I have applied for and received many loans for clients. Whatever the amount and reason, I warn my clients that such requests lead to the same requirements. The application process demands that you understand exactly why you need the money and how you will pay it back. In other words, before being awarded a loan, you are forced to answer questions you may have preferred to ignore, such as who are your competitors; what is the expected upturn in sales and how will it be achieved; why will new equipment cost so much.

Isaac had been self-employed for nearly thirty years. His accountant was happy, and he kept aside a healthy salary for himself. Yet he was working 70 hours a week and he could not see a way out. In the first meeting, I established that Isaac had never studied business and his prices had remained the same for years, while he offered an elite service in his field. Within weeks, the pricing model had been altered upwards. Hours per client were curtailed. And he barely lost one customer.

I have witnessed several clients, especially those new to commerce, who refused to plan their cash balances. Their excuse? Why bother, if you can remember everything and the bank account is healthy. However, their assumptions are invariably unreliable. The crunch arises when expenses are met, just, but there is no money left for the boss. My mentoring explores how as firms grow, there are more factors to forget. That includes the flow of money, which becomes too complex to manage in one person’s head.

I spent a year working with a small chain of shops. A family business, the top team refused to initiate a marketing strategy. Stock was kept high;egal cases were allowed to drag on, wasting time; Resulting in banks becoming increasingly reluctant to issue more loans. I convinced my client to draw up a detailed budget and future cash flow analysis. For all the skillful talk and explanations, they could not escape the fact that with their current structure the numbers stayed in the red. To address this, they recruited a top sales person and saved their chain.

Keep Fit Society is a local franchise of an American company. The CEO had little commercial experience, but was driven by a passion to expose his locality to this form of training and fitness. The business coaching covered key basic principles of opening up an enterprise; creating an initial budget, finding a loan on affordable terms, locating premises, confirming issues of insurance, and of course recruitment of clients. In addition, as many of these tasks did not come naturally to the CEO, Michael spent much effort working on the client’s emotional fitness. At the time of writing, the company is hosting its first annual event in conjunction with well-known local restaurants.

Light Us Up manufactures an energy product. Despite nearly twenty years experience, sales had dwindled to a minimum and the bank was threatening the owners. Debts to statutory authorities were building up. Michael initially concentrated on confirming the strengths of the CEO and on establishing the unique selling position of the company. Within a short period of time a marketing strategy was put into place. Within three months, the company became cash-flow positive. In addition to sales, the company was approached by leading competitors to act as an out-sourced production line.  After nine months of mentoring, the monthly take home of the CEO had shot up at least five times.

Design House is a family business of architects. They provide a boutique service, specialising in high value projects. Although the partners have considerable experience, most of it was gained abroad. Neither did they understand the local business culture nor did they have the local contacts to get started. Michael’s remit included helping guide them through building an initial budget and cash flow projection. He also became instrumental in helping Design House form a marketing strategy, as they initially chased all vague opportunities. After nine months, the company had moved to permanent offices, had set up a website, and had established a working revenue base.

Pizza House was an ambitious project by young adults to create a chain of pizza outlets in local neighbourhoods. The concept was to offer quality Italian food at affordable prices, which would also fit the genre of healthy nourishment. After the opening of the first branch, Michael was asked to create a business plan, which would focus on future development and allow the owner to understand what level of loans he could justify. Michael forced the owner to comprehend that his sales never fully matched original forecasts, thus challenging the client to reconsider his concept, as well as the risk level of the loan sought. The business was eventually closed with no losses.

The K.S. Group is a team of marketing managers with considerable experience in running sophisticated operations in different environments. Coming together for the first time, they were looking to export Israeli products abroad, creating independent sales networks. Despite a clear vision, the team was hindered by a cash flow that did not match the demands of the work flow. Michael was required to help the project directors realise where and when and why to concentrate the efforts. As the months progressed, K.S. was able to prepare itself for launch overseas.

Jason was a new immigrant to Israel. Although unfamiliar with local business culture, he wanted to “copy” his distribution business from North America. However, sales remained weak, despite the considerable long hours invested. Michael encouraged the owner to consider a new approach to his use of time and to review where his marketing was most effective. By the end of the coaching contract, the CEO was employing a team of three sales staff and a personal assistant. In parallel, he released a new website and had partnered up with an investor for his business.

Medico Ltd is a large health centre in Israel, which raises significant funds through donations. One particular and large annual source began to dry up, as the centre struggled to coax its various departments to handle the vagaries and changing procedures of the overseas donors.  Michael encouraged the centre to introduce monthly coordination meetings, involving all associated parties.  In turn, this resulted in a single person being designated as spokesperson to the donors. The effect has been that contributions are now flowing, raising revenue by hundreds of thousands of dollars.

Buy Me operates a series of stores in different sectors. A family business, the company has been leaking cash for the past two years. Although two new shops had opened up during this period, the reason for the problem was not apparent as overall sales were strong. Michael introduced a new purchasing system which led to improvements of approximately $25,000 within two months. He also promoted a search for more appropriate premises.

BeGood is a non-profit organisation that specializes in neighbourhood initiatives. Mainly supported by overseas donations, their funding began to dry up following the 2008 credit crisis. Initially, they managed to maintain their level of service by accumulating debt, which in turn caused their own credit crisis. Through meetings with Michael, the charity was able to reset its priorities to match the level of finance available, and to ensure that a new agenda was confirmed by the board of directors.

Levy Ltd is a building contractor who took over his father’s business ten years ago. Because customers had failed to pay on time, the company hit cash flow problems. The bank refused to issue credit. Michael’s mentoring focused on achieving a better cash flow model, whilst developing a broader customer base and finding an alternative bank for new financing. Today, Levy Ltd takes on large projects which generate higher profits and follow a more reliable payment schedule.

Playgroup is an independent Israeli theatre group, specializing in educational plays for children. Despite an excellent history and solid experience, bookings were dwindling and the bank manager was calling. Michael coached the CEO to help him to understand and to fulfil his commercial potential. New and realistic sales targets were set, and a marketing expert was hired to boost the company’s publicity. Just twelve months later, the company’s success attracted a key figure in the sector, whose involvement ensured a further doubling of revenue.

Nefesh Ltd is an established manufacturing business in Israel’s food industry. Their initial issue involved human resources: blurred command structures and poor production results. After a series of challenging one-on-one meetings between Michael and relevant staff members, the production manager was offered a new position, but opted to leave. Although he was not replaced, output increased by 10%. They then asked Michael to meet with their bank manager, who was demanding extra securities. After two meetings, the bank dropped their request and instead offered extra credit facilities, on beneficial terms, to facilitate the company’s expansion programme.

Client Feedback

"Michael transformed the way I think and approach working, and also how to monetize my social media and communal projects."

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CEO of clean energy start up

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Art Studio owner

“Working with Michael Horesh is like having root canal treatment, marriage counselling and business coaching all rolled into one, successfully.”

CEO of digital media company
CEO of clean energy start up
Art Studio owner