What are the characteristics of the industries in which it is easy to start a business and succeed?
Recommended industries and their advantages and disadvantages

• Update:2023/11/14

In recent years, more and more people in Japan have become interested in starting their own businesses due to government-led reforms in the way they work and the Corona disaster. If you actually want to start a business, you may be very concerned about whether your business is in an industry where it is easy to succeed.

In this issue, we will introduce the five conditions for an industry in which entrepreneurship is likely to be successful, and then explain in detail the characteristics, advantages, and disadvantages of the recommended industries.

5 conditions that make it easy to start a successful business and 5 conditions that make it easy to start a successful business.

As you begin preparing to start your own business, it is important to first ask yourself, “Can I expect future success in my type of business?” It is important to consider the following. Industries that can succeed through stable operations after starting a new business have the following characteristics.

There is a market need

For a start-up business to succeed, it is important that it be in an industry with high market needs. However, in recent years, the economic situation in Japan has been sluggish due to the Corona disaster and other factors, and the market environment is prone to significant changes.

Therefore, when starting a new business, it is important to pay attention to potential needs as well as visible market needs, and to be in an industry that can reflect long-term demand.

High profit margin

A high profit margin is another key factor common to the majority of successful businesses. The profit margin is the ratio of profit to sales or selling price and is calculated by the following formula

Profit Margin (%) = Net Profit / Sales x 100
　(*Net profit = Sales – Cost of Sales – Expenses)

As can be seen from this formula, a business with a high profit margin is characterized by a low cost of materials and other costs and expenses used in business activities.

Low initial investment

To make your business succeed as quickly as possible, it is also important to choose an industry or business with a low initial investment.

For example, if you start a business that costs 5 million yen to start, even if you pay 1 million yen per year to financial institutions, it will take 5 years to pay off the loan. On the other hand, a business with an initial investment of zero yen would be able to keep its profits from the first year.

No (or little) inventory required

Inventory businesses have the disadvantage of requiring a large initial investment before starting up because they must first purchase the product and then sell it.

In addition, if market needs change or purchasing expectations are not met, the large amount of remaining inventory will be lost. Considering these risks, it is recommended to start a business in a type of business that requires as little inventory as possible.

Can be operated without a store

To increase profit margins, it is also important to be in an industry with low fixed costs. In this regard, we would like to focus on the costs of stores and offices, which tend to account for a large proportion of fixed costs.

For example, if a business can operate from home without a store, it will be easier to continue business in the same environment even if there are periods of zero sales due to changes in the market environment. Also, if you are in a type of business that allows you to operate without a store, you may be able to take a work vacation while continuing your business.

Characteristics, advantages and disadvantages of recommended industries

In order to efficiently run a successful business in this day and age, it is recommended that you start a business in the following industries that can meet all of the five conditions mentioned above.

Consulting

The consulting business is a job in which one utilizes one’s expertise and experience to research, analyze, and provide advice on the business conditions and operations of companies and other organizations as well. A person who can perform these roles is called a consultant.

There are various types of consultants, including.

• Management Consultant
• IT Consultant
• Web Customer Attraction Consultant
• Labor Consultant
• Human Resources Consultant
• Personal Consultant
• Event consultants, etc

There are no qualifications required for consulting. Therefore, anyone with the expertise to provide advice and proposals to business owners and others can start a business immediately. In addition, by utilizing tools such as Zoom, it is possible to make proposals to clients nationwide online.

However, in order to differentiate yourself from the many consulting firms to which many consultants belong, you will need to make various efforts, such as actively advertising your services through social networking sites and blogs, and offering free initial consulting services.

Web Production

A simple example of web production is the creation of content to be placed on a website or web site. The following types of jobs will allow you to start a business in this category.

• Web Producer
• Web Director
• Web Content Editor
• Web Writer
• Web Designer
• Web coder

Those who have gained various experiences in web production can start their own business by themselves in a style where they are involved in the entire process of website production, from planning and proposal to design and development. In this industry, it is also possible to start your own business as a specialist in a specific field, such as a web designer or web writer.

The advantage of starting a business in web production is that you can work anywhere with a single computer. On the other hand, the disadvantage is that without a proven track record, skills, and recognition, the unit price and compensation may be lower than when you were a company employee.

Web site management

Website management is a business that generates revenue through the use of self-built websites and blogs. Typical examples are affiliate marketing and product sales (online stores).

The greatest advantage of website management is that you can start preparing to start a business as soon as you have a single computer. For example, you can set up a professional website while gathering information on the Internet while working at a company, and then start your own business after you are able to generate a certain amount of revenue.

On the other hand, website management has the potential for a sudden drop in earnings if the site ceases to be updated or loses its reputation from Google. Therefore, it is necessary to consider content in accordance with Google’s guidelines and persistently keep on track and update the site.

Programming

Programming is the task of writing instructions for a computer to do in software and system development. People involved in this work are called programmers.

When a person starts a business as a programmer, he or she usually works on contract for projects from major companies. In some cases, they may also work in an on-site office with a development team.

The biggest attraction of starting a business in programming is that if you are a programmer working with a language that is in high demand, you can expect to earn an annual income of 10 million yen or more. However, to earn such a high income, you will need to improve your skills in popular languages and connect with companies that handle high unit-price projects.

Online school

Online school is a general term for courses and lessons conducted remotely using a computer and an Internet connection. In recent years, with the growing demand for nest eggs due to the Corona disaster, many people are starting online schools in the following categories

• English Conversation
• Programming
• Fitness (yoga, muscle training, etc.)
• Tutoring
• Music (piano, voice training, etc.)
• Painting, etc

The greatest appeal of online schools is that they allow students to start their own businesses in the areas they like and are good at. In addition, online has the appeal of connecting with a wider range of customers than face-to-face classes because you can open courses to students across the country.

However, online schools tend to have a harder time keeping students motivated than face-to-face classes. Therefore, in order to succeed in starting an online school business, it will be necessary to devise ways to avoid one-way lessons from the instructor and to create a system to attract more customers.

Summary

To be successful in starting a business, it is important to prepare for independence in an industry that meets the following five criteria.

• There is a market need
• High profit margins
• Low initial investment
• No (or little) inventory required
• Can be operated without a store

If you are looking for a cheap office to start a business for less, Tensho Office is also a great place to start. All of our office buildings are located in prime locations in central Tokyo. If you are interested in starting a business at Tensho Office, you can register your business in a location that combines status and convenience.