From design to production with the help of Start-Up Nation 2017

The information about Start Up Nation came just in time

Andreea and Alexandru Dumitru learned about Start-Up Nation in 2016 from friends who had a consulting firm. At the time they were working in their own firm, doing furniture projects for architecture and interior design firms. Andreea - an engineer - and Alexandru - an architect - had already made a name for themselves in the interior design field, while furniture execution was outsourced. Because they weren't always happy with the quality they received, the thought of starting to produce the furniture they designed had been on their minds for some time, and the information about Start-Up Nation came just in time.

Preparation of the file, approval of the project, selection of the machinery supplier

Dumitru's family is from Titu so it was easy to set up a company there. The friends' consultancy firm took care of the whole Start-Up Nation dossier, guiding them to score as close to the maximum as possible. The fact that the company was going to be outside Bucharest gave them a better chance of success. That's how it came about, in 2017, Euphorica Concept SRL.

Other criteria that helped to meet the maximum score were the employment of 2 people from disadvantaged categories*/ unemployed after 2012/ unemployed, and the fact that the company was to have a production activity.

For the procurement file they sent requests to 5 funders. Three of them responded and finally decided to go ahead with Danibrum. The price, the relatively short time from order to delivery (max. one month) and the relationship they established during negotiations mattered.

They chose to use the entire approved amount - 200,000 lei - for the purchase of machinery, and they will contribute the amount of VAT. With this amount they purchased from Danibrum:

Obtaining funding, approval of the Guarantee Fund, submission of the statement of account

Although they had been selected, things went slowly until they actually received funding. In the Start-Up Nation 2017 programme they worked with 3 banks - BCR, Transilvania and CEC. Andreea and Alexandru chose to apply for a bridging loan by submitting their application to BCR. The bank then sent it to the Guarantee Fund for verification. Normally, they would have received a reply within 30 days, but the number of applications was so high that it took longer. In 2017 the success of the Start-Up Nation programme took many people by surprise. The Guarantee Fund seemed to be the institution where things got a bit bogged down.

The money comes from the bank after the Guarantee Fund gives its consent and a commission of about 4000 lei is paid to it, a commission paid by the beneficiary of the financing, i.e. Andreea and Alexandru. Then the machines are paid for, and once they arrive, a claim file is submitted to the territorial agency of AIMMAIPE (Agency for Small and Medium Enterprises, Investment Attraction and Export Promotion - AIMMAIPE - Ploiești, in this case) which asks the bank to check if the machines have been installed and if they are working. After the bank confirms to the agency that the machines are present, the money is transferred to the bank and the loan is closed.

In the case of Dumitru and Dumitru, the agency's response time to the bank was prolonged and the interest and commission expenses were borne by them (around 1000 lei/month). Although they submitted the file in October 2017, they received the loan from the bank in March 2018. They paid in full for the machines and in less than a month they received them. They were installed by the Danibrum, with whom they also did a training course to learn how to work with them. Agency settlement to the bank and closing of the bridge loan was done in early September 2018.

Start of furniture production, Euphorica Concept business

Their advantage was that they didn't start from scratch, already having a portfolio of clients and works, long collaborations with architectural firms. So they started production immediately.

Their partners are architectural firms in Bucharest that design houses, residential complexes or shops and offices. From them they receive the design project, which is then adjusted following on-site measurements. An offer is made to the final beneficiary based on this project and the materials used, it is discussed with the client and after confirmation, the project goes into production.

In the factory they do cutting, forming, milling and pre-assembly, with assembly carried out at the customer's premises. They work with chipboard and MDF, rarely solid wood, and use a partner company for painting. They use quality products - German hardware, the best chipboard and MDF on the market, with very low emissions of formaldehyde and high hardness.

They have furnished apartments, villas, office buildings, conference rooms, shops.

Andreea is optimistic about the future, despite the staff shortages she faces

Andreea says that a new breed of people has developed who appreciate apartment design differently. They're even willing to take out loans at the bank to get a certain type of furniture or home furnishing exactly as they dream. These are people who want quality, and that's what they're determined to deliver. For those who might say that a similar project can be done at a lower price, Andreea brings up the superior quality of the denser boards they use, the lack of formaldehyde emissions or the top quality hardware that doesn't allow doors to sag and has a longer lifespan. Quality hardware also makes for easier and quieter use. Their refusal to produce cheaply comes from the idea that cheap means inferior quality, and they want to appeal to that segment of the market that appreciates quality.

Their big problem is the lack of people and the insensitivity of some of them. Even if they work out all the details and complete all the forms of employment they find that the man doesn't come. No notice, no notice, no nothing.

Being a family business it employs more through knowledge. Now they have 6 workers, but they want to hire 1-2 more people to be backup. In case someone leaves they don't want to be left uncovered.

Andreea is optimistic because there is a lot of building going on, both residential and industrial, and all homes, offices and shops need to be refurbished. Although some projects are started 6 months after the tender, during which time people have finished the house and the interior finishing, they are still taking place. Even though people often have smaller budgets after finishing the interior finishing because they are running out of material reserves in the meantime, customers are still open, optimistic and willing to make credits for the desired furnishing.