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Why do I need a business model?

18 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

When faced by investors or bank mangers, business owners are often called upon to describe their business model. Many do not know what this phrase means let alone how to explain their own definition. And then there is the question: Who needs a business model?

Let me answer through the use of a brief case study. Last week in Jerusalem, I met with a very experienced and erudite business woman, who was describing her new project. She had researched in depth and had created a team. There is a proven market, waiting to be tapped into. Now it was time to approach investors. How could I help?

As a business mentor, I gently asked what was the final service? How would it be packaged? How was it to be sold? Why? Who were the actual buyers and the decision makers behind the scenes?

As fewer and fewer answers were forthcoming, the conversation became quieter in tone. There was a realisation that as  a business coach, I was asking the questions people do not want to face. And as had become obvious, what I was really asking was what is the business model. This lays out the detailed theory of how any company intends to convert ideas into cash.

Time and again, I raise these questions. For example, consider what happened when one client recently ‘confided’ in me that they felt their market had shrunk overnight. When I prodded them for ideas, they replied with variations on a theme about what they are already selling. No, I demanded. What other skills and advantages can you sell to a new community and how?

Last month, I was challenged by a software company, who wanted to know why their agents were not selling. The discussion revealed that specific parameters had not been set – which potential clients agents should approach and why, and what is the company’s unique innovate offering. The result of the changes in operation? Several overseas contracts have been concluded.

The fact is the phrase ‘business model’ is banded around by many. What it means is understood by far fewer. And if I was to rank its importance? Define it properly (and test it), and you can make a lot of money.

Netanyahu fiddles as Israel’s economy continues to stutter

15 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

It is now official. A report released by Israel’s Ministry of Finance has concluded that Israel’s high-tech sector is no longer the prime engine of growth of the economy.

In the years following the last global crisis (in 2008), there was a significant slowdown in the sector (high-tech) and it ceased being the growth engine of the economy. Since 2010, the rate of growth of the sector is only half the overall rate of growth in the economy and the sector stopped growing as a proportion of total exports.

Ouch! And there is plenty of other evidence to confirm this worrisome news:

  • The recent WIPO global index, aggregating 79 performance indicators to assess innovation, ranks Israel at only 22nd.
  • A similar index from Bloomberg has seen Israel slip from 5th to 11th.
  • In an interview with the OECD’s leading economist, Claude Giorno, the respected analyst damned several key sections of the economy is being restrictive towards growth.

Not all is doom and gloom, as I had reflected last week. However, what is just as worrying is that Netanyahu’s government appears to fiddling while the city is starting to smoulder.

For example, yesterday the Prime Minister appeared at the High Court to justify the concessions to the gas companies. The fact of the matter is that they are the best of a bad deal, which is based on poor understandings of the potential revenues when first analysed a decade back. The rich will now get much richer.

And the other economic news of the day. A casino will be allowed in Eilat, another move to placate the rich, while maybe providing some local employment.

The analysis of the Ministry of Finance is a wake-up call, not just on behalf of the high-tech sector. Now is the time for Israel’s leaders to “lead”, utilising the skills of innovation to launch a significant economic strategy. However, I fear that political short-sightedness and individual egos will prevent them from carrying out what basic duty demands.

Israel’s economy – what the good news hides

12 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Last week, I commented that a very healthy report from the OECD on Israel’s economy had covered up a ‘dark side’ to the statistics.  I was talking about the lack of “inclusive growth”, where the income differentials between the highest and lowest earners in the economy are extreme (compared to other countries) and growing.

A few days later, the “International rating agency Standard & Poor’s reiterated its A+/A-1 sovereign rating for Israel, with a stable outlook.”  Effectively confirming the OECD conclusions, the summary observed:

We expect the Israeli economy to weather potential volatility in the global economy and international financial market, thanks to its diversified economy, strong external position, and flexible monetary framework.

As if to back up that comment, the Israeli Ministry of Finance released news of an unexpected budget surplus in January. Tax revenues were up 8% on the same month in 2015. That’s impressive.

So where is the ‘but’ in all of this?

On Monday, the Hebrew daily newspaper “Calcalist” (The Economist) analysed data from the Bureau of Statistics for 2014. Consider these three pieces of information.

  1. The average monthly wage before tax is 9,385nis – almost US$2,500
  2. 54% of wage earners do not earn enough money to pay income tax
  3. 1% of wage earners earn over 500,000 nis per month.

There are other social discrepancies. For example, people in the Tel Aviv region pay about 34% more in tax and social security than the average citizen.

I do not know of one country where the distribution is equal. On the other hand, Israel is clearly now a land of a few”haves” and those looking to catch up. That is not a recipe for creating a cohesive society.

Israel is a country where the divisive challenges posed by the ultraorthodox and also the non-Jewish sectors are already troubling. It is clearly apparent that these problems are paralleled by increasing differences between social strata. And all this in a week, when the Prime Minister’s wife has been found guilty for treating her staff badly. Anybody see a dangerous pattern here?

Israeli innovation – why the world is trying to copy the phenomenon

11 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Israel, a desert country, and yet a success with innovation? Can’t be! Who’s buying into that line? Well,…..

  • I am currently in touch with four overseas associates, asking for me to introduce them to Israeli innovation.
  • A top London accountant told me last night that their city is near awash with seminars outlying the issue.
  • I have just visited the proposed site of a new Jerusalem cyber incubator for ultra orthodox adults, which has already garnered some initial interest from established market players.

Bottom line? Israel has found a technique to turn innovation from a buzz word and convert it into a platform that can drive an economy, even in times of global slowdown.

There are loads of stats to back up the point.

  • The Holy Land continues to attract more VCs per capita than most places.
  • Israel spends around 4% of its GNP per annum on r&d, amongst the highest in the OECD.
  • The country has already attracted over 300 multinationals to open r&d centres.
  • There are now around 18 incubators and over 50 accelerators amongst a population of just over 8 million people

And so the list goes on. Many of the these facts were summarized this week in a talk by Inbal Arieli, a recent recruit to the NGO “Start UP Central”. She emphasized that capital raised in 2015 for Israel rose by around 30% to nearly US$4.5 billion. Exists were valued at twice that amount, US$ 9.02 billion.

Arieli gave some stunning examples at where Israel has lead the world. One that I recall is the ‘credit card’ that all citizens carry around and which are produced when visiting a doctor. This compact and comprehensive form of medical information, also available for hospitals, is simply not to be found in any other country (as far as Arieli knows).

However, the story that encapsulated why so many delegations are coming to Israel to learn about innovation is one that featured Dov Moran, the inventor of the USB memory stick. By the year 2006, his company M-Systems, was sold for over US$1.6 billion dollars to Sun Disk Corp.

Moran took his money and set up Modu. He brought in over US$100 million of other investments. 40 patents later, the company was sold off to Google. However, it was a flop. Arieli should know, as she worked there. BUT…….

While Modu did not succeed, members of its workforce went on to create at least 32 start ups. One noted case study is Onavo, which was eventually purchased by Facebook for US$120 million. In other words, the seeming failure of Modu illustrates just how Israel has turned innovation into a methodology which drives commercial success.

Pelephone – 3 lessons in how NOT to close a deal

9 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

A few weeks ago, I described how an Israeli mobile vendor, Pelephone, had failed miserably to apply the basic rules of customer service to a complaint of mine. In the end, it cost them a great deal of money.

I have not (yet?) changed vendors for a number of good or silly reasons. So you can imagine my trepidation when I had to go in to a Pelephone outlet yesterday to sort out a technical problem. Once done satisfactorily, they inquired if I was interested in a new pricing structure. Knowing that I was paying a bit too much compared to market rates, I asked for more info…..and that is when the ‘fun’ started, especially as a very assertive young female joined the conversation.

Lesson A: Know what you customer wants.

I was offered a package that would cost X per month, and which was clearly better than what I am currently paying. It also included two new phones. I do not want two new phones. The lady pushed away, but I stood firm. SHe was not interested. Finally, I reminded her that the expense of the phones alone, carefully hidden in the proposal, would costs thousands of shekels over three years.

They backed down. Suddenly a new offer could be found.

Lesson B: Explain the offer in a language that your customer will understand.

To be honest, I just did not get what the second package was about. It seemed to involve how I could watch more programmes on TV at greater convenience. All I wanted was to pay less for phone calls. I simply said that I would need more time to think about it. (What they also forgot to ask is if I watch TV. The answer is that the family is trying to view less these days!).

Lesson C: Do not treat your customer as an idiot.

As I was beginning to walk away, the assistants advised me that I do not have “time to think” about their proposals. It appears that they are only valid through to that day. In other words, take it or leave it. Did they honestly expect me to believe that? Why did they not mention this up front? I smiled back politely and left.

What is the bottom line of the story? The sales’ staff were not to know about my previous bad experience at Pelephone. However, they failed to make an effort to listen to my needs. They just wanted the ‘kill’. In other words, they conveyed no level of trust, the most basic and crucial factor required in order to close a sale.

As I left, I felt that that the assistants were looking at me, asking ‘how did that one get away?’. As for me, I felt great, having stood my ground and not paying out money for a so-called good deal that I did not want.

Israel’s economy – OECD almost exposed the truth

5 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

On the surface, the OECD’s latest report on Israel’s economy is very encouraging. In an era when world leaders are concerned about another recession, the OECD observed that: –

Thanks to prudent monetary, financial and fiscal policies, growth has exceeded most other OECD countries’ rates for more than a decade. Employment is rising, inflation is low, the external surplus is comfortable, and the public finances are in relatively good shape.

Taking just one key indicator as an example, Israel has brought down its national debt as a percentage of its GNP to 66%, where as the OECD average is close to 120% and rising. It does not come much better than that!

The problem is that the report also indicated the ‘dark side’ of the economy. We are talking about the lack of “inclusive growth”, where the income differentials between the highest and lowest earners in the economy are extreme (compared to other countries) and growing. The top 10% earners bring in nearly ten times as much as those in the lowest 10% bracket. (25 years ago, the differential was a factor of seven).

The Hebrew financial newspaper “Calcalist” (The Economist) highlighted one specific anomaly. If you start in 2003, housing prices in the OECD having risen around 10%. In Israel, while they dipped slightly in the period up to 2008, they are now a massive 60% higher!

No way have incomes risen so quickly. In fact, poverty rates at around 21% are amongst the highest in the OECD.

It is easy to pick out excuses. There are burdensome geopolitical pressures. The country has to cope with two large, conservative social groups, ultra orthodox Jews and Arab, who present unique challenges. And yes, core structural changes – the reforms of the electricity market and the ports authorities to name just two – are way overdue. However, they cannot reasonably explain what more taxpayers are finding increasingly unacceptable.

Since the start of the current millennium, Israel’s start up economy has much to be proud of. And in that same period, it is becoming a society of haves and those struggling to keep up. Benjamin Netanyahu has been the Minister of Finance or Prime Minister for nearly ten years since 2003. In other words, he has had a key role in the success, while being responsible for creating the mess.

Look at how Netanyahu has reacted to the recent scandal surrounding the finances of his use of public funds for his home. Consider his position on the gas revenues, which does not engage the public spirit. And this current government has dumped more pressure on the middle classes by repealing reforms from a few years ago.

I do not think that the OECD is just warning about possible social fissures in the Holy Land. In its quiet and diplomatic way, these respected international economists are directly questioning if Netanyahu is still capable of driving the changes required. Many around me say no. Ouch!

7 big lies from Jerusalem of powerpoint presentations

3 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Yesterday in Jerusalem I attended BOLEO 2016  – Business Opportunities in Israeli Lasers & Electro-Optics. This is a rare opportunity for entrepreneurs in this field in the Jerusalem region to show off their capabilities to potential clients and others.

The day included a 2 hour session, where eight local start ups were offered seven minutes each to pitch to a panel of seasoned entrepreneurs and experts. This is the part that I was looking forward to. And all my senses as a business coach and mentor were fully turned on……….only to be extinguished fairly early on.

Apart from the presenter for Belkin, a one-second, non-invasive laser treatment for early stage glaucoma, none of the speakers could generate even a spark of interest. Quite simply, each of the presenters blew a golden opportunity to put themselves in front of potential investors. and here is why.

  1. Most failed to appreciate the dynamics of the audience. Had they asked beforehand? Yes, most of the listeners were scientists, but the key members were the panel, who are also investors. Most of the presentations had a technical slant and thus were of lesser importance for the panel.
  2. The alloted time was seven minutes. One spent 30 seconds thanking the organisers. Two did not leave enough time for questions. If you think that the most important item in your presentation is your voice, you are wrong. Ironically, you also need to listen and show you are listening.
  3. Most of the presentations had lovely pictures and graphics. I do not recall one slide that made me sit up and say “wow”. That is just key, especially right at the beginning.
  4. Especially when you are short of time, presentations should begin with a ten word intro of what you are doing and why. What is the need? At least deliver this message before people go back to their phones. One speaker did have a slide entitled ‘the need’ and then proceeded to chat about his technology!
  5. Prepare, prepare and prepare again. The session was conducted in English, which is not the mother tongue of all the presenters. Fair enough, but then that fact alone should have pushed them to rehearsing even longer. They were boring in the main.
  6. Most of the speakers used much of their time to talk about their technology, and in detail. However, it is a fallacy if you think that you can get away without explaining precisely how you will sell the product. The validation of the business model is a vital slide.
  7. Most of the slides were long and complex. The classic rule in such presentations is to keep them simple and short. Your slides should emphasise your key point, not state it.

The speakers ignored these rules of powerpoint presentations. I did not invent them. They are all over the web in countless blogs. By ignoring these guidelines, the presenters were deceiving others, hoping they could ‘get away with it’. They failed. They merely wasted the time of many listening.

The power of describing your business in less than ten words

29 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The Jerusalem Business Networking Forum held its first “speed dating” event of 2016 earlier this week. This is always an incredibly dynamic spectacle, where dozens of people frantically try to conduct a conversation in two minutes, when it usually takes 20 minutes.

The results? As ever at JBNF, most of those who I have spoken to have walked away with valuable contacts. And all this by saving time by a factor of ten.

Let me explain how this is done. The participants line up in rows. They are given 120 seconds to explain who they are to each other, ask pertinent questions, and swop contact details. When the time is up, one row moves on and then the next round begins. Every so often, the moderator – myself – allows a break and introduces a guest speaker.

JBNF was privileged to have three excellent presenters. Gilad Newman from Dale Carnegie described how to improve your presence, simply by smiling. Melissa Beinefeld, an employer advisor, stressed the importance of keeping messages brief and direct. Picking up on this theme, international branding expert, Jonathan Gabay, urged participants to consider their audience.

Gabay described the amazing story of the creators of the film “Aliens” who as newcomers to Hollywood were desperately seeking a way to impress backers. They hit on the phrase: “It’s like Jaws, but in space”. People ‘got it’ immediately, doors opened, and the rest is history.

The message for the rest of us may be obvious but it needs to be stated. Be ready for the question ‘what do you do?’ Prepare  an answer that takes up no more than ten words. If longer, your floundering could indicate that you are not sure yourself, and thus you will not be leaving a strong impression on your partner in the conversation.

What those who “Ban” Jerusalem fail to see

28 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

In the past three days, I have witnessed three amazing and seemingly unconnected events in Jerusalem.

First, I was waiting for a taxi at the airport to fill up and to take me back to the Holy City, when suddenly the driver was engulfed. A group of Christian pilgrims from the UK had just flown in for a prayer meeting at the Dan Hotel. Nine of them excitedly clambered on board and we drove to their home for the week. Located in what some call Eastern Jerusalem, they were looking forward to seeing the Jewish homeland.

The next day, I was in Sha’are Zedek hospital in the centre of the city, this time waiting for a lift. The hospital is known to treat everyone by everyone. For example, it actively seeks to train doctors from areas like Bethlehem. As I entered the lift, a large Muslim family turned up, about ten of them of different ages. We moved up the floors together, with no hassles either way. I smiled.

And yesterday, I moderated a “speed dating” event at the Jerusalem Business Networking Forum. Over 50 people of different religious persuasions swopping business cards and creating commercial relationships.

Amongst all of this most natural of multiculturalism wanders the UN Secretary General, Ban Ki-moon, and declares otherwise. At a session of the Security Council in New York, ostensibly about peace in the whole of the Middle East, he devoted 90% of his words to the Israel-Palestinian conflict.

If you study Ban’s speech carefully, you will note that he hurriedly condemns Palestinian violence against Israeli citizens. However, of his 1,273 words, at least half can be attributed to an attack on Israeli policies and his appraisal that the government in Jerusalem is not pursuing peace. Prime Minister Netanyahu has since responded and the two sides are engaged in a war of words.

The point? Well, Ban did not call on the Palestinians to make efforts towards peace with Israel. In fact, he stated that “as oppressed peoples have demonstrated throughout the ages, it is human nature to react to occupation…”

In the decades since the PLO launched modern terrorism in 1964 with the backing of the Soviet block, never have I heard just a justification for terror. Does that mean that tens of thousands of pilgrims, hundreds of thousands of non Jewish visitors to hospitals, and countless business leaders of different backgrounds have got it wrong? Should they be turning (physically?) on their hosts in Jerusalem? Is that how people all over the world should react if they feel ‘oppressed’?

Last night, about half a kilometer away from where I was, people were hanging out as usual in a local burger bar. An 18 year old Muslim deliberately followed a 35 year old orthodox Jew into the place and proceeded to stab him in the neck.

I refuse to describe this act as “human nature”. Thus I call on others to reject the UN’s pathetic model towards peace. I welcome those Christians and Muslims and Jews who I met in Jerusalem earlier as my heroes for the week.

Explaining the global impact of cyber week in Israel

27 January 2016
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Categories: Afternoon Tea in Jerusalem, Business

This week is ‘cyber week’ in Israel. The words of the Prime Minister, Benjamin Netanyahu, could apply to many nations:

There is a great opportunity and a great challenge. Technological progress is a blessing, but also a curse, and the biggest curse is that the Internet of Things is making everything vulnerable. Everything is a target for a cyber attack, and when I say everything, I mean everything – from our bank accounts to national security. Even the way we conduct elections in Israel is vulnerable. We cannot grow, therefore, unless we have cyber security….

The size of Israel’s cyber community is quite daunting, considering the country is 50% desert. There are around 430 companies, of whom at least 40 are selling in over 10 countries. In 2015, 78 companies raised US$540 million, which is about 20% up on 2014. A further 60 announced exits to the value of US$1.16 billion. It is estimated that about 17,000 people are employed in the domestic industry.

These stats are not one-off. For example, Fireglass has developed a unique approach to preventing large financial institutions from suffering a cyber attack. It has just raised US$20million to fund an overseas marketing campaign.

A similar story can be told of imVision, which is tackling the growing threat to the telecom cloud community. It has raised US$4 million. The investors include a Chinese group, probably the first time that China has engaged the Israeli cyber community.

It is significant that in 2015 funding for the Israeli high tech community hit an ‘all time high’. It reached nearly US$4.5 billion, an increase of 30% on 2014. Around 29% of this was in software, the core of the cyber industry.

Given the current global slowdown, it is not easy to predict how 2016 will pan out. What is certain is that billions of people around the world – through safer financial transactions, protected television providers, homeland security or otherwise – are already better off because of Israeli cyber technology.

Here’s why Israel can boast that ‘innovation’ theme

24 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

When Israel’s Prime Minister, Benjamin Netanyahu, turned up at Davos this year, he stressed the country’s strengths in the field of cyber security and how that can offer benefits for potential new friends in the region.

I am not sure if Netanyahu’s speech was well-attended. However, he has a crucial central point. More and more conglomerates are turning to Israel in order to learn how to take a big stride ahead in the world of commerce. Intel, Google, Microsoft et al have long r&d and/ or manufacturing processes in the Holy Land. Even Telstra, the Telco giant from far-off Australia, have now sent senior execs to Israel to meet with key players in one of the world’s fastest-growing tech hubs.

The ‘start up nation syndrome’ keeps driving ahead. This coming week in Jerusalem, the Our Crowd investment group, led by serial entrepreneur Jon Medved, will host thousands of overseas investors. OurCrowd is entering 2016 with some amazing stats: $200M of investments, 10,000 investors, investors from 110 countries around the world, and 93 portfolio companies. (Last year, in 2015, investment in Israeli tech companies reached $5B, a growth of over 100% over the last two years.)

Our Crowd’s efforts are not alone in the market place. For example, reverting back to the Australian theme, in November I met an amazing 50 person-strong delegation from Australia. Young entrepreneurs to seasoned bankers, they explored all facets of the Israeli high-tech set up.

At a cocktail function, I entered into an extensive discussion with Stephen Rutter, manager of UTS Business school’s Business Practice Unit. As he later recalled: –

I saw in Israel that a culture formed from 2000 years of overcoming adversity underpins innovation and entrepreneurship there. The start-up community’s innovative spirit is also formed in the crucible of military conscription, where lives are at risk and everyone is personally involved and affected. It is something of the national character that Israelis are alert to possibilities that can make a difference, and willing to take action, quickly!

Israel is ranked 5th in Bloomberg’s innovation index. At the recent CES show in Las Vegas, dozens of Israeli firms were present. I know of European commercial leaders waiting to join the bandwagon in 2016. It is Israeli technology that continues to make an important and positive difference to the lives of billions globally.

Can working out really help a small biz owner? 3 bizarre tips

21 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

I often find that my work as a business coach and mentor often takes me into ‘unusual discussions”. For example, one subject that frequently comes up is ‘a healthy work out’. I discover that many of my clients just do not exercise.

Why keep fit? Well I am no expert, but I can tell you from my experience that on those days when I do work out in the early morning, I tend to be far more proactive and productive later on in the day. To take this one step further,  on more than one occasion, I have taken clients into supermarkets and shown them how to choose healthy food while remaining on a low budget.

Yes, for me, by running an extra kilometer means that I am better prepared to take on the trials of a taxing customer.   I do not understand the science and the biology, but it works.

So I wish to share with you three most unusual exercises or practices that have made a positive difference to my work schedule.

  1. Suffering from lack of concentration? Many of us reach that moment in our work day when we just want to sleep. We lose our focus, usually in the middle of the most critical of meetings. In order to prevent this happening, early in the morning, I carry out 15 squats. The key is that during the movements, I gently hold my left ear lobe with my right thumb and finger and the same for the other side. I also breath in and then out methodically during each up and then downward movement. Don’t ask me why, but it works. Concentration has vastly improved over the years.
  2. Cannot sleep at night? We all know how that makes us feel the next day. One remedy I now use is to walk away from the computer at least two hours before I go to bed. For good measure, I keep the hardware in a separate room.
  3. Waking up in the middle of the night? Blow your nose, and make doubly sure that your left nostril is clear. Now, if you think that sounds stupid, I agree with you. But it works for me, and helps me go back to sleep quickly.

And here’s one bonus piece of news. Even if you do not exercise, try to find 15 minutes a day to speed walk. Even for the most grumpiest of my clients, this has made a vast and positive difference.

What is in it for you? Consider you are a small business owner. For many such people, being efficient is crucial. There just do not seem to be enough hours in the average work day. What I have listed here are simple, healthy and practical tips to improve your productivity and to help you to enjoy your work. And for me, I can see how they have helped to improve the revenue stream. Good luck!

The disaster of Israeli customer relations – part 2

20 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

As previously discussed, Israeli companies are not generally known for ‘best practices’ in customer relations. At the heart of the matter is that they simply forget, “it is not about me” (the supplier), but the client who you are encouraging to impart with a whole load of cash.

Just take yesterday. I was checking in at the El Al desk at Ben Gurion airport near Tel Aviv. The lady behind the counter almost threw my passport back at me. She was not angry. It was just sloppy. (To be fair, another El Al official later on was most empathetic when discussing an issue I raised.)

Now, I want to refer to Pelephone mobile company. About two years ago, I felt that I was misled into purchasing some equipment. The company argued otherwise. I eventually appealed to a consumer body at one the government ministries. Months later, Pelephone agreed to reimburse me. In return, I had to return all the equipment. Up to here, an annoying story for me, as Pelephone quietly retreated.

But my point is elsewhere.

A few days later, I received an email from Pelephone, which informed me how much I would be reimbursed. No explanation was offered, but it was approximately 30% of what I felt I was owed. Naturally, I was incredibly irate. But I did not give up. More highly irritating phone calls and emails led to a triumph for my bank account.

However, more significantly, any goodwill that Pelephone may have engendered when it had originally backed down was simply flushed out of the window in a micro second. Why would I use them again?

And there ended over two years of needless distress, initiated by a over greedy sales policy from an Israeli mobile giant and then encouraged by a disastrous customer management procedure. Sad, but oh so true of many others as well.

“I want to grow my business. Find me the magic solution”

12 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

One of the most common approaches I receive as a business mentor in the Jerusalem area is people asking me how I can help them to grow their business. Their face is covered with the words: “Please show me the magic formula, and now”.

On reflection, it was not by chance that the home page of my website features the word ‘growth” very prominently. When handling new clients, this may sound presumptuous, but I often know in advance where the solution lies. Let me expand.

Mentoring sometimes takes a while to reach the heart of key issues. There is a certain process to undergo, as the coach learns the business and begins to unravel the ancient cobwebs of how the organisation was established and is now operating. However, sooner or later, he is faced with the client’s near inevitable question: Who should I bring in to strengthen the sales / marketing team?

Obviously, there are many externalities that will contribute to the final answer. However, and at the risk of over-generalising, I repeatedly find myself coming up with the same response. One of the key players in promoting the enterprise is the owner / founder / CEO themselves, but they just do not appreciate this deeply enough.

Why do I say that? In an era where the consumer suffers from an overload of information, to appear as genuine is one of the key tactics to defeat or go around the filtering system we all have. And the most practical way to appear genuine is to use the passion that most owners and founders tend to possess. They are the best sales people of their own product or service.

However, something very interesting often happens at this point of the mentoring. You can predict that the client in front of you will physically pull away from the discussion. It is at that moment that they realise that they have to do something not in their assumed comfort zone and also that their is no better candidate. A double whammy!

You see the reason why these CEOS have approached me to help them grow the business is that they have been too preoccupied with other tasks. They have not spent enough time on the key area where their added value is most significant – selling and talking to potential clients and being most passionate about what they care for.

And it is this juncture that the business really begins to turn around.

3 rules for setting up a website for a small business

8 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Well I finally did it. This week, I released my new website. Months of thinking, procrastinating, creative thinking and fine tuning – it’s over and finished.

Now as a business coach and mentor, I should not really admit to all being hassled. Yet, that is just the point. It needs to be stated outright – setting up a website may sound simple, but it is not…..and especially for a small business with limited manpower.

Let me explain. Many of my clients are located in the Jerusalem area. Several can be described as small or medium sized enterprises, where everyone has over 25% too much to do every day. Yet,  a second common factor is they often have 50% too little to invest in strengthening the corporate structure.

So, regardless, a decision is taken to create a website by themselves. After all, Wix and WordPress are so easy to learn, aren’t they? And here is where it all goes wrong, very quickly.

Today, when my clients ask me about starting up a new site, I point out three critical issues that need to be considered in advance, and at length. (I would like to add that I bounced off some of these ideas with Nadine Wildman from Meeple Communications, whose excellent skills resulted in the innovative design of my own site).

First, the setting up of a website does not just take up a lot of time. Content writing, finding pictures, editing, etc – all of these tasks requires days and yet even more days, usually from more than one person. I constantly challenge business owners if they do not anything better to do, such as recruiting new clients to secure revenue. Leave the ‘dirty’ work, where you are not a specialist, to others.

Second, consider your message very carefully. What are you trying to say? What is it that you are selling? Have you looked at how your competitors have set up their sites and why? What trick are they missing that will make you stand out from the crowd?

Finally, discuss in detail who is your audience. For example, what is the age group of the target population and will they react positively to the style of your copy writer?

Nadine added a fourth factor. In her experience, she has seen several ‘home made’ websites, where templates have been used. Unfortunately, these usually include standard pictures and content that slip into the ‘new’ site. The results can be embarrassing, and that means loads of time has been wasted.

Launching a new website should be a fun and creative experience. Make sure it is, by outsourcing the pain. Meanwhile, I urge you to check out   https://michaelhoresh.com/.

 

 

Creating genuine equality in society – innovative Israeli approach

6 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Just about every country in the world, where the culture promotes social equality, struggles to meet their noble aims. Even Sweden has its issues to resolve.

Israel is a veritable melting pot: The ‘religion agenda’ sets up barriers between peoples over matters of land. It also creates a divide between the sexes. There are several dominant minority groups such as Druze, Circassians and Bedouin. And so the list goes on.

Life is not perfect, but overall Israel maintains a democracy and encourages minorities to participate. Golda Meir was one of the first female Prime Ministers in the world. In Gila Gamliel, the country today has a very pro-active Minister for Gender Equality. Walk into hospitals, you will see Jews and non-Jews treating and being treated as one.

Is this enough? Clearly not. And into the breach has stepped Israel’s Ministry of Justice. Last week, the chief bureaucrat of the ministry – a female -hosted the second annual conference on “Partners Together”. The aim is to promote and to ensure a wider participation of all communities in the justice system in the Holy Land.

Quoting stats published in a local newspaper, of the positions available in the ministry:

  • 67% – women
  • 9% – non Jews
  • 1.5% – special needs
  • 0.75% – Ethiopians

There are some positives. 60% of the top positions are held by women, compared to 38% for the rest of the civil service. Salim Joubran is a Christian Arab and is a permanent member of the Supreme Court in Jerusalem. And the very fact that such a event takes place is a spur to other ministries.

What should be stated is that the conference, which took place in the full glare of the media, can only happen in a democracy.

Remember Israel has geopolitical problems oozing out of every river and hillside. However, while Israel’s detractors may point out the country’s failings – and yes, they do exist – compared to its neighbours and even some members of the EU,  Israel is light years ahead in actively seeking a more integrated society.

5 ways Israel enters the lives of billions daily, via their TV

5 January 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

A fascinating review of how Israeli tech is core to the performance of smart TVs has let the cat out of the bag. Despite the malicious efforts by international activists to boycott and to sanction Israel , the talents of the Holy Land are now willingly accepted by billions globally. Samsung and LG users can testify outright to that.

The fact is that this capability is but one of several ways that Israel is now making its mark on international television. For example, it is about four years ago that Cisco bought out a Jerusalem tech company called NDS, which had once been partially owned by Murdoch. Amongst the company’s many offerings, it designs the encryption packages for use by SKY TV and others. This is of immense value for such media giants.

Next in line is the small but rapidly growing crop of Israeli productions that have been picked up by larger studios in more dominant markets such as America, France and China. I think the most notable of these was the emmy-winning programme, “Homeland“.

And then of course, we have the ad industry, crucial to any media outfit. Taboola and Outbrain are probably the two largest content discovery platforms. Their success has sprung out of nothing to billions in less than five years, starting from small offices in the Tel Aviv region.

Finally, to cap everything off, it was announced last week that two Israeli actors will be taking part in the next series of the television blockbuster, Game of Thrones.

The message here is that Israeli innovation is not just restricted to the world of mobiles or biotech. Entrepreneurship is about pushing boundaries. This is what Israel is now doing successfully on your TV, in the comfort of billions of living rooms around the globe.

Israeli high tech exits continued to rock on in 2015

31 December 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Israeli high-tech continues to provide investors with an impressive string of exits, with total deal value of more than $5bn for the fifth straight year.

This is the crux of an annual report released yesterday by PwC on the Israeli high-tech scene. The actual turnover in 2015 was around US$7.2 billion. Impressive as that absolute number is, now factor in the context. Israel is a small country with a small population, engulfed in a complex geopolitical environment and operating in a troubled world economy. In other words, US$7.2 billion is incredibly impressive.

The number of deals rose from 52 to 65. The largest one featured Fundtech, which was sold in the early summer for US$1.2 billion to D H Corp. The most consistent player was Microsoft, which made five purchases for a total of US$750 million, such as Adallom. And there were new boys on the scene, such as Amazon who laid out US$360 for Annapurna Labs back in January.

It is dangerous to predict trends. Interest rates are on the rise slowly, which potentially could have a slowing effect. There again, serial investors such as Zohar Gilon show no inclination to reduce investing in Israeli tech. The areas of Fintech and cyber tech are still highly popular, as I have seen overseas’ scouts pour in to the Holy Land recently. And as part of a positive social trend, the gender gap in salaries in the high-tech sector is narrowing rapidly.

So as we ease our way towards 2016, what can we expect? One thing is for sure, Israeli tech continues to permeate and improve the lives of billions around the globe. This trend looks set to continue for some time to come.

The great Israeli disaster in customer relations – part 1

28 December 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Spot the misfit:

  • The national fruit of Israel is the sabra – very prickly on the outside, yet juicy and tasty on the inside.
  • In the world of selling, building strong relationships with customers is paramount, and that requires many skillsets including an ability to be empathetic from the start.

Just recently, my wife and I have had to suffer three two large Israeli concerns on a consumer issue. Once we had come through most of the ordeal, we realised that they all had the same techniques, humiliating and time consuming. What it boils down to is that while these retail giants thought they were improving their sales potential, they were actually shooting themselves in the foot.

For the record, I am talking about a credit card company and a cable TV outfit. ( I will name the third one in another blog). In both instances, we were calling up to cancel. And in both cases…………

  • They did not spend enough time listening to what was the key issue
  • They continued to insist they were so brilliant….when it was their so-called brilliance that had led us initially to our negative decision.
  • When we showed our perseverance and demanded a cancellation, they offered us discounts, which effectively had been available up to then but we had never known about! More insults.
  • And finally, the big trick!!! When they internalise that they are losing you as a customer, they say: “Please wait a moment, while we put you on hold”. As you can imagine, this becomes one of the longest “moments” in history. Why they need to put you hold in the first place is a mystery, except as a delaying tactic. They hope you become so exasperated that you will hang up, and thus they keep you on as a paying customer……..at the full rate.

Many years ago, El Al, the national airline, was considered so awful that the letters in its name were thought to stand for ‘every landing always late’. Times have changed. The company from top to bottom has learned. Today El Al is one of the world’s best selling stocks for airlines, and the customers are coming back.

Amazing what you can achieve, when you are nice to clients and treat them properly.

Years later, and people still don’t use Powerpoint properly

22 December 2015
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Categories: Afternoon Tea in Jerusalem, Business, Israel
  • Two weeks ago, my wife returned from a major conference in Tel Aviv, where she described the lecturers as boring. Even the slides had nothing to offer, she complained.
  • In the summer, I attended a webinar, where a series of very clever people offered me slides that had clearly been used for other events.
  • One of my leading Israeli clients insists on swamping his Powerpoint slides with hard text, because that is the only way he will remember what to say.

Three totally unconnected events. Several very capable people. All failing to use one of Microsoft’s key programmes, Powerpoint, when trying to highlight key issues of their talks.

Let us be honest, and I say this as a business mentor who is not the most savvy when it comes to tech, you do not need a lot of training to start yourself off in basic Powerpoint usage. It has some cool features. And if you do not like it, there are many decent competitors around.

A title of a posting on the BBC website summed it up very well: “How to avoid death by powerpoint“.

Why, in the age of the internet and millions of digital images, do slide presentations seem to belong to an older, duller decade?

The blog makes some great suggestions. Specifically, it is highly worthwhile providing unique photos. However, there is another issue here.

Most presenters do not take enough time to consider what will really, truly and continuously interest their audience, and then go on to test such assumptions! More often than not, this is not a ten minute process.

Look at it another way. By not investing in this brain-storming session, you are effectively saying that your potential listeners are not worth the effort. A bit insulting, no? I can also add that most people who I have seen do take their time in thought then go on to save hours later on, because the slides become that much easier to bring together.

Friends: We are at that season, when some of us declare resolutions for the new year. Let us all take it upon ourselves to make our presentations so much more acceptable for the rest of humanity. The lives of millions will be so much improved, and your may even go on to sell your products and services to others.

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