A Russian man quit IT for carpentry and built a profitable business in the jungles of South America

The story of Russian man Viktor Savin feels more like the plot of a film about a complete life reset. Seven years ago, he and his wife decided to leave their careers, move out of Russia and settle in a warm country, hoping for a quiet life. Instead of an early retirement, however, he ended up with his own production facility in South America.

Today, his company in Paraguay produces Montessori children’s furniture, beds, Swedish walls, sports complexes and CrossFit equipment. The business’s revenue reaches about $12,000 a month, while the margin on individual items goes as high as 70%.

What is most surprising is that before moving, Viktor had never worked in carpentry. He trained as an engineer-technologist and spent many years working in industry and IT. He had to master a new profession on another continent.

"Any craft that is done by hand can be learned. I am an engineer and a technologist, so it took me only a few weeks to learn carpentry," the entrepreneur says.

Instead of a house, he bought a workshop

The couple went to South America without a concrete plan or even a chosen country. Paraguay turned out to be a random stop that later became their new home.

At the time of the move, the family had about $95,000 in savings. The amount seemed solid, but reality quickly made its own adjustments. When it came time to invest the remaining money, Viktor had to choose between buying a home and purchasing a production space.

The choice was unexpected.

"I bought a workshop and moved right into the production site," he recalls.

That is how the story began of a company that is now known far beyond Paraguay’s Russian-speaking community.

Furniture made from what locals burn in their stoves

The foundation of the production was eucalyptus — the cheapest wood in the country. Locals often use it simply as firewood.

But an engineering approach made it possible to turn cheap raw material into a quality product.

According to the entrepreneur, with proper processing, eucalyptus furniture turns out no worse, and often even better, than products made from more expensive wood species used by local manufacturers.

Today, the company’s range includes dozens of models, and new products often appear at customers’ requests. Buyers send photos of furniture they like from the internet, after which the workshop adapts the idea and puts it into production.

Why you can earn more in Paraguay than in Russia

The entrepreneur notes that the South American market is structured differently from the countries of the former USSR.

If in Russia the struggle is for the customer, in Paraguay there is often a shortage of manufacturers themselves. Demand exists, buyers have money, and there are not enough quality goods.

In addition, foreigner status unexpectedly turned out to be an advantage. Customers are eager to order products from the “Russian workshop,” and the ability to communicate directly with the owner through a translator only increases trust.

The economics of a simple Swedish wall, for example, look impressive: the item sells for about $180, while material and labor costs are around $58. The rest stays in the business.

The tax burden is also significantly lower than what many entrepreneurs are used to: in practice, VAT remains the main tax, and the overall burden is estimated at about 4%.

Where the money goes with a 70% margin

At first glance, such a business may seem extremely profitable. However, the reality turned out to be more complicated.

With monthly revenue of about $12,000, almost half of the amount goes to employee salaries. Another $3,000 or so is spent on materials, about $700 on rent for two production premises, and another $800 or so on advertising.

As a result, net profit comes to just over $1,000 a month.

The reason is simple: Viktor reinvests almost all of the money he earns back into the company’s development.

The main problem is people

If raw materials, equipment and customers are relatively easy to find, staffing is much more difficult.

According to the entrepreneur, Paraguay practically lacks a system of vocational technical education. It is extremely difficult to find a qualified carpenter, so employees have to be trained independently.

"You go through five people, keep two, then one leaves, the other falls ill. And it’s good if after a few months you can grow at least one specialist," he says.

Force majeure events add to the difficulties. Recently, a truck carrying finished furniture was involved in an accident and overturned. The entire load was destroyed, and the orders had to be remade at the company’s own expense and in the shortest possible time.

A retirement that is still ahead

Despite the difficulties, Viktor and his wife say they have never regretted the move.

The entrepreneur admits that emigration became one of the most difficult challenges in his life. Starting over after the age of 40 and then building a business almost from scratch in an unfamiliar country turned out to be much harder than expected.

Nevertheless, he does not plan to stop. The next goal is to turn the workshop into a large production facility with annual revenue of about $1.5 million.

And only after that, the entrepreneur jokes, he will finally get the very “retirement” that once led him to Paraguay.