From farm boy to corporate leader, Ákos Szabó's journey is a tapestry of diverse experiences. He navigated combine harvesters at 10, procurement departments at 30, and entire companies at 40. Through Fluenta, he established a key player in Hungary's electronic procurement market, building significant international credentials along the way. But success didn't come easily. It took meticulous planning, innovation, and hard work – along with some missteps that he chose to view as learning opportunities rather than failures. In this fourth installment of our life journey series, we sat down with Ákos Szabó, CEO of Fluenta Europe, to discuss the path leading to our present and his plans for the future.
Coming back from America, things weren't just bad – they were worse. Our first-quarter revenue in 2009 dropped by 80 percent. Even though we improved our performance later, there was no way to make up for such a dramatic loss in the remaining three quarters.
To survive, we made an unusual move in the latter half of 2009 – we started working for several companies without any upfront payment. I struck deals with them: we'd do the work, and they'd pay when they could afford it. It was risky, especially given our scarce orders, but we felt it was worth trying.
Did these companies keep their word?
They did, actually. Looking back, our strategy of keeping our doors open and maintaining market presence, even if it meant working for free initially, proved successful. Those companies eventually paid for our services.
We also revived our early-days success fee model for several deals. During a crisis, when market confidence is low, this approach works well – though you have to accept the risks that no success means no payment.
How did you start turning things around?
It wasn't immediate. We had to work incredibly hard. By 2010, we faced a harsh reality: our previously thriving consulting business had hit a wall. The crisis played a part, but there was another crucial factor – due to rapid regulatory changes, foreign companies began moving their decision-making operations out of Hungary. We were left with implementation work while strategic decisions were made elsewhere. Soon, there was hardly anyone left to consult for.
We had to face facts: growth in consulting was dead, we couldn't meet out targets and we needed to pivot. We redirected our focus to software development. That's when we came up with the name 'Fluenta', though initially just for the product.
What's the story behind the name?
It started with my realization that we needed change. We'd thought the Electool brand would naturally connect with our tools – creating strong brand cohesion. But it wasn't working. Our marketing was fragmented across too many tools and sub-brands.
The confusion was real – people thought we were 'Electrotool', manufacturing hardware tools. Our international partners pronounced Electool differently in every language. Beyond being frustrating, it made our brand way more difficult to remember.
I wanted a name that would sound the same globally and stick in people's minds. Latin, being the foundation of European culture, was my inspiration. While few people speak the language of old Rome today, Latin-sounding words are memorable even if you don't know the language. I played around with the English word 'flow' until I landed on 'Fluenta.'
Was it an instant hit?
Not quite. One colleague joked it reminded them of 'influenza.' But clients took to it quickly and remembered it – which was exactly what we needed.
How did you finally overcome the crisis?
By early 2011, I'd had enough. I gathered everyone and declared the crisis over.
Was it?
Of course not. Slamming my fist on the table and claiming it was all gone didn't make it so. The global economy didn't get my memo; the crisis was far from over, I was wrong about that. But in hindsight, I was right about something more important: we needed new momentum. We'd taken enough hits; it was time to get back up. The future clearly lay in software, so that's where we invested our money, energy, and innovation. We began developing new modules.
A breakthrough came through a collaboration with an American company. The timing was perfect. We'd been monitoring the market when we noticed Dave Stephens, a former Oracle e-document division manager, had started his own venture – Coupa, now a major player in the field. Following his blog, we could see he was onto something special.
How did a small Hungarian company partner with an American software pioneer?
We simply reached out. Obviously, we weren't in their league – Hungary was a tiny market for them. But Stephens saw potential in us. We agreed to test-market their product here. It was a great opportunity for us and a low-risk market test for them.
Did the Hungarian market respond?
Not at first. Then we realized the issue wasn't the service – it was the language. Once we added Hungarian localization, it sold easily. Seeing this success, we wanted to deepen the partnership. However, they said they loved working with us but politely declined to continue.
Was that disappointing?
Of course we weren't too happy, but it made perfect business sense. When you're targeting the global market, you can't waste any time on small markets. I'd have made the same choice. Besides, we gained invaluable experience working with Dave and his team.
More importantly, it proved there was local demand for such services. This guided our own software development, which grew under the Fluenta brand.
So the crisis finally ended?
Yes, and it taught us something crucial: crises, despite their challenges, create opportunities. They're the best times to innovate and capture market share. During boom times, everyone's too busy to innovate. Crises slow things down – painful, yes, but they give you time to develop. Those who understood this emerged stronger.
The decisions we made during those tough years still drive our growth today.
What came next?
We entered the public procurement sector. The EU had issued guidelines – their 'Green Paper' – about digitizing and digitalizing public procurement back in 2003. We developed our systems with these requirements in mind, knowing they'd eventually be implemented in Hungary. When that happened, we started getting more government contracts, including work for the Parliament Office.
This growth was exciting but came with significant risks – in public procurement, mistakes can lead to severe penalties. We were willing to take on these projects but wanted to protect Electool. So we gradually moved this business line to a separate company under independent management. Apart from handling tax and financial planning, I stepped back from this operation.
How did you navigate the pandemic in 2020-21?
Personally? It was rough. We sent everyone home to work remotely, but I kept coming to the office. Walking alone through 600 square meters of empty office space – that gets to you.
The company itself adapted well – we switched to remote work almost overnight. Client relationships stayed steady, though different. Sales was our biggest challenge. We'd always relied on face-to-face meetings to close deals, and suddenly that wasn't possible. We had to learn how to build trust entirely online. It was a struggle, but it paid off. Online meetings have actually improved our efficiency, and we're reaching clients we never could before. Recently, we had an Egyptian businessman reach out about building operations in Iraq – something unimaginable pre-pandemic.
Then in 2021, you took a different path?
Yes. It partly stemmed from changes in 2018 when the government essentially monopolized public procurement with EKR, their unified public procurement system. We needed to rethink our strategy, but the ownership team had different visions for the future. So in August 2021, I handed over Electool's leadership to Noémi Kuzmenkó.
We later sold our public procurement division. Interestingly, we signed that deal on the morning of February 24, 2022 – the day Russia invaded Ukraine. The currency markets went crazy within hours. Since we'd priced the deal in euros, signing in the evening would have cost us a million forints.
What did you do after handing the keys over?
I launched a startup in a completely different field from procurement. While it wasn't commercially successful, it was incredibly educational. We did extensive market research and developed ideas that are only now starting to show potential. Some might call it a failure, but I see it as valuable learning experience that I thoroughly enjoyed.
I've learned that success in any business requires constant learning and awareness. That's probably the most important lesson from my decades in business.
Did these experiences influence your return to leadership?
Absolutely. We're actually incorporating some of those insights into our new product. Since 2023, I'm back at the helm as sole owner, with the company rebranded as Fluenta Europe. We've streamlined operations to focus purely on software and related consulting.
Right now, we're pouring everything into our new product, Fluenta One. It brings several technological and business innovations, but the biggest change is our shift from a subscription-based service to a business-to-business platform model. Previously, buyers paid while suppliers used the service for free. We're balancing this relationship to create more value for both sides.
If a new entrepreneur asked for your advice on achieving success, what would you tell them?
First, I'd recommend taking up strategic games – chess, ultimate, bridge, go, or even poker. These games teach you to think beyond your own moves and understand others' strategies, which is invaluable in business. The best game depends on your field. Go is probably the most versatile and fascinating. Poker's great for people who negotiate a lot – it's only gambling for amateurs; professionals see it differently. Chess suits management roles – strict rules, limited moves, but excellent for developing strategic thinking.
Building your own product is tougher and riskier than being a subcontractor in someone else's project, but it offers far greater potential rewards. Many choose the seemingly safer path of subcontracting, but product development, despite higher risks, opens up much bigger opportunities.
And perhaps most importantly: never be afraid to admit mistakes. The longer you take to recognize or acknowledge an error, the harder it becomes to fix. Failure doesn't weaken you – it strengthens you if you learn from it.
As one of my favorite sayings goes: “Success is like being pregnant. Everyone says congratulations but nobody knows how many times you were fucked.”
This concludes our interview series. Have you read the first, second, and third parts?