08.05.09

In order to open their own businesses, they had to scrape the bottom of the barrel by borrowing from friends and relatives. From these laughable beginnings, some of these companies have earned some serious money.

$25,000 – Monet

In order to open her first beauty salon in 1997, Alexandra Glushkova, founder of Monet, had to use her own personal savings. The money was returned to her pocket as months passed and her business grew. Today, this network, which carries the name of a French Impressionist (Monet), is the second largest in Russia and has 30 salons in 3 cities. By 2007, Monet’s corporate income exceeded $13 million.

$5,500 - Evroset

The 12-year history of what is now the largest Russian mobile phone retail store – which last year earned more than $5.7 billion – is legendary. The most popular story is that the company literally appeared from nothing. Evgeny Chichvarkin has never confirmed the myth that he had to borrow $2,000 from his dad in order to buy the first round of accessories for Evroset.

$7,000 – AviaVtorResurs

Entrepreneur Sergei Samoshkin had more at his disposal than a modest capital budget. He had trained workers, some tools, and experience with managing aircraft technicians, all of which he planned to use to earn money for the company. Proceeds received during the first half of operation (about $0.3 million in 2000) multiplied 10 times after several years.

$16,000 - Sunbox

Co-founder Yuria Avinova was inspired by a rack of advertising cards that she saw 9 years ago in New York. The start-up investment was returned within a year – sixfold. After another two years, during which time they printed and distributed millions of cards in restaurants and clubs in Russia, Sunbox had a turnover of $1.5 million.

$0 - i-Free

The founders of i-Free like to compare the birth of their company in the early 2000s with the founding of Apple: the same raw enthusiasm and craftsmanship. The only difference is that i-Free was born in a tiny room in a Krushchev-era apartment rather than a garage. In 2004, when proceeds reached $28 million as a result of aggressive regional expansion, i-Free claimed the top position of the mobile information market.

 
$6,000 – Heklya

Until the mid-1990s, businessman Valery Pyzhov had attempted to manufacture casual wear, but could not keep up with the competition from China.  He was then granted a microloan to shift production to employee uniforms and corporate clothing – and this time was successful. The company does not disclose its current financial state, but they have stated their income surpassed $50 million long ago.

$350 – Florists.ru

Peter Talantov, a resident of Kazan, distributed his investments in the following manner: $50 in cognac for the programmer and another $300 for connection to an online-payment system. The original plan was to sell flowers over the Internet to foreign customers, but gradually local clients were also attracted to the service. Last year, the company finished the year with proceeds around $3 million.

$70,000 – Kroshka Kartoshka

In 1998 it would have been possible to buy a standard three-room apartment on the edge of Moscow with the capital the founders managed to gather to start the company. Instead of an apartment, they bought a lot of potatoes and two portable kiosks, in one of which their wives worked. Kroshka Kartoshka has expanded without interruption and today is operating 300 different locations in Russia, with proceeds in 2007 reaching $70 million.

Translated by Alinga Consulting Group.

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Source: Smart Money