Resourceful Improvisers Make Combinations
By Richard Benesevich

ctyankee@poczta.onet.pl

Richard Benesevich is a Lecturer
at Panstwowe Wysze Szkola Zawodowe (PWSZ)
in Walbrzych, Poland and a judge for the
APS Business Writers Scholarship.

Even before the political changes which transformed Central and Eastern Europe a decade ago, Poles have always had a reputation for being resourceful improvisers when it comes to business. In Polish, the buzz word is 'kombinowac', literally ' to make combinations'. As the free market economy expanded through the nineties, not all 'combinations' made by local entrepreneurs proved successful.

Typically, there were and are those 'kombinatori' who in plain American English fall into the ' make a quick buck fly-by-night' category.

Then there are those with no real training or business skills who raise a little capital, rent a storefront and open yet another outlet for tacky furniture, cheap shoes, computers or second-hand clothing imported from Western Europe.. Some of these manage to hang on and provide a least one family with a livelihood while many end up on the boulevard of broken dreams.

Running a successful business isn't easy anywhere and the countries in the former Soviet bloc still present certain obstacles challenging the survival of small and mid-size firms. One company which has met these challenges and seems more than capable, even eager, to meet the challenges of the future is KOMPLEKS, s.c. Based in Walbrzych, (see the last edition of APS review) with offices in Warsaw and Bytom in the Katowice region.

Now entering it's second decade. KOMPLEKS sells, designs, installs and services industrial sanitary, air-conditioning and ventilation systems and now has expanded into the swimming pool market as the authorized Polish partner of the Spanish concern, ASTRAL.

I spoke recently with general manager and founding partner, Grzegorz Manelski about the past, present and future of the business recently in the comfortable, modern conference room at the main office in Walbrzych.

APS: Grzegorz, can you give us a quick history of KOMPLEKS

Grzegorz Manelski: Of course...we started this business eleven years ago. At time, I was working for the main coal mine here in Walbrzych as a design engineer, doing a lot of big projects in this area. However, when the political situation began to change, I realized I would have to start looking for something else to do so I decided to start my own business. I already had a good connection with a colleague who was working as an industrial designer in Austria. I asked him about the latest technology so he showed me newest, state-of-the art. systems involving plastic piping that could be joined by heating. It was the first time I had seen such products and it was very fascinating .

I was introduced to the Austrian sales manger and decided to try to sell these products in Poland. I asked my colleague to join me in this venture and that was the first step to starting the business here. At that time it was very difficult because inflation was running at nearly 100%! I don't know how we did it, but somehow, step by step, we managed. We began by working out of our homes and using our garages as warehouses. We eventually found a good partner in Germany and they was a big boost for us because we just didn't have enough money to invest on our own. They trusted us and advanced us their products at a big discount so we had a stock. We were eventually able to pick up the pace and move our operations to a more suitable location.

APS: So you began as a kind of home operation...

GM: Yes...I should explain that I am just one of the owners...I have two partners . Looking back on it, I think the most important reason for our success has been the trust between the three of us. We share the same idea about how to run the business and our decisions are always unanimous. With that kind of security, the business has been to grow and move on... (Note: Kompleks, incorporated as an unlimited partnership, now has fifteen employees)

APS: When I first met you, I was surprised to learn that you were connected with the swimming pool business...not something you automatically associate with Poland. How did that come about?

GM: Over the years, we've changed our product line many times. We've always listened to what the market wanted and then looked for a good partner from abroad interested in exporting their products to Poland and selling them on our market. At the beginning, there was a big demand in the industrial sector because our industries had to modernize to keep up with the rapid pace of change. They all wanted to install the latest, most up-to-date systems so it became our main product and we made a good profit. After some time though, the companies in this sector had less and less money to invest, so we had to look for another field we could expand into. At the moment, we're doing very well with swimming pool installations and related products. You know, in Poland, many cities and schools don't have any kind of facilities and we've seen a growing demand in this area.

So, right now, this our biggest business.

APS: What about current market conditions here? Right now, we see and hear a lot about slowdown, stagnation and even recession in the USA, Germany, France, Japan...in fact, almost everywhere the news isn't always encouraging economically. How is this affecting you?

GM: The big problem here in Poland is cash flow. Our credit terms from banks at the moment are very unfavorable and it's difficult to get loans. Many foreign investors are playing it safe at the moment and holding back because they are waiting for Polish entry into the EU to provide some guarantees. In the meantime, Polish companies can't compete because of this cash flow situation due to high interest rates we get charged presently. It makes for problems between Polish companies themselves. It makes it hard to start and run a business with any sense of long-term security.

APS: Recently though, you told me something about a new venture you'll be starting soon...

GM: Yes, that's right. For quite a while now, we've been working with the Spanish firm ASTRAL and about a year ago, I got a proposal from them to set up a new type of arrangement, a new structure for the business here. So as of the beginning of the year, I'll be moving to Wroclaw as general manager of ASTRAL POOL POLSKA. However, I'll still continue to be a partner and shareholder in KOMPLEKS.

It's taken a lot of hard work, but we have made a reputation as a stable and strong performer in the Polish market and we've had a lot of different offers for the business from foreign companies that have come knocking on our door but we've never wanted to sell out to larger company. Of course, we depend on the global situation and foreign investment and so on but we have our own philosophy, our own ideas and it seems to have worked pretty well. It's hard sometimes to know exactly what some foreign companies want or expect from the Polish market. They don't always firmly grasp the realities of doing business in Poland.

APS: One last question and the one lately at the top of the news. In May, 2004 Poland and nine other countries are scheduled to join the European Union; it's largest and most historic expansion since it's inception fifty years ago. How do you view this brave new world?

GM: Right...it will be possible for Poland to be in the EU at this date (Note: EU membership still must be approved by popular referendum in the candidate countries. The Polish governments predict a 60-70% approval by the voters this spring, but enthusiasm has been slipping and there is active opposition from the far right of the spectrum).

My personal opinion, both as a private citizen and the owner-manger of a Polish company, is that it's a good thing, a big chance for our country. I know personally what a big chance it was for Spain, for Portugal and other countries and how things changed after joining the EU. I know that some people in Poland don't want to enter the EU because they are afraid of a new situation but I don't really want to comment on their opinions...only that mine is totally the opposite.

APS: So, you're optimistic?

GM: Yes...I'm very optimistic and see the future as very positive for myself, my family and, naturally, for my business.

APS: Thanks very much, Grzegorz, it's been a pleasure talking to you.

Kompleks, s.a. is located at ul. Ogrodowa 19 58 - 306 Walbrzych, Poland,
www.kompleks.pl , www.baseny.kompleks.pl
e-mail: manelski@kompleks.pl
kompleks@pro.onet.pl