Development of DIY chain
Customline contacted Bridge Europe Consulting in May 2005, with the idea of developing a chain of do-it-yourself ("DIY") stores in Romania. Customline is part of a group with experience in the construction industry in the UK, and Customline's representatives sensed the price differences and the product offering mismatch on the Romanian market.
We started with a market research, which concluded that there was a significant gap in the market, and there would be enough room for a new chain. We then completed a feasibility study that concluded the project was economically viable, following which we developed a business plan for the chain, to incorporate Customline's vision, adapted to the local particularities of the market. We then assisted the client in finding the key staff and assembling the team. We conducted a research on local suppliers and we negotiated the pre-agreements for the merchandise in the stores. We have assisted the client in the overall development of the project. First store was opened in Timisoara, in March 2007.
We have successfully raised EUR 650.000 to finance the first store. We consider this financing a major success, especially due to the fact that the business is a start-up, without any similar experience in the field, and without any assets to be used as collateral. The building used by the store is rented from a real estate developer. The only collaterals available were sponsors’ real estate assets with total value amounting to EUR 200,000.
