In the heart of entrepreneurship in Ukraine with Artem, Founder of Woodwerk

It's interesting how an entrepreneurial journey can begin.

We are in 1996. Perestroika started at the end of the 1980s by Secretary General Mikhail Gorbachev and his glasnost, supposed to represent a new era of openness and transparency, resulted in the explosion of the Soviet Union, leading countries like Ukraine to proclaim its independence in 1991. Behind the hope of a life far from the ashes of Bolshevism and everything that could have disapeared after all these years of brutal communism, finally to satisfy another desire of the Ukrainian people to live their lives free and independant, times are difficult.

At 13, Artem dreams of owning a billiard table. Nothing can stop a kid to dream of something they know and they want. Inspired by his son's dream, his father decides to become an entrepreneur, gradually building a billiard table manufacturing company named "Buffalo". The company is still operational and managed by him. Artem eventually gets his billiard table and learns valuable business skills alongside his father, including managing a business, understanding manufacturing processes, and working with wood, a key component of their tables.

By 2010, Artem possessed strong business acumen and a talent for defining manufacturing processes for wooden products. He dedicated himself to mastering the craft of making wooden furniture such as beds, tables, and shelves. In 2013, he founded his own company, WoodWerk, leveraging his expertise to create high-quality wooden furnishings.

Inspired by Scandinavian design, which has historical ties to Ukraine through Kievan Rus (for those who really know real history), Woodwerk offers furniture of superior quality compared to Jysk (sorry but true), a Danish popular brand in Ukraine, for a slightly higher price. Woodwerk's exceptional craftsmanship and attention to detail make their products stand out. The company operates two production sites: one on the left bank of Kyiv and the other in the Lviv region in western Ukraine.

Woodwerk is a resilient SMB with a robust workforce, navigating the challenges of operating in a war-torn country. Despite power outages caused by recent Russian bombings targeting Ukrainian energy infrastructure, rising raw material costs, and the constant threat of further attacks, the company endures. Tragically, civilian areas in Ukraine, including those near Woodwerk’s locations, continue to be targets of Russian military aggression. Despite these adversities, Woodwerk maintains its commitment to producing high-quality wooden furniture.

Woodwerk exports its high-quality wooden furniture to Europe and recently expanded to the United States, where the excellence of their products quickly convinced new clients. While competing with lower-priced, inferior products poses a challenge, Woodwerk maintains its commitment to quality, even if it impacts the gross margin—a crucial economic factor for the company's stability. Additionally, navigating the complexities of logistics amid the current situation in Ukraine further underscores their dedication and resilience.

The war in Ukraine can necessitate a diversification of activities, a forced adaptation stemming from the aggression of a neighbor intent on punishing Ukraine for its pursuit of independence and a future aligned with Europe. Daily, coffins are delivered for battalions that demonstrate immense heroism at a steep cost, highlighting the staggering losses suffered on the front lines. This grim reality serves as a stark reminder of the sacrifices made by those fighting for Ukraine’s sovereignty and future.

Artem is exploring ways to expand his business into new product categories and distribute his products in additional markets. He continues to hone his entrepreneurial skills in diverse areas, all while maintaining his role as a devoted family man, which provides essential balance during these challenging times. This balance allows him to navigate the complexities of business growth while upholding family values, crucial for stability and resilience.

? What inspired you to start Woodwerk, and how did your background influence the company’s creation?

In 2008 our Dutch friends showed me a catalog of one Dutch furniture brand. And I loved those products so much that I decided that I must do this in Ukraine too. I thought that it’s not good to waste so much wood for billiard table production. Better to spend it to make furniture) This is how it all started.

? Can you share some insights into the initial challenges you faced when establishing Woodwerk?

Main challenge was always a lack of money. Because the billiard business was slowing down and furniture production required big investments. So all we earned we spent on equipment and reconstruction. Reinvesting any profit we had.

? How do you ensure the quality and sustainability of your wooden products?

Now it’s a certain experience of production and my personal feeling of the right product. I just try to do what I think is good and what I would like to have for myself. Same time I take into account my experience of production to avoid complicated processes and ensure quality for the future.

When war started I canceled all my old models and redesigned everything from scratch to have new collections which are faster to manufacture.

? What design principles or inspirations guide your furniture creations?

I really like Scandinavian design. It’s minimalism and it’s true beauty. When things are made to be functional and sustainable. When design is based not on fashion waves but on some true aesthetics. I love their Lagom principle. When you should have as much as you need. Because what is more will just confuse you.

Scandinavian houses are simple and clean. Same time they have some kind of simple beauty. And it’s based on natural materials and color combinations instead of shiny luxury like in Italy for example.

? How have you managed to expand Woodwerk’s reach to international markets like Europe and the United States?

You know, for me now it looks like I was not able to expand Woodwerk in the markets of Europe and US. I really wanted this but didn’t manage to make it.

I don’t have enough resources and a team for this at the moment. I was always trying to develop good products and build up a production. But I was not able to arrange a really good marketing and export, unfortunately. So we met a war with a lack of resources and now it’s even harder than before)

? Impact of the War in Ukraine:

- How has the ongoing conflict in Ukraine impacted your business operations and supply chain?

- What measures have you taken to adapt to the challenges posed by the war?

When war started we had a lack of resources. We just took a credit in the bank which we totally invested into equipment for production and some reconstruction. Kyiv’s factory stopped for 5-6 months.

And while I was at the western factory I thought that to operate from there I must start producing cheaper products and ship them by Nova Poshta. So I started developing new products which require less wood and could be assembled by any person easily at home. Now most of our furniture is produced on the basis of this principle. We adjusted it to be shipping friendly. Our previous models were not of this kind.

? Future Plans:

- What new product categories or markets are you considering for Woodwerk’s future growth?

- How do you envision the company evolving in the next five to ten years?

You know I always wanted to build up my own brand with its own online and offline retail. With nice stylish shops. So that company would be known as a great quality and style niche manufacturer that sells directly without any wholesalers in the sales chain. But now I’m not sure I can manage to do it. It requires a lot of energy and finances. While I’m a little tired of building this business. It took a lot of my effort and time.

So it’s hard to make big plans for the future now. We are in survival mode at the moment. Now I need to keep production and people and be at least not below zero.

But there are some successful companies in Ukraine even now in our field. Probably I’m just missing something!

? What advice would you give to aspiring entrepreneurs in similar challenging environments?

I’m not feeling myself in the position to make advice if I speak honestly. Probably I could have operated better. But the main thing for me is just to keep moving. To keep my vision inside and try to do what is possible to move towards it. Maybe slower but with stable effort.

But I’m not sure if it’s the best solution for crisis times...