How Hans Helps Companies Improve Their Profitability (Customer Story)

Nick Kozmin and Hans-Gerlach Woudboer

Transcript

Speaker 1 (00:02):
All right guys. So I have Hans-Gerlach Woudboer here and he is from rapidbusinessmodeling.com. Now Hans has an interesting story. He's a tenured CEO and he has developed a business modeling software that helps CEOs make better decisions. So Hollins welcome. I'd love to hear your story. Usually how these things go is where we just kick it off to you. And we learned your story. So give us the last maybe 20 years or your career and how did you land to where you are right now?

Speaker 2 (00:41):
Yeah, science thick may come from my office here via zone. I really appreciate your time and it's good to talk to you and anybody will listen to it, looks to it. I'm, I'm actually a marketer working in manufacturing. That is how I describe one of my bosses. Me, when I was with Exxon, I was with Exxon chemical for 27 years. And before that I was [inaudible] studied mechanical and chemical engineering. And actually that is way into that. But during my manufacturing, I learned a lot on how to restructure, how to do things and it wasn't always that way I would like to have seen it. And so I saw it well, I had to learn many things also benchmarking, and that came a time. I had to restructure my own plant. So it wasn't that the decision made to shut down the plant by the president of Exxon chemical.

Speaker 2 (01:48):
And my was able to turn that around by doing a benchmarking exercise or doing a corporate restructuring exercise. Also, I had some friends from technology will help me as well. And so benchmarking was very important and I didn't have the tools I have today, but I was able to do that. And so I was pretty proud outside. And so I got even a precedent award for that. So that was my main fall. And then later I went into marketing and when I went to marketing, I had to go to those business models to understand what is customer profitability, profitability consists of two words, the ability to measure profits and not everybody can do that. And most accountants who are responsible for those kind of things, they are not able to do that and say this third, the, the cost model. So when you, when you make an obesity of when you, when you make a look into into a company that, which is that and ask yourself survivors, then you will find that didn't have survived a cost model, right?

Speaker 2 (03:04):
The cost model is, you know, when you just, it, it, it, it looks very different, especially for low volume source as cough, like on the low volume side is stupidly below. It actually is on the long, on the long volume side, the accounting costs are too high. So on the long side, you don't get an order where you put an answer on the, on the, on the low volume side, you're two between those extra costs, you're unprofitable, and you don't know, and you don't matter. So an issue don't measure profitability. You are in deep. So to say, because the unprofitability shifts, so there's a Jonathan berms from MIT. He wrote a book about soul salary, and it's like, he wrote support book for my software, which I developed during the time, but we never met, but he brings it to support 40% of all customers.

Speaker 2 (03:59):
I'm talking from a B2B perspective, unprofitable. And this is because they don't measure it. So if you, if you want to measure it, you need to take your data, your contextual data, and all of a sudden, and by the way, when you, when you look at the transaction of Ebony or the invoice of every transaction and measure profitability, right, then you will never ship anything that just unprofitable. So it's actually a relation of unprofitable transactions, which took place over the year, which you measure after that you see 40% unprofitable. Yeah. Because you're not measuring. So that means at the unit level, right? That's you at any level invoice, excellent level. It could be, you can make an invoice and text that, but some people really just ship say from Amazon or whatever, but you need to also include some manufacturing. Also understand and understanding that the major religious innovation was that we worked with [inaudible] data, but we all kind of say, without being too complicated, if you've worked with mattresses and vectors, so you've got the sinks, which are really scientific, but we make it easy.

Speaker 2 (05:17):
We make it on a floorboard and we'll make a drag and drop. You can even make it to our iPad and we'll make you model and you'll even make something. Yeah. You mix that. And you bring in your occupations, you bring in all those things. And our process also, which developed, which we have developed enables you, after putting a few things in like, as in your like costs numbers of bombs, bomber, it saves a bit of material and then the occupations, and when you have done that all, then this is the model it's already time because it's, it's, it's always there. You can pick it up, you'll have those tables. You can, Megan. And then you have set flow Buddha, which is all that shows you all the details. Then you also can say, now let's explore that as one function and your, your name, that function Nick's business.

Speaker 2 (06:11):
And, and Nick's when you, when you, things are in Nick's business and as a table underneath, then you have it. And it said, and if you now change Nick's business to learn light mix business, it becomes worldwide because you have sends those tables for each side and so on and so forth. So it makes a very complicated, complex things which are seemingly complex in reality, very easy [inaudible] that we, that we take those, those pieces and, and carving out of a huge two and a 2000 detailed work activities, database ZOS, which match and on these doors goes there. And when you combine them to see as a staff, you have, and you have a model, and of course, like,

Speaker 1 (06:59):
Got it. And so who, what type of business with Jen would benefit the most from this strategy? Well, maybe first. So, so that your, yeah. Your strategy makes sense. I absolutely agree because I have an engineering background and yeah, I, I understand. And so what type of industry or business can benefit the most from this solution?

Speaker 2 (07:23):
I think every B2B business, not to say that the B2C doesn't work, but typically you would not have the customer data and customer data. You're going to have a chart. So that's the only exclusion a little bit of, of, but it's not to say that it wouldn't work, but B2B is what I'm focusing on for B to B and service oriented to like your company. I saw you have an 81 people on some work before you had 41. When I met her first time around and it was all wonderful and, and make some assumptions, you know, but typically if a company is incorporated and they have income statement, so your two-piece, I was a public and you can find tours or revenue Wars, you find numbers of employees. And you'll find what say, do on the LinkedIn company page. And beside I make such a model. And so any, instead of going with the video sales letter for anybody, I make one dedicated to the company. I take that extra mile and say, here, this is what, what you obviously do. We don't need to do a lot more to make it thrive. It's just a first yeah, what's the type,

Speaker 1 (08:38):
A specific size for B2B companies. Like what

Speaker 2 (08:42):
Manufacturing? I love manufacturing. I love chemical, but it could be anything. I mean, what I would think, I mean, like a bank would be 20 people, but typically I go for 50 people plus, and just, I recently made a model. I started to make a model for the Indianapolis helps the team. They have certainly 6,000, but not 29,000 full-time equivalent people that 15 or 16 sites, hospitals. And they have 7 billion of revenue. And I made a monologue. I was just interested to see what it takes to make sense. Then when are my limits and, and does it, does it go up, does it not causal? I have a model of a trust, all these activities, all the expenses, Reggie 9,000 and all of, I use it on AWS and it took me quite some gigabyte around but it's doable. I can make sense.

Speaker 2 (09:45):
It doesn't really matter. You see, this is, for example, a non for profit company doesn't mean that I can do what's at one. I mean, they must be interested in performance and performance improvement. So our goal is performance enhancement takes your profit words into mosque because some people don't like the word profit, but without profit, nothing moves forward. You have to get the money from, and if you reinvest that's the best. So, and understand all that behavior. I mean, it's all about understanding what your business is doing, especially when you are a newly appointed CEO. You'll have not the slightest idea. Nobody tends to, because they're afraid of telling you also don't know some say because they are not measuring if they come again to Deming. So, and therefore we tie to find those guys to talk to them. If possible. Unfortunately, the data at the end of the CFOs and CFOs in the us, at least I heard from one of the Googles in the field who said up to the search results were engineers.

Speaker 2 (10:55):
They knew whatever, talking about my story here. So those are different guys. And then I come this my solution. I don't have to talk too much. So I might kill myself by over. Yeah, I dunno. I dunno, obviously you, you, you have similar experiences. So what w what, what my birth, my best approaches to have merchant acquisition people, da being an interim chief officer, whatever. And just do that so that I can do what I think is right. And I don't have to convince somebody else that it is right, because that is the most important thing he doesn't follow. I mean, I have family members that don't follow and it's real. It's there, even if he makes it all also be we do a bottom line because once you have done the business model is all those costs. And that you can take those as drivers also for making a carbon footprint or cumulated energy demand footprint for your whole company.

Speaker 2 (12:03):
So it takes a Burling's everything. You have rights that off over 20 years, as far as the concrete in and so on. So there's lists you can live from ends, and then the composite into the products, especially interesting when you are, when you are make of many products, you want to know what is your footprint as a, and it's becomes more and more important. So we can do that tool. And it's it's, but it's rarely asked for. So, so the profitability, it pulls me into enhancements. That's my passion because of it's it came out of, I got sick of what I had to go the way I had to pull it. And so just the way, yeah.

Speaker 1 (12:50):
And what to measure, measurable results. Can you offer to your clients? So what can you promise your, your customers?

Speaker 2 (12:57):
What I say is when you do your model, you validated two things. When I worked with a company, I can become as big as the company wants, because I need one man, like as the business analyst or the time offset, somebody who knows that's the data, and that's the understanding of the data as well. Once you have said, you validate, and then I wanted to say, before I come to the website, you need to have, this is a management approach. It cannot be a one mental, very important that one too. So to see you, what is the right person? He has to stand behind it. If you do it from the side and he doesn't really care, it will not work because in order to ship to those are things you simulate before you ramp up. And before you do it, actually, before you making it happen, you understand impact.

Speaker 2 (13:51):
And therefore, you know, you need to play with that on a team basis as a management team, if it is a smaller company, easy. But yeah, so as far as the main benefits, that's 90%. So if you bullet, if you moves the needle, plus 30% or better, that is what we claim. And in many cases they haven't moved the needle, they spend some money and then cost-wise, my cost is not so high, but say, I know cost for the company who do it because that typically make 10 times as much as I cost, therefore, no cost for them. I'm fair. And let's say they make wanting story. Got it.

Speaker 1 (14:32):
Got it. And did you have experience, is this your first business, is this or second business, like when you retired from what was Exxon?

Speaker 2 (14:42):
I was actually in my mind before I retired, so I had an easy tiring, and but I later found out I'm really say intrepreneur Y four for a longer time, because when, when I was married first time in the sixties in the seventies, so I had already a small business to make, to punch holes in, in, in cots. Both of those cots that was all business and I was going to logistics and success. So I went around, so was [inaudible] insurance company as an [inaudible] type. And just typing is really expensive. You have to do it twice to do it, and you have to check it second time. And I did, we had 20 people, so it was, this is my second time. Then I went to finish my study and, and and and I ran into an Exxon or Cemex medical medical stuff. And in, in, in part of chemical engineering simulating left for lots of heart and doing understanding on the, on the vibes. And then as it was an interesting, I was, maybe I made a mistake because I did not decide to say whether that would be exactly the right thing for me. I'm a mechanic by training. I mean, back in, when I was searching, I eventually, as a way around, went to mechanic and later went to school in university and that's all therefore so I ran, I was something sometimes like,

Speaker 1 (16:34):
So got it. So, and and what's the plan for the company? What's the goal for the company in the next couple?

Speaker 2 (16:41):
The company is higher, but it's not so easy. Say in Germany is fairly difficult. First thing, why don't you do in Germany? Well, it's very difficult. I tried in bedroom, which is really good. So we met a campaign for half a year or so, and that lasted for many years had a huge return. We did the survey and all of that. And so I had just to pick up the leads and those are final calls. So in the us, I think my language as a German doesn't really work to make is therefore I was so intrigued by, by resigning your, because offset thing of C said, SERPs of commission-based sets. I know people want to have money for me and try it. But, you know, as a commission basis, that is exactly what I would look like to go for. I would even give him half half.

Speaker 2 (17:35):
So the first man who makes one, I give him opposite revenue, right. Can stand off 20%. So just to get things going, and that is what I believe. And that is what I thought I go for. And I have some work, but not all of the work, but I saw recently a video on, on, on sales, on cultural ism and how to, how to treat them right. And, and how to nurture them and how to make that all happen. That managing around this is still what I'm after, but working through it. Yeah. And, and I don't know, what's, what's, what's next and the rest, I haven't seen it done. So there you propose maybe. I don't know, but yeah, and I'm looking for some people who are able, I mean, I would change the people with everything they have to roll. It takes some time. And I don't know, I was able to use that for granted, but the food could, I mean, the opportunity is even to, to take, maybe, I don't know, I mean, half off a chair, much better than what you offer, at least for the

Speaker 1 (18:51):
First, for the first few sales person.

Speaker 2 (18:54):
Oh yeah. I need money. I need to Mexico. I don't want to do that for granted, but that is what I, what I have in mind. So that's why I concluded those are a schools then I was texted by your guys. Got it.

Speaker 1 (19:11):
So I think, again, building the commission based sales team, as you're getting started, getting there,

Speaker 2 (19:15):
Nobody, nobody in Europe, not in UK, I try to, and you know, I want to have money in advance and then there come, she'll saying, what is that intent? Obviously we'll get your money and I want to have business. And also I'm looking into, I, I need partners. You know, I needed a refresher in my business and then natal and I have, I have a few pockets that are waiting so standby and we need young people because the technology is neat need. And you can also, I need further development. What I have in mind that this really, in a nutshell, it got quite some signal on my business and me.

Speaker 1 (20:03):
So, so just to summarize here, if we, so your, your target customer, it, our CEO is just starting in manufacturing companies, is that the best niche is the best fit. It could be newly appointed. C was all newly appointed CEOs

Speaker 2 (20:23):
Or not. So new, I mean, just might have, what's his value. I'm just saying, when you go for a sales navigator, job changes, you will seize a new appointment and go after them.

Speaker 1 (20:36):
Got it. And the claim is increase your profitability by 30%.

Speaker 2 (20:43):
So conditioners will. Why did you move the needle? And I had made some bad, you didn't work.

Speaker 1 (20:49):
Got it. All right, guys. So if you are listening and you're newly appointed CEO and you want to increase your profit margin by at least 30% or better go toHan's, where can they find you? What what, what website

Speaker 2 (21:03):
You can take my last name . Com. And you also get said also, as I was modeling, modeling was one error.

Speaker 1 (21:16):
So rapidbusinessmodeling.com and you can connect with Mr. Hahn's and they'll do a phone call with you to learn more. Is that how

Speaker 2 (21:27):
[Inaudible] we will make typically a zoom meeting. If I get information in advance, I would already come up with a model to show him what I think his business looks like on the publicly available data. Like I could cook cook too with you.

Speaker 1 (21:43):
Awesome. Okay. Well, well, I appreciate the interview. We'll, we'll end it here. And I think that was really useful. Thank you. Thank you.

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