[Column] Development of New Businesses (1) Points of Success and Failure

I would like to introduce a column article.

An era that demands strategy. One perspective on this is new business ventures. ■Common points of failure in new business ventures: (1) Entering a completely unknown field without understanding how to conduct the business or the necessary know-how. (2) Having the financial resources and materials, but lacking suitable personnel. (3) Insufficient understanding of the market and demand. (4) High risk and high return with significant investment amounts. (5) Unclear expectations regarding the investment amount. (6) Misjudging the timing for withdrawal. (7) Expansion into different industries based on the owner's president's unilateral decisions and personal interests. ■Success points from successful examples: (1) Related industries or business types to the current business. (2) Transitioning upstream (manufacturing) or downstream (retail). (3) Growth areas, networks, and timing that align with current trends. (4) Utilizing systems that allow for the incorporation of know-how (such as franchising). (5) Leveraging assets and employees from existing businesses, such as land and buildings. Relying solely on existing businesses that target the same products to the same customers makes it increasingly difficult to achieve appropriate profits. Therefore, one strategic perspective is new business ventures. When new businesses succeed, they can generate significant benefits for the company.

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