How to start a business in advisory with 2,000 euro capital

With 2,000 euro start-up capital, a former employee in telecommunication got off the ground a business in advisory market that returned 30,000 euros turnover in 2008, and 25% profit margin.

30,000 euro turnover in 2008,
25% profit margins

The start-up capital in Reimens Group, advisory and management of telecommunication service costs, launched in last quarter of 2007, was invested in company registration, purchase of necessary IT equipments, development of the website, and accounting services, telecommunication and legal assistance.

After nearly two years of operation, the company has a portfolio that includes 40 clients from different areas, from financial-banking, real estate, to travel, law, advertising, IT.

“Basically, I have always urged for a wide service pool to meet every specific business needs”, said Adrian Ciobanu (photo), managing partner at Reimens Group.

In 2008, the company returned 30,000 euro turnover, stemming strictly from the advisory and audit of telecommunication invoices and contract services. In percentages, the y/y growth hovers around 200%.

As for the profit margins in its first year of operation, they proved to be highly attractive, at a 35% rate, Ciobanu added.

“In an advisory company, with low flat costs, the profit margins will always be attractive”, Adrian Ciobanu explained.

In 2008, Reimens invested in the development and improvement of the efficiency for data processing and in training courses in telecommunication and collateral IT services of the field, in order to keep the balance between commercial and technical specialization.

For 2009, the head of the company expects a higher profit margin than last year, allowing money for promotion, team development and space for business. Furthermore, the company targets higher than a monthly 10,000-euro-telecommunication services spending.

Given the extensive experience Adrian Ciobanu has achieved in eight years of telecommunication, Reimens Group appears to be “a profitable business, but at a growth pace that depends heavily upon how the clients look at you as an advisor, and upon the value you add to their company. It takes results, not words to get your business off to a running start, and this takes time and consistence. It is worth it however”.

Reimans Group follows the business pattern of Virgin Atlantic

The business role model of Adrian Ciobanu is Charles Branson. He admires him for his confidence that one can achieve anything with the energy and the right plan to do it.

Sir Richard Charles Nicholas Branson is very well known for his brand that he launched 20 years ago. In 1984, he formed Virgin Atlantic Airways, in 1999 Virgin Mobile, and in 2000, Virgin Blue in Australia.

Forbes magazine ranks him the 236th wealthiest person in the world, with a fortune estimated at 4.4 billion dollars.

The idea of creating Reimans Group occurred to Adrian Ciobanu during a meeting with a representative of an IT company that negotiated the telecommunication services for a third party.

“Shorty after, I drafted a market research and took into consideration a list of iconic clients, companies that use telecommunication services”, said the managing director of the company.

After reviewing the outcomes of the research, Ciobanu embarked on the ‘road to Reimens success’.

“It is hard to predict the earnings from this activity if you don’t work in the field. In order to succeed, it is very important a previous work experience as consultant in a telecommunication company. You have to know contract clauses, commercial margins and to have thorough expertise in the market. The most important, however, is to enjoy working in telecommunication, to love technology and to be informed. Information is essential”, said Ciobanu.

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