Jerusalem Archives - Page 16 of 25 - Michael Horesh Business Coach and Mentor

5 July 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

When I meet with clients just setting up in business, they often ask me if they should reduce prices or if they should work on commission only. Well, it will only be for a short period of time – until better work comes in – is the worn out justification.

I am a business coach and mentor. Many of my customers are located in the greater Jerusalem area, where bargaining is a religion. Yes – pun intended. And it is a well-worn international commercial trick to drop prices in order to break into a market which is already dominated by others.

That said and often to the discomfort of those that listen to me, I tend to question the wisdom of such moves. For example….

Case Study One: My client is trying to promote a new service, which is of outstanding value. A price has been set, which is deliberately above the average market price. The initial response is good, but without being fantastic. He wanted to offer discounts.

Yes, this may bring in some waverers. One the other hand, it is an insult to those that have bought in already. So, they are not likely to become repeat customers. Further, on any future offering, potential customers will have learnt to hang out until prices drop, similarly to seasonal sales in fashion shops. In other words, the tradeoff in the long run may be negative.

While you have to judge each situation on its merits, I urge my clients to feel and explain and stick to their core values. This tends to be enough for their own clients to come in at the agreed price. And, if necessary, to clinch the sale, you can always offer a small financial incentive as a gracious (not begging) final gesture.

Case Study Two: I know so many people who work solely on the basis of commission. A classic example are those who try to bring investments into start-ups. This can involve months of intermittent labour, where no there is no guarantee of success.

Personally, I have been there and done that in a distant past. I taught clients how to create presentations, talk in public, create business models, and more. However, in the end, for a multiple of reasons, the result of the efforts was nothing.

The fact of the matter is that if you create a product or if you deliver a service, and especially if you are giving your ‘level best’, you are due financial remuneration. Never allow others to force you to forget this!

And into this discussion walked Taylor Swift, arguably the world’s leading female music performer of the moment. Swift would not bow to Apple’s demand to allow her music to be downloaded for free for three months. Not that she needed the money.

Her point was simple. Why should artists – over 90% of whom are simply struggling – be forced to donate their talents to boost the revenues and share price of Apple? Within 24 hours, Apple had backed down.

And that is the lesson for all people in business. If you are selling something of top value, all things being equal, you should be able to secure a reasonable price for yourself. And if things are not equal, find a way to change the playing-board in your favour.

26 June 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Wearing the hat of a business coach, I see many start-ups in the Jerusalem region. And do not misunderstand me, these activities cover a range from high-tech to service providers to retail and beyond.

As a mentor, I am often asked in innovation and entrepreneurship can be taught or if it is simply ‘built-in’ from the moment we are born. The answer is too long for a brief blog. However, I want to share an exciting and exhilarating experience I had last night in Tel Aviv. I had been asked to network with a group of early-20 year old group of Israelis.

On the face of it, there is nothing special with that. They came from a wide socio-economic background; city types and those who had grown up in small desert towns. The uniting factor was that they had all graduated in the past 24 months from an active unit in the army, yet they had barely found serious employment or embarked on a university course.

Over an hour or so, I spoke at length to about 10 people. In their own way, they all wanted to know: “How do I start a business? What skill-set do I need?”

I was fascinated by the amazing array of ideas I was presented with, this coming from a set of people with negligible commercial experience.

One individual, on visiting Tel Aviv, had observed that a specific central neighbourhood did not have a tobacconist. With an investment equivalent to about US$5,000, he opened up two weeks ago. He is in desperate need of somebody to explain the importance of controlling cash flow, but having fun for now.

Another ex-trooper has wondered why a lovely countryside bike route near his home is not serviced by a specialist store. I encouraged him to look at similar outlets in other parts of country in order to learn how they operate and survive.

Others were looking at the building industry, event planning and more. However my ‘favourite’ story of the evening came from somebody who just appeared to be listening to others chatted with me. Then he pulled me aside. “I have this idea, but it is complicated to explain,” he imparted with a curious smile.

“You see; I want to start a fast food delivery business in Tel Aviv, but to a very specific sector……..(Pregnant pause)…..After people have taken drugs, they need to eat quickly. I want them to have my phone number and my service will deliver from a set menu. I will ensure that my prices are cheap, or at least competitive”.

Well readers, as you can imagine, this is not my scene. Now was this a moment to preach. His face let me know that he felt he had trumped me. Market size, I wanted to know. Not a problem, I was reassured, as another knowing look was thrust back at me. But I was not to be defeated.

I responded: “Your business model needs to be revamped. If these people are desperate for a food fix, they will probably pay a premium rate.” He laughed and acknowledged my triumphant defiance.

But you gotta ask: How do these young Israeli adults come up with such a varied, creative and innovative set of ideas?

18 June 2015

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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

One of the strangest aspects about my work as a business coach and mentor is how my customers never cease to complain about their own clients. They are always too ‘something-or-another’

Many of my clients are based in the Jerusalem region. I have often wondered if this moaning is part of the Jerusalem syndrome, an unfathomed hypnotic effect, or merely some kind of ‘sun stroke fall out’. However, the truth is that we often bitch and whimper about the wrong people.

Instead of taking out our stress on others, we should actually be asking what we ourselves could have done better. And I offer two explanations as to what I mean.

First, too many of us allow our clients to manage us, rather than the other way around. The result is that we end up fielding demands that we had never anticipated and additional expectations that we cannot fulfill. Whatever the client – their value, the scope of work, their background – they remain the client and should abide by your rules.

You can be friendly towards each other, but they are not your friends. There are boundaries to be maintained. In other words, it is time to understand the meaning and thus the limits of the phrase “the customer is always right”.

Second, and potentially far more importantly, we have to ask ourselves: Why do we focus so many resources on the customers we have, rather then the ones we want? For example, I have met up with three clients over the past two weeks, who have invested considerable efforts responding to their customers, only to realise the projects are simple not profitable.

I am particularly impressed by this thought from J.P. Eggers in the Harvard Business Review:

To be successful, companies need to innovate for the consumers they want, not the ones they have.

And that is the point. We must never cease from searching for new revenue sources, especially those types of clients who fit in with our vision and match out ideal business model.

10 June 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

I love my work as a business coach and mentor.

It is a wonderful experience to take a concept and help somebody convert that into a commercial operation. It is thrilling to help owners restructure a struggling outfit into a thriving business. I become invigorated, energized, when I see clients swallow up problems that weeks beforehand would have had them tearing out clumps of their hair.

Actually, I am lucky twice over. Much of my clientele is based in and around Jerusalem. This is a very special city, and not just because it is the centre for three global religions. Today, Jerusalem is a high-tech hub, especially in bio and medical fields. It even boasts a weekly ‘hacknight for women“.

Business mentoring is a mutually rewarding profession. Just this morning, I was talking to somebody in a networking session, as they described their wish to find a partner to help in setting up a new concept. I immediately pointed out that what they were describing were the functions of a coach or mentor (no, not me), and showed them how they could secure a subsidy for such a position. All are challenged to ensure the success of the adventure.

So, it is my pleasure to break a rule and mention a very specific client of mine, David Katz. He contacted me about 18 months back. Two things were evident from the kick-off: His efforts lacked a concise vision and thus could not be bound in a profitable manner. Yet, I was meeting a person of intense drive, supported by oodles of talent.

Over several months, David became more focused, creating new revenues, yet never quite “getting there”. One day, on return from an overseas trip, he announced with passion that he wanted to set up a quality bakery, using ovens to bake tasty bread. I was delighted, because I immediately understood that this was a concept that encompassed many of David’s key strengths and ideals.

This coming Friday, David will open the doors to his bakery to the general public. “Pat Bemelach” is located on the Kibbutz of Rosh Tsurim, just beyond south-east Jerusalem People will enter an atmosphere, which echoes an earthy, welcoming, late-Victorian feeling. The branding – logos, T-shirts, etc – is top class. While at very initial stages, with much to be proved in the marketing, the launch pad is there for a successful business.

And from a personal point of view, I am genuinely happy for David. He has showing a continued willingness to change, through a process of listening, when in the past he may have been reluctant. He has also benefitted from the allegiance of Anomarel Ogen, who David describes as his guru. And it is David’s personal skillset that is bringing all the separate components together.

I am looking forward to Friday morning and seeing the ovens working away. And that is why business coaching is fun.

2 June 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Elevator pitch – 15 or so seconds to tell somebody, as if you were in an elevator (or lift, for the Brits) with them, why you are so good at whatever and why that is important for them.

The web is full of comments about why this skill is so fundamental for most of us. I am particularly fond of a recent suggestion from a comedienne-turned-motivational speaker, who asks us to recall the meaning of a ‘punch line’. It makes you stop in your tracks and realise that something special has happened. In other words, get that ‘extra bit’ into your speech or pitch.

Here’s the catch. People are shown how to practice their pitch, like an actor. You can be encouraged to incorporate themes or facts. However, how do you bring it all together? What specifically are you going to say?

What made me think about this is meetings that I held this week with two business mentoring clients in Jerusalem. The first – call him Tom – is in the process of a creating a service business and has just benefited from a steep training course in an accelerator. Here, they drilled him through the routine of the elevator pitch.

I asked Tom to roleplay his speech, which he did to perfection. Only, I was left feeling empty, and blurted out ‘so what’. It was interesting and well delivered, but it lacked strong meaning and direction. No punch line. He had simply missed out a key phrase that made all the difference.

By comparison, today, I sat down for the first time with Wendy, a nervous biotech freak. Deeply committed to her field of expertise, I asked her why she wanted to become a consultant. The answer was uninspiring, and continued to be despite some extra probing. I was troubled.

So I gave Wendy a quick example, speaking as a business coach, explaining in a quarter of a minute how and why I was of value to an imaginary person standing opposite me in a lift. Wendy responded that I had not been fair. “In biotech, what counts is X, Y and Z. And that is where I have real experience,” she retorted haughtily. For the first time in the hour, she had become animated.

I let Wendy ramble on, and then brought her to a stop. She was unsure as to what had happened, until I had assured her that she had just uttered a great, if rough at the edges, elevator pitch. She smiled.

You see a core element to a creating a great elevator pitch is to understand your own passion. This is what protects and then enhances your commercial vision to a level that you want to share it with the world.

1 June 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Last week, I considered how Israel’s high-tech economy is able to create growth companies out of start-ups. The key is not to lose the emphasis on innovation and the innate drive for technological change.

Shortly after I completed that posting, I was faced with an article, which outlined London’s pathetic path towards creating an eco-system, enriched by innovation and change.

Strange, I thought. London has a captive audience of 8.5million residents, slightly larger than the populace of all of Israel. Resplendent in culture and history, it hosts some of the globe’s leading universities. Its financial heartland can support millions of start-ups. And yet, ….

And yet, when it comes to innovation, London loops in behind Israel, fifty percent of which is arid land. Further, Israel has two sub-populations, Arabs and ultra-orthodox Jews, known for their large families and poverty. It is a country surrounded (literally) by geopolitical threats to its existence. The government budget is defense-spending centric.

Given these restrictions, what is it that has allowed (or demanded from) Israel to jump on the start-up bandwagon decades ago and never get off to this day?

There is a quotation attributed to David Ben-Gurion, the country’s first and legendary Prime Minister. “Nothing is impossible until it has been accomplished”. Cute, but why the need to push the impossible and so relentlessly?

For me, the underlying theme is the country has to keep proving that it is one step ahead. Unfortunately, the day that the Israel declared independence in May 1948, it was invaded. That threat has yet to be removed. Add in to the mix the fact that allies have rarely actually fought on behalf of Israel, then the citizens come to realise that they need to find a way to make things succeed for themselves.

It is this desire for self-reliance that has created a high-tech culture in Israel, which has been difficult to match, even from places like London with its near unlimited resources.

12 May 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Time Magazine recently listed Jerusalem as one of the world’s emerging high-tech hubs to watch. For a city known as the centre of three great religions and that has spent much of its 5,000 year history lathed in conflict, that statement is quite a move away from the stereotype view.

Yes, the Hebrew University is ranked in the world’s top two hundred places for tertiary education. The bio / pharma sector has blossomed in the past decade with over with over one hundred companies located in the area. Intel has a major r&d plant in the north of the city. Meet up groups like the Jerusalem Business Networking Forum and PICO have emerged through street initiatives.

Yet while the list of attributes is impressive, come Friday late afternoon, as the sun descends, much of the holy city goes to sleep. The large government offices shut down. Aside from the Arab market and some of the pubs, Jerusalem rejects comparisons to Silicon Valley.

Maybe that is about to change. There are already ambitions plans to revamp the entrance of the city, creating large amounts of office space. Within a couple of years a new train line will link the city to the rest of the country. (For now, the old Ottoman paths are still in use). And despite this year’s downturn in tourism, new hotels are planned.

This week, Mayor Nir Barkat, a former high-tech supremo, launched a 5 year initiative for the city. The aim is to double the level of foreign direct investment into Jerusalem. The hope is to bring 5 major multinational conglomerates to the capital. To date the offices of Microsoft, Siemens, Lockheed Martin et al tend to remain in Tel Aviv.

Simply put, the number of jobs in the sector is expected to double and this should have a positive knock-on effect in auxiliary services. As part of this process, Barkat has encouraged the shooting of three major media productions in the past year alone. Portman, Gere and others have had an opportunity to visit the city recently.

Finding the resources to invest around US$8 billion over the next five years is a tall order. But then take a look at Our Crowd and Besadno. These are two private groupings, based in Jerusalem and investing tens of millions in primarily Jerusalem-based start ups. I wonder how the Davids, Solomons and Herods of old would have considered these near miraculous changes. The image of the city of Jerusalem is receiving an encouraging and sorely welcome commercial facelift.

1 May 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

I have been working as a business coach and mentor for nearly a decade. In truth, I was probably practicing the profession long before that without realising it.

I really enjoy the work. Primarily operating with small and medium-sized operations, it is immensely gratifying to see CEOs change how they think, sales pick up considerably, bank balances move into the black and much more. Only this week, I watched as the owner of a 25-person manufacturing operation initiated a new marketing strategy, which should have a direct positive impact on the bottom line in the financial statements. Three months ago, this movement forward had been just a remote possibility.

I recently read an interesting blog called “overcoming the common toughest coaching challenges“. Available from the Harvard Business Review and featuring case studies, I was specifically struck by the last few lines:

Coaching is meant to be about positive change……. Of course, you will run into tricky circumstances, but remember that worrying or focusing on those challenges won’t move you, or your direct report, forward. Make room for the change you want to see.

Much of my work takes place with in Israel, around the Jerusalem region. Now this is no easy market. It is very common in the first meeting for people to sit there, arms folded, starring pointedly straight at you. The body language is oozing ” you think you know better than me – I’ll show ya!”

And every time, I love the challenge from scratch. There are a few tricks that I have learnt over the years.

Never be flustered by the opening bravado.
Early on, find a gentle way to point out that you do not necessarily know better than the client, but……
….but also allure to the fact that you have many other skills to offer that will compliment their knowledge. I rarely reveal the secrets in the first few sessions.
Just as they are launching in to an ‘I know it all’ lecture, challenge one of the initial so-called statements. More often than not, the ‘fact’ is merely the ‘expressed hope for the future’.

Yesterday, I was having a coffee with a friend in the holy city. Before I knew it, I was putting on my mentoring work hat. As he spilled out some of his salient issues and responded to my questions, it was fascinating to observe the changes in his approach. Business coaching can be an enormously satisfying and gratifying profession.

27 April 2015

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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Anyone reading this probably receives hundreds of emails every week. For all that, it is staggering how many of them are so badly written. And when I say badly written, I mean inappropriate, if not down insensitive. they just get under our skin, unnecessarily.

For many, email has become a medium for instantaneous response. We abbreviate what we want to say. We shorten words to single letters. And few reread what is written before the ‘send’ button is attacked. All of this is a recipe for disaster.

Have you ever received a message that says: ‘Sorry no time to explain properly, but…….’? (What? You don’t think I am worth a few more seconds?)
How about the edited email that comes back to you full of corrections in the autoset colour of RED? (makes you cringe, and potentially down right humiliating).
And then of course there are numerous bosses who feel that they can hide behind the faceless screen and send out a barrage of criticism. (Whimps and more humiliation).
Yucky typos, insensitivity, lack of basic understanding, etc, etc – we receive them all……….and even fall guilty of such misdeeds ourselves.

As a business coach in Jerusalem, I probably spend about one session a week showing clients what they should (and should NOT) put into a message. I have just read a very interesting summary on this topic – why so many people fail to construct a decent email. The author, Andrew Brodsky, makes an excellent point. You do not have to hide an emotion, but there are so many ways to express it, both constructively and effectively.

I thoroughly endorse what Brodsky went on to suggest:

One strategy that has been found to be very effective across settings is to engage in behavioral mimicry (i.e., using emoticons, word-choice, and slang/jargon in a similar manner to the person with whom you are communicating). In a set of studies of American, Dutch, and Thai negotiators, using behavioral mimicry in the early stages of text-based chat negotiations increased individual outcomes by 30%. This process of mimicry increases trust because people tend to feel an affinity toward those who act similarly to them.

So let us make a pledge together this week. Before whipping out the next bunch of emails, take another 15 seconds just to think how the person will feel when they receive it and what it will prompt them to do. This extra investment of thought may well save you a fortune in time later on.

23 April 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

As Israel celebrates 67 years of independence, this is an opportunity to see just what its economic success can teach others in the region.

Remember: From 1948 until the mid 1980s, Israel’s leaders deemed it best to govern a closed economy, protected by high tariffs and government regulations. Since then, the country has witnessed spectacular growth, often characterised by the term ‘start-up nation’. According to the Ministry of Economics, “since the Establishment of the state, the number of employees in Israeli industry has grown from 65,000 to 400,000. Israeli exports have soared from $5 million to $47 billion.” Phenomenal!

And that growth shows no sign off stopping. For example: –

The Israeli economy grew 7 percent in the last quarter of 2014, its highest rate of growth in recent years.
Even Jerusalem is no longer seen as just a tourist centre for the religious, but a thriving port of call for high-tech and biotech investment opportunities.
In the past month alone, multinationals like Apple or Dentsu from Japan have upped their involvement in the economy of the Holy Land.
It is estimated for 2014 that 300 start-ups raised approximately US$3.4 billion in capital. A further 100 companies sold out for US$7 billion. 2015 is showing a similar pattern after just four months of activity.

The list of positives is very long. Although there is still much to improve, one commentator wrote: “Israel boasts one of the world’s most innovative economies with the highest ratio of startups per capita, the second-largest venture-capital industry and more than half of our exports deriving from the high-tech sector.” Unfortunately, despite the boom, ‘there is chaos all around’.

Let us compare this success story to the Palestinian economy of today. Proponents of Ramallah and Gaza argue ad nauseam that there will be no riches for its people until Israel takes down the military road blocks in the West Bank and rescinds the blockade of Gaza. Yet, there are now very few such army positions. And it is Egypt that has shut down its border with Gaza, while Israel allows in daily lorry loads of humanitarian supplies.

Inevitably, there are many reasons why the Palestinian economy is thread bare. To name a few: minimal efforts to collect taxes, corruption, a poor historical base, and yes Israel can take some of the blame. However, there is something more fundamental, something that Israel began to appreciate back in the 1980s.

A strong country cannot just rely on a strong military. The economy needs to thrive as well. That requires diverting resources into domestic infrastructure. In contrast, Hamas appears content to ignore the housing problem in Gaza, concentrating on building more tunnels to attack Israel’s towns. Fatah makes little attempt to install basic social principles of government. Where are simple programmes to encourage small businesses? As I wrote over a year ago, the Palestinian economy remains a story of “what if?”.

And if you are really looking to the answer to that question as to what could have been achieved: Well, success is not just measured in statistics. The beauty of Israel has been summarized in an amazing and stunning collage of 67 photos. They reveal just what a fantastic place Israel has grown to be and how it has come to prosper, for peoples of all faiths and dreams. Happy Birthday, Israel!

21 April 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Elwyn serves more than 3,000 children and adults with disabilities throughout Israel. Headquartered in Jerusalem and with centres throughout the Holy Land, Elwyn offers employment opportunities, vocational training, educational support, sheltered housing and more to a population that it is easy to ignore. Since 1984, Elwyn has ensured that thousands have found their way to become near self-supporting, when otherwise they would have had no place in society.

In recent years, I have been honoured to have played a small backroom role at Elwyn. It has been a fascinating experience, observing how the facilities have progressed. Time and again, statutory agencies such as the Ministry of Welfare have almost come to depend upon the organization, especially as it provides services for Muslim communities in East Jerusalem and minorities groups like the Druse in the north of the country.

The cross over between the ethnical divides is fascinating. It appears to be seamless, although it is the result of detailed professional work. The top team includes the observant Jew, the secular non-Jew and most ‘creatures’ in between. It is surely a lesson for most other countries in the Middle East. Elwyn simply strips away the stereotyping that journalists try to attach to Israel.

I dropped into Elwyn earlier this week, just as Israel is about to celebrate her 67th Independence Day. However, it must be stressed that Elwyn is not an isolated drop of racial harmony.

The commander of the crack Golani infantry brigade, Ghasan Alian, is a member of the Druse community.
Salma Fayumi is a nurse and was the runner-up in the reality TV programme ‘Master Chef’.
Dr Aziz Darawshe heads the Emergency Unit at Hadassah Hospital, arguably the largest medical unit in Jerusalem.
Israel’s amabassador to Norway, member of the Supreme Court, head of the Achva Academic College and…etc, etc,etc….. all come from minorities in Israel.

It is a very, very long list. In the words of a newspaper columnist, it is “simply inspiring” that a young female Arab journalist, Lucy Aharish, has been chosen this year as one of the celebs to light the traditional beacons of Independence, a ceremony broadcast live on national television to a large audience.

Sadly, there are still those that seek to portray Israel as openly and overtly discriminatory. Yes, the chanting at a couple of football grounds is to be deplored. However, that does not mean that Israel is some form of “catastrophe“. And as for claims of ‘ethnic cleansing’ – such as those offered in the UK’s Guardian newspaper – the brilliant efforts of Elwyn, Alian, Darawshe et al reveal the immorality and baselessness of such diatribes.

Israel at 67 has come a long way since it was invaded by its neighbours in 1948. It has more to learn. With the Elwyn’s of the country to guide, the Jewish state has a strong future ahead, one that can be shared by all.

1 April 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The problem is a common one for businesses throughout the ages: How to increase sales, especially when they seem to be going in the other direction?

Advertise – new products – additional services – etc, etc. These are all well-known techniques, and can work.

As a business mentor, I am thrilled to report about how my client – call him David – tackled a downfall in revenue. He is the owner of a pet shop just outside Jerusalem. Having set up his business a couple of years back, the culmination of a childhood dream, David enjoyed back-to-back monthly increases in sales for much of this period.

Towards the end of 2014, David became weighed down with bureaucratic demands from the local authorities. Next, there was bad weather, which forced people to stay at home, and that was followed by a general slump in the local economy. Before my client had realised it, he was facing a cash drain. Customers were going elsewhere.

What could David do?

First, he analysed his competitors. They were challenging him on key products, such as large bags of food, at times slashing prices to the bare bones. David matched them, but went even further.

David had fathomed out that others had lowered prices on a series of poor quality products. He had no problem explaining this to his customers, casually offering them alternatives. These happened to be more expensive and carry a higher margin. But for the customers’, their beloved pets were being fed the best.

And just to ram the point home, if a client chose the more expensive product, this kicked in ‘reductions’ on several other items. All of this was supported by a small leaflet campaign and a few adverts in the local paper.

Did this work? In March, historically a quiet time, sales leapt around 20%. Bingo! Further, profitability was not sacrificed, as so many clients found themselves immune to higher costs. Anything for our pets in the Holy Land!

However this case study begs a question. If it is so simple to create such a change in the way brands are perceived by others, why do so few of us adopt similar strategies to raise sales?

27 March 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

One of the most common themes I come across, when meeting with the owners of small and medium-sized enterprises (SMEs), is their inability to create new sales.

These people are often erudite, well-educated, experienced, possessing a firm understanding of their industry. However, converting all that brainpower into new cash in the bank is often too complex for them.

My role? I am the business coach and mentor, who is supposed to uncover for them the path to utopia. What are they missing?

First, a quick reminder. SMEs lack resources. I am not just talking about extra cash. There is rarely the time, let alone the personal, available to devote to sophisticated marketing campaigns. The CEOs need instant results, driven by a minimal set of inputs.

I am describing this background, because the subject came up this week with three of my Jerusalem-based clients. They appeared to eye me with a combination of desperation, combined with a look of challenge. ‘I bet you really do not know the answer’, they seemed to be asking.

So, one after the other, I took them through a very practical four-step process.

1) Who are the potential clients sought after? Define them.

2) Where are they located?

3) Who do you know in these areas?

4) And why have you not called your contacts for a reference or introduction?

The point is that most of us tend to wait for new clientele to come our way. We are passive in our approach. At least that way, it allows to justify emotionally / mentally why ‘we are so wonderful but others just do not understand it’.

Instead, we should be more proactive, focusing on where the money is waiting for us and then talking – communicating directly – to the current owners of the fortune. And amazingly, most of these contacts are right in front of us. To prove my point: This is why so many successful SMEs can be found on LinkedIn, a social media tool designed to make the global world of commerce much smaller.

Over the past week, some of my clients in Jerusalem have been busy on the phone, reconciling themselves to months of forgone opportunities. And yes, I believe that the first contracts have started to come in.

26 March 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Around the world, Israel is associated with the phrase the land of milk and honey. Blame Moses for the phrase, which originates in the Book of Exodus. Yes, it is true that the modern-day communists from China have purchased Israel’s largest milk cooperative.

In parallel fields, Israel has become a leading player in the international wine industry. One of my particular favourites is the Ella Valley Winery, located south of Jerusalem. The rose has a lasting flavor on the tongue.

However, in the past few years, the country has seen a major challenge to these traditional, biblical beverages. Whiskey, specifically Scottish malt whiskey, is a massively growing phenomenon, amongst many different sections of society. Why?

A few years ago, the British embassy lobbied the Ministry of Industry to reduce tariffs of such imports. As a result, sales shot up by 180% in 2014. In another move, some brave entrepreneurs set up a distillery north of Tel Aviv, called Milk and Honey (sic!), under the guidance of a Scottish taster. While the final product has yet to be released, a Moonshine version has received rave reviews.

Earlier this week, I attended the second annual “Whiskey Live TLV” event in the heart of Tel Aviv. Packed out! Young, and old, Jew and non-Jew, everyone was having a great time. Once inside, I made a direct line for one of my specials, a Balvenie 17 Year Old Double Wood. And my compliments to Chivas Regal for putting on an excellent and entertaining tasters’ session.

Israel is a country full of surprises. The international headlines may limit readers to stories about geopolitics or high-tech. In reality, this land with over five thousand years of history is replete with new and exciting offerings, reaching out across traditional boundaries.

20 March 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

I was fascinated by John Blakely’s blog: “A tale of two cities – listening to the system”. He asks the question that many business coaches and mentors face. How can we change the spirit of an organisation?”

Blakely takes as his starting point the success accredited to Rudy Giuliani, the former mayor of New York. The man who slashed crime believes that he gave a voice to the spirit of New York. from there followed the necessary change.

An interesting approach. Blakely wonders how that model can be applied to commercial firms and organisations. This week, I was faced with such a challenge.

In my case study, I made my way to a manufacturer of housing products near Jerusalem. An established outfit, they have suffered from competitors encroaching on to their space. Further, in an effort to slash costs, advertising budgets have been thrown out of the window. Nobody can find out about their quality services, which are not the cheapest on the market.

The owners are frustrated, restricting themselves to putting out fires in the factory, as opposed to creating a new strategy. In parallel, they are demanding, a quick turn around.

And here is the catch. On the one hand, any their clients will end up spending a lot of money. Yet, the drive to their building is simply unappealing, to say the least. As I tried to explain the dichotomy, the conversation became uncomfortable. I was challenged heatedly. How could my theories possibly be related to making a sale?

Looking for a different approach, I asked my client to step outside and to tell me what he saw. The immediate response was one of near refusal. He only sluggishly rose from his chair. He spent several minutes, claiming that everything looked normal; no need to fix anything and nothing could be fixed anyway due to by-laws.

So, I challenged my client. Who could see the building in order to stop there? Why would anybody park in an area full of litter, when they were being encouraged to lay out lots of good money? What stopped him from creating a welcoming presentation of his products, enveloped in a backdrop of green shrubbery?

There was little further discussion. The man went back inside and produced a tape measure. I was assured that within two weeks, new signs will appear as well as other features. And with a touch of irony, two minutes later a good client walked in and jovially asked the same questions I had posed. My own customer must have felt that I had set him up.

Psychologists teach us that change is not easy for most of us. It is particularly hard for CEOs, who have become encrusted in practices that are known and safe. These ‘cushions’ hide the fact that these same practices are failing! It is the role of the business mentor to show the client, even when the resistance may be fierce, to show why change is not just necessary but feasible and even potentially fun.

16 March 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The question comes up time and again. “How do I make those first sales”?

I am a business mentor, with many clients located in the greater Jerusalem region. In English or in Hebrew, over the past few weeks, I have been approached by a new non-profit organization, a provider of alternative medicine, a consultant, shops, and more. They all want to know the solution to that great secret: how to ramp up revenue, and quickly.

When working with these teams, it is often surprises just how many people are unable to ask even the most elementary of questions. For example: –

What are they really selling? For example, McDonald’s is actually offering ‘ a fund family experience’, wrapped in unhealthy burgers.
What is the market looking for? And frequently the answer is not price-centric.
What are their strengths? Why should anybody buy from them?

The list is far more extensive. However, together what these probing thoughts add up is the construction of a branding policy. Yes, even the smallest and newest commercial outfits need to position themselves from the outset amongst their competition.

Just recently, I have been following Jonathan Gabay, who has launched a new book “Branding Psychology“. Gabay is often seen on BBC and Sky TV pontificating on how multinationals cunningly direct our purchasing habits. And while his book focuses on conglomerates, it has much to teach owners of small and medium sized enterprises (SMEs).

First, whatever your message, make sure that it is crisp and brief. The attention span of the mind of consumers can be measured today within a few seconds. People just do not have the patience for waffle. Just look at the adverts on TV, which seem to be shorter every month.

Second, the branding must be transparent. Internet, smart phones, wireless technology – they have all conspired to ensure that false messages are whittled out very very very quickly. In today’s global market, if you are deemed a peddler of false services or faulty products, you are doomed for a decade………..unless you invest in an expert in reputation management on social media. The recent bizarre story of the New Zealand milk scandal has rammed home this lesson.

In any typical country, SMEs comprise over 90% of total productivity. So many owners spend their time running from one problem to another, putting out fires. A little bit more effort in creating a strategy and a strong brand should lead to a far more focused result, and that means healthy sales

13 March 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

It is almost like an opening line of a joke. Three investment scouts from Unilever, GE and Boston Scientific came together at the Jerusalem Business Networking Forum (JBNF) Biomed this Tuesday. The aim – to explain what and why large conglomerates seek from Jerusalem-based bio start-ups.

There are over 250 multinationals in Israel with r&d centres. For many of them, Israel is as key focus point. For example, of GE’s 6 global centres, one is in Israel. Of the 50 firms in the GE Venture Group, at least 10 are Israel centric.

The panel was excellent. One key point that I picked up on was how conglomerates review young companies. The emphasis is no longer on the technology nor even the team. What counts today is a strong business model, reimbursement and the proof of potential revenue streams. Start ups – you have been warned!

However, what fascinates me even more is why these leading commercial heavy weights target Jerusalem as a bio growth zone. The city boasts less than one million inhabitants. It is a geopolitical nightmare. It is the centre of at least three religions, each imposing layers of conservative values on their followers. And yet….as the organisers of JBNF observed:

There are over 1,000 life science companies in Israel with over 110 of them based in Jerusalem. A major contribution to investment in Israeli life science are global companies, with over 15 global companies with R&D centers based in Israel with technology scouts, company acquisition and VC funding scorching the Israeli science. Over the last decade, over 15 major acquisitions took place in Jerusalem, with Oridion Medical acquired by Covidien, while Omrix was bought out by Johnson and Johnson.

Why Jerusalem?

Bio Jerusalem, a branch of the Jerusalem Development Authority, has secured a large and growing number of grants for new biomed companies in the capital of the Holy Land. These include tax breaks, reductions in city rates, aid to recruit new senior workers and more. These benefits can be worth hundreds of thousands of dollars spread over several years.
The Hebrew University of Jerusalem is quite simply an excellent campus. It is in the top 200 hundred globally, the leading Israeli university. Overall, Israeli campuses are ranked in the top ten for innovation. People literally spill out from their studies, straight into commercial labs, and that is no exaggeration.
820,000 people is a relatively small base from which to create a strong bio eco centre. However, it is important to emphasise that the very diversity of the population – Jew / non-Jew, Ultraorthodox / non-religious, Israeli born / immigrants from over hundred countries, etc – makes for a highly motivated and innovative dynamic. Just enter any of the bio hubs, such as the Hadassah Research Labs and you will hear a multitude of languages being spoken up and down the corridors.

The demand in Jerusalem for more, improved high-tech parks exists and is continually growing. One key explanation for that is the success of the biotech sector in the city, arguably in spite of all the restrictions it faces.

14 February 2015

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Categories: Afternoon Tea in Jerusalem, Business, Jerusalem

Two separate conversations on two different continents, yet with one common denominator.

Episode 1: I was talking last week to a close friend in London. Self employed and working part-time, they are looking to double the number of hours they devote to new customers. “But how?”, they asked me. “Where will I find these people?”

Episode 2: My own client in Jerusalem is currently looking to ramp up their sales. Experienced, intellectually astute and with a long list of former clients, they too posed a similar set of questions. What could they possibly do to bring in a new set of revenue?

So what is the answer?

In the first scenario, we are talking about a top-class service provider, who does not use social media. My advice – talk to friends and acquaintances. Word of mouth, a.k.a. networking, is one of the most potent formats to securing the contacts you want.

As for my own client, I suggested that they create a mass email, offering quality and original content. They could then send it out to all former clients.

In both cases, the person in question was strongly urged to move a fraction away from their comfort zone. They needed to make a very practical effort – talk or contact those people who trust them. This is not old-fashioned cold-calling. What is being described is just ensuring that you put your business in front of people and explain why your core value should be of interest to them.

Obvious and practical, especially for small and medium sized concerns. However, how many of us actually get round to doing so?

I did hear from my Jerusalem client that they immediately received several positive responses to their mailing – all from merely reaching out to those who already know them.

6 February 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Over the past month, I have been presented with three new clients. All of them can be defined as small or medium sized established family businesses, operating around Jerusalem, Israel.

As a business mentor, with a specific interest in commerce and strategy, I was thrown the financials. I was supposed to come up with expressive excel spreadsheets that would explain away what had happened. From there, I was required to shine some light on the solutions.

Well, there were no prizes on offer when I proved that sales were stagnant (or worse), as the costs pushed upwards. As the clients took on loans, the finance line also bulged outwards. The cash flow….was not flowing freely.

My attention turned to the line of ‘gross profit’. This is often defined as the difference between revenues and the cost of goods sold. These costs can include purchases of raw materials and production workers. It was noticeable that in all three cases, this profit ratio was under 30% and dropping. In other words, there was not enough money to pay for overheads and fixed costs.

A business coach like myself automatically knows that an experienced CEO has already rushed to clamp down on costs. He (or she) knows how to squeeze his suppliers. He will fire workers if needs be. He will compromise on a price in order to achieve a sale. So what more can be done?

One person actually told me that he did not want to see my numbers. He had spoken to so many analysts in the past. What was he do with more percentages and comparisons?

I have previously commented on how many firms rashly slash advertising expenditure at this period. It is simple to do, incorrectly seen as a less painless option. However, what the financial statements do not reveal are the time management skills of the CEO. Very often, when a business is in trouble, the CEO finds himself stuck in the office, ‘putting out fires’. That is how he keeps control, but of what?

By staying inside, the CEO has no time to go on the road. He does not meet new clients. And that means extra sales are never seen by the accountants. Thus the cycle of commercial doom enforces itself.

All three CEOs winced visibly when I suggested that they come up with a work schedule that releases 20% of their time to direct marketing. They wriggled even more when I asked them to consider the alternatives – a further reduction in revenue.

24 January 2015

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

I am often asked the question by potential clients: Should they seek help from a business coach or a psychologist?

Well, as a business mentor and consultant, operating in Jerusalem and Tel Aviv, I guess that most of my responses reveal a natural bias. However, the issue came up again last week from a very different angle. I realised that three of my current clients are psychologists by training. Now that struck me as unusual.

One is very much still practicising their skills. A second has moved to a related field. The third has long abandoned the profession. Each is trying to set up or expand their business. Each one is trying to grapple with challenging commercial approaches. And, each one is held back by ‘self issues’.

Interestingly, many of their problems can be found amongst those people who might have approached them for help: procrastination, self doubting, complicating simple problems and much more.

So does that mean, if you have a business problem, you must turn to an experienced business coach?

David Clutterback in his book “Everyone Needs A Mentor” cites an illuminating case study. Tennis players were briefly coached by specialists from another sport. The result was that the players discovered new skills and strengths.

Similarly, I recently spoke to a senior jet-setting executive. They view their therapist as ignorant on business matters. However, the exec readily admits that the same therapist has a reamrkable ability to put their finger on key financial weaknesses.

Bottom line? There is no all-encompassing answer. A good psychologist should appreciate the complexities of other professions. And a true business coaches will accept that few decisions are made rationally. You have to feel comfortable with the person who is going to help you, understanding that this may become a relationship that could last months or longer.

Pages

To offer a discount? To work on commission? A ‘swift’ response

Innovation: An alternative Israeli case study

How we make the wrong complaint about our clients

The importance of a business coach; a story about a bakery.

But how do I actually put together ‘an elevator pitch’? The Jerusalem version

Who leads in innovation; London or Israel?

Jerusalem – a high-tech hub?

Just how difficult is it to work as a business coach and mentor?

Experienced business managers – poorly written emails: Why?

Israel’s economy is 67 years old – a lesson for others to follow

Elwyn – giving special people a new meaning to Independence

Want to learn an old-new trick in sales? The Jerusalem pet shop gimmick

Finding that magic formula for small businesses to make new sales

Israel – the land of milk, honey, wine, and…..whiskey?

Business coaching – helping the client recognise the need to change

Why even the smallest companies need to brand themselves

3 reasons why multinationals are seeking out Jerusalem Biotech companies

One obvious yet ignored method to boost sales immediately

A lesson for CEOs of struggling small businesses

Business coach or psychologist – who to choose?

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