Case Study: Interview with Jörg Herbst, CEO of newcubator

newcubator is a dynamic team of UX designers, project managers and web, backend and frontend developers. Always on the lookout for a challenge, the team at the Dortmund and Hanover offices develops bespoke software solutions for the most varied product ideas of its clients. Above all, the focus is always on working WITH the client and not just for the client. As a strong partner at their side, newcubator always strives for a collaborative partnership that uses agile methods to create unique added value in a wide range of industries. We talk to Jörg Herbst, CEO of newcubator, about cash flow planning.

Jörg, you are the managing director of newcubator. Would you briefly describe to us what newcubator does?

newcubator is a software service provider for bespoke web and mobile solutions. We develop software on behalf of our clients in order to help them on their way to a digital business.

What is particularly important in your daily work?

For me it is always important that we work with our clients, not for them. That means we do not simply do what our clients want, but work out together with them what they need. In concrete terms, that means we always try to understand the subject matter and the reasoning behind requirements. I am a big fan of Simon Sinek’s “Start with why” here. Once we have understood the reason and the context, we can develop solutions that enable our clients to achieve clear advantages in the market.

Jörg Herbst, CEO of newcubator, on the importance of cash flow planning and liquidity

What challenge does your company’s development and business model pose for you as CEO?

The problem with our approach is that we can only inspire our clients through the work we deliver. Our quality is not measured by the number of lines of code we write or by the runtime of the programs, but by the contribution we make to our clients’ business. At the moment, however, the market tends very strongly to compare services by cost per hour or per day. At most, a distinction is made by experience between junior and senior developers. Our ambition, though, is to advise our clients so competently that certain features are not developed at all, or not in the way originally envisaged, so that the benefit can be achieved in 20% of the development time originally planned.

And how important is the topic of liquidity for you?

In the Scaling Up model, liquidity is one of the four decisive factors for developing the business. In our business model we have almost exclusively fixed costs, which means that liquidity correlates very strongly with profitability. At the moment we do without day-to-day profitability controlling and steer the operating business purely on the basis of liquidity. In principle, liquidity (first-degree) is the business metric for our day-to-day operations.

What tip would you like to give other entrepreneurs with regard to liquidity?

If I were to give one piece of advice, it would be to do cash flow planning. Smaller companies in particular often neglect it or think it is too complicated. But with a tool that is based directly on payment data, creating a cash flow plan really is no great effort any more.

Last year I went to my bank to negotiate our current credit lines. Our bank adviser was impressed not only because I was able to present a detailed and realistic cash flow plan, but also because I could immediately supply a variance analysis of plan vs. actual data for the past three months.

About Jörg Herbst

Coming from a degree in business informatics, Jörg began his career as a classic software developer. Later he worked as a project manager and is now managing partner at newcubator. Before newcubator, Jörg spent a long time looking for the ideal job for himself, which is why he built newcubator the way he imagines his ideal employer. His vision is to develop software that enables other people to make their lives easier and to make better use of the opportunities available to them. A strong willingness to perform paired with strong trust in all colleagues are just some of the values on which he builds his teams.

Many thanks for your time!

Credits: Photos by newcubator