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[Column] Conveying the Spirit of Entrepreneurship 1 The Spirit of Entrepreneurship is Always Right

[Column] Conveying the Spirit of Entrepreneurship 1 The Spirit of Entrepreneurship is Always Right

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In the founding period of a company, there are no customers, partners, facilities, goodwill, or employees as we know them today. In other words, starting from a situation of "nothingness"—lacking people, goods, money, achievements, and trust—is a commonality in the founding stages of businesses throughout history and across cultures. The only thing that one can hold onto during this time is the "effort rhythm" of wanting to please customers somehow and working diligently with a single-minded focus. This transforms into enthusiasm and sincerity, allowing the company to overcome various challenges and grow into its current form. Moreover, companies that inherit the baton from their predecessors cherish and carry forward the family rules, business teachings, and lessons passed down through generations. Such founding spirit remains valid over time; when a company forgets this spirit, it tends to lose its direction, leading to various management issues. The struggles and stories from the founding period are often unknown to current employees, making it crucial to understand the origins that shaped the present state and content of the company. Knowing this history helps in understanding the values and perspectives of the management, which in turn leads to a unification of values as corporate individuals and professionals. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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[Column] ➀ The company is a human zoo.

[Column] ➀ The company is a human zoo.

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■ The company is a human zoo, designed to collapse. The characteristics of various organizations, such as sports and hobbies, are fundamentally similar in that they gather people with similar values. For example, if friends from a recreational baseball team discuss going camping, the conversation quickly comes together. However, a company organization is characterized by the gathering of people with differing values, backgrounds, ages, and genders. Therefore, unless there is an intention to unify the company organization, it will not function as a cohesive entity. In other words, if left unattended, the company is inevitably designed to collapse. ■ A company will not run smoothly if nothing is done. People with different backgrounds and differing values regarding likes and dislikes happen to live in the same area and come together to form an organization under conditions where they can compromise on treatment. This is the case for many small and medium-sized enterprises. While a group of animals in a zoo lives based on natural coexistence, when humans become like a zoo, they forget their own productivity and complain about low evaluations, or say they don’t get along with someone, or that even when company policies are presented, they do as they please. Many companies are in a state of neglect. In other words, it is more effective to consider company management methods based on the premise that a company will not run smoothly if nothing is done.

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[Column] ➂ The President of a Small to Medium-Sized Enterprise Betting on Their Way of Life

[Column] ➂ The President of a Small to Medium-Sized Enterprise Betting on Their Way of Life

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A certain company president, although young, desperately endured shame and tackled challenges head-on to avoid bankruptcy. He was short of 10 million yen needed for settlement funds. He sought help from government-affiliated financial institutions, but due to the lending restrictions at that time, they completely ignored him. As thoughts of bankruptcy loomed for tomorrow, he suddenly came up with the idea of contacting a local representative with whom he had no prior acquaintance. He quickly reached out, met with the secretary, conveyed his dire situation and the current lending restrictions, and managed to gain understanding, thus escaping the crisis. Another company president underwent civil rehabilitation. Once under civil rehabilitation, borrowing from financial institutions becomes impossible. He was forced into a very tough management method that required him to operate solely with cash. The president not only threw away his shame and reputation but also completely changed his personality. He became a demon who would take on any job and seize even the smallest connections for work. Six years later, he received a call from this president, who, with tears in his eyes, joyfully shared that the court had recognized the conclusion of the civil rehabilitation process. I want them to feel proud of running a self-sufficient business, no matter how small, and to participate in it (thinking for themselves, taking action, and accepting responsibility). I strongly hope they will convey the greatness of their company to their employees and families.

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[Column] ➃-➀ The Background of Small and Medium-Sized Enterprise Presidents as a Race

[Column] ➃-➀ The Background of Small and Medium-Sized Enterprise Presidents as a Race

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Can't you even do something like this? Don't you understand something like that? How many times must small and medium-sized enterprise (SME) owners have felt like they were biting on a bitter bug? It takes time to bridge the gap between 'tactile sense' and 'common sense' in both mind and heart. The tactile sense refers to events in the field, while common sense is the value system created by the environment in which one was raised. This difference troubles business owners. Many company presidents would say that their inherent personality is suited for a No. 2 position. However, whether they became founders out of passion, were forced into the role of a manager due to circumstances, or are second-generation successors who must take over, the fact remains that they are currently business owners. Small and medium-sized enterprises are often disorganized entities lacking in people, goods, money, and management. However, because they work to bring together such organizations, SME presidents become a 'common breed.' If you manage SMEs with the above characteristics for 20 or 30 years, you inevitably become a common type of SME manager.

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[Column] ➇-⓶ Illness of Small Businesses: Inability to Perform Basic Operations

[Column] ➇-⓶ Illness of Small Businesses: Inability to Perform Basic Operations

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Another problem often seen in many companies is that they are not performing the "basic actions." When you wake up in the morning, you should greet others with "Good morning," and when things are messy, you should clean up. These are the obvious basic actions that an organizational member must do. If you cannot perform these basic actions naturally, like breathing in and out, you cannot be a part of the organization. Particularly lacking are the actions of reporting, communicating, consulting, and giving instructions and orders. The inability to give instructions and orders is serious; failing to perform these basic actions that move people can lead to chaos in the workplace. Additionally, they are also failing to adhere to established rules. Not following them has become a habit in itself. If there is no habit of properly doing what has been decided, then any attempt to do something new is futile.

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[Column] Development of New Businesses (2) The Principle of Entering New Businesses is the Bamboo Grove Method

[Column] Development of New Businesses (2) The Principle of Entering New Businesses is the Bamboo Grove Method

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The bamboo grove method literally imitates the way bamboo grows as a thicket. It revolves around considering the current industry or sector one belongs to, as well as related industries and surroundings. It also involves assessing whether there are promising business opportunities that can leverage existing human resources, technology, sales channels, buildings, and equipment. In other words, like a bamboo grove, it involves developing businesses that are related in some way, branching out from a single root. This approach is low-risk and does not lead to significant failures. The points to keep in mind in this case are as follows: (1) Develop based on areas where strengths and expertise can be leveraged. (2) Assess whether idle assets (land, equipment) and human resources can be utilized. (3) Determine if the industry planned for entry is a growing sector or a niche area that large companies do not venture into. (4) If entering as a latecomer, investigate whether the leading competitors in the same industry are generating profits. (5) Consider whether there are synergistic effects expected with the main business. (6) Assess the extent to which human resources and investment can be utilized. (7) Identify whether assets such as land, buildings, and employees from previous businesses can be leveraged. Exploring the possibilities of upward, downward, and lateral expansion based on this bamboo grove method, centered around the current business, forms the foundation for new business development in small and medium-sized enterprises.

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[Column] Exploring the Possibilities of Expansion Centered on New Business (3)

[Column] Exploring the Possibilities of Expansion Centered on New Business (3)

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The method of vertical expansion is fundamentally either upstream or downstream expansion. The criteria for upstream and downstream depend on whether a company is moving from its current business model to manufacturing (upstream) or to retail (downstream). Additionally, approaching the final end user is also a consideration. Upstream expansion refers to cases where a business enters into operations that have manufacturing or construction functions. This does not necessarily require the company to make capital investments; it can involve outsourcing or subcontracting to acquire manufacturing and construction functions while executing its own plans. A representative company is Uniqlo. A typical example of downstream expansion is when a lumber company undertakes new housing or renovations and transforms into a housing company (Tama Home). Downstream expansion is a method of entering fields that are closer to consumers. Next, horizontal expansion involves entering peripheral or niche fields. For example, a housing company or construction firm may enter the remodeling sector in a different division, or a building materials sales company may engage in termite extermination or house cleaning services, all of which are expansions into peripheral fields related to housing. The key points of horizontal expansion are entering fields where a higher gross profit margin can be achieved compared to the current core business, leveraging existing personnel from traditional businesses, and targeting niche areas with few or no competitors that have future potential.

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[Column] You cannot become a member of a fighting group if you do not know about the company or the product.

[Column] You cannot become a member of a fighting group if you do not know about the company or the product.

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Everyone knows themselves well. There are no employees who cannot answer questions about their date of birth, blood type, zodiac sign, or the origin of their name. However, when asked about the company's founding date, number of employees, annual sales, history, main bank, or the selling points of products, few employees can provide adequate answers. It's not just "the grass is greener on the other side"; employees know less about their own company than the president imagines. If you think this is hard to believe, it would be beneficial to create a test from your company's brochures or website and conduct it to understand the reality. Many would be astonished by the results. When you think about it calmly, it is quite remarkable that small and medium-sized enterprises attempt to compete without knowing their own company’s overview or products. They spend time without any sense of problem awareness, which leads to stagnation. Such a group can be described as a rabble. In other words, they cannot be recognized as members of a fighting group. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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