May 25, 2013

Israel – A Market for Your Business Goods and Services

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150.jpg” alt=”" width=”150″ height=”150″ />With Israel’s booming economy, it makes good sense for some businesses to consider creating a market for their products and services in Israel. The US economy is expected to be stagnant at best for the foreseeable future. Entrepreneurs need to consider market factors to properly determine growth potential. While Americans and Europeans are tightening their belts, many Israelis are taking advantage of the strong shekel vs. the weaker dollar to import like never before.

With a GDP in 2010 of $225 billion, the Israeli economy is compact and agile. In spite of the most recent recession, the Israeli economy has already seen substantial consistent growth since January 2009, making it one of the fastest recovering developed countries in the world.

Roughly 40% of Israel’s 7.5 million people are concentrated in the greater Tel Aviv metropolitan area, Israel’s commercial and financial center. Another major population concentration is in the Haifa metropolitan area (15%), a major port city and center for the petrochemical and high tech industries. Almost all goods are imported through Israel’s two Mediterranean ports, Haifa in the north and Ashdod in the south, and through Ben Gurion International Airport. These ports offer good transportation links to the rest of the country. While most companies are headquartered in these areas, a growing number of firms maintain branches, showrooms, or service facilities in Jerusalem and Beer Sheva.

Consumer malls and shopping centers are popular in Israel. Many American specialty shops, chain stores, and franchises have outlets in the 200 malls and shopping centers now there. Key to success is offering an increasing variety of new products and services to the Israeli consumer.

For first-time exporters to the market, it’s important to note that distinct cultural differences in Israel may in some cases dictate changes in selling, advertising, and marketing. Although many strategies used by US firms can be equally effective in Israel, U.S. companies should not assume that selling in Israel is the same as selling in the domestic U.S. market. Companies should carefully research promotional activities prior to their implementation in Israel.

Partnering with a local representative who has good industry contacts, proven reliability, technical skills and after-sales service capabilities is important for selling and maintaining a continued presence in Israel.

U.S. businesses interested in establishing an office in Israel are required to register with the Registrar of Companies at the Ministry of Justice. The business must file a copy of documents certifying that it is incorporated in the United States and other information. If these documents are in English, they must be accompanied by a Hebrew translation. There is no requirement for the company managers or directors to be Israeli citizens or residents. However, U.S. representatives assigned to manage the Israel office must first obtain work permits from the Employment Service Division of the Ministry of Industry, Trade & Labor. Authorization from the Ministry and, if applicable, the Investment Center, is necessary before the Ministry of Interior can issue a visa. U.S. businesses establishing an office in Israel are advised to consult with a local accounting or law firm.

Doing business overseas is not for everyone. However, think about all options when charting a growth course for your business. In the Chicago area, the America – Israel Chamber of Commerce is a great place to start if you’re considering doing business with and in Israel.

Small Business Forecast – July 2011

Here is the most recent data released by the Federal Reserve regarding economic conditions in

the Seventh Federal Reserve District – Chicago.

Consumer spending. Retailers reported flat sales. Higher food and energy prices caused

consumers to make fewer shopping trips and purchase fewer discretionary items.

Auto sales edged up, as higher demand for passenger cars offset a slight decline in trucks and

SUV sales.  Auto dealers reported that inventory levels of small passenger cars were

impacted due to high demand for fuel efficient vehicles and production disruptions in Japan.

Dealers of Japanese vehicles expect that supply problems will continue to have an effect

the remainder of the year.

Business spending. Contacts indicated that capital expenditures were proceeding,

with some manufacturers reporting a slight increase in capacity.  Labor market conditions

improved with continued strength in manufacturing, where contacts again cited a

shortage of qualified applicants for highly skilled trades. A large staffing firm reported that

billable hours ticked up and permanent placement activity increased. However,

demand for temporary workers softened in some industries, such as finance.

Construction/real estate. Single-family home construction was constrained by distressed

properties in the resale market. However, existing home sales picked up, lowering the

in

ventory of unsold homes.  In the multifamily sector, residential rents rose further, and credit

has become increasingly more available for the purchase of apartment buildings.

Banking/finance. Corporate funding costs in the District decreased, and contacts noted that

corporate credit market liquidity remains ample. Banking contacts reported an increase

in business loan demand. Although much of this involved refinancing of existing debt,

contacts noted they were seeing more new commercial and industrial loans in the pipeline. Credit

availability, however, remained an issue for small business borrowers. Larger banks have

recently returned to small business lending, but community banks who have traditionally

serviced this segment remain impaired.

Prices/costs. Food and energy prices ended mostly lower, as did prices for steel, copper,

and other industrial metals. Despite the recent declines, commodity prices remain elevated, and

surcharges for fuel and metals increased significantly. Retailers reported they were unable to

pass along recent increase in wholesale prices, trying to compensate for higher commodity costs

by increasing promotions and discounts. Retail contacts also noted that margins were tight,

particularly for grocery stores, and further cost increases would likely be passed along.

Based upon this information, we recommend small businesses plan for moderate

improvement. Expect nonstop pressure by consumers to find the “best buy” which could

result in profit margin challenges.

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Do I have a responsibility to stay on until my boss finds someone else?

Q. I'm not really enjoying my work in a store, but I am reluctant to leave the boss in a lurch before the busy season. Do I have any duty to stay on until he finds someone?

A. The usual rule in Jewish employment law is that an employee may quit any time he likes without penalty. This is considered an essential expression of human freedom; the Torah tells us that the children of Israel should not be slaves, as God commands “To Me the children of Israel are servants; they are My servants, for I took them out of the land of Egypt” (Leviticus 25:55), (1)

This principle does however have one reservation and one exception. In the time of the Talmud, the usual work situation was day labor. The Talmud provides as we stated that a worker is allowed to quit even in the middle of the day, but many examples demonstrate that in most cases workers would not quit without a compelling reason. Many authorities state that if the worker quits in midday only in order to make a higher wage elsewhere, that is not even considered an expression of freedom and he is liable for breach of contract. (2)

Contract or local custom probably provides for a standard notice period. For jobs like store work which involve minimal training, this is often about two weeks. If you don't have a compelling reason to quit suddenly, you should stay on the customary notice period.

An exception to the rule is when leaving actually causes the employer a loss. In this case, the employee is actually not allowed to quit – again, unless there is a very compelling reason.

But it is important to understand that Jewish law gives a very narrow definition of what it means to cause a loss. It does not mean that the employer will lose money because he doesn't have an employee on hand; it means that the loss is actually caused by the original work agreement being breached.

The mishna gives the example of a cleaner who has workers put clothes into a special caustic solution, which damages the clothes if they are left in too long. If the worker leaves in the middle it causes the employer a los

s, because if the worker hadn't taken on the commitment, the employer wouldn’t have put the clothes into the solution in the first place.

Another example is a band for a wedding reneging on very short notice; if the first band had declined then another one would easily have been found, but now that the first one agreed another cannot be found so quickly without offering a meaningful bonus. (3)

It would be unusual for this to apply in the store. A possible example would be if the store bought an unusual amount of inventory based on an informal commitment or understanding that the worker would stay on; if the boss had suspected you might leave he would have bought less stock.

Another relevant consideration here is that your job is not particularly skilled. There are comparatively few people sufficiently skilled to perform at weddings, and few laborers in the time of the Talmud knew how to work with a caustic bath. So quitting suddenly truly put the employer over a barrel. But many people can be trained to do a respectable job in a store so there is no reason to think that by quitting you will leave your boss open to extortion by prospective hires.

If you merely don't like your job, as opposed to having some compelling and urgent reason for quitting, you should observe the customary or contractual notice period, usually two to four weeks for less skilled jobs. If as a result of your taking the job the employer entered into some commitment that requires your participation to fulfill, you should be careful not to leave him over a barrel. But in your case you are probably merely requiring him to go about the annoying but totally normal process of interviewing and hiring a new salesperson. This is one of the ordinary headaches that go with being a proprietor, and you – a mere employee – are not ethically obliged to take this headache away from him.

SOURCES: (1) Bava Metzia 10a. (2) Shulchan Arukh Choshen Mishpat 333:4. (3) Mishna Bava Metzia 6:1.

The Jewish Ethicist is a joint project of Aish.com and the Business Ethics Center of Jerusalem and is reprinted with permission. To find out more about business ethics and Jewish values for the workplace, visit the Business Ethics Center of Jerusalem at www.besr.org.

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Get Up and Go

Refresh, renew, recharge — even for just a few days!

If you’re like most small business owners, you feel it’s really tough to take time off.  There’s no one to take over, your business won’t run without you, yada, yada, yada. But psychologists believe that even a few days away will give you a break, let you recharge your batteries, and come back refreshed, even with a few new ideas. Instead of worrying about your top customers or missed business opportunities, use this time to renew your vision or see the world from a new perspective. If you can only spare a few days away, here are some quick getaway ideas.

The Heartland Spa, Gilman, Illinois

Located just 90 miles south of Chicago, the Heartland Spa has been a destination spa since 1983. Here, you’ll have an opportunity to learn, experience, and utilize the most current information about fitness, nutrition, and stress management.

“A getaway is not a luxury anymore, it’s a necessity,” says owner Harold Lebovic. “The more important technology becomes, the more important it is for business owners to have a sanctuary where they can ‘unplug.’”

The Heartland Spa offers a wide variety of fitness activities and relaxation classes, integrated with nutritious cuisine. In addition, massages and spa treatments nourish both body and soul.  Two-night, three-day all inclusive packages start at $550 per person, including accommodations, all meals and snacks, unlimited use of exercise and spa facilities, all classes and activities. www.heartlandspa.com, 815.545.HTLD.

“Heartland is a smart vacation because you’re not losing two days of vacation time getting somewhere. When you get here, you can just relax,” said Lebovic.


Lake Geneva, Wisconsin

Marcy Gelber of Travel by Marcy recommends Lake Geneva for a short, but peaceful getaway. “It’s just a short drive from the Chicago suburbs, and this year-round resort town is so laid back, you can’t help but unwind,” says Marcy.  (847-897-7011,  marcy@travelbymarcy.com)

One such retreat is the Grand Geneva Resort & Spa, where you can play golf, indulge in a spa treatment, or splash around in the indoor/outdoor water park. That means bring the kids along, too! The resort offers a variety of different packages, making it a great value as well.  www.grandgeneva.com.

Southwest Michigan

Enjoy the tranquility on Lake Michigan

Five rivers and more than 250 inland lakes await you for sailing, boating, or just floating on an air mattress. If you love off-road vehicles, head north of Muskegon to the Silver Lake area, where you can explore the sand dunes. Don't have an off road vehicle? Rent a jeep. Not so adventurous? Take a dunes tour ride.

One of the area’s best kept secrets is South Haven, the blueberry capital of the world. With a scenic harbor, quaint downtown and lovely bed and breakfast inns, you'll feel the charm of this lovely lakeside town. Plan to attend the National Blueberry Festival, August 11- 14 with pancake breakfast, arts & crafts, live entertainment, and parade. www.southhaven.org.

Chicago Getaways

Don’t discount a weekend downtown with a great hotel, dinner and theatre. Millennium Park offers a full schedule of free outdoor concerts at the Jay Pritzker Pavilion, www.millenniumpark.org. Take in one of the city’s many art and ethnic festivals, www.explorechicago.org. Or go for a boat ride on Lake Michigan to clear your head.

The Four Seasons Hotel Chicago is still the grand dame, renowned for its fabulous location and luxurious accommodations. Take advantage of their “Stay Longer” package. Book two nights and the third night is free. Four Seasons, 120 East Delaware Place,  (312) 280-8800, www.fourseasons.com/chicagofs. You’ve seen Trump Tower from the skyline, why not see it up close and personal? Trump Tower Hotel offers several packages like the Multi-Night Stay offer. Take 20% off a two-night stay and 30% off three nights or more. Trump Towers, 401 North Wabash, (312) 588-8000,  begin_of_the_skype_highlighting www.trumpchicagohotel.com.

Marcy Gelber also recommends the Hard Rock Hotel downtown because “it’s a very fun place” and The Dana Hotel & Spa, for its “perfect, just off Michigan Avenue location.”

The most important thing is that you take some time off to enjoy summer…and yourself!

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Garden Fresh From Israel to Your Kitchen Table

By all appearances, Garden Fresh Market in Northbrook is a typical North

Garden Fresh founder Adi Mor surveys the bountiful selection of produce at the Northbrook location.

Shore grocery store. Harried parents push children in strollers for a predinner shop while busy cashiers speed customers through the long lines.
Discerning shoppers who regularly converge at the SUV-lined strip mall
just off the Edens Expressway, however, know what separates this store
from the pack.
A huge selection of hummus, for one, along with a choice of Israeli dairy
products one could easily find on the shelves of Supersol in Jerusalem. In a
word, Garden Fresh is the Israeli food shopping mecca in the Chicagoland
area, a fact not lost on the swarms of customers who visit from as far away
as Iowa.
“They have items you can’t get at major grocery chains,” exclaims Yaakov
Pole, a 32-year-old teacher from Buffalo Grove who frequents the store in
search of quality produce and competitively-priced Israeli products. “It’s
an excellent value.”
Garden Fresh founder Adi Mor is one of those rare individuals who truly understands what people want. Arriving in Chicago via Jerusalem in 1980 with no formal business background, he channeled his sabra sechel (sense) and powerful work ethic to grow one of the area’s most successful specialty grocery chains.
“Each one of our seven stores really caters to the particular community that it’s in,” he explains, attributing his niche success to diligence in product selection coupled with unmatched variety. Shelves loaded with Russian pastries and pickled vegetables reflect the Eastern European tastes of the patrons who shop the Wheeling location while Mundelein’s sprawling rows of hot sauces and peppers satisfy its largely Hispanic clientele.
“We go to the market every day to purchase fresh produce and carry twice as many items as a normal supermarket would,” adds Mor, who, as a
young soldier once had an all-night gig on Thursdays preparing challah at the famous Angel Bakery in Jerusalem. More than 30 years later, the
spry 55-year-old manages business affairs along with his 28-year-old son Golan and dozens of others at a modern corporate office and warehouse in Wheeling.
The Northbrook location, featuring its fully staffed “Kosher Korner” deli and massive selection of Israeli-branded items, is decidedly arranged with the Jewish consumer in mind. Mor says that shoppers routinely pour in from as far away as Iowa, Wisconsin, Michigan and Indiana to stock up on the kosher quality meat and other delights that arrive fresh daily.

Paste”>“Supermarkets realize that kosher can be a huge magnet for a loyal base of consumers who, while looking for kosher products, also shop the rest of the store,” notes Menachem Lubinsky, editor-in-chief of KosherToday.com and founder of Kosherfest, the world’s largest kosher food and beverage trade show.

“Kosher is simply attracting more people because of the very diverse and quality nature of the products, making it much easier for Jews of all shades to buy into the concept.”
Mor recognizes that balancing the kosher element, which comprises 40 percent of the Northbrook store, with the varying demands of the broader community is the key to maximizing overall value.
“Our business is very unique in that we’re open seven days a week and still able to serve the kosher and non-kosher communities,” he says,
acknowledging that fresh produce remains a prominent drawing card at each location.
With Passover looming, the search is on for birthday cake buried deep in the freezer or the errant crouton lost in the couch. And while many people begin their chametz sweep several weeks before the first Seder, Garden Fresh has been preparing to commemorate the Exodus from Egypt since Chanukah in December.
The shift from shelves of leavened luxuries to a sea of matzo and macaroons takes months of careful planning, Mor says, with much of the stock ordered from suppliers in New York, as opposed to Israel, to ensure maximum freshness. During the eight-day holiday, the Kosher Korner is temporarily shuttered and sold to a non-Jew in accordance with Jewish law.
Garden Fresh also takes pride in providing its kosher catering services to local institutions such as Solomon Schechter Day School in Northbrook,
which coordinates a student lunch program described by Mor as “reasonably priced, healthy and wholesome.”
“We’ve had a great response from parents,” said Julie Smolucha, Garden Fresh’s marketing director. The variety and nutritiousness of the food, she says, allows children “to function better in school.”
Mor enjoys showcasing a plethora of popular Israeli products, from diet grapefruit juice to organic peeled roasted chestnuts in his stores, many of which have found their way onto shelves at the request of customers.
“Some of the big vendors realize that we put them on the map,” he contends. According to Lubinsky, Israeli manufacturers are rapidly becoming more attractive to American buyers buyers as competition for market share widens.
“New products that bring something to the table, forgive the pun, will continue to make it onto supermarket shelves,” he says. “Israel produces
quality products in great packaging, making them very competitive and desirable. Israeli brands have a natural base in the U.S. but they still have to compete on quality and price.”
That’s certainly good news for Garden Fresh, reflecting Mor’s vision of providing Chicagoland consumers with their favorite fare at a great value.
“We give the customer what they want,” he maintains. “We cater to the neighborhood.”
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State Legislative Update: Tracking the Lending Practices of Banks

The Small Business Advocacy Council has introduced Illinois House Bill 3469, which requires all banks doing business in Illinois to report the number of loans they made to small businesses to the Illinois Department of Professional and Financial Regulation. Through this bill, which would amend the Illinois Banking Act, SBAC hopes to achieve transparency by ascertaining which banks are lending to small businesses and which banks need to do be

tter. The bill is currently in the Small Business Empowerment & Workforce Development Committee and a vote has not yet been scheduled.

SBAC members, and especially our policy team, were pivotal in pushing forward this legislation, which was sponsored by Representatives Carol Sente, Daniel Biss and Karen May. Please contact your state representative (you can find him or her at www. ilga.gov) and ask him or her to support the bill.
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Check your ego at the networking door

By Lillian D. Bjorseth, Guest Columnist

If people agree that networking is more about the other person, then why do so many forget to check their ego at the door?

It can be disconcerting and downright irritating to talk with someone who uses “I” a dozen times in the first few minutes. Over and over again, you hear, “I am doing this. I am enjoying this success. Here’s what I did when that happened to me.”

For good measure, some networkers throw in a few “my’s,” as in, “Mybook is outselling others in its genre,” and “My workshop was such a big hit.”

Four tips for productive networking

Why do people do one thing when they profess to believe another? Here are four solutions to common challenges to checking your ego at the door:

Challenge: The biggest block is inherent in being human. Most people want to talk more than listen. They think what they have to say is more important. And what they have to say is frequently about them or their unsolicited opinions about your business.

Solution: Use this folk saying as your guide: “God gave us two ears and one mouth so we could listen twice as much as we talk.”

Challenge: Some people’s networking style is dauntless. That means they naturally exhibit a powerful aura. They use strong, forceful gestures. They are impatient and, therefore, dislike small talk. They get bored easily. They finish others’ sentences, interrupt and talk over others.

Solution: Accept and use networking etiquette and protocol even if you don’t agree. Listen even if

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the outcome doesn’t affect you. Refrain from trying to run the conversation, the event, the meeting or the project. Watch how the results change.

Challenge: Some people simply have over-inflated egos. They actually believe they are better than others, and their mission is to let the world know.

Solution: Pay attention to how others try to break away from conversations with you. Notice how they quit talking because it is useless to try to talk over you or top your stories. Make a pact with yourself to ask questions of the people you talk to. Ask them about their business and their interests. Be quiet, and let them answer. Then respond to what they said. If you are talking with good communicators, they will ask you questions as well.

Here’s another hint to try: Count to three after you think someone is finished speaking to make sure they really are.

Here’s to meeting more people who have checked their egos at the door and personify that networking is more about “you” than “me.”

Lillian Bjorseth is CEO at Duoforce Enterprises Inc., cofounder at the Greater Chicagoland Networking Extravaganza and author of Breakthrough Networking: Building Relationships that Last. The Illinois chapter of the National Speakers Association has named her 2009 Outstanding Chicago Speaker and 2010 Member of the Year.

Read more at  SmallBizChicago…

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Rahm Emanuel is Chicago’s first Jewish mayor

Former White House Chief of Staff Rahm Emanuel has been elected is Chicago’s first Jewish mayor, garnering 55 percent of the vote in a five-way race on Feb. 22. The election was the first time in 20 years that incumbent Mayor Richard Daley did not appear on the ballot.

Because Emanuel received more than 50 percent of the vote, he will become mayor without the need for a runoff election in April. (Read our recap of the city's aldermanic races a

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nd the impact on the Jewish community.)

Emanuel, 51, resigned in October 2010 as President Obama's chief of staff in order to run for mayor. He also worked in the Clinton White House and is a former congressman from Chicago's North Side. A Hebrew speaker, Emanuel is the son of an Israeli doctor who moved to the United States in the 1950s.

President Obama called Emanuel on the night of the election to congratulate him, reportedly saying, “As a Chicagoan and a friend, I couldn’t be prouder.”

“There is special pride within our Chicago Jewish community today because of Emanuel’s achievement,” commented JUF/Jewish Federation President Steven B. Nasatir.

Continue reading at JUF News…

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