From frustration to innovation: How Elfsquad is digitizing the manufacturing industry

“It feels like you're traveling back in time to the 80s”, Jan Brolsma, founder of Elfsquad, talks about his first experiences with production companies. As a self-employed person, he saw how traditional manufacturing companies struggled with outdated software and inefficient processes. “You still have university educated people who have to retype orders from a fax all day long. That must be possible differently.” That frustration became the basis for Elfsquad, a company that is now the market leader in the Benelux in the field of Configure Price Quote (CPQ) software and is storming the international market from Friesland.

From self-employed person to entrepreneur

For Brolsma, it was always clear that he wanted to start something for himself one day. “I didn't want to be a butcher”, he laughs, referring to his parents. As a self-employed person, he did reorganizations and IT implementations at various manufacturing companies, but that didn't feel like real business. “As a self-employed person, you are not really part of a team or a company. It wasn't my dream to become a self-employed person, but an entrepreneur.”

The breakthrough came when he implemented an ERP system at agricultural machinery manufacturer Dewulf in Winsum. “Other companies came to see how we had tackled that. That's when I saw how old-fashioned many of those systems were. Very consultancy-heavy, with expensive implementations that failed more often than succeeded.” The idea for a modern, user-friendly solution was born.

A startup is romanticized

Going back to 2016, Brolsma needed a strong technical partner to realize his idea. Through via, he met Johannes Heesterman, a talented programmer. “It was a stroke of luck that I ran into Johannes. He is an insanely good programmer and still the bearer of innovation here. I couldn't have done this on my own.”

The first few years were tough. “People are always romanticizing what it's like to have a startup”, says Brolsma with a slight frown. “But it bothered me a lot and also a lot of stress. You borrow money from friends and family, and you don't know if it's going to work. It feels like living constantly before an important exam. There's nothing you can do about yourself but be busy with this.”

Advisory Board

What helped to keep the course was an early choice for a formal structure. “From the start, we had an Advisory Board, consisting of two people who held us accountable every month. Then we presented what we had done and what we were planning. When we did things that were not in line with our original vision, questions were asked about it.” This structure evolves with the company. “In different phases, you need different areas of expertise. We are just recruiting two new commissioners who can help us with the next phase of growth.”

According to Brolsma, the difference with separate advisors lies in continuity. “You can all have separate advisors around you who you call occasionally, but with a fixed RvA, you really build something. They know all the details and you express responsibilities to each other. That goes much deeper than occasional advice.” This common thread of consistent supervision and strategic direction appears to be crucial in Elfsquad's growth from startup to scale-up.

From prototype to product

Back to the start. With a group of ten launching customers, including Dewulf, the first version of Elfsquad was developed. “It took two years to develop a stable base before it was ready to market. In 2018, the time had finally come. Another four years later, we had a hundred customers.” The success attracted the attention of potential buyers. “We weren't working on it because we didn't want to sell our company at all. But bids were also sometimes made very aggressively. Then we thought: we have gold in our hands.”

Unlike many fast-growing tech companies, Elfsquad chose its own path. “We have been profitable from the start and have no external shareholders. You don't see that much with rapidly growing tech companies, but it gives us a strong basis for really serious growth.”

Frisian sobriety as a strength

Where advisors often suggest moving to the Randstad or even Silicon Valley for talent, Brolsma sees strength in the Frisian location. “In the region where we are today, we have little competition from other SaaS companies. There are really good developers and sales people here. Despite the calls from the south, many people also just want to stay in the north.”

This choice for Friesland is an important part of Elfsquad's identity. “The type of person who chooses to work in Drachten often has different priorities than those who necessarily want to sit in Amsterdam. That mentality is reflected in our company culture.” With seven nationalities in a team of 35 people, Elfsquad shows that you can easily attract international experts from Friesland - as long as they match the northern work mentality.

Culture as a foundation

To connect the team, Elfsquad organizes special activities. “We all just went to the North Pole together. Last year, the trip went to Albania, before that Macedonia and Georgia.” But more importantly, everyone with a permanent contract becomes co-owner of the company. This is how we exude trust towards our employees. “There aren't many companies that do it like that.”

For Brolsma, that strong culture is essential for growth. “When you grow so fast, you quickly get subgroups of people who started at the same time. That is very difficult to disassemble later. It must remain one team.” This approach attracts a certain type of person. “Some people just want to work from home. There's nothing wrong with that, but that's not a good fit for Elfsquad.”

The next phase

With its position as market leader in the Benelux secured, Elfsquad is now focusing on international expansion. “Our ambition is not to become the largest in the Netherlands or Europe, but worldwide. We want to achieve that within ten years.” To facilitate that growth, the company has recently reorganized. “The type of people you need for the next phase is different than who we needed to build what we have now.”

A painful but necessary process. “It's not easy”, he admits. Where advisors often suggest moving to the Randstad for these types of growth phases, Elfsquad continues to consciously look for people who have both the expertise and the northern mentality. “It's a challenge, but we believe in growing from Friesland.”

Advice to starters

Brolsma's most important advice to starting entrepreneurs? “It's very important that people give you something. You have to create a favor factor in one way or another.” He warns against ego-driven entrepreneurship. “You often see that people think: a lot of money is made in software; I also make a lot of money in no time. If that's your motivation, you'll never get a favor factor.”

He also recommends setting up an Advisory or Advisory Board from the start. “Even if your company is nothing at all, it helps enormously to be accountable for what you are doing. Because it shoots in all directions at the beginning. Then it helps if someone holds you accountable for your plans.”

‍