Business with Japan - what a Russian entrepreneur needs to know
To start his own commercial activity in the land of the rising sun, a Russian entrepreneur will have to face a lot of peculiarities and nuances. When starting a business in Japan, a businessman must take into account the clear differences in the mentality and business culture of the Japanese.
Negotiation and mentality
When establishing business with Japan, it is important to note that negotiations for the citizens of this country play a special role in starting a new venture. It's no secret that the Japanese themselves are a rather closed nation. No decision is made in the negotiations. This is just a way to get the necessary information about the company, its capabilities, potential and competitiveness in the market.
The Russian entrepreneur will not receive an answer during the negotiations, but if the eastern partners start asking about the details of the project, this is a good sign. This means they are really interested in establishing business relations with a foreigner.
Difficulties for foreigners
The very different mentality of the country makes itself felt even at the opening of the company. To start a successful commercial activity, you need to understand several nuances that relate to the conduct of business by non-residents:
- An incredibly high level of quality of domestic goods and services is the main pride of all Japanese. Another feature of their mentality is strict adherence to and control over production. It will be difficult for a foreign businessman to maintain the proper level of quality along with the Japanese proposal;
- Japan has always been distinguished by its apathy towards visitors. It is very difficult here to secure even a little trust among the local population and commercial partners. Knowledge of the language and culture of a country is not an indicator. The decisive factor will be the benefits for the state and its citizens from the partnership with the enterprise;
- An intermediary with Japanese citizenship is required to conduct business. It is advisable to find a business partner. It is quite difficult to find such a person, but it will make the process of doing business several times easier. The best solution is to enlist both intermediaries and partners in the country;
- The Japanese are distinguished by their particular seriousness, including when it comes to commerce. The foreigner's project must meet all the necessary criteria. You are obliged to navigate in all the intricacies of your own business, to be able to acquaint partners with the details of the project. A well-designed business plan and its impeccable understanding increase the chances of a positive negotiation result.
The specifics of doing business in Japan
As in every single country, Japan has its own nuances when opening and running a new business. Let's consider the main features that distinguish the country from others:
- Transparency of legislation and infrastructure;
- Japan has an unusually low crime rate, including the number of corrupt officials;
- large enterprises to oust small businesses from the market, providing them with favorable conditions for development;
- There are incentives that are provided for opening a new commercial enterprise. They allow you to get discounts on the purchase of the necessary equipment at the start;
- It is possible to open a business in Japan without capital. But one of the conditions is to notify the economic bureau and collect the necessary capital within 5 years.
- The main risk factor is the illegal activities of an entrepreneur and inconsistency with the country's legislative system.
Business etiquette in Japan
Due to years of isolation, the mentality of the country is very different from that of Europe. This also applies to business etiquette. When opening a business in Japan, it is important for a Russian businessman to thoroughly familiarize himself with the rules and traditions of Japanese business relations, such as:
There is a widespread belief that opening a business in Japan for a foreigner is a rather difficult task due to the peculiarities of the culture: entrepreneurs are afraid of incomprehensible hieroglyphs and the time it takes to study them. However, in the age of the ubiquity of the English language, this is not at all necessary: most documents can be drawn up without studying the Japanese script. In this article, we will tell you about the specifics of business in this country, as well as the difficulties that usually arise when registering your company in Japan.
The specifics of doing business in Japan
According to statistics, over 500 Russian businessmen have been making a living in the land of the rising sun over the past 15 years.
The majority of Russian entrepreneurs who have opened their company in Asian countries note that it is difficult to do business in this territory, and especially in Japan, because of the industrial market, which is already saturated with goods and services of various kinds. Therefore, in order to fit into the existing order and achieve success, you need to understand exactly how Japanese business functions and learn its distinctive features.
The Japanese entrepreneurship system is characterized by the following features:
- a government institution is an important tool for supporting business and does not dictate conditions beneficial to only one side;
- for the leader of a Japanese company, every person is important, one way or another involved in his business;
- medium business ideally coexists with small one.
The last point needs clarification. Small and medium-sized businesses in Japan divide their spheres of influence by scale: large firms try to take their place in such a way as not to take away work from small enterprises. For example, in the construction business, giant companies build skyscrapers for factories and offices. Small businesses are working on the creation of private houses, one-story buildings. We can observe the same in the transport sector: some run bus organizations, others are engaged in the transportation of goods.
Business etiquette in Japan
Japan has been fenced off from the whole world for centuries. And this trend is not a thing of the past. When planning to work in the Land of the Rising Sun, one should not expect that the Japanese will change their traditions and observe European or American ones. Not. You will have to study the country's business etiquette and fully comply with it. Otherwise, there will be no positive result.
- Important: accuracy is the courtesy of not only kings, but also the Japanese. If you have made an appointment, no delays are allowed. Nobody wants your apology. In addition, negotiations are always negotiated in advance. No local entrepreneur would agree to "meet in the office in an hour."
- Another unbreakable rule is the observance of the hierarchy. Greetings should always start with the highest-ranking member of the team. In addition, in the course of a conversation, one should pay tribute to the position of the opponent, emphasize respect for his rank. And you need to express it not only in words, but also in movements, position of the body, hands, facial expression.
- Do not commit such a "crime" as forgetfulness. The names, surnames of those present, their positions should not be confused. Do not get hung up on talking only with the head of the delegation. When a decision is made, the opinion of a junior clerk, offended by disrespect for his person, can become decisive.
- Greetings. When meeting with a representative of Japan, one should not reach out. Just a bow. Approval, consent, apology are expressed in the same way. But, if your interlocutor is already working with Europeans, he may move away from national traditions and shake hands or just nod.
- Exchange of business cards. The Japanese are well aware that their language is difficult to learn and use. Negotiations are increasingly conducted in English. But business cards should be ordered with Japanese translation on a separate side. In addition to your first and last name, include the name of the company and the position held. Veneration is in the blood of the Japanese. The business card is passed with the right hand, even better, with both hands at once. In no case is this done through a table or other obstacle. Only face to face. You should accept a business card from your interlocutor with both hands. Otherwise, you will be offended for disrespect.
- In the course of a conversation, you should avoid harsh assessments and judgments. Only streamlined phrases. If the interlocutor suddenly closed his eyes, you should not think that he has fenced off from you, that the conversation is not interesting to him. Closed eyes are a sign that your proposal is being considered. In such a situation, the main thing is not to interfere. Wait patiently for the reaction of the other person.
- Don't expect immediate effect. The Japanese never make a decision right away. The only exception is if negotiations have already been held earlier, and this meeting is final. Attempts to get an answer right away are perceived as arrogance. The Japanese will also react to attempts to interrupt, to challenge the expressed point of view.
China needs new business ideas like no other country in the world. Huge competition in the market, surplus labor resources and the need to earn a living at any cost are pushing the Chinese to all new ways of earning money, and a well-developed technological base helps Chinese business ideas to quickly translate into reality. Chinese and Japanese business ideas - why not a way to learn from the experience of Eastern colleagues?
Consider different business ideas 2021 from China, but we will not try to assess their prospects in the Russian market - many of the ideas are just taking root in the Middle Kingdom, so it's too early to talk about transferring them to a completely different soil.
Business ideas from China
This idea has already been successfully implemented by the Chinese company Double Star Tires. The rubber is not just painted. It is exactly colored. This was not so difficult to achieve as to maintain the required characteristics - strength, good grip, etc. The blank for the tire is sandy in color, you can already add absolutely any dye there. So far, tests have left only positive results - a car in multi-colored tires can drive 50 hours at high speed, and after that the tires continue to look like new.
- Waiting in line for money
May be of interest to aspiring student entrepreneurs, for example. Although you can put the business on stream - hire a staff who will defend long lines and contact the person who paid the company for it in time. Do not think that such a service is much less in demand in Russia than in China. It is worth going in the morning to a state institution that offers some services to the population, as it becomes clear that a lot can be given, just not to waste a few hours of your life here. The Chinese estimated an hour of queuing at $ 3.
- Online Gaming Assistant
Virtual reality is increasingly pushing us back from real life. Now, if only work did not interfere ... Sly Chinese have found a way out - they pay other people to play the Farm and other online games instead of them during the day, raising the level of the player, expanding his skills and gaining new achievements.
- 4. Manufacture of gloves for cleaning vegetables without a knife
This kitchen gadget is useful for lovers of fresh young vegetables - especially potatoes, zucchini, carrots. Waterproof gloves have an abrasive surface on the palms, which allows you to peel the vegetable from a thin peel in just a couple of movements. Such gloves have several advantages at once: hands do not get dirty (which is very important in the case of young vegetables, whose juice leaves indelible stains on the skin), the amount of waste is minimal, an excellent result awaits even those who practice this for the first time. Well, the time for such work takes several times less than when using a knife.
- Suitcase with built-in scales
It is believed that Japan is a closed country, and it is very difficult for a foreign entrepreneur to create a business in it, but in reality this is not so. This myth arose due to the peculiarity of the writing, but now published materials in Japan are also published in English, so it is not necessary to study Japanese characters, it is enough to know English well.
Private entrepreneurship is very well developed in Japan, the state hardly deals with the country's industry. According to research data, it can be said that small and medium businesses in Japan play an important economic role, since the percentage of enterprises is more than 95%, and the number of employees in such enterprises is more than 75%. Credit cooperatives are involved in financing small and medium-sized businesses.
The specifics of doing business in Japan
According to statistics, many Russian businessmen are mainly engaged in entrepreneurial activities in Asian countries, one of these countries is Japan. It is difficult to join the business structure of Japan due to the saturation and division of the industrial market. But, despite this, the country is most attractive for the creation of business enterprises by Russian businessmen.
Small and medium-sized businesses in Japan coexist perfectly. For example, they harmoniously divide the construction, transport, engineering business among themselves. Small enterprises are engaged in the construction of residential buildings for mass consumption, while medium-sized enterprises are engaged in the construction of high-rise buildings, buildings for offices and factories. The situation is the same with transport: medium-sized businesses are engaged in taxi companies and bus organizations, while small businesses are engaged in cargo transportation. In mechanical engineering, large companies either create their own production units or use the services of small companies that can create technologies, parts, equipment, and so on.
When choosing a supplier, medium-sized enterprises choose the best ones for themselves and arrange a competition between them, where everyone must defend himself and show that he deserves his place. The main danger for a small business supplier is that the employer can close its production or move to other countries, then the subcontractor's company will lose its job. In terms of life expectancy, large companies in medium-sized businesses have existed for almost 30 years, and small ones in small ones only about 10. Only family businesses are centenarians.
Features of registration of enterprises in Japan
Foreigners, when setting up their enterprise, can choose the organizational and legal form of three types:
- Kabushiki Kaisya, in a simple JSC, joint-stock company;
- Yugen Kaisya, in a simple LLC, limited liability company;
- Shiten, in a simple way, a branch of the parent company.
The Japanese authorities do not create special conditions or restrictions for setting up a business by foreign entrepreneurs, but the procedure for organizing and registering a company has its own certain pitfalls.
The first step is to submit the relevant documents (constituent documents, certificate of registration, list of founders) to the Registration Authority, and also provide a "certified seal attachment" of the entrepreneur establishing the company. If the applicant is not a Japanese citizen, has not received a foreigner's work or tourist visa and registration certificate, then he will not be able to obtain a stamp certification and will have to seal the documents with a signature. This will greatly complicate the registration procedure, since the signature must also be certified, but you will have to do this every time you sign documents. The difficulty is that such an assurance is issued by a notary in the home country of the company founder.
Some businessmen, in order to avoid problems when registering a company, prefer to delegate the procedure for processing the application and registering a company to specialists from Japan (lawyers, accountants) who are versed in this area and who know English well.
Today we have prepared for you new business ideas, which are very popular in Japan. These ideas can be transferred to the domestic market. And build successful projects that will not be very competitive. And, in order not to miss a single idea, read the article to the end.
Business ideas new items for small businesses
Most of those who want to start a business are looking for a unique and original idea to start. But why don't people want to take on banal niches? Firstly, many people think that an original business idea will save them from competition. And it will make a lot of money. Secondly, an original niche will help create a grand project that everyone will talk about.
However, this is not always the case. Before choosing an original idea, you must understand that you have to solve a huge number of different issues. For example, adapt this idea to our market. And if your idea is unique, then you will need to create demand for your innovative product. Unfortunately, this is not always easy, and it requires large financial investments.
But if it doesn't scare you anyway and you are looking for business ideas for small businesses new items on the Internet, then here are 5 original niches from Japan:
New Business Ideas: Free Photocopying Services
In Japan, you can find photocopying points where services are provided free of charge. Such points are usually located where there is a large flow of people. For example, in supermarkets, near universities and office centers. Surprisingly, this is a successful business that brings a lot of money to the entrepreneur. It would seem like how you can make money if you provide the service for free. And in doing so, waste your own resources. But in any business you can find an approach and a source of profit. The Japanese were able to do this and are successfully making money today.
The main idea behind the idea is to provide photocopying services. This is a standard practice for the domestic market and do not surprise you with anything. But the peculiarity will be that on a sheet of paper after copying documents or other information, there will also be an advertisement. It can occupy a certain area on a sheet of paper. It can be located on the back of the sheet. It turns out that the advertiser pays for the service.
And your task is to distribute advertising materials. Here you can draw an analogy with the domestic advertising market. Pay attention to how many people today are handing out flyers with information about this or that advertiser. These products were not taken out of thin air. It was designed and manufactured, spent money on production, and now spend money on distribution. At the same time, only about 10% of these products will fulfill their function, and 90% of people will throw the leaflet into the first bin.
If you place an advertisement on a sheet with information necessary for a client, then he will not throw it away. And advertising will fulfill its function 100% of the time. If a standard photocopying service costs a person about 10 cents per sheet, then the advertiser will pay you about 20 cents per sheet. There will be no end to clients. The queue will be lined up to receive a copy of the document free of charge. Even considering that it will have ads.
Building a vegetable garden or garden on the balcony