Startups

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 proprietorThis 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 DetailsLoanThis 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 locationAt the time of establishment・Prepare and certify Articles of Incorporation・Pay in capital・Prepare and apply for registration documentsAfter 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. 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. Marketing 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 needsEven 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 toIf 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. Summary 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.

As you consider starting a business, some of you may wonder what a joint stock company is. This article provides an overview of a joint stock company, including its advantages and disadvantages, and the process of incorporation. There are many types of companies in the world, such as joint stock companies, limited liability companies, partnership companies, and general partnership companies. The most commonly asked about is a joint stock company, but some people may not be familiar with the structure of a joint stock company. This article explains the differences between a joint stock company and a limited liability company, as well as the advantages and disadvantages of establishing a joint stock company. The flow of establishing a joint stock company will also be introduced, so those who want to know more about joint stock companies as well as those who are considering starting a business should definitely refer to this article. What is a Corporation? A stock company is a corporation that is managed through the use of capital by issuing shares of stock and receiving capital contributions from shareholders. The shares are certificates issued by the company to the investors of the capital. For example, if a sole proprietor wants to start a business and open a restaurant, there are two ways to raise funds: using his/her own capital or obtaining a loan. On the other hand, a key feature of a joint stock company is that it can also use the "capital injected" method. There are two principles in a joint stock company. Details of each are as follows. ・Separation of ownership and management The principle is to separate the ownership and management rights of the company. Shareholders who have invested capital can participate in the "shareholders' meeting," which is the highest decision-making body of the company. Shareholders can elect "directors" at the general shareholders' meeting, and thus have a position of ownership of the company and can influence the management of the company. ・Principle of Shareholder Limited LiabilityThis principle states that shareholders are not liable for more than the amount of their investment in the event of bankruptcy of the company in which they have invested. The purpose of this principle is to clarify the scope of liability of investors and to receive more investments. Differences from a limited liability company A joint stock company and a limited liability company differ in various aspects, including the term of office of directors and the name of the representative. The main differences are as follows. Corporationlimited companyProfit sharingProfit distribution based on number of shares heldProfit distribution independent of the amount of investmentName of RepresentativeRepresentative DirectorSenior partnerTerm of OfficeMaximum 10 yearswithout a term of officearticles of incorporationAuthentication requiredNo authentication requiredEstablishment CostsFrom approx. 200,000 yenFrom approximately 100,000 yen Compared to joint-stock companies, limited liability companies are still less well known.However, the total number of limited liability companies is increasing every year, with some adopting the limited liability company form due to its greater flexibility. Source: e-Stat, General Contact for Government Statistics, "Number of registrations of limited liability companies by type https://www.e-stat.go.jp/dbview?sid=0003268322 Advantages and disadvantages of establishing a joint stock company Since joint stock companies and limited liability companies have different advantages and disadvantages, neither is superior to the other. Whether one or the other should be established depends on the key factors that are important to the person considering starting a business. Here we will explain three advantages and two disadvantages of establishing a joint stock company. Advantage 1: High social credibility A major advantage that a joint stock company has is its high level of social credibility. Since many companies are now joint stock companies, it is easier for clients to trust a joint stock company than a limited liability company or a limited liability company.The high level of social credibility is also effective in the hiring process. When there are multiple job openings in the same industry with similar conditions and benefits, and both "joint-stock companies" and "non joint-stock companies" exist, some job seekers may give priority to joint-stock company jobs. Also, being a joint stock company is advantageous in many situations, such as being able to obtain loans from financial institutions more easily. Advantage 2: Easier business succession Another advantage of a joint stock company over a limited liability company is that it is easier to pass on the business. In a joint stock company, you hold ownership of the company based on the number of shares you own. Therefore, business succession can be accomplished simply by transferring or selling the shares held. For example, it is not uncommon for a sole proprietor to want to take over a business, but be unable to do so due to a lack of successors or other reasons.If you want to keep your business going as long as possible, a joint stock company is the right choice. Advantage 3: Easier to save taxes Depending on the size of the business, corporations such as joint-stock companies are generally more tax-efficient than sole proprietorships.The main reasons are as follows. ・Corporate income tax is not a progressive tax・Many expenses are allowable. The corporate tax rate is set at 15% for the portion of income less than 8 million yen and 23.2% for the portion of income greater than 8 million yen. The tax rate is not progressive like that of sole proprietorships, but is fixed, which is a major feature of this tax system, making it highly tax-efficient. Source: National Tax Agency, "No. 5759 Tax Rates for Corporate Taxes."https://www.nta.go.jp/taxes/shiraberu/taxanswer/hojin/5759.htm Demerit 1: Establishment costs tend to be high The cost of establishing a joint stock company tends to be higher than that of a limited liability company, for example. The table below compares the costs incurred when establishing a joint stock company and a limited liability company. Cost itemCost at IncExpenses in a limited liability companyCertification fee for articles of incorporation30,000-50,000 yen(Depends on capital) *10 yenRegistration and license taxThe higher of the following two・150,000 yen・Amount of capital x 0.7 *2The higher of the following two・60,000 yen・Amount of capital x 0.7 *2Fee for certified copy of articles of incorporation250 yen per page *10 yen *1 Source: e-Gov, "Notary Public Fee Order, Article 35." 　https://elaws.e-gov.go.jp/document?lawid=405CO0000000224*2 Source: National Tax Agency, "No. 7191 Tax Table for Registration and License Taxes."　https://www.nta.go.jp/taxes/shiraberu/taxanswer/inshi/7191.htm The revenue stamp for the articles of incorporation is 40,000 yen for both (0 yen for electronic articles of incorporation), but the registration and license tax can vary greatly in amount. Due to the above differences, incorporation of a joint stock company is more expensive. Demerit 2: Obligation to publish financial statements The obligation to publish financial statements is another disadvantage of a stock company.The financial figures must be published each fiscal year, and the balance sheet must be published in the Official Gazette and on the website. Basically, the publication is to be published in the Official Gazette, but there is a cost associated with the publication in the Official Gazette. Since the publication of financial statements must be done every year, the increased cost burden is a disadvantage. What is the process for establishing a joint stock company? The basic procedure for establishing a joint stock company is as follows. 1. Decide on a promoterThe promoter is the person who proceeds with the procedures to incorporate the company. There is no limit to the number of promoters, so more than one person can be a promoter. 2. Decide on the basicsDetermine basic matters such as company name (trade name), location of head office, composition of directors, business activities, and purpose of the company. 3. Prepare Articles of IncorporationPrepare the Articles of Incorporation, which is called the "constitution of the company. Be sure to clearly state "absolute matters to be stated" such as the purpose and trade name. 4. Certify Articles of IncorporationThe Articles of Incorporation will be authenticated to ensure that there are no problems with the information contained in the Articles of Incorporation. Certification can be obtained at any notary public office in Japan. 5. Paying in capitalThe promoter pays the amount corresponding to the number of shares subscribed to the financial institution. When making the payment, it is essential to have a "notary public" issued. 6. Apply for registrationThe application for registration should be filed at the Legal Affairs Bureau or other office that has jurisdiction over the location of the head office. In principle, the date of application for registration is the date of incorporation. Two points to keep in mind when establishing a joint stock company When establishing a joint stock company, keep the following two points in mind. ・Be aware of "legality," "profitability," and "specificity" of business objectives.It is essential to determine the business purpose of the company with three points in mind: legality, profitability, and concreteness. The following points should be taken into consideration when deciding on a business purpose. LegalityWhether the law has been violatedCommercialityWhether it can generate profitConcretenessWhether the content is easy for anyone to understand ・Do not name your company similar to other companiesIf you name your company similarly to an already existing company, for example, searchers may not be able to find your company immediately when they search for your name in a search engine.Try to name the company name that is not yet in use so that it can be easily seen by more people. Summary In this article, we have explained the outline of a stock company, the advantages and disadvantages of its establishment, the flow of its establishment, and points to keep in mind. Unlike a limited liability company, a shareholder company is characterized by the fact that shareholders have an influence on the management of the company. While there are advantages such as a high level of social credibility, there are also disadvantages such as the need to publish annual financial statements, so if you are considering starting a business, make sure you have a clear understanding of the advantages and disadvantages. If you want to set up an office when you start your business, consider the Tensho Office, a serviced office in Tokyo. There are many advantages for entrepreneurs, such as low initial and running costs.

Along with the establishment of new lifestyles, we are also entering a period of change in the way we think about working, including the promotion of remote work. Many people may take this opportunity to consider starting a business. The term "entrepreneurship" can be categorized in various ways depending on one's point of view. In this article, we will explain the differences between typical types of entrepreneurship, focusing on "entrepreneurial style, location of startup, type of business and business category, and financing. If you are interested in starting a business, please use this article as a reference in preparing for starting your own business. Sole proprietorship or corporation? Entrepreneurship can be broadly classified into two categories: starting activities as a sole proprietor or establishing a company as a corporation. Advantages and disadvantages of sole proprietorship Sole proprietorships have a simple opening procedure, do not require much initial cost, and can be started immediately. In most cases, there are significant tax advantages up to a certain level of income. The disadvantages are that the degree of social trust is lower than that of a corporation, and there are limitations on the scope of expenses that can be covered. The higher the profit, the higher the income tax rate. Advantages and disadvantages of the corporation Corporations have a high degree of social trust, a wide range of expenses, and relative flexibility. If income exceeds a certain level, tax savings can be significant. However, there are many procedures to start a business, such as registration, which are costly and time-consuming. Accounting and personnel management are also more complicated than for a sole proprietorship. An alternative is to start as a sole proprietorship and incorporate as soon as you are sure that you can continue your business. There is an option for company employees to start their own business on the side In this era of diversity acceptance, corporate values regarding employees' side hustles are undergoing a period of change, and an increasing number of companies are allowing employees to work side hustles while still employed by the organization. However, regulations concerning side jobs vary from company to company. Check employment regulations carefully, and if there are any unclear points, ask the company to clarify them to avoid any problems. Where to start a business There are many different options for where to start a business, and you have the freedom to choose. Understand the advantages and disadvantages of each location and choose the perfect location for your start-up business. Home-based entrepreneurship recommended for sole proprietors If you are a sole proprietor, we recommend using your home as your office. The initial cost is low, and it is easy to balance work with housework, childcare, and nursing care. However, it is important to note that it is difficult to distinguish between work and private life, which can lead to stress. Recommended serviced office for startups In general, a leased office space is contracted with the owner and monthly rent is paid for the use of a single space. In addition, users must provide their own office furniture and equipment, such as desks and copy machines, so the initial cost is quite high. In contrast, in a rental office, the user contracts for a section of space. The contracted space is your own, and you can use it just as you would a regular office. Most serviced offices are furnished with office furniture. It is not uncommon to find offices with shared meeting rooms, lounges, copy machines, etc. For more information on serviced offices, please see the following article. Why is renting an office recommended for startup companies? Easy to start a business in a rural area With remote work becoming more popular and online meetings and online customer service becoming more common, the disadvantages of starting a business in a rural area are on the decline. Depending on the nature and scale of the business, it is easy to start a business in a rural area and expect to reduce fixed costs through significant savings in rent and other expenses. Even those who find it difficult to continue working due to childcare or nursing care may be able to balance work and family life by starting a business in a rural area or from home. Type of business or type of business to be started No matter what type of business or industry you choose, it is important that you meet the following conditions for profitability. Profitable conditions ・Market needsWhether there are stable needs over the long term, including current visible needs as well as latent needs. ・Profit MarginProfit margin is the ratio of profit to sales or selling price, and a high profit margin is the key to business success.The profit margin is calculated by the following formula. Profit Margin (%) = Net Profit / Sales x 100 Net profit = Sales - Cost of sales - Expenses A common trend is that businesses with high profit margins have low costs and expenses. ・Initial CostA business style with a low initial investment can generate profits early and lead to a successful business. For example, a business with an initial cost of 5 million yen at the time of start-up would take 5 years to complete repayment if the annual repayment to financial institutions is 1 million yen. In this regard, a business with an initial investment of 0 yen can leave a profit from the first year. ・Availability of InventoryBusinesses that require inventory have a high initial cost for purchasing and are at risk of losing inventory due to changes in market needs or other reasons. Businesses that require as little inventory as possible are more likely to be safe. ・Availability of storesTo increase profit margins, fixed costs must be reduced. The largest fixed cost tends to be storefront expenses. In many cases, if a business is possible without a store, the business will be able to continue even if sales drop sharply due to unforeseen circumstances, such as changes in market conditions or natural disasters. Profitable industries and business types ・Online SchoolCourses and lessons conducted remotely via the Internet are a hot business category as demand for nest eggs grows. The appeal of this type of business is that it allows students to start their own businesses by utilizing their hobbies and areas of expertise. Unlike face-to-face classes, online schools have the potential to attract students from all over the world. ・ConsultingConsulting is a business that provides research, analysis, and advice on the business conditions and operations of companies and other entities. ・Online StoreYou can start a business without a store and without incurring fixed monthly expenses such as rent, utilities, and labor costs. Online customer service is also possible with the use of tools. For more information on the types of businesses and conditions that make it easy to start a successful business, please see the following article. 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 Type of financing In addition to self-financing, the following financing methods may be used to finance a start-up. Borrowing and financing from financial institutions Since there is no track record, lenders can only make decisions based on projections. The key to receiving a loan is a compelling business description and a clear plan for using and repaying funds. Prepare a business plan after preparing personal funds and consult with financial institutions. Public subsidies and grants Subsidies and grants provided by the national government and local governments, which are financed by public funds, are also available under certain conditions. While loans from financial institutions must be repaid, grants and subsidies are not repaid in principle, reducing the burden of starting a business. In many cases, grants can be provided as long as the requirements are met. On the other hand, subsidies have a budget and a cap on the number of grants, and grants are determined by lottery. Venture capital investment Venture capital firms invest in unlisted companies with high growth potential. Venture capital firms make a profit from the sale of shares and businesses of the companies in which they invest. Although it is possible to raise funds without collateral, it is necessary to follow the management policies of the venture capital firm, and the burden on the recipient of the investment, such as preparing for listing, can be significant. Summary Entrepreneurial styles are broadly classified into sole proprietorships and corporations, and some companies allow side businesses while still being enrolled in the company. As lifestyles change, it is becoming easier to start a business in rural areas. For office space, we recommend starting a business from home with low initial costs or renting an office with low fixed costs. When starting a business, examine the conditions and types of businesses that are likely to be profitable, and plan to raise funds other than your own. As long as you are prepared and plan accordingly, it is not difficult to start a successful business. We encourage you to give it a try.

Some people may be hesitant to embark on entrepreneurship because of the fear that they may fail. In this article, we will explain how to start a solid business in five steps and give you pointers on how to avoid failure. If you are interested in starting a business but do not want to fail, please read on. Step 1: Determine the business model The first important item to consider is what type of business model you will use to start your business. Consider whether you will be selling your own services or outsourcing, whether you will be selling off-sale or recurring billing, whether you will be online or offline, ……, and so on. Whatever your business model, it is important to keep the following five points in mind. Market needs If there is no demand in the market, there is no business. In addition to the needs that already exist, it is also important to pay attention to hidden needs and needs that can be uncovered. In addition, as a start-up business, it is important to take a long-term perspective and manage risk. Think carefully about whether there are needs that can withstand future changes in society and whether those needs will not diminish in the event of natural disasters or other situations that are difficult to defend against. Profit ratio We identify the expected income and expenses and estimate how much profit margin is needed to secure income and make the business viable. The profit margin is the ratio of profit to sales or sales price, and is calculated by the following formula.●Profit margin (%) = Net profit/sales x 100●Net profit = Sales - Cost of sales - Expenses Depending on the profit margin, the time when profit begins to be generated will differ. Even if sales can be secured, if the profit margin is low and profits cannot be secured, the business will not continue. Think carefully, assuming all possible cases. Initial cost Apart from the fixed monthly costs required to run the business, this is the cost of starting the business. Consider this in light of the amount of funding available. Initial costs vary widely depending on the business model, and choosing a business with a low initial investment should make it easier to turn a profit early on. Stock availability Businesses that require inventory have high initial costs because they must purchase products before they can sell them. Some products require warehousing, and especially in urban centers, warehousing costs tend to put pressure on profits. If the products do not match the changing market needs or sales forecasts are not met, the business may end up with a stockpile of inventory, which can lead to losses. Availability of stores While having a physical store has the advantage of allowing you to communicate directly with consumers and have them see your products in person, you will incur monthly rent, utilities, and labor costs in addition to the initial cost of renting the store. However, in addition to the initial cost of renting a store, there are also monthly expenses for rent, utilities, and labor. We recommend planning a realistic business model that fits your "new lifestyle. For more information on business models, please refer to the following article. 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 Step 2 Various notifications and procedures The procedures for starting a business differ depending on whether the startup is as a "sole proprietorship" or as a "corporation. Starting a sole proprietorship If you are starting a business as a sole proprietor, you only need to notify the tax office of the opening of your sole proprietorship. The notification forms can be downloaded from the IRS website or obtained at the tax office. It is recommended that the notification of business opening be submitted within one month of the start of business. There is no obligation to submit the form, but it is required for those who plan to file a blue return instead of a white return. Blue tax returns are more advantageous in terms of deductions and expenses. If you are starting a business, you should be aware of the advantages and disadvantages of both blue and white tax returns. To apply for a blue return, submit an "Application for Approval of Blue Return" to the competent district director of the tax office where the tax is paid by March 15 of the current year. For new businesses opening on or after January 16 of the same year, an "Application for Approval of Blue Return" must be submitted to the competent district director of the tax office where the tax payment is made within two months from the date of commencement of business.Reference:National Tax Agency (Japan) Corporate start-up When establishing a company as a corporation, procedures such as preparation of articles of incorporation and corporate registration are required. Although it costs a certain amount of money and time, it is advantageous in terms of social credibility, financing, and securing human resources, and the scope of expenses is wider. Another option is to start a business as a sole proprietorship first, and then incorporate when the time is right. We recommend that you carefully consider your planned business model and decide whether to start as a sole proprietorship or a corporation, comparing the advantages and disadvantages of both. Step 3: Prepare your office Consider where you will start your business and work. There are a variety of options, including serviced offices, shared offices, and home offices, and each business model may or may not be suitable for your business. At the start, we recommend renting or sharing offices, which are easier to keep fixed costs such as initial expenses and maintenance costs down than renting offices. The advantages and disadvantages of each type of office are explained below. Office for rent It is attractive because of its high social credibility and large degree of freedom, but the initial cost is high and equipment and facilities are expensive. Serviced offices Office space is rented on a portion of the floor, and in most cases, office furniture is provided. Facilities such as shared meeting rooms, lounges, and copy machines are also available. Security and information management must be taken into consideration, and may become more expensive as the number of users increases. Shared Office These offices use open space and offer free-address or fixed seating. Since it is an open space, security and information management measures will often be required. Also, because network communication is shared, there may be cases where communication speeds are slow. Home and Office While it is easier to keep costs down and balance work with housework and childcare, it may also be difficult to get the most out of your work. For more information about offices, please see the following articles How to choose an office when starting a business【Comparison of 5 typical types】 Why is renting an office recommended for startup companies? Step 4 Fundraising Possible financing methods for starting a business include self-financing, financial institution loans, and public grants and subsidies. Crowdfunding and venture capital are also available, but are not realistic for many. If you have limited access to funding and cannot raise the ideal initial capital, don't take chances. Be aware that you should choose a business model that requires less initial investment, or devise ways to keep initial costs low, so that you do not suffer from cash flow difficulties after the start of your business. Step 5: Determine how to attract customers The success of a business depends on attracting customers. Even if you have built an ideal business model and prepared excellent products, if you do not attract people, sales will not occur and you will not make a profit. There are a variety of ways to attract customers, including Web advertising, search engine optimization (SEO), flyers, direct mail, and referrals. What is important is the choice of method to reach the target audience and the expressions used to convey the message to the target audience. If you want to attract customers on the Internet, Google ads and Facebook ads are relatively easy to use and have a good track record, so even those unfamiliar with online advertising should be able to submit ads on their own. In particular, the development of Google's AI is remarkable, and with the Smart Assist Campaign function, AI can automatically optimize ad performance without advanced knowledge or technology. This is especially recommended for beginners. Summary There are five major points to avoid entrepreneurial failure and to succeed. Business ModelsOpening proceduresOfficeCapitalAttracting customers In your business model, carefully consider "market needs, profit margins, initial costs, inventory, and stores" and make a reasonable plan. For office space, which greatly affects initial and fixed costs, it is recommended to consider renting an office depending on the nature of the business. It is also important to make sure that your financial plan is reasonable. In addition, use methods and expressions that reach your target audience to attract customers and secure sales and profits.

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 ConsultantIT ConsultantWeb Customer Attraction ConsultantLabor ConsultantHuman Resources ConsultantPersonal ConsultantEvent 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 ProducerWeb DirectorWeb Content EditorWeb WriterWeb DesignerWeb 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 ConversationProgrammingFitness (yoga, muscle training, etc.)TutoringMusic (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 needHigh profit marginsLow initial investmentNo (or little) inventory requiredCan 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.

A start-up company that has just been established is still cash-strapped and has limited funds to spend on equipment. Also, depending on the size of the initial office space, the company may grow rapidly in a short period of time and quickly outgrow it. This is why we recommend renting an office. In this article, we will discuss the appeal of renting an office and how to choose one for startup companies wondering whether they should set up an office. What is a serviced office? In a typical office, the user signs a contract with the building owner, pays monthly rent, and uses a single space as a "serviced office. Users must provide their own office furniture and equipment, such as desks, chairs, and copy machines. A serviced office, on the other hand, is a contract for a single parcel of space that is offered to multiple users. The space is private and can be used in the same way as a standard office. However, most serviced offices are furnished with office furniture. They also have facilities and equipment such as shared meeting rooms, copy machines, and lounges. For more information about serviced offices, please see the following articles. Benefits of renting an office space (Serviced office in Japan) Why rent an office for your startup company? Serviced offices are especially recommended for start-up companies. There are five main reasons. Let's check each of them. Fixed costs can be reduced The most attractive aspect for start-up companies is the cost. In the case of a typical serviced office, a long-term contract is assumed. If the office size is large from the beginning, fixed costs such as rent will be high. Since the company may not necessarily grow smoothly, you may end up paying extra expenses for a while. Serviced offices are available for relatively short contract terms, allowing you to rent an office that is suited to your size. Some offices include utilities, internet, and other fees in the common-area fee, which can help startup companies reduce burdensome fixed costs. Office furniture and office equipment are available The initial cost of setting up a new office tends to be high, as in addition to the security deposit and key money, office furniture and office equipment must be provided. However, with a rental office, these facilities are already in place and do not need to be purchased. Relocation costs are also reduced because there is no need to move equipment out of the building. Good location Serviced offices are often well located. Nonetheless, the lower rent compared to a typical office is a major attraction. Not only does this reduce the burden on employees to get to and from work and help create a comfortable work environment, but the easy accessibility of the office will also reduce the amount of transportation expenses paid. In addition, a good office location can be expected to impress new clients and financial institutions. Can be registered as a corporation There are many serviced offices that offer corporate registration. Corporate registration is essential when setting up an office, as it greatly affects the credibility of your business partners. While corporate registration can be a cumbersome procedure, it is relatively easy to register in the case of serviced offices. However, some management companies do not allow registration, so be sure to check before signing a contract. For more information on corporate registration of serviced offices, please see the following article. Can I register a corporation at a serviced office address? What are the advantages and precautions? Optional services available Some serviced offices offer a variety of optional services. These services range from the use of meeting and reception rooms to telephone service, cafes, and more. Start-up companies often have a small number of employees and inadequate human resources. By making good use of the optional services offered by serviced offices, you can outsource your business operations and expect to increase your business efficiency. However, service content differs from one serviced office to another, so it is important to make sure that you have the optional services you need. For startups! How to choose a serviced office We have learned that serviced offices have many attractive points for start-up companies. So, what criteria should you use to choose an office to rent? In this section, we will explain what to check when choosing an office to rent. Initial and monthly fees First, let's still focus on the initial and monthly costs. A typical office requires an initial cost of six months to a year's worth of monthly rent for security deposit, key money, and deposit. In the case of serviced offices, the initial cost is usually one to two months' rent, so this alone can reduce the initial cost. However, we do not recommend simply looking at the amount. It is important to consider whether the initial and monthly costs are sufficiently low, taking into account the items discussed in the following sections. In addition to the size of the company, it is important to carefully determine whether the services available are commensurate with the cost. location (e.g. of industry) Location is a very important factor when choosing an office. For employees, accessibility is a key factor in their ability to do their jobs. An office with good access to the surrounding environment will help business run smoothly. The location of your office can also make a big difference in your company's impression with new clients and customers. If you want to enhance your company's credibility, you need to be particular about the location of your office. Availability of private rooms Serviced offices are basically private rooms that give the company its own space. However, it is also possible that the service is being offered in confusion with shared office space. In such a case, there may be cases where the office is called a "serviced office," but it is a free-address office with no private rooms. This is not always the case, so be sure to check the availability of private office space when signing an office lease. Availability of shared facilities such as meeting rooms Even if not always necessary, meeting rooms and other shared facilities are surprisingly important. Meetings are essential to conducting business. In some cases, you may even invite your business partners' representatives to a meeting. In such cases, it is important to have a meeting room that can be used in a relaxed atmosphere. In many cases, shared facilities such as meeting rooms are optional in serviced offices. If there are only a few rooms available, you may not be able to use them when you want to hold a meeting, so it is important to check the extent to which shared facilities are available. Ease of contracting Ease of contract is also a major factor for renting an office. Renting a standard office tends to be a bit more difficult than renting an office space because of the long-term contractual commitment and the need to go through a screening process. In addition, annual contracts also require procedures such as changing the registration of the office. Serviced offices have the advantage of being easier to contract. However, the terms and conditions of the contract differ from one office to the next, so in order to get the most out of your serviced office, you will need to pay attention to the ease of contracting. Summary A start-up company that has just opened for business wants to save as much money as possible until the business gets off the ground. Renting a standard office space can be expensive, requiring a high security deposit and key money, as well as a long-term contract. Renting an office space for rent reduces the initial cost of security deposits and key money, and the monthly rent is in line with the size of the space. The move-in and move-out procedures are smooth, making it ideal for start-up companies that may need to increase headcount due to rapid growth. If you are considering renting an office in Tokyo, please consider Tensho Office as an option. You can use the meeting rooms and internet free of charge, and there are no fixed costs such as utilities. With initial and fixed costs as low as possible, you will be able to spend your valuable funds on the development of your business. Low-priced Private Serviced Office in TOKYO is Tensho office

To start a business, you first need to set up the necessary environment for starting a business, which involves a variety of costs. How much does it cost to start a business? If you don't know the costs of starting a business in advance, your business plan could go awry. Here we will explain the initial costs of starting a business and how to reduce the initial costs. If you are planning to start a business, please refer to this page to reduce unnecessary expenses. Contractual costs of leasing office space The serviced office contract will incur the following costs. Basic cost Brokerage fee The maximum amount charged is one month's monthly rent, but some real estate agencies offer half or no brokerage fees. Security Deposit Approximately 6-12 months is the standard market rate. If nothing happens, you may be refunded when you move out. Key money Unlike a deposit or security deposit, it is not refundable. The standard market rate is one to two months of rent. Advance rent In properties where rent is paid in advance, the next month's rent is charged as the initial cost. If you rent from the middle of the month, the rent is often prorated on a daily basis, etc. Some properties offer the first month free of charge. The amount charged will vary depending on the type of office space used, but the following are the minimum initial costs for a 300,000 yen rent office lease. 【Approximate initial cost of leasing office space】　　Total…2,700,000 yen　　Advance rent…300,000 yen　　Brokerage fee…300,000 yen　　Deposit/Guarantee (6 months)…1,800,000 yen　　Key money (1 month)…300,000 yen Shared offices and serviced offices offer a lower initial cost than rented offices, as initial contracts can be signed for tens of thousands of yen to over 100,000 yen. With virtual offices, you can sign up for as little as 5,000 yen. Related Articles：How much does it cost to rent an office?Comparison with serviced offices and approximate market rates by area and size Advertising and promotion expenses Advertising and promotion expenses are necessary expenditures to make your company's services known. Business equipment Business card The market price is about 1,000 yen for 100 sheets. The more sheets ordered, the cheaper the price tends to be. Prices also vary depending on the type of design, paper material, and other factors. Creation of brochures It is a booklet that summarizes the company's services in an easy-to-understand manner, and is available in paper and electronic formats. If you outsource the entire process, including designing and directing the creation of the manuscript, the cost can be close to 1 million yen. If materials such as manuscripts and photographs can be prepared in-house, costs can be reduced. Web media for public relations Home Page Creation If you are outsourcing a full-fledged website of about 15 pages, expect to pay 500,000 yen or more. For companies that use templates to cut down on the man-hours required to create a website, it may be possible to create a website for as little as 100,000 yen. If you use a free website creation service and prepare the content in-house, the cost is zero, but it takes a lot of work. Domain Name Acquisition A domain is like an address on the Internet. The price varies depending on the type of domain, such as ".com", ".biz", ".co.jp", and so on. A cheap domain name costs a few hundred yen per year, while an expensive one costs several tens of thousands of yen. Server Management The server required to publish a website is generally a rental server (hosting server), unless the company is large in scale. Depending on the contracted plan (capacity), the monthly cost is about 1,000 to 2,000 yen. Advertising and Promotion Web Advertisement This is the cost of placing a Web ad, such as a listing ad, banner ad, or affiliate ad. Rates vary depending on the advertising format and medium. DM (direct mail) The shipping price of DM varies depending on the type, such as postcard type, sealed envelope type, catalog type, etc. Postcards and sealed letters can be sent for about 70-100 yen per piece, while catalogs cost about 400 yen per piece. Other costs range from TV commercials, billboards, and other advertising methods. Equipment-related expenses Procurement of equipment necessary to conduct business also incurs costs. Office Equipment DeskChairsLockersPartitionsBook shelves, etc. …… Office Equipment TelephoneFAX machinesPersonal computerPrintersCopy machines, etc. …… Office supplies SealsStationeryFilesPrinter ink, etc. …… The cost of equipment can vary greatly depending on the product you choose, such as new, used, or manufacturer. If you are using a shared office, serviced office, or virtual office, this will be a negligible cost. Accounting and tax-related expenses Money in and money out must be managed. The cost depends on how it is managed. In-house management Accounting software (5,000 yen to several tens of thousands of yen)Spreadsheet software (free of charge - about 35,000 yen)Ledgers, etc. …… Outsourcing Tax accountant fees (30,000 yen or more)Accountant's fees (over $12,000), etc. …… Company Incorporation Fees The cost of establishing a company differs between a joint stock company and a limited liability company. For a sole proprietorship, there is no special fee since all you need to do is to submit a business start-up notification. Corporation Capital stock 1 yen or more Legal fee Electronic Articles of Incorporation50,000 yen fee for certification of articles of incorporation300 yen or more for a certified copy of the articles of incorporationRegistration and license tax 150,000 yen*Total of about 200,000 yen Paper Articles of Incorporation50,000 yen for certification of articles of incorporation40,000 yen for revenue stamps2,000 yen for a certified copy of the articles of incorporation150,000 yen for registration and license tax*Total: about 240,000 yen Other Expenses Electronic Articles of IncorporationCost of creating an official company sealCost of a certificate of seal impression, etc. …… Limited company Capital stock 1 yen or more Legal fee Electronic Articles of IncorporationElectronic Articles of Incorporation Total 60,000 yen (registration and license tax only) Paper Articles of IncorporationRegistration and license tax 60,000 yenRevenue stamp fee 40,000 yen*Total 100,000 yen Other ExpensesFees for preparing a personal sealElectronic Articles of IncorporationCost of seal certificate, etc. …… Sole proprietor Notification of opening of business only (no special fees required) How can I reduce the initial cost of starting a business? Because of the possibility of unplanned expenses when starting a business, it is a good idea to keep initial costs down. Ideas for controlling initial expenses include. Reduction of fixed costs In the early stages of starting a business, office rent is the fixed cost that should be reduced the most. Instead of renting a regular office with high initial and maintenance costs, it is better to choose a serviced office, a shared office, or a home-based business that is less expensive. In the case of rental or shared office space, utilities and communication costs are sometimes included in the fee, making it easier to keep track of expenses. Save on advertising and promotion costs For example, it is far cheaper to create a website in-house than to outsource it. Nowadays, there are many free services that can create high quality websites, so it is easy to create a website without special knowledge or skills. Do-it-yourself company formation Similar to advertising and publicity costs, requesting a judicial scrivener or similar to establish a company will cost several tens of thousands of yen to more than 100,000 yen in fees. It is possible to perform the procedures yourself, so if you want to keep costs down, do it yourself. Choose a sole proprietorship or limited liability company Starting with a sole proprietorship or limited liability company with little opening capital will reduce initial costs. It is not too late to convert to a joint stock company after the business has begun to take off. Summary We have presented an itemized list of the costs associated with starting a business. In the early stages of starting a business, it is important to find ways to keep costs low. In particular, you want to reduce fixed costs such as rent as much as possible to have more cash left over. We recommend choosing serviced or shared office space, which can be rented at a lower cost than regular serviced office space.

In order to get your business off the ground, the type of office you choose is also important. So, what factors should you focus on when choosing an office? This section explains how to choose an office when starting a business. We compare the features, advantages, and disadvantages of five typical types of office space, so if you are just starting a business, please use this as a reference for choosing an office. How to choose an office when starting a business When choosing an office, look for the following items. 1. Cost The use of office space involves initial costs at the time of contract and running costs such as monthly rent. Fees vary depending on location (per tsubo), office size, and other factors, but in most cases, funds are not plentiful in the early stages of starting a business. Therefore, how to reduce fixed costs is an important issue to keep as much cash as possible in the company. In order to keep rent as low as possible in the early stages of starting a business, it is a good idea to choose an inexpensive serviced office or shared office space. 2. Extent The average office space per person is said to be 3 tsubo to 5 tsubo. The amount of space needed depends on the business. For example, if you use the space for storing documents and books, such as a lawyer, you will need some space in your office. 3. Location (e.g. of industry) Location is a very important factor in the development of a business. Consider the area's name value, accessibility, and the number of companies doing business in the area when making your decision. 4. Functionality The more functional the office layout and the availability of restrooms, the more comfortable the work environment will be. If your job requires you to be in the office for long periods of time, office functionality is an item you should focus on. 5. Availability of corporate registration Some rental properties have contracts that do not allow corporate registration. For example, apartments and condominiums that are only for residential use have a statement in the contract that corporate registration is not possible. You should consult with the landlord to determine if corporate registration is actually possible. If you are considering incorporating your business, look for an office that can be registered as a corporation to ensure smooth business operations. Types of office space when starting a business There are five types of office styles when starting a business.Let's delve into the characteristics of each. Office for rent Feature It is also said to be highly reliable and advantageous for financing.Recommended for companies that have grown in size. 〇 Advantages Some freedom to set up office layoutsYou can decide on your own office equipmentLow risk of information leakage and increased securityOffice rents remain the same even if the number of employees fluctuates slightlyUse of telecommunications equipment is limited to in-house use only, so speed limits are unlikely to be imposed × Demerit Initial cost is highMay not be cost-effective for small numbers of peopleNeed to gather supplies in-houseDifficult to find an office that meets your requirementsDifficult to relocate Serviced Office Feature This is a style of office where a portion of the floor is rented.It is easy to use when you are small and do not require a large space, such as less than 10 people. 〇 Advantages Lower initial and maintenance costs than renting an officeRenting an office in a good locationPrivate rooms allow you to leave your work equipment in the officeThe room may have a desk, chair, and other minimal furnishingsCommunication, utilities, and other expenses are included in the costMeeting rooms and reception rooms are availableRelocation is easier than in a rented office because of the small size of the space × Demerit May be more expensive when used by a large number of peopleAlthough it is a private room, there is a risk of information leakage due to the presence of another company on the floor, so security control is necessaryNetwork communication is shared, so there is a risk of slow communication speed Shared Office Feature Offices with lea address or fixed seating. Work is done in an open space, not in a private room.Recommended for freelancers (sole proprietors) and start-up companies. 〇 Advantages Renting an office for a small number of people is less expensive than renting an officeFree drinks are available in many locationsExpensive office equipment can be usedOffice equipment can be rented in one packageCommunication and utilities are included in the costEasy to relocatePossibility to connect with other business peopleMeeting rooms are availablePhone and fax services are available even if you are not in the office × Demerit Cannot work in a fixed seat depending on the planThere are concerns about security and information leakage because it is an open spaceNot suitable for businesses that require fixed lines, etcNetwork communication is shared, so there is a possibility of slow communication Virtual Office Feature There is no work space in the office where you can put your address and telephone. Recommended for those who do not need a fixed office but need a company address and fixed telephone. 〇 Advantages Inexpensive company address in a desirable locationYou can make phone calls, faxes, etc. without having to be at the office yourselfEliminate the need to use your home address for business × Demerit Some types of businesses cannot obtain a licenseNot suitable for industries that require a fixed lineNot suitable for those who work in an officeSome say it lacks reliability Home and office Feature An office that is part of a home or doubles as a residence. It has similar functionality to a rental office while keeping the price low. 〇 Advantages Less commuting timeMore secure than a shared officeLower office costsNo time consuming contracts, relocation, etcNo need to purchase office equipment if you can use your own equipment at homeRent, communication and utilities expenses can be deducted as expensesFlexible work hoursEasier to manage housework and childcare × Demerit There is a possibility of mixing public and private life (hard to have a sense of balance)If you rent, you may not be able to register as a corporationInvestment in equipment that is not at home must be purchased at actual cost Summary Choosing an office depends on the nature of your work and business. With the increase in the number of serviced offices and shared offices, especially in the Tokyo metropolitan area, it has become easier to start a small business. First, carefully plan what kind of environment you need and create a suitable office environment.