Jerusalem, Israel Arieh O’Sullivan (TML) – Israel has found a unique way to retaliate against Iraq for firing Scud missiles on it nearly 20 years ago: it has decided to sell Iraq Israel’s used cars.

Transportation Minister Yisrael Katz said he has approved a new plan to export tens of thousands of used cars to Jordan and Iraq. The move aims to thin out the glut of second hand cars on the market and pave the way for boosting new car sales, which would put millions of shekels into the government’s pockets in taxes.

According to a statement from the ministry, about 50,000 cars could be sold to Jordan and Iraq annually, which constitutes about 10 percent of the used car market.

The decision was made after a study showed such a move would make the average age of cars newer, safer and pollute less. What it didn’t mention was that it would also likely increase the price of used cars, which are now already about double similar cars elsewhere in the world due to heavy taxation.

The new plan still must get final approval from the Israeli Ministry of Finance since it would require giving tax breaks for selling a used car.

“We welcome the decision,” said Uri Digmi, the chairman of the Israeli Used Car Dealers Association. “This would bring about a situation where the average car was newer, greener, safer and more efficient and also reduce the number of old cars on the road.”

Each year, Israelis buy about 200,000 new cars. About 600,000 used cars change hands annually. The first eight months of this year saw about 140,000 new cars sold, which is reportedly a 27 percent increase over last year.

Israel charges an exorbitant 113 percent new car tax, which more than doubles the price of cars. This is the main reason used cars cost twice as much in Israel compared to the rest of the world.

The deal would require the state to give the seller of a used car a tax break, or even a voucher toward a tax reduction for the purchase of a new car, in order to make it competitive for dealers to sell used cars abroad.

“Israel right now is like an island, an isolated land where the cars come in and never leave. It’s not like Germany or Switzerland where you can resell them to neighboring countries,” Digmi told The Media Line.

The Transportation Ministry issued a report that found the move would lower the average age of cars and boost new car sales, which would have a beneficial impact on road safety and engine emissions.

Digmi said the average age of cars in Israel was about five years and in an average lifetime it would be sold half a dozen times until it is eventually crushed in a junkyard. They are never taxed again so the state doesn’t gain anything.

“The state has to encourage the export of used cars abroad in order to improve the local market,” said Digmi. “The moment it comes here it remains until it dies. We have to change that. There’s plenty of market opportunities in our neighboring countries.”

According to Digmi, shiploads of used cars dock in the Israeli port of Haifa where they are unloaded and transported by lorry to Jordan and resold in Iraq.

“There’s plenty of room for the Israeli cars to enter this niche,” he says.

In Amman, Jordan, used car dealer Amer Salman was looking to unload his fleet of used cars. While he had no reservations in principle with the idea of selling Israeli cars on his lot, he was skeptical it would work.

“We have no problem doing business with Israel, but to be honest, we don’t need any more used cars in Jordan,” Salman told The Media Line.

“We have a huge surplus here,” said Salman, a salesman from the Amman dealership of Marwan Eneibsy.

One of the reasons for this was the kingdom’s decision to give huge incentives to Jordanians buying hybrid cars. Taxes were dropped from 80 percent to just 5 percent, which created a glut.

The main beneficiaries in Israel of this new plan would likely be the large car leasing companies in Israel who purchase about 60 to 80 percent of all new cars in Israel. They sell them after some three years into what is a limited market.

In 1991, Iraq’s Saddam Hussein fired 39 Scud surface-to-surface rockets at Israel in an attempt to draw the Jewish state into the war against Iraq by a coalition of Arab countries and their Western allies. Under enormous diplomatic pressure from the United States, Israel did not retaliate, thus preserving the allied coalition.

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Neither banks nor the small business association nor outside investors are looking to simply give their money away. They will want to see a verifiable return on their investment. Of course, no business is a sure thing but you will want to make it seem like yours is. If you have a smart business plan, some collateral to put up and a business degree, getting a loan should be possible. Here are some of the available outlets for procuring that all important capital.

First of all, if you are looking to buy into a franchise, you will want to look in a different area than you would if you were starting your business from scratch. There are franchise financing plans and these are often times provided by the franchise company itself. For instance, if you want to open up a McDonalds, you will want to research the company to see if they offer plans for paying off your franchise loan.

These plans are often cheaper, better and easier to procure than loans from an outside source. If the franchise company you are buying into has no such program, see if your local lending institutions offer special loan programs for those looking to start a

franchise. If franchising is not your thing, you will want to look at the available loans to start up small businesses. One of the first places you will want to look is the small business association or SBA.

This government program is specifically set up to help young entrepreneurs such as yourself. They offer several different categories of loan programs and you will want to look at each of them and see what meets your requirements. These programs do require a certain amount of collateral, though sometimes the small business itself can be counted toward this. The small business association does not actually provide the money itself but will rather recommend you to good lending institutions through which you can secure

financing.

Another good place to start for a small business loan is your local bank, meaning the one you do business with. Banks are more apt to offer loans to qualified customers with whom they already have an account in good standing. They will not have to do a lot of credit checking, as they already have most of your financial information at their fingertips. Often, the financing and interest rates through your own bank will be better than you can find at other institutions.

Finally, avail yourself of venture capitalists and angel investors. These people or foundations are in the business of investing. More than any of the other options, however they will be keenly interested in how your business can make them money. If you have a good business plan, seek out these investors for some capital to start your company.

Neither banks nor the small business association nor outside investors are looking to simply give their money away. They will want to see a verifiable return on their investment. Of course, no business is a sure thing but you will want to make it seem like yours is. If you have a smart business plan, some collateral to put up and a business degree, getting a loan should be possible. Here are some of the available outlets for procuring that all important capital.

First of all, if you are looking to buy into a franchise, you will want to look in a different area than you would if you were starting your business from scratch. There are franchise financing plans and these are often times provided by the franchise company itself. For instance, if you want to open up a McDonalds, you will want to research the company to see if they offer plans for paying off your franchise loan.

These plans are often cheaper, better and easier to procure than loans from an outside source. If the franchise company you are buying into has no such program, see if your local lending institutions offer special loan programs for those looking to start a

franchise. If franchising is not your thing, you will want to look at the available loans to start up small businesses. One of the first places you will want to look is the small business association or SBA.

This government program is specifically set up to help young entrepreneurs such as yourself. They offer several different categories of loan programs and you will want to look at each of them and see what meets your requirements. These programs do require a certain amount of collateral, though sometimes the small business itself can be counted toward this. The small business association does not actually provide the money itself but will rather recommend you to good lending institutions through which you can secure

financing.

Another good place to start for a small business loan is your local bank, meaning the one you do business with. Banks are more apt to offer loans to qualified customers with whom they already have an account in good standing. They will not have to do a lot of credit checking, as they already have most of your financial information at their fingertips. Often, the financing and interest rates through your own bank will be better than you can find at other institutions.

Finally, avail yourself of venture capitalists and angel investors. These people or foundations are in the business of investing. More than any of the other options, however they will be keenly interested in how your business can make them money. If you have a good business plan, seek out these investors for some capital to start your company.

Are you considering franchising your business? Franchising is a technique to create rapid business growth, but it will not occur without a solid plan to sell franchises.

Before you can expect any one to buy into a franchise of your operation, you must ensure that your business offers the very best quality product or service possible .
You’ll also need quality personnel and a quality place of business. There’s each likelihood that the entrepreneur interested by your franchise will first come to you as a customer. If he receives quality services and products and your place of business is always neat and clean, he is going to have a positive impression of your franchise operation.

Finding Your Market!
You should also determine the royalty amount you may earn from the sales each franchise makes.
The very next thing you need to do in order to sell franchises is establish your market. Does your business have a manager or other senior worker who might have an interest in owning a business? Some of your senior staff might make their wishes known to you at the time you tell them of your scheme to sell franchises. Make sure they knows why you believe they’d be a prime candidate for business possession.

You will also need to advertise your franchising opportunity. There are several publications and websites that will enable you to reach entrepreneurs seeking franchises. You can find them easily by doing an internet search. One that offers free information on all sorts of franchises is pay me franchises dot com.

Putting Together your scheme And Selling Franchises!

You will have to work with investors, lawyers and bankers to put together a plan for selling franchises of your business. As a business person, you may already have a relationship with a banker and a counsel. Approach these people first and make sure they knows of your plan to franchise your business. They can prove very useful to you and keep you from making pricey mistakes.

You will also must have many systems in place for making your franchises run smoothly. These systems include the daily operation of each franchise and the coaching and advancement of employees. And remember, the best kept secret of the 21st century is franchising.

Profran advisors, Inc. with Ken Hollowell, its president can show you how purchasing a franchise can be made simple.
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Ken Hollowell, President/CEO of Profran Consultants has over 30 years been consulting with companies wanting to become a franchisor and develop a franchise system. Ken Hollowell has developed over 800 franchise business throughout the world. He is one of the most sought after franchise consultants in the USA. In addition to the franchise development work, Ken prepares private placement offering for companies needing to raise funds for their projects or companies. Ken can be contacted at www.pro

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