Vyacheslav Nikitenko: "Every mistake in business should be turned into an experience"

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A talented businessman who created from scratch a network of multi-brand electronics stores "White Appliances", who managed to brilliantly get out of several crises on how to build a successful business, what gives "a long game" and why you need your own IT management systems.

Every third Russian wants to open a business in 2024. This result was shown by a joint study by the Ministry of Economic Development, the Savings Bank and the Public Opinion Foundation within the framework of the Russian Entrepreneurs: Research Monitoring project. At the same time, 6% of the 16% of former business owners were forced to close it over the past year, unable to cope with difficulties and the economic situation. Anticipating a crisis is an important skill of an entrepreneur, which helps to develop a business, despite external circumstances, says Vyacheslav Nikitenko, an expert in business development and management, owner of a chain of electronics stores "White Equipment" and service centers "White Service". It was this skill that helped him double his profits during the pandemic. In an interview with our publication, Vyacheslav Nikitenko spoke about the principles of building a successful business, new technologies in management systems, and why those who are ready to play the long game succeed in business.

- Vyacheslav, you are a successful businessman, the owner of a company that has been showing annual profit growth of 80% for five years. These are very serious figures, especially in the market of offline sales of electronics and household appliances, where competition is off the scale, and a series of global crises in the last four years have forced hundreds of offline stores across the country to close altogether. How do you manage to grow at such a pace, what is the secret?  

- In an integrated approach and constant implementation of innovations, in an effort to be the first and the best. For example, we managed to anticipate the transition to remoting during the pandemic: we started transferring all management processes to an online format back in 2018, and by the end of 2019 we had already rebuilt the work and strengthened the company. Therefore, when the pandemic came, our team was 100% ready for it. While all competitors were setting up their business processes, which is a long story, it took us less than 8 months to reap the benefits. In those years, our profit growth was 80-85%. In addition, I initially built a business for "playing for a long time", focused on long-term goals and performance, did not chase short-term profits, invested in the team, development, building relationships with customers and systematically transferring them to the permanent category. This brought a natural result.

- You started by buying out one Chelyabinsk store from a closed federal chain that sold Apple appliances, but in a few years you have seriously expanded your business: now you have 4 retail stores "White Appliances", 4 service centers under the brand "White Service», as well as a large online store with several thousand items — from «apple » gadgets to household appliances. Why did you decide to leave the mono-brand store?

- It was a strategic decision that allowed us to attract new segments of customers, which, in turn, contributed to an increase in market share and total sales. In addition, we got rid of dependence on a single brand. Apple technology is certainly popular, but such dependence carries serious risks for a business with a single store. A multi-brand store, in turn, can offer more competitive prices and purchase conditions due to the possibility of choosing between alternative products, and offering a wide range helps to increase customer loyalty, since customers tend to return to the store where they can find everything they need in one place. Life has shown that it was the right decision.

- And what strategic decisions are you implementing now?

- We decided to seriously expand the business, scale it to other regions, with an eye to becoming a federal network. Therefore, at the moment we are open to negotiations with investors, we are considering options with a franchise and are preparing to recruit new employees and managers. I am determined to make the brand "White Appliances" known in most regions of the country.

- A number of technologies for "remote" you have developed yourself. For example, systems for collecting and analyzing information about your market segment and dynamic automatic pricing, your own loyalty system with a personalized approach to retail customers. How did you come to create these and other IT products? 

- Initially, I built a business based on the principle of maximum efficiency. When we started to transfer most of the processes online for convenience and optimization, it became clear that most of the solutions from the market were not suitable for us, they covered our need by only 20% to 30%. I have a higher education in the field of IT, so I imagined exactly what systems I needed, and besides, I always try to improve what I already have and automate as many processes as possible, increase the indicators already obtained. For example, if a customer is served in a store for five minutes, then it is necessary to make sure that due to the accounting system it is possible to reduce the time by an additional couple of minutes. As a result, a whole system of IT products has been created, which helps to successfully develop the company.

- You have built such an effective remote business management scheme that your unique business developments are bought even abroad: for example, companies in Kazakhstan use them. Tell us in more detail, how are your systems built?

- I relied on several key tasks that every business owner faces. First of all, everything must be calculated and converted into a figure - absolutely all indicators, even subjective estimates. Each digit is a process marker: is he going well or badly. Otherwise, it is impossible to see it remotely. Secondly, a business rhythm and a sequence of communications in the team must be established. Thirdly, it is necessary to establish quick communication with managers and employees, informing the team about what is happening in each department. In addition, IT developments are needed to link and integrate dozens of different systems. We definitely need solutions for building a team and building a discipline of remote work, optimal KPIs for each department. And it is absolutely necessary to have the right company strategy, which is developed jointly with the team and properly communicated to each of its members. The technologies we use help assess the understanding and acceptance of this strategy and overall business development on the part of each employee.

- You have not only created an ever-growing business in a highly competitive environment, but also assembled a strong team of professionals who help you move towards your goal. Do you consider it successful yourself? And what, in your opinion, is a successful team?

is a key factor in the success of any business, especially in a highly competitive environment. But to build a truly effective team, you need to invest a huge amount of resources in it, carry out fundamental adjustments based on the mission and values of the business. Every employee should see that you and all his colleagues really share the values of the company, and managers should be available for communication and support. This creates an atmosphere of trust and openness. I am sure that we have built a very effective and successful team.

- What advice can you give to those who are just thinking about starting their own business?

- Starting your own business is an exciting and at the same time difficult undertaking. You need to understand that success accompanies those who are engaged in a really interesting business for themselves, who are ready to work seven days a week, who respond to market demand and manage to occupy an empty niche. Therefore, first of all, it is worth exploring the market, drawing up your own business plan, defining your unique offer, assembling a strong team and "igniting" it with your idea. Starting your own business requires patience, perseverance and willingness to learn. But over time, self-confidence, hard work and perseverance will bear fruit. The main thing is to constantly move forward, turning every mistake into an experience.