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What do you need to do to start a business, from 5 preparations to knowledge to keep in mind?

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Some people who want to “do what they want to do” may consider starting their own business. However, there are many cases where people do not know how to start a business and are not ready to take the plunge.

In this article, we will explain what you need to do to start a business, including five preparation items and the content of knowledge you need to keep in mind. In addition to ways to reduce the risk of starting a business, we will also introduce recommended serviced offices, so those who are considering starting a business can refer to this article.

What do you need to start a business?

To start a business, it is important to first consider what you are good at. Starting a business in an area you feel you are not good at will most likely lead to failure because you will not be able to enjoy your work. On the other hand, if you start a business in something you are good at, you will be able to enjoy your work and grow your company, increasing your chances of entrepreneurial success.

In addition to considering what you are good at, starting a business requires a variety of other preparations. Here are five preparations you need to make when starting a business.

Think about why you want to start a business and what your objectives are

Think about your reasons and objectives, such as why you want to be an entrepreneur and why you want to start a business.

Although “I want to start a business because I want to be free” is one way of thinking, it appears to be a somewhat passive reason and purpose compared to the idea of “I want to solve 00 problems. With such a passive approach, if the entrepreneurial venture does not work out and you have to change the direction, you will not be able to come up with a new direction immediately because your vision is unclear. It is important to consider clear reasons and objectives, such as what you want to challenge and what you want to achieve.

When thinking about your reasons and objectives for starting a business, we recommend that you write them down on paper. Organizing your thoughts in writing can help you clarify them and lead to new discoveries.

Think of a start-up idea

After determining the reason and purpose for starting a business, think of a start-up idea (business idea).If you are having trouble coming up with a start-up idea, consider the following aspects of your idea.

  • Are there any hobbies or special skills that can be utilized?
  • Is there a solution to a problem that I find inconvenient?
  • Can you develop a service that already exists?

If you feel inconvenienced, it is highly likely that others also feel inconvenienced. If you can create a product or service that solves such an inconvenient situation, you will gain the support of many people.

Note that it is important to write down entrepreneurial ideas as soon as they occur to you.Sometimes just taking one note will give you other ideas.

Decide on the form of your startup

There are two forms of entrepreneurship: sole proprietorship and corporation (incorporation). Details of each are as follows.

  • Sole proprietor
    This is a form of entrepreneurship in which an individual operates a business without establishing a company.When starting a business as a sole proprietorship, no registration or other procedures are required.Submit a notification of opening of business to the tax office within one month of opening.

    As a sole proprietor, you are subject to the “progressive taxation system” under which taxes are levied according to your income. If you have a large amount of income, you may be able to save taxes by establishing a company.
  • Corporations (Incorporation)
    When establishing a company, many procedures are required, such as certification of articles of incorporation, corporate registration procedures, and procedures for enrollment in health insurance and employee pension insurance. While the procedures are more complicated, the taxes levied remain almost the same even if profits increase, making it easier to save on taxes compared to sole proprietorships.

Raise funds

Starting a business requires sufficient start-up capital, including start-up and working capital.If you do not have enough funds on your own, you can raise funds through the following methods.

Financing MethodsMethod Details
LoanThis is a method of obtaining financing from financial institutions such as the Japan Finance Corporation (JFC), a public institution, or city banks. If you wish to obtain a loan, you must prepare a business plan, apply for the loan, and pass the screening process.
Subsidies and GrantsCurrently, there are areas that offer subsidies and grants on a municipal basis. Unlike loans, repayment is not required, which is a major advantage.
CrowdfundingThis is a method of raising funds on the Internet. If you can get people to sympathize with your business philosophy and ideas, you can expect to raise more funds than expected.

Start a business

Once you have completed the four preparations, you are ready to move on to the business start-up phase.The basic flow of establishing a company is as follows.
*Because this is a basic flow, some other work may be required.

Before Establishment・Decide on the promoter
・Decide on a trade name
・Create a seal
・Decide on capital
・Decide the location
At the time of establishment・Prepare and certify Articles of Incorporation
・Pay in capital
・Prepare and apply for registration documents
After Establishment・Submit documents to the tax office
・Submit a notification of opening of business
・Join the social insurance system
・Create a corporate account

Since numerous documents must be submitted to start a business, it is important to prepare well in advance.

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To start a business, you need “knowledge”! Two things to keep in mind

If you are considering starting your own business, there are many things you can do before starting out on your own. In some cases, you may be able to rely on the contacts you made outside the company while working as a company employee when starting your own business. It is also important to absorb the knowledge necessary to start your own business.

Here are two pieces of knowledge you should keep in mind when starting a business.

Money matters

In starting a business, it is essential to acquire knowledge around money.A manager who handles money in a proper manner is very unlikely to be successful. It is essential to understand the money cycle and develop strategies on how to turn a profit.

As knowledge around money, be sure to have knowledge of “management accounting,” which is used in management decision-making situations. This is because managers need to make important business decisions in various situations. In addition, you must be able to read financial statements in order to understand your company’s financial situation. Start by learning to read the income statement and balance sheet.


With so many useful products and services available in the world today, creating good products and services alone is not enough to generate profits.To beat your competitors, hold on to your knowledge of marketing.

Marketing is not about “selling products” but about creating a situation where products sell naturally. By creating a state in which products sell while minimizing advertising and promotion, a company’s profits will increase. Be sure to plan and implement a product development, sales strategy, and effectiveness verification process from the time the product is created to the time it is sold.

Two ways to reduce the risk of starting a business

Starting a business involves risk.To reduce the risk as much as possible, practice the following methods.

  • Carefully research market needs
    Even if you invent a revolutionary product or service, you cannot expect it to sell if there is no market need for it. Research market needs to find out if there are already similar services, and whether the product or service you plan to develop is needed by many people. We recommend that you conduct a survey of customers who are close to your persona.
  • Find someone you can talk to
    If you are trying to start a business for the first time, you will probably have many concerns and questions. It is important to find someone you can consult with, such as someone who has experience starting a business, so that your concerns and questions can be resolved immediately. Try to find a tax accountant for tax-related matters, a company labor attorney for labor issues, or any other professional you can consult with when you have any problems.


Starting a business requires preparation, including thinking about the reason or purpose for starting the business and raising funds. There are three main ways to raise funds, so carefully determine which method to choose while taking into account the characteristics of each. Knowledge acquisition is also essential when starting a business. Make sure you have the knowledge necessary to start a business, including knowledge about money and marketing.

If you are starting a business and need to set up an office, consider the Tensho Office serviced office. We have offices in Ikebukuro, Shinbashi, Akasaka, and other prominent areas in Tokyo.

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