscow, and we highlight Turkey and Dubai among foreign destinations.
This is a good result, but have you encountered any difficulties?
Good results are always the fruits of hard work and nothing else. In addition, the industry has faced serious challenges at least twice – the outbreak of a pandemic and political fluctuations in the global situation. But it is not in our rules to fold our wings, we were not afraid of these difficulties and only became stronger. We can say that the problems turned out to be an incentive for growth and strengthening for us.
Are there any other projects that interest you at the moment?
Of course, I follow market trends and try to identify promising niches. So, now I see it profitable to establish import of goods from the United Arab Emirates and wholesale. By the way, I have never done wholesale before, but I think that I need to expand my horizons.
What diverse areas do you have…
Not at all, it is all trade in one form or another. The advantage of working in sales is that its basic principles remain virtually unchanged, regardless of what product or service you offer. It is a kind of universal set of tools that can be used when selling a wide variety of goods – be it pens, apartments or anything else. The main task is to understand the market and carefully analyze the demand for a specific product at the moment. For clarity, you can use the following example: imagine that you have a movie with an amazing plot and high-quality picture. But if you try to sell it on video cassettes these days, most likely, this will not be a successful undertaking. On the other hand, even at a high cost, iPhone sales always remain stable, since the device is in constant demand.
Give advice: how to succeed in this field?
Based on my own experience, I can confidently say that success in business begins with a deep and genuine interest in your business. This interest, supported by the strong will of the leader, is the key driver of success. In my practice, I have always strived not only to create an effective work system but also to grow true like-minded people – employees who share my values and vision. A team of people who are united by common goals and aspirations becomes a truly productive force capable of achieving impressive results.
In conclusion, tell us how you manage to be effective in all your endeavors?
In order to achieve significant success in any field, you need to constantly develop and learn. And this is not only about professional education but also about personal growth. I have completed specialized courses, in particular, the courses of the International Erickson University of Coaching. Participation in these programs brought me a lot of valuable knowledge and skills, it helped me better understand myself and reveal my potential.
Generally speaking, it is important to use every opportunity to bring something new to the market. Develop yourself, seek inspiration, follow trends, and most importantly, do not limit your entrepreneurial horizons to one area, one city or even one country. This is the only way you can achieve your goals.
