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Success Stories

 

Gratia — the thing women like

     Yaroslava and Marian are a married couple, at the age of about forty, who live in Ivano-Frankivsk with their two children in a two-bedroom apartment. They both are engineers-constructors and worked for a long time in one of Ivano-Frankivsk research institutions. However, recently they faced considerable difficulties, for their employers, as well as many other employers in Ukraine, stopped paying salary to their employees. By chance they met a person from Lithuania, who offered them to sell women underwear in the market place or among their acquaintances.
     Then Yaroslava recalled her old dream to become a fashion designer, but since there was no relevant school in Ivano-Frankivsk, she became an engineer. Having analyzed the market for women underwear, Yaroslava and Marian saw an opportunity to not only sell women underwear but also sew it for sell by themselves. The family had a regular sewing machine at home. So they used the same contacts in the Baltic State to obtain fabric and started to sew underwear. They sewed only the simplest models and only by individual orders because it is hard to earn one’s living with a regular sewing machine.
     That is why they faced a necessity to expand the business because their products enjoyed high demand. They had to find the necessary finance. Such an opportunity appeared after the Ukrainian-Canadian Joint Venture SBEDIF Business Center started to operate in Ivano-Frankivsk.
     After the SBEDIF Business Center began its functioning at the beginning of 1997, Marian became one of its first clients. It was not a big problem for the qualified engineers to compile a business plan. Having obtained in August, 1997 a lease for 3 modern industrial sewing machines, amounting to about $3,000, the family opened a workshop by the end of the year. Today the business produces about 250 units of women underwear per month. These are high quality products coming in 6 designs. The business is marked by high independence because it designs, produces and distributes its products by itself using different channels of distribution: stores, marketplaces, sales agents, permanent customers. Notwithstanding the high quality of the products and their compliance with the highest standards, the products are sold at comparatively modest prices ranging from 5 to 25 UAH per unit. The products are very popular among the customers.
     Today, besides Marian and Yaroslava, the GRATIA business employs three more people. The quality of the products meets the highest standards.

 

Doctors change life sharply…
                             not only in United States.

     Once I had a chance to read in the magazine that one American woman, who was a doctor and worked as a doctor for 10 years, decided to suddenly change her life and become a truck driver. So she did as decided. Even that fact that she changes $80,000 of doctor yearly income for $25,000 of truck driver income did not pull her up. Working 2 years as a truck driver, she did not regret for anything and was not going to come back soon.
     Something like that happened with Mark Mykolaiovych Kohan. Graduated the Ivano-Frankivsk Medical Institute in 1986, he worked as a doctor-anaesthetist for 10 years and never thought of starting his own business. But the economic crises in Ukraine resulted in the decrease of financing of social sphere, medicine included. It became more and more difficult to live up to his earning and he had to find new sources of income. Since his wife sewed women clothes, it was the only significant source of family income. First, they decided to sew on request, but as the time went by, they had their own clients. Here we received our first lessons in marketing, rules of selling, business planning. In the long run two questioned aroused: whether to have a family business, or to establish a new company and to develop this business, or to sew clothes only for women, or may be to change or enlarge the product line.
     Started searching opportunities of the Ukrainian market, they came to the decision that it would be very profitable to sew curtains, because of the following reasons: 1) individual producers worked on the old-fashioned equipment; 2) the range of raw material was very poor on the market and the prices were too high, because of importing of small consignments of goods. That is why, they decided to sew curtains and did not lose anything.
     They did the renovation of the premises, hired employees and found a supplier of raw material - a Polish company from the city of Helm. At the expense of purchasing a big consignment of goods, the price for the raw material reduced. But here a new problem aroused - insufficient money to buy equipment. By that time there appeared a Loan Program created by the Business-Center. The Business-Center employees assisted with business plan development. The Working Committee decided to grant them a loan for two years for purchasing necessary equipment. It was a good contribution to the development of small business in the Oblast.
     At the moment 6 more people, except Mr. Mark and his wife, work in that company. They opened their own trade-mark store; concluded a contract on selling of goods through a number of big stores; they have their own distributors on the market.
     Of course, there are no problems with the repayment of a loan. But Mr. Kohan is not going to stay on this point. He is working on expanding of the range of products, seeking new suppliers and new channels of distribution. And though he did not give up medicine (he works 7 days per week), business takes the main place in his life and he is not going to give up his principles.



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Last updates were made 19-11-99

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© SBEDIF Business Centre, 1997