Eli Nawi - Bringing forward orders from abroad
“I co-founded the company 12 years ago with my partner, Alon Ben-Shabbat. We both have experience in the industry—I built swimming pools and Alon specialized in everything around them—wood decking, grass, paving etc. We decided to join forces and offer our clients a complete package for their swimming pools. They no longer need to chase after different contractors and tradespeople and coordinate between them—we take care of everything for them. Over the last few years we identified a demand for metal frame pools that can be assembled at home, and at the same time we opened a store in Ashkelon that offers accessories for swimming pools for private customers as well as contractors. All of that is in addition to our online store which is running very nicely.“We import our swimming pools and other products from Spain and China, and some we buy in Israel. When COVID-19 started to spread last spring, which is usually the strongest time of year in our sector, we discovered that there was actually an increase in demand for swimming pools from people who were in lockdown. Because our projects are part of the construction industry, which was classified as a vital industry, we were able to keep working through the lockdowns. Demand was insane, because people couldn’t go to the beach or to hotels with swimming pools or abroad, so they took the money they’d saved and invested it in their homes and gardens.
“Fortunately, we had a lot of goods in stock at around the time that the coronavirus struck, and because of the increase in demand we were able to sell almost all of it. That meant upgrading our delivery infrastructure. We also recognized demand for sporting equipment to keep the kids busy during the lockdowns, like trampolines and table tennis and pool tables, so we began to stock those too. It’s good for a seasonal business like ours, which has to deal with a decline in business activity during the winter months. Now we’re having to cope with increased shipping prices and shortages of imported goods. Because we were able to anticipate this problem, we brought forward our orders from abroad by a few months. We bought large amounts ahead of time, with the support of our bank, which meant that we started this season on the right path.”
The writer is the co-owner of Adel Swimming Pools. 5 Ussishkin St, Ashkelon. Tel: 053-6113600
Yuval Sela Tunis - Upgrading our Distribution Infrastructure Paid Off
“My cousin Tal Halperin and I set up our company in 2003, and later we were joined by the company Carmel Music. We import premium brands in the barbecue and outdoor kitchen sector, and we are the Israeli representatives of the Canadian company Napoleon, which is one of the largest brands in the world for gas grills. We also import and distribute electric and coal grills, tabun ovens, electric and coal smokers, as well as related accessories including knives, tongs, smart thermometers and the like. We distribute around 3,000 products from more than 20 manufacturers at four points of sale in Haifa, Herzeliyya, Rishon LeZion and Kibbutz Gezer, as well as approximately 400 distribution points around the country.
Before COVID-19, we had 35 employees, and even then we could sense that manufacturers around the world were starting to struggle and there were delays in orders. Despite pressure from our accounting department to furlough staff, we actually anticipated a different trend in the sector—that there would be an increase in demand because of the lockdowns. And that was what ended up happening. Demand for our products was remarkable and we saw an 80% increase in our annual turnover, we ended the year with 60 employees. Incidentally, that trend has continued until today. Because we also sell gas tanks, we were classified as a vital business, and our branches were open throughout the whole period. At the same time, we offered free home deliveries to our clients as well as more convenient payment plans, both of which helped us.
“In the last year, we upgraded our distribution infrastructure and moved to a state-of-the-art 4,000 m2 logistics center in Kibbutz Gezer. We also expanded our online activity on our website—and sales increased by dozens of percentage points. We are currently struggling with supply chain issues caused by shortages of raw materials and increases in the cost of global shipping. This period has taught me that every crisis is also an opportunity. We faced COVID-19 head-on, managed ourselves properly in terms of marketing and logistics, kept working and developing—and it paid off in the end.”
The writer is the co-owner of Carmel Direct – Premium Home and Garden Products. Kibbutz Gezer Industrial Area. Tel: 072-3946666.
Itai Tsur - Increased Income Can Be Misleading
The pandemic fundamentally changed household consumption habits. Families who had to stay in Israel instead of travelling abroad on vacation invested their spare money on their own homes and, significantly, also on their yards and gardens. Demand for swimming pools, gas grills, sporting equipment and the like went through the roof over the last year and a half, and demand continues to grow. For businesses that import such products, this trend allows them to significantly expand their income.
At the same time, it is important to emphasize that such expansions also require structural changes and investment in organizational infrastructure, such as a wider distribution network, more storage space and more. Expanding too quickly without the suitable infrastructure can lead to severe long-term operational difficulties. At the same time, a sharp increase in revenue can be misleading, and lead to an increase in fixed expenses and staff size which could result in losses if the increased revenue turns out to be a temporary bump. That is why it’s vital to carry out a detailed evaluation of the data under differing circumstances, ensuring that even in extreme situations, the company will be equipped to provide a high level of service to its clients and remain profitable.
The writer is an expert in consulting and coaching business skills and a lecturer at the Bank Hapoalim Center for Financial Growth.
Yael Haziz - Financial Knowledge Is Important for Growth
The pandemic has introduced with it a new reality for businesses, and alongside the challenges of this period there are also new business opportunities.
That is why it’s recommended to adjust your business activity to the new circumstances in terms of the management and operational side of things. For example, when you sit down to draft a business plan, think about how you can reduce your business expenses and at the same time think about new channels for financial growth. This might involve selling additional products that meet your clients’ needs at this moment in time, increasing your online sales by developing your website and distribution network or by improving your financial knowledge to streamline the management and operations side of the business. Another way to expand the online sales of the business is to keep an eye out for discounts for business owners, and by consulting with experts in the field of e-commerce.
The Bank Hapoalim Center for Financial Growth offers content and courses free of charge to business owners who are looking to learn how to upgrade their business capabilities and how to make the digital transition.
The writer is the manager of the Gur branch of Bank Hapoalim in Ashdod.