eDevizy.cz: Personality of the Week: Vladan Hejnic, VIVnetworks.com s.r.o.

Vladan Hejnic’s companies operate in the development and management of technologies for eCommerce. Their clients include leading online retailers across 28 countries worldwide. VIVnetworks is the largest affiliate marketing provider in Central and Eastern Europe. Targito delivers a highly advanced technological platform for personalized communication between retailers and their customers. The latest and smallest of Mr. Hejnic’s companies is Contentiamo, which brings together more than 750 influencers across several countries and provides influencer marketing services to medium sized and large companies.

All of the companies, including VIVnetworks, are leaders in their respective fields and regions. They are sought after for technological excellence, specialist know how, and coverage across 28 countries worldwide.

What were your beginnings in business, and what would you recommend today to those who want to fulfill their entrepreneurial dreams?

Together with my partner Robert Studený, we still believe in traditional profitable entrepreneurship. That means we have always risked only our own money and our families’ resources. If we borrowed money, it was only as a safeguard in case a client paid late and we had to cover VAT ourselves. We pay several million Czech crowns in VAT each month. I mention this because many young entrepreneurs today primarily risk other people’s capital without direct responsibility for it. I see this as a major problem. It is not formative, and that is why so many companies fail. No one talks about how many startups collapse each year, leaving debts behind, not only to investors but mainly to employees. Naturally, no one boasts about that.

We have always grown organically. Yes, it is slower, but you learn far more and significantly increase your chances of success. I will not speculate about percentages, but if it is said today that only every ninth startup survives, then with our approach, anyone with a truly needed product must succeed. That means clients are willing to pay a fair price for it. A fair price equals costs plus reasonable profit.

Robert Studený and I started our joint business in 2007, when we had both already sold our first companies, gained international experience, and built financial reserves. That is probably the biggest difference compared to many young entrepreneurs today. That said, in 1992 I borrowed one hundred thousand Czech crowns from my parents as my first capital. Robert previously worked in the printing industry and earned money for his first printing machine in the evenings after work. At the beginning, we invested our own time, carried responsibility for borrowed money, and failure was not an option. Today I do not see that sense of responsibility, and that is a problem. My advice to entrepreneurs today is first to earn money through employment and then invest it into business. If you are impatient, borrow from family or relatives. Only once you have your first paying customer should you approach investors.

There is talk of an upcoming economic slowdown. Is your company taking steps to handle 2023 without being affected by recession?

Yes, we are investing even more. First, I do not believe a real recession will come if companies avoid hysterical behavior. Second, our industry, despite a slight fluctuation at the beginning of 2022, continues to grow. We have a major advantage. We provide services that are not reduced during a recession. On the contrary, budgets tend to shift toward performance based solutions. Even if a recession came and companies laid off employees more aggressively, it would partly heal the labor market in the Czech Republic, which is currently extremely rigid. A recession would also eliminate companies that should not have survived this long. Such cleansing processes are beneficial for the economy. In both scenarios, I see significant opportunities.

Relationships with business partners are crucial. How does your company approach this?

We generate between five and forty percent of our clients’ online revenue, so we are economically important to them. It is therefore essential for us to meet clients in person, understand their challenges, and identify new opportunities where we can support them further. We organize our own conferences in several countries for clients and the professional community to inspire indirectly. We have more than 1,400 clients in 28 countries and over 75 employees. With this volume, it is impossible to maintain individual personal relationships. Conferences and community meetings are vital for maintaining client connections.

With long term low unemployment in the Czech Republic, companies struggle to find quality employees. What do you do to attract and retain talent?

We emphasize stability. We operate in a progressive industry and continuously innovate, which attracts people. Talented individuals want to work for the best companies, typically market leaders, and we are one. Our business is healthy and consistently profitable, which ensures stability. Our employee turnover is below ten percent. Yes, quality people are employed and fully utilized, but sometimes undervalued by their employers. We actively seek such individuals.

Where do you see the greatest advantages of Czech companies? Where do we lag behind globally?

We are more flexible and capable of finding solutions. On the other hand, our productivity is still lower. We often lack structured processes and evaluation of each role. We dismiss underperformers too late. For me, underperformance means laziness. Laziness is unwillingness to improve, educate oneself, contribute beyond basic requirements, and enhance the surrounding environment. Those who simply work from nine to five and count down to the end of the day do not belong in our companies. We create a creative and growth oriented environment so people improve and look forward to coming to work each morning with a higher sense of purpose. In our companies, we dismantle outdated and ineffective systems. With clients, we are somewhat revolutionary, but it makes sense to everyone involved. Sometimes we experiment with new approaches and not everything succeeds. Abroad, such change tends to be more cumbersome. As a small nation, we have little choice. Western economies benefit from scale and decades of higher productivity. They follow a different strategy and must be more conservative.

When you need inspiration or relaxation, what is your approach?

The podcast phenomenon is very valuable to me. I can listen to in depth conversations that go far beyond the typical twenty minute conference presentations, which are losing value. I still attend conferences occasionally. I gather ideas and implement them immediately. But traveling solely for presentations would be a waste of time and money, at least in our industry.

Another excellent source of know how and inspiration is mastermind groups. They offer a great opportunity to consult with entrepreneurs of similar size who face comparable challenges. Some are further ahead in solving certain issues, others are just beginning. The exchange of experience is extremely valuable. In this regard, I highly recommend www.mastermindklub.cz.

What should every person do at least once in their lifetime?

That is a difficult question. For me, continuous education works extremely well. It is a constant desire to improve. Through learning, I meet many like minded people and build meaningful friendships. For me, the answer is education.

Author: Martina Zvěřinová
Original publication source: edevizy.cz