A visionary learns constantlyToday I am learning to transfer not only competences but also development to others

Ludvík Machala, founder and CEO of ProSpánek, is a visionary with the ability to inspire his team to turn his vision into reality. His entrepreneurial story goes back to the 1990s. He began by hammering pallets together with a friend in his backyard, and today he runs a successful company that is transitioning to a corporate management style.

How was the beginning of your journey as an entrepreneur?

I’ve always enjoyed working, even though at the beginning, it was something completely different from what I do now. I know how to prepare a project and start a business, and I seem to have a knack for recognizing opportunities. Back in 1997, my colleague and I became the sole suppliers of gifts for an Austrian company within six months, generating a monthly turnover of over 7 million CZK, which was no small deal at that time. One of those gifts was bedding and mattresses, and that’s how I first got into what we do best today.

Don't let your first failure discourage you

The Austrian company you mentioned went bankrupt after three years, leaving you with uncollectible receivables. However, being entrepreneur at heart, you immediately started looking for a new opportunity. Where did you find it?

I am convinced that everything happens for a reason, and if you are prepared, opportunities will always come your way. I parted ways with my business partner because by that time we already had completely different views on business. I lost most of what I had earned, but on the other hand, I learned a lot in the process. I started selling mattresses on my own, and back then we were one of the first in the country to start direct sales. At that time, our call centre in Svitavy handled 115,000 calls a month, working in two shifts! I realized that I was fulfilling one of my life dreams: not to sell cheap products at low prices, but quality products with added value.

There is always more to learn

What other life dreams have you managed to fulfill in business?

I don't know if it can be called a life dream, but a major milestone was definitely studying for my MBA in Brno from 2005 to 2006. I learned strategic thinking and realized where my strengths and weaknesses were. I also analysed my company during my studies. I was proud of the fact that our customers were satisfied with us over the long term, and when we approached them again after some time, about 90% were willing to purchase from us again. By the way, some of those loyal customers from back then are still with us today.

Another dream of mine definitely came true in 2015, when I started building the largest network of showrooms offering comprehensive healthy sleep solutions in Eastern Europe and when people began coming to us.

Surviving the covid pandemic was about adaptation

Then came the covid pandemic, a disaster for most retail businesses. What do you recall about that time?

I remember it very well. One day, the Czech Republic and Slovakia shut down, and Poland followed the day after. At that time, our monthly costs were about 25 million CZK. We lost almost 60% of our revenue, but we endured, and thanks to the great commitment of our employees and our crisis management, we not only survived, but also ended up with solid financial results.

We created an action plan, drastically reduced costs, and shifted focus to online sales, which were almost non-existent at the time. Our team rallied together, we started working even harder than before, some suppliers extended their due dates and so on. In the end, we found that the crisis helped us economically – we may not have earned what we had planned, but we learned how to save. It was a valuable lesson. Today, I view it rather positively. Back then, our action plan was adopted globally Tempur, which is a large company. These are the things that always motivate me, because it shows we’re doing a lot of things right.

So you survived the pandemic, and then everything went smoothly?

After the pandemic, I planned a very ambitious expansion, intending to open 500 retail units in eight countries by the end of 2030. We took our Czech model, which worked great for us, and started replicating it in Poland, Hungary and Serbia. We also wanted to expand to Romania. But somehow it didn't work for us in Poland and Hungary.

I started reflecting on what went wrong. Once again, I found that when the student is ready, a mentor appears. Suddenly, many great and experienced advisors appeared around me, sharing their experiences and guiding me on what to do. The result was the decision to abandon the planned expansion, and instead stabilize the company and undergo a comprehensive transformation process.

Personal change is sometimes necessary too

So you responded to the situation and reconsidered your plans?

Yes, I hit the brakes and began restructuring the entire company – its structure, processes, motivation systems, and partly even the products. It’s not an easy task at all. Once you get started, you realize how much work lies ahead. It wasn’t a simple personal decision, either – after many years of pushing the gas pedal, I had to start applying the brakes. It’s a completely new operating model for me, and I’m happy that I have come to this personal change.

Today, we’re dividing the company into several independent projects because each country represents a completely different story. The challenge that lies ahead of me is finding the optimum balance between what to centralize and what to decentralize and figuring out how to make everything work seamlessly. We’re creating new positions in the company and need new people to drive it forward. I’m learning how to manage senior executives and transfer not only competencies but also development – by the way, one of our top executives is a Serb who has extensive experience with the Eastern market.

Currently, I am in the process of handing over the company’s leadership to a new top management team. It’s a process, not an immediate shift. I believe in cosmic energy – if you truly desire something, the universe will always help you and bring the right people into your path.

Ludvík Machala was interviewed by Martina Hošková

Photo credits: Ludvík Machala