Things foreigners and companies should consider before starting business in Japan

The first thing you need to decide when expanding into Japan is not ``whether or not to start a company,'' but ``what will you sell in Japan and who will you get the profits from?''

This page not only provides general information, but also organizes the order and points to check when actually preparing. For people coming to Japan from overseas, it is important to proceed with plenty of time, as each procedure can take time due to differences in language and systems.

Putting into words what you want to achieve in Japan

Necessary preparations will vary depending on the purpose of expanding into Japan, such as sales bases, research and development, recruitment, purchasing, investment, and expatriate bases. Having a one-sentence explanation of your purpose at the beginning will make it easier to prioritize your corporation, office, human resources, and partners.

Conditions vary depending on the person and company. The most efficient way to proceed is to organize your purpose, timing, budget, and necessary language support, and then check only the parts you don't understand with a specialist.

Test market hypotheses in a small way

Even if products and services sell well overseas, prices, competition, business practices, and customer payment methods are different in Japan. Rather than suddenly incurring large fixed costs, check the response through interviews with potential customers, test sales, business negotiations, etc.

It is important to confirm your assumptions through conversations with potential customers and related parties, rather than making decisions based solely on the information in the materials. We also check the Japanese side's decision-making methods and expected response speed, and make adjustments to suit the actual business negotiations.

Consider the establishment of a corporation and the start of business separately.

Even if a corporation is established, the business will not start if there are no customers. In parallel with the preparations for establishment, it is necessary to create a flow including sales methods, website, response to inquiries, estimates, contracts, and payment.

It is important to confirm your assumptions through conversations with potential customers and related parties, rather than making decisions based solely on the information in the materials. We also check the Japanese side's decision-making methods and expected response speed, and make adjustments to suit the actual business negotiations.

Determine role sharing with experts

Registration, taxation, status of residence, labor, etc. require qualifications and specialized knowledge. It is important for JCBO to organize the entire business and connect necessary areas to appropriate experts, rather than acting on your behalf without qualifications.

Conditions vary depending on the person and company. The most efficient way to proceed is to organize your purpose, timing, budget, and necessary language support, and then check only the parts you don't understand with a specialist.

Decide what numbers you want to see in the first 90 days

Decide on the numbers to check in the early stages of expansion, such as the number of inquiries, number of business negotiations, number of estimates, orders received, potential employees, and fixed costs. By verifying with numbers rather than just intuition, you can decide whether to continue investing or change direction.

Conditions vary depending on the person and company. The most efficient way to proceed is to organize your purpose, timing, budget, and necessary language support, and then check only the parts you don't understand with a specialist.

At the implementation stage, decide on the person in charge and the deadline.

Once the plan is finalized, make a list of who will decide, by when, and what will be decided. If the overseas head office, Japanese person in charge, or external expert is involved, the decision will likely go awry if the approver and contact point are not made clear. Setting a regular confirmation date and updating only undecided items will make progress management easier.

Assuming continued operation on the Japanese side

We not only think about operations immediately after entering the business, but also about operations six months and a year from now. By organizing who will be in charge of customer relations, billing, contract renewals, recruitment, accounting, web updates, etc., you can prevent your company from becoming too dependent on the head office after startup.

What I would like you to tell me when consulting with JCBO

If you would like to consult with us individually regarding ``Things foreigners/overseas companies should consider before starting business in Japan,'' please let us know your current situation, desired timing, location, budget, and what has already been decided and what has not yet been decided. JCBO organizes the consultation contents and guides you through what can be resolved with general information and what needs to be dealt with by corporate services or qualified experts.