Boyan Benev is not your typical businessman. At only 21, he has already amassed more than six years of entrepreneurial experience as managing director of two limited companies. Now, with only a matter of months before he graduates in economics from University College London, he is embarking on his next big project with the launch of his new Bulgarian property holding business for small investors in the EU.
As a Bulgarian born in Sofia, who has lived and studied in the UK for the past 15 years, Boyan is uniquely positioned for this venture, with an insight into the markets and cultures of both countries. I spoke to him about his property venture, the real estate market and making it as a young entrepreneur.
Another Bulgarian property company? Isn’t the market saturated already? What makes your company different?
The market is well and truly saturated, yes. It’s saturated by a wave of gold rush entrepreneurs on both sides aiming to peddle over-priced property to ill-informed foreigners. Luckily for them, the first years of the boom in the country meant that there were plenty of these hapless investors to be found. I’m not seeking to differentiate myself from them as I see us acting in completely different spheres.
Benev Limited is looking on the one hand to reduce information barriers to potential buyers by creating a representative office of Bulgarian building companies in the UK and on the other, we are allowing buyers priced out of these prime, high growth properties, access to the same levels of return with minimal fees.
How do prospective clients react to you as a “young entrepreneur”? Does this differ between the UK and Bulgaria?
I really did start business very young, I was 16 when I registered my first company and since have gained an incredible amount of experience in business proprietorship which means that now when I approach clients in the UK I have the confidence to project. In addition, we make it very clear that we have an established consultative team in Bulgaria who has many years experience in property law and real estate management and procurement between them, so it’s not just me.
The idea of entrepreneurship in itself is very new in Bulgaria so the concept of young entrepreneurs is really limited here, but in dealing with developers or lawyers there’s no issue because as long as they realise you’re serious and have money, you get treated the same. In the general public it’s different and especially with family here, they find it hard to understand what exactly it is I do.
Tell me about the work you have done promoting entrepreneurship to schoolchildren in England. To what extent do these kind of programmes exist in Bulgaria?
Because I started at a young age, there was inevitably some interest in me from the outset and this meant that I have been taking part in various public speaking events since the age of 17. Blue Skies, an excellent tour run by the London based Business Dynamics charity, has alone allowed me to speak to over 30 000 students around the country to show them that it is possible and realistic to start your own business at any age.
To my knowledge, this just doesn’t exist in Bulgaria and it’s a real shame. When the youth are raised on the image of capitalism being black Mercedes and dubious, thick- necked bodyguards, it gives them a twisted view of what to aim for.
I’m very keen to gather a group of sponsors and create a similar tour in Bulgaria to show students what entrepreneurship really is and introduce them to some successful, native entrepreneurs. This would do wonders for morale and enthusiasm in the country so I’m very eager to find these backers.
You have said that you are not a “shirt and tie” kind of businessman. What is your attitude to business, your “business philosophy”?
What I mean when I say that is that I don’t draw a parallel between formality and successful business. I quite enjoy wearing a suit (never a tie!), but I don’t think that once you acquire one, you become a businessperson.
My philosophy is one of strong, but approachable and very individualistic leadership. If you meet me and speak to me you will understand I present myself very differently to others, while at the same time you learn that I definitely know what I’m talking about. There’s no gain in informality that is not backed up with knowledge of your business.
In which locations are you offering properties in Bulgaria? What type of properties (private/commercial; houses/flats etc) are you offering? In which areas has the greatest interest been shown by buyers?
We are trying to aid clients in setting up portfolios of properties. These are tailored to individual needs, but our ideal mix would be of commercial, holiday and residential. An ideal portfolio from my perspective at the moment would total 250 000 euro and would consist of one hotel suite in Nessebar within a maintained hotel, one central new build shop in Plovdiv and two gated apartments in Sofia. That sum of money is still more than adequate to acquire these properties and this spread will allow a steady, high return over time. Because of the nationwide contacts we have, the management of such a seemingly complex portfolio would also be straightforward.
I am also interested in working with high-end clients looking for premium property in the country for personal use, whether to build or to buy, as there is some truly excellent building going on at incredible value.
Demand at the moment is still centering on the large resorts that I believe have really had their time for now. Planners there will have to regroup and work out a way to provide more than just hotels in the seaside resorts. This is why we are encouraging a more informed approach in purchasing property in the country.
What is the typical profile of your UK clients interested in buying property in Bulgaria?
There really is no typical profile, interest is coming in from all avenues due to the effect of the media in the Bulgarian property market. It ranges from more affluent university students to doctors and City workers.
Property in Bulgaria is very much in the limelight in the UK media at the moment. Not all the coverage is good, with tales of complicated legal battles and long-lost relatives staking claims on properties hindering the buying process. How realistic are these portrayals of purchasing property here? What are some of your strategies for dealing with potential pitfalls?
Our chief strategy is to focus on newly-built property from builders we personally know or have been fully presented to us. It is true that in some of the rural properties one sometimes finds a large number of descendants, making a purchase often difficult and long drawn out. On that side, if we have a client wishing to buy to renovate, we would be able to consult on finding appropriate property through our real estate consultants in those areas, but my real concentration has to be on newly-built, on the one hand for simplicity and on the other for its more stable growth.
For more information, go to: www.benev.co.uk
