Israel has a mixed market economy which enables its residents to enjoy a good standard of living, just like most Western countries. For example, everything from the airports, roads, highways, national security, among others are adequately provided by the Israeli government. Israel is also internationally acclaimed for its startup culture, and is even considered to be a “startup paradise.” In this article, we will cover a few steps you should follow when you are starting a new business located in Israel.
Regardless of the type of business you may want to start, or the industry or niche you would like to pursue, you will require a plan of action for operating your business. This will require you to really determine what your core competencies are, what services you would like to offer, and what type of customers you would like to focus on pursuing. Whether you plan on targeting an underserved market, or an emerging market, you must be clear about your intention from the beginning because as a new business your time and resources are limited and you do not want to pursue too many goals, initiatives, projects, and customers while starting your business. Clarity is vital when running a business, and sometimes less is more.
After you have a business plan of action that outlines your core competencies, services, and target market, it is imperative that you register your business with the government before you start working in your business. This is especially true if you plan on starting a corporation because a corporation will provide you and your team with limited liability. When completing this registration, it is vital that you consider speaking with an experienced law professional to ensure your company is correctly setup. It is important to remember that it can take between two and three months to register a company, according to the Israeli government.
Now that you have got your startup up and running, you will need to ensure you make a budget for your company and then stick to it. As we have all heard, “cash is king,” and this is especially true for a business. It is relatively common for a profitable business to close because it ran out of cash for its day-to-day operations. Therefore, it is essential that you determine all of the monthly costs associated with running your business and determine which expenses are fixed costs, and which are variable costs. Many people forget about the value of budgeting when they start a business, but it can be a game changer if you are starting your business with limited funds. Budgeting also makes it easier for you to complete your taxes next year.
When you are busy acquiring new customers and clients, it is also crucial to maintain your relationship with existing customers since it is easier to retain a customer than getting a new customer. According to PITON-Global, your business should consider providing phone support, and an online help desk for your clients and customers. Even the largest companies in the world highly value customer service because they know it is essential to keeping their customers happy. Your customer service options should be highlighted clearly on your website, product packaging, store/physical presence, social media, and in your company emails.
In conclusion, if you aspire to become an entrepreneur and a business owner, Israel is a fantastic place to start your new business. Before you begin your business, you will require a business plan, registration with the Israeli government, a budget, and customer service.