‘The Difference between Entrepreneurs and Managers Lies in the Readiness to Risk’
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Alexander Zayonts, Founder, President and CEO of the Hoff hypermarket chain, delivered a talk on ‘Promoting Business Under Restrictions’ as part of a series of sessions with leading Russian practicing economists and entrepreneurs. Alexander has a place on the ICEF Endowment Fund Board of Trustees. The event was moderated by HSE University President Alexander Shokhin.
The session was opened by ICEF Director Sergey Yakovlev, who stressed in his welcome address that meetings like this illustrate the diversity of the careers available to HSE students. What is more, meetings with businessmen and banking experts contribute to preparing students for the current economic reality.
Alexander Zayonts founded Hoff in 2008. A viable alternative to Ikea, his company has contributed to making domestic furniture production a more consolidated market segment. Hoff is Russia’s largest chain of furniture and home goods hypermarkets. Cooperating with some 400 suppliers, 85% of which are Russian, its business model has in no way been affected by the suspension of supplies from abroad. Using his company as an example, Alexander spoke about the recent changes experienced by the Russian business community and how these have helped with the adjustment to new conditions, noting that this was his first experience of giving talks to students.
The speaker also shared some useful takeaways from life and his career as entrepreneur. In particular, he described entrepreneurship as a career to be avoided by those who aren’t prepared to take responsibility for their hires. ‘The difference between entrepreneurs and managers lies in the level of readiness to risk and make mistakes. As an entrepreneur, you are bound to make mistakes, especially at the start of your journey. You need to take a sober look at your potential. As one wise quote goes, “find a job you enjoy doing, and you will never have to work a day in your life.” That’s important,’ said Alexander.
Alexander went on to present his vision of success, its formula, and the factors that need to come together for an idea to become reality. His experience is an example of business success coming down largely to the idea itself, sufficient funding, competent management and ultimately luck, as getting a company noticed by the market and building a strong reputation are essentially a matter of being in the right place at the right time. Alexander supported his conclusions by giving interesting examples of companies that have risen and fallen because they failed to take into account all the necessary factors.
Another thing Alexander focused on was the ability to ‘change and adjust to new developments, and best of all to create and innovate. When one door closes, another two open. This means that in the current situation, it’s all about the ability to find your niche—and there are actually many emerging in the market now that western companies have left.’ Alexander is confident that the current economic situation is driven largely by consumer needs. Even though it has forced entrepreneurs to modify their business processes, there are new opportunities opening up under the current restrictions for many Russian customer service brands. Hoff, for example, reoriented its supply chain towards Asia at the start of the pandemic, switching to Chinese yuan and other local currencies. ‘Logistics is the cornerstone of business success,’ said Alexander Zayonts.
Alexander cited the domestic home goods industry’s unpreparedness to meet standards as a challenge he faced when Hoff was about to be launched. There were also challenges related to creating a ‘customer service’ mindset. Hoff managed to find its own way to reach out to customers by focusing on ‘cosiness in the house’ and taking its manufacturer relations to a new level.
In support of this approach, Alexander presented his company’s performance figures. HSE President Alexander Shokhin, who moderated the event, asked the speaker several important questions. The talk, which the moderator stressed was a workshop, was followed by a Q&A session. Alexander thanked the students for their engaging comments and presented them with valuable books on the business strategies pursued by global companies.