Firms exploiting the need for ventilation and air conditioning systems are boasting turnovers as high as one million euros or even more. Entering this market is not an easy task given the high expenses and the high number of companies established by entrepreneurs who spotted the opportunities for profit.
Liviu Siminciuc, the general manager of Simdan International, set up his own firm in 2005. "Initially, I opted for clothes and footwear retail. I started looking for a space, a stand to carry out my activity, initially at the wholesale centres in Bucharest, but rents were mind-boggling and I only had a capital of 5,000 euros," recounts Siminciuc.
One evening, he was visited by a friend who came from work and had some plans, schemes and projects for air conditioning-ventilation systems for the firm he worked for. "In the end, my friend asked me if I wanted to start a business with him, me with the firm and the capital and him with the expertise and relations in contracting works," says Siminciuc.
Five days later, when they were not expecting any reactions yet, the first contract, worth 12,000 euros, came up. Other orders followed and more employees were needed. The entire profit derived in the first 12 months, of some 20,000 euros, was used for the acquisition of necessary equipment or production and they rented a 100 square metre space.
As a result of product and services diversification, the company signed 49 contracts in the first year. In 2006, they managed to create a company website and started to promote the company in various catalogues.
For a firm operating in this field, costs are very high. Moreover, finding skilled personnel is a constant problem for the firm that currently has nine employees and this is why it had to reject important contracts.
In 2006, the firm posted turnover of some 200,000 euros, up 10% against 2005
