If you have a high-tech start-up, you know that sooner or later you are going to have to pitch investors. At such meetings, I find that many entrepreneurs spend too much time doing the talking, and usually concentrating on detailing their technology, which most people fail to comprehend. I encourage the techies that I work with to enter any such presentations with a validated business model. This is where my successful clients stand out in seeking the attention of the people with money, because the technology may be a “wow”, but it is sales that do the real talking.
Some very talented accountants formed a partnership to appeal to a niche market. They planned to develop a low cost website with minimal input and planning, a common mistake. My coaching convinced them of the importance of investing time into positioning themselves properly to potential customers, including devoting time and energy into their marketing and website.
In an era of globalization, it is easy for many of us to justify how and why we can get along with people from other countries and to understand their requests. Judging whether an Israeli is bluffing, or explaining the context of a British understatement, or justifying an American outburst of anger is one of the tasks that I face regularly. For example, an Israeli web designer was unable to fathom the despair of a client, born outside of Israel. The result was a shouting match via emails. There was no effective communication until I stepped in.
The issue of time management comes up at least once a day. It is staggering how many people are running businesses, yet have little concept of how to allocate their time to numerous tasks. One of my key challenges for clients is to encourage them to consider a printed diary instead of a digital one because paper diaries allow you to see at a glance what you have planned ahead and what you can truly achieve in any given amount of time. Most also allow for a clear separation between tasks and meetings. For the record, every week, I fulfill over 90% of all planned tasks.
One of the first things I teach is that you have to know what you want to achieve. This is called having a vision. Many CEOs turn round to me and say that they just want to make money, to which I suggest that they fill out a lottery ticket. Those clients of mine that spend time developing a defined vision – not a simple process for many – are often the ones who succeed the best. In one specific case, it led to my client finishing up with most of his customers, as he realised he was losing money and in a sector which he did not want to be.
Light Us Up manufactures an energy product. Despite nearly twenty years experience, sales had dwindled to a minimum and the bank was threatening the owners. Debts to statutory authorities were building up. Michael initially concentrated on confirming the strengths of the CEO and on establishing the unique selling position of the company. Within a short period of time a marketing strategy was put into place. Within three months, the company became cash-flow positive. In addition to sales, the company was approached by leading competitors to act as an out-sourced production line. After nine months of mentoring, the monthly take home of the CEO had shot up at least five times.
Design House is a family business of architects. They provide a boutique service, specialising in high value projects. Although the partners have considerable experience, most of it was gained abroad. Neither did they understand the local business culture nor did they have the local contacts to get started. Michael’s remit included helping guide them through building an initial budget and cash flow projection. He also became instrumental in helping Design House form a marketing strategy, as they initially chased all vague opportunities. After nine months, the company had moved to permanent offices, had set up a website, and had established a working revenue base.
Pizza House was an ambitious project by young adults to create a chain of pizza outlets in local neighbourhoods. The concept was to offer quality Italian food at affordable prices, which would also fit the genre of healthy nourishment. After the opening of the first branch, Michael was asked to create a business plan, which would focus on future development and allow the owner to understand what level of loans he could justify. Michael forced the owner to comprehend that his sales never fully matched original forecasts, thus challenging the client to reconsider his concept, as well as the risk level of the loan sought. The business was eventually closed with no losses.
Jason was a new immigrant to Israel. Although unfamiliar with local business culture, he wanted to “copy” his distribution business from North America. However, sales remained weak, despite the considerable long hours invested. Michael encouraged the owner to consider a new approach to his use of time and to review where his marketing was most effective. By the end of the coaching contract, the CEO was employing a team of three sales staff and a personal assistant. In parallel, he released a new website and had partnered up with an investor for his business.
Medico Ltd is a large health centre in Israel, which raises significant funds through donations. One particular and large annual source began to dry up, as the centre struggled to coax its various departments to handle the vagaries and changing procedures of the overseas donors. Michael encouraged the centre to introduce monthly coordination meetings, involving all associated parties. In turn, this resulted in a single person being designated as spokesperson to the donors. The effect has been that contributions are now flowing, raising revenue by hundreds of thousands of dollars.
Books Are Us is a national distributor of religious books in Israel. Despite having an extensive knowledge of the market and with a large customer base, the owner had accumulated substantial debts. A review of the business revealed how there was no structure to each day’s work, because the owner did not operate a daily diary. Thus, he was trying to accomplish too much and achieving very little. In parallel, he had allowed too many customers not to pay on time, with a resulting negative impact on his cash flow. And finally, despite pleadings to the contrary, it was evident that the business was holding large amounts of dead stock. Michael’s coaching was centred around creating a weekly routine, ensuring that each of these subjects were challenged and repaired over time. The owner recently was able to afford large-scale renovations of his home.
Playgroup is an independent Israeli theatre group, specializing in educational plays for children. Despite an excellent history and solid experience, bookings were dwindling and the bank manager was calling. Michael coached the CEO to help him to understand and to fulfil his commercial potential. New and realistic sales targets were set, and a marketing expert was hired to boost the company’s publicity. Just twelve months later, the company’s success attracted a key figure in the sector, whose involvement ensured a further doubling of revenue.