The 30-year-old entrepreneur runs two independent companies – one alone and one with his father. He employs over 500 people and pays over ₾20 million annually in taxes to the state budget of Georgia.
Tornike Keburia is 30 years-old. He was born in Moscow and holds bachelor’s degree from the State University of Moscow and a master’s degree from the American University in Paris. He majored in business administration and entrepreneurship. Once Keburia’s teenage years were over, he moved to Paris for eight years. Today he lives in Tbilisi and together with his father, he runs two independent businesses – a company with a twenty-year-old history and a famous men’s apparel brand that was launched three months ago.
Thanks to the successful completion of negotiation some three months ago, the world renowned Stefano Ricci brand is now in Georgia. Tell us a little bit about this process – was it easy for you to convince a foreign brand to sell their products in Georgia?
It took me almost two years to reach my goals and build the boutique. I have been familiar with this brand since childhood, because it was the brand of choice for my father and his friends. Stefano Ricci is rather popular among post-Soviet countries. I spent almost eight years in Paris and made friends with the management of the brand. I was immediately struck by the idea of having this brand in Georgia. The brand’s office in France put me in contact with the head office in Florence. It was quite difficult to convince them until they personally travelled to Georgia. The brand representatives saw for themselves that we have good hotels, shopping malls and people here spare no expense in finding their style. We had already done the market research, which showed that the local market offered women a wider choice compared to men. This niche market was basically untapped. This is when desire met opportunity and today wealthy men in Tbilisi can get Italian quality at an Italian rate.
And still I would like to know how ready is Georgia for this brand? The per capita income in Georgia is rather low –how does the purchasing power that we currently have on the market for this type of brand support the development of your business?
That is a very thought-provoking question, but I think that the answer to that question is still affirmative. If we take a close look at the market, we will see that high-priced products are sold in many different segments, including clothing, accessories, cars, perfumes, real-estate and so on. I believe that our society is successful enough to allow itself the benefit of good quality products. I am confident that there are many successful men in Georgia for whom Italian quality is important and the Stefano Ricci brand is affordable. Therefore, my business did not require too much advertising: we have been able to recover all our expenses in the first month of opening the store and the second month turned out to be twice as profitable. The product itself is so good and unique that it is bound to be in high demand in Georgia.
What does it take to succeed in business?
I believe that it takes self-confidence and the ability to identify demand and capabilities, as well as the ability to focus on what is important. It is easier to come up with a unique idea when you are broad-minded. It is important that we continue to grow, develop and invest in ourselves at every stage. When I am faced with a problem or a challenge, I take reality at face value and try to concentrate all my energy on solving the problem, instead of whining and asking ‘why life is so hard’.
Are you an entrepreneur?
Yes, that is how I view myself. I have been mastering this art for almost five years now. Besides, I believe that I have some qualities that only entrepreneurs possess. I love my work, I love action. I can come up with an idea, concept or vision and link it all to a wider picture that can be achieved and is certainly realistic under proper management.
Failure activates me and pushes me to succeed. I love achieving goals – the goals that I had set for myself and managed properly.
When I have a vision, I instantly move to action, I just cannot wait to receive someone’s acknowledgement. I would rather take a risk and fail, than regret not trying. There is no progress without a risk. Risk can cause problems, but it can also bring major success and breakthrough.
I think that I am fearless and an optimist. Someone people go out of their way to avoid risk. I on the other hand see potential in risk. When I have a vision, I am confident that my investment, time and energy will turn into profit. When I have an idea I cannot stand still. I need to take steps in order to turn this idea into reality.
Everyone would agree with me that problems are inevitable in business, especially if you are running a start-up. I am no exception to this. However, these problems and challenges encourage me to work harder and overcome these problems.
Having a different vision often makes you an outsider –and I am no stranger to this feeling. Sometimes people are reluctant to share your vision simply because it differs from theirs.
Entrepreneurs are used to failure, since they are constantly trying new ideas. Failure is acceptable. Personally I would rather see a mistake, analyze it and try to approach it in a different way, than not try at all.
Taking advice is valuable. Teamwork is worthwhile only if the team is smarter than you are. A real entrepreneur must respect the opinion of other people
Last, but not the least, I want to emphasize the importance of hard work and a lot of entertainment. One should have a hobby – sports or music. You must allow your brain to transition from work mode to recreation mode, because that is when you get real inspiration and can actually identify it.
Since you mentioned sport, I have heard that motorcycles are your passion. Does your hobby help you in doing business?
Moto-racing is one of my hobbies. It is my recreation and entertainment. Once or twice a month I need to relax, so I turn off my phone and hit the road: sometimes I prefer highway and other times I am drawn to off-road. My brain gets new energy that way
This is a pretty risky sport and I think that this is where the connection between my hobby and my daily work is hidden. Risk is a challenge for me, risk increases opportunities. If you prepare yourself well, you can handle the risk and achieve success.
Since you mentioned that preparing yourself is important, I would like to know how you manage to balance the risks related to operating the business.
Risk is an integral part of entrepreneurship. For me personally, risk is an opportunity for growth and development. I always weigh ideas against the risks and try to determine if the risk is worth it. What will happen if I fail? What will I gain in the case of success? Usually when I like an idea or a vision, I concentrate on achieving the goal and only after that do I start thinking why this goal may not be worth the risk.
What are the risks of running a business in Georgia? Is it easy to run a business here?
If a product or a vision is strong and good enough and you have faith in it, then you can easily bring the risks to a minimum and say with confidence that success is guaranteed. However, compared with other countries, Georgia is not spoiled with offers. Unfortunately, this country and its people are focused on satisfying their own basic needs and the competition for each of these industries is rather high. On the other hand, it is easier to achieve goals here and we have less regulations compared to other countries.
Sooner or later a new product is bound to find its customer on the market. However, this requires investment and time, before Georgian customers become familiar with the new offers and get accustomed to them. Even though Georgia is a small country, the tourist traffic here is still very high. It requires good marketing and an appropriate advertising strategy to make sure that a Georgian product secures its place on the market. I would like to stress that the political instability in our country has a negative influence on business as well.
Georgia has a long history, but it is still a developing country where both local and foreign investors can discover many interesting opportunities.
Have you discovered any of these opportunities for yourself? Is it possible that you may soon introduce more new brands like Stefano Ricci to the market?
Yes, we are currently negotiating with several international watch manufacturing brands. However, at this point I prefer to maintain confidentiality.
Did you always dream of becoming a businessman and a private sector player?
I think I did. I cannot recall that I ever wanted to do or be anyone other than who I am now. As a kid, I only did well in the sports that I took pleasure in, I did well in classes that I was interested in. I always knew that I would have my own business, where I could independently make decisions. My main role model has always been my father – Elguja Keburia or simply Buba, as his friends and family call him. Since I was a child, I have watched him run his business in Moscow and it was clear to me that real boss does not have a boss. He is ‘a boss’ for me – he is a man, who knows exactly what he wants. He always knows where he is going and why. I have always wanted and I still want to be like my dad in this regard.
Do you consider yourself a ‘self-made’ man?
Traditionally, this term is used to describe people who have become successful and rich through their own efforts. More often than not, these people are poor and then they start a business and make millions. I was born into a rich family, I received good education and I was always taught that hard work was the key to success. Family plays a major role in all this. To a great extent, family determines whether or not you will eventually become an independent and successful person. In my case, the family played a major role. On the other hand, if it hadn’t been for my hard work and determination, none of this would have happened. Therefore, to some extent I consider myself to be a self-made man. For instance, Donald Trump also came from a rich family, but it did not stop him from achieving even more than his family did.
Do you call yourself a successful businessman?
There are many factors that make you successful – education, knowledge, courage, self-confidence, the ability to identify opportunities and demands, market analysis, strength to survive competition. In other words, there are quite a few factors that make you successful.
So far all my projects have been successful. Whenever I encountered a failure, I always found the strength to analyse it and improve on it. Therefore, my answer is yes. At this stage, I consider myself to be a successful businessman, even though I still have a lot of projects ahead of me that will help me prove to myself that I am a successful person.
Let’s go to back to the existing businesses. Forbes loves numbers – what are the key numbers in the businesses that you operate?
In the case of Stefano Ricci boutique, the investment was worth ₾3 million. It is too early to discuss specific numbers and money that was paid into the budget, because this brand is still very new on the market. Only time will show how profitable the business will be. As to the Ambassador Company, it has been on the market for 20 years now and it has nothing to do with the Stefano Ricci brand. Ambassador has its own staff – approximately 500 people. The total volume of investment made by the company is ₾350 million and pays between ₾20-25 million in taxes every year.
Since you mentioned your employees, I would like to know whether you are involved in the day-to-day decision making process and what are the challenges of finding qualified staff on the Georgian labor market?
I am certainly participating in the day-to-day management. There is no other way to operate this business, unless you are engaged in the daily management. In spite of the fact that we offer the market a very high-quality product, other aspects of operating this business require my personal participation, whether this is customer service or personnel management.
As for qualified staff, the reality here is quite deplorable: there are very few qualified workers and even less among them, who are experts in their field. We need to invest in training for our employees, give them knowledge and experience. However, the most painful part is that after all this investment, our competitors steal our personnel.
How intense is the competition in the segments where you operate your businesses?
Club Ambassador, which was founded by my father, is currently a well-known spot. It is a premium-class hotel in the centre of old Tbilisi. Its main signature is high-quality service and Italian-style design. This hotel has everything – bars, restaurants, a casino and a spa zone. The Ambassador Golf Resort is another hotel with almost 200 rooms and its own golf course, which meets all European standards. You can relax in the swimming pools, go to the shooting ranges or ride horses. The main advantage of these hotels is their location. It is easily accessible for both local and foreign customers. We invest a lot in business quality, development and growth. A few weeks ago I opened a Stefano Ricci boutique in our hotel. It is Italian quality too. There is competition in every segment of the market, but I believe that healthy competition urges you to grow and develop.
Do you have any plans for growth and development for the near future and if so, in which direction are you planning to do that?
First of all, we are all working on expanding our family business. To be more specific, we want to expand our club Ambassador. Our new goal is to open Ambassador in the most popular tourist resort. For instance, our ongoing projects include the construction of the Ambassador Batumi and another club in Goderdzi pass. Both these complexes will be located in the region of Adjara. It takes a lot of time, energy and investment to achieve success in business – we are currently focused on the development of these projects.
You are quite young – how does your age affect running a business?
When you are young, you have less responsibilities compared to your elders. Youth is a very attractive factor for the older generation, provided that you can prove how passionate and hardworking you are. In this case, you may achieve even more than the older generation. Young people are more familiar with modern technology and they take risks more easily. When young people make mistakes, it is easier for them to admit these mistakes and learn from them. Young people are more open to novelties, their vision always differs from the long- established standards in a given industry, because they don’t have an extensive experience of working based on one particular template. Young people are more energetic. Establishing rapport and learning from people is easier when you are young. Starting a business at a young age helps you in finding yourself faster and if something does not go right, or you simply do not like it, you can always find something else to do.
And the last question: can money buy everything?
No it can’t, because not everything is material. You can buy cars, skyscrapers, a night of love, but you cannot buy a family, true friends, health. You cannot buy relationships, opinion that people have about you and you certainly can’t buy the past. Money can’t buy you everything. However, having money allows you to make life more colourful, travel around the world, give your children a good education, do charity work and try to improve the environment and your country.
Read interview in Georgian.
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