Nine things really necessary for starting a business in Japanese society

~ Table of Contents ~
■ There is no blue ocean anywhere
■ It's not a long tail but just a niche market
■ How many years will the company last?
■ If you die, that company will be over
■ Representative director, CEO and president are different
Can I add and subtract?
■ Even if the logic is correct, there is no profit
■ The reality that there are many companies in the world
■ The way to recover from setback can only be obtained by setbacks
■ What you need to start a business

beforeInterview articlePosted "Business plan contest SEEKS"In fact, GIGAZINE actually participated as a judge, so we went through a total of 12 teams' plans. So, after the conclusion of the exchange meeting, I was able to interact with people who wish for various entrepreneurs.

I will summarize what I felt among those below. Perhaps it was probably fire in earnest by Horiemon, or because there is a great misunderstanding about the choice of "entrepreneur" other than employment that has been drawing attention, so that the meaning of alarm bell is included, rather if it is written for students To go. So, first of all, it is important to note that people who want to actually start a business are unpleasantly supernegative. But, this is probably the truth in Japan. Even a person who does not want to start a business should certainly be useful if it keeps it in one corner of the heart. Or it may be useful as a judgment indicator when investing in emerging companies.
■ There is no blue ocean anywhere


"Blue Ocean"The idea that became a topic in 2005. If we create an undeveloped market "Blue Ocean" that makes competition itself meaningless rather than a bloody "red ocean" existing market that fights with competitors with cost reduction and differentiation etc, it will be exposed to excessive competition It is not that companies can prosper. Although it is not so different from just a new development project, it is finished in contents which have considerable persuasive power by utilizing various analysis tools here and introducing examples.

This is a way to avoid the situation that companies that put themselves in the existing Red Ocean fall into exhaustion warfare in excessive competition and the profit margin decreases, If you do, you will not be reluctant. However, those who wish for many entrepreneurs, not limited to this time, should feel very appealing to this "undeveloped undeveloped market". This is because if you join a new market already where large companies already exist, so-called venture companies are disadvantageous in all aspects such as funds, sales force, facilities and experience. As a result, I tend to dream of saying that I will make a profit by creating undeveloped markets by all means.

However, when you open up an undeveloped market, another company will see it later and "Let's do with us." This is properly shown in the Blue Ocean strategy. In other words, in the end it is only to enter the Red Ocean somewhere, there is no preparedness or strategy, just because it is because there is no competition at all If you are starting a business as a "new thing" , It is inevitable to fail. Unfortunately, almost 90% of business plans and people who intend to start a business are already finished at this stage. The identity of the "fluffy feel" felt when looking at things such as communities and study meetings gathering people who are willing to start a venture is exactly the person who chose the option of escape from this Red Ocean, is.

■ It's not a long tail but just a niche market


Likewise, the concept of "long tail" began to be heard frequently since 2006. Actual sales of retail outlets is 20% of all product types, and 20% of them account for 80% of the total, so how to maintain goods of sale by eliminating dying products is Business up to. On the other hand, if the service is on the Internet like Amazon, the physical restriction and maintenance cost of the product display shelf can be minimized unlike the actual store, so even for the remaining 80% If dust is piled up, profits will come out in a way to become a mountain ... ... It is a long tail way of thinking. Because it grows long like a dinosaur's tail when charted it is a "long" tail ".

In other words, it is "long tail" when it is seen from the business aspect that the profit is properly taken out from the dead side among the selling points. Therefore, there is no reason for "long aim aim" from the beginning. A plan with an explanation that "Frequently asked" profit from the long tail of the market "has already failed at that time, and it is said that the self-named venture applicant does not understand anything under the white day It is the same as exposing and being already dead. It is a guy who is just aimed at a niche market, and if there is no such awareness, we just wait for death.

■ How many years will the company last?


This is the question that I heard every time a person who intends a company newly speaks a dream. How to answer this question is all that person, and eventually it will be the end of the company. This should be the same when you get a job at an existing company. There should not be many people who want to enter new graduates in a company that may go bankrupt at tomorrow or the day after tomorrow.

There is a continuation of this question, "Is your company present 100 years later, what is the company doing at that time?" Most of the successful companies have not kept on doing the same thing over and over, but at some point it will change direction, that is the only way to pioneer new markets through the Blue Ocean strategy .

In short, the first plan is only a startup that appears only for the first venture position, from how we will further develop it, what we will finally do, how to find the next goal from there Whether to cut off Kaji is "management", it means that there are too many cases in which we do not understand it and only struggle to realize our immediate dreams and dreams. As a result, although it worked at first at first, it does not last long, and it faces the frustration of bankruptcy.

■ If you die, that company will be over


This is sometimes even a big company, but if someone dies, business is leaning, profits are drastically reduced, or the business is in a state of disruption, that company is still immature. In the case of a venture company, because there are few people at the time of launch, most are "an end if someone dies" ceremony, but that is useless in the way it is forever. In particular, if only one person starts with myself, the probability of failure will be dramatically increased. Spiritually plans like "First try by yourself, then hire people if you get on the track ... ..." etc ..

If you become sick, what will happen if you get an accident, what will happen if you accident, in the worst case can the company continue even if you die? There are really many business plans that do not consider such risks. Therefore, a plan that does not consider the direction to build a system that can be executed while properly backing up with multiple people is definitely a "desperate paradigm".

Extreme talk, considering such things to some extent Existing successful managers began with "not to ride as much as possible to the vehicle in front of the train", "I am trying to keep people who are important positions of the company on the same plane "I will not have a survival hobby with risk of losing my life" and "I have designated the beneficiary of the insurance payment as a corporate corporation in case of death due to an accident" It is very much. People who are not thinking about this or people who did not think about it are inappropriate as an entrepreneur.

■ Representative director, CEO and president are different


There is something I want to do, but I can not do it as I think it is an existing company so there is a case to start a business to freely decide the direction of management with my own will. Especially in the recent Web 2.0 flow, I often start a business with a single idea. The wall which conflicts in this case is "I do not want to do as much as I want to do what I want to do, never being interested in management, company growth, etc."

Since the titles such as "president" and "representative director" are simply cool, so long as you are longing for it, if it is a person who wishes to start a business it is actually no problem, but that is not the case but because I started a business I have to do business If you do not have it, you want to continue doing only things you like, it becomes overworked in other things, and it will be a cause of being tormented in mid-dream realization. It does not always succeed if you make good ones.

In such a case, it is the right direction to focus on what you want to do, while securing it by own holding the maximum number of shares, etc., as it is originally the "professional management" top. If you are not interested in management but start up to do what you want to do, it is essential to find a partner as a good management partner. That is why the trap common to people who talk about hot and dreams is exactly what this means, "So, how can you put management into orbit?"

Can I add and subtract?


Companies are not volunteer groups, so you have to make profits. If the deficit continues forever, if you hold a lot of debts you will not be able to run and go bankrupt. For example,Bankruptcy bulletinAnd Teikoku DatabankBig bankruptcy bulletinIf you read, you will find many examples.

Corporate accounting involves a variety of complicated terms and calculation methods, but when it is extremely difficult to do, it is repetition of addition and subtraction. However, unexpectedly, most of the business plan has not been calculated well. I was dizzy when I was explained with a beautiful graph with things like "Profit is about to come out from the 3rd month starting and it turns to profit and 1 year later will be 300 million a year." It is inevitable that the project aims for an expanding route if the business gets on track, but the calculation that the accompanying cost will become large is not included in the account. And there are many cases where it is avoided to calculate it. Because the actual figures do not tell a lie, the trial results that are thrust is always "red".

However, even if it says a deficit, it can not be broken immediately. It is clear even by looking at the bankruptcy bulletin, and it is self explanatory if you look at the settlement of some listed companies. Even if there is no net profit, the company can continue running. People who do not have the courage to calculate such as "In the current situation it will collapse in a few years, but if profits rise a little more, life expectancy will actually extend a lot," those who do not have the courage will not be able to bear mind during the company's management.

■ Even if the logic is correct, there is no profit


This wall is the last time we face the business plan to clear all the realistic problems we have presented so far. In other words, the idea is "There is only a desk empty". Although both reasoning and theory which make profit properly are consistent, there are situations where there are no sudden troubles or means to recover properly when it comes to an unexpected situation, and it is consistent with the current social situation In the case that it can not be thought that it can cope with future changes, and even if the degree of mechanical logic is too much, we are neglecting that human being intervenes between them.

Ultimately as we go through the business, we are dealing with people. As human beings always intervene in somewhere, there is a reasonable unfolding to twist the theory, and conversely it is even possible to forcibly push them. For example, suppose that the item A is 1000 yen and the item B is 1500 yen. A is better than B. That means that A can be sold in theory. However, in fact B also sells. Depending on the condition B will overwhelmingly sell better than A. What is the condition, it is brand, sales force, connection, bribe to buyers, back pays, enthusiastic fans ... .... If you give an easy-to-understand example, the phenomenon that Yahoo! is winning in the Japanese market is true even though Google is winning all over the world.

■ The reality that there are many companies in the world


Every time I get on a train, on a passenger seat of a car, or walking around the city, I always have the question "How does this company profit from me ...?" What is the point of learning from the reality that there are so many enterprises? Some of those companies certainly have similar products to their business plans, some of them may be pioneers who have gone bankrupt in exactly the same way. It is the only strength of a venture company that you can analyze such failures and success stories over a sufficient amount of time before actually doing it. Besides that there are no merits anywhere. The company can not stop as it actually starts moving. That means that if you do not prepare enough before starting, it will easily crumble.

It is a good way to find a job in a large company that actually exists. Especially it is the best if you can experience the completion of the company and the immature but momentum developing company, you can actually experience these two things in some way. In fact it is a very rare case to start without employment anywhere, to suddenly start up from a student and succeed. Most of the cases that succeeded have already experienced similar work somewhere somewhere, so I started to do it myself anew ... .... Experience and knowledge are useful for that. With no experience or knowledge, there is no way to succeed even if you entrepreneurs with disgrunty.

This feeling of discomfort felt when seeing a student who wants to start a business and makes a big voice and plays a prompt is this. I cherish only the idea in my head, I have no legs on the ground, I have no plan to attach it, I have no plan. It is more fantasy and delusion than a business plan, so many narcissists full of narcism, "I am aiming for entrepreneurship!", So many self-employed entrepreneurs wish to be frustrated.

■ The way to recover from setback can only be obtained by setbacks


What makes humans different from other animals is the ability to be predictable. You can avoid the crisis by predicting the future by knowledge and experience, not expectation by instinct. However, alas, since human beings do not realize until actually experiencing, there is often a case where we can not take actions to shift to the execution obtained from that prediction because we can not feel the need. Or you may not be able to move because you can predict failure. The reason why most people do not start a business is exactly here. That is, it must fail, you can predict that the probability of not succeeding is greater ... and so on.

Also, being unable to recover in case of failure is a big uncertain factor. It takes a lot of effort to settle down and get over it, and it takes time. Also, there is no one who likes failure or setbacks. However, when experiencing failure or frustration, "How to recover from setbacks" is understood. In other words, how to handle it within yourself taking the fact that you are frustrated. There are not many things called a common way because this is a case-by case depending on individuals, which is the biggest difference in entrepreneurship.

You can see that experiencing a major frustration almost without exception when reading half of the actual successful people from various books and interview articles. Slander slandings, insults, no understanding and repulsion of surroundings, stakes pierced, jealousy and jealousy, grudges, leg pulls, obstructive work, impression manipulation, as much as possible everything is painfully present in reality . It is a very big point to say whether or not you have already acquired know-how to overcome them. Therefore, "people who are not immune to setbacks" who have never recovered from setbacks, "those who can lie to myself by lying to themselves" who have escaped or escaped without failing to recover even if they fail, It is not suitable for entrepreneurship.

■ What you need to start a business


Each item so far has become the answer to what I need. That is, it is the nine items below.

1.Since there is no blue ocean anywhere, we will endeavor to be able to combine the planning and strategy of surviving even in the Red Ocean, and the flexibility to change according to the changing social situation.

2.Keep in mind that acts that maximize profits and profit from actions that do not profit or that minimize costs are taken into consideration so as not to be aimed at just a niche market rather than a long tail.

3.Think about how long your company will last, and prepare for master plans at least for 100 years to be able to continue. This makes it possible to select without misalignment of the axis.

Four.Think about what you should do in order to get out of the situation as soon as your company dies if you die. Do not start a business on your own. Always employees are necessary. When starting a business in the first place, nobody agrees with your idea, and if there is no one who will become an employee, that plan has already failed.

Five.The representative director, CEO and president should each be made to a different person, but if it is impossible to clarify his / her favorable area and weak area, leave it to someone who is good at that area. Because my body is only one and only 24 hours a day.

6.Do not be afraid of addition and subtraction. If we gather and organize the actual figures necessary for calculation, it will result in astonishingly generally, but if you get used to it, next time you will be able to figure out what value you want to improve I can see it.

7.Even if the logic is correct, no profit will be given, so always think about methods other than breakthrough.

8.There are many companies in the world, so learn a lot from it and model it. You can learn more from failed cases, especially in success cases.

9.The way to recover from the setback can only be obtained by setbacks, so make sure to fail early and gently. The frustration at such a level that everyone can naturally have not been able to do so is preferable because it is the most rugged. If you have not experienced a setback in the current stage of wanting to start a business, you had better stop it. Perhaps it will not fail, and there may be talent not to settle down, so it should be suitable for enlarging existing companies. Let's work hard as employees of other companies and promote within that company, and finally choose the way to take over to the top to win over.