Is [yen]1 really all you need? Not quite, says the author of Andrew's Ax. What you truly need is sufficient capital and an inspiring business plan.You've read the story "How to Incorporate in Japan" and perhaps attended the JETRO JETRO Japan External Trade Organization presentation in July. The word is out: whereas in years past you needed [yen]10 million in capital to start a Japanese corporation, now all you need is "ONE YEN!" Yes, you heard me correctly--"ONE YEN!" Everyone reading this article has a yen to spare, and more than a few good-to-great business ideas. Heck heck interj. Used as a mild oath. n. Slang Used as an intensive: had a heck of a lot of money; was crowded as heck. [Alteration of hell. , if you're the publisher of this magazine, you've got at least 30 of each. But that one yen and your business idea and another [yen]119 will get you a coke from a vending machine vending machine, coin-operated, automatic device for selling goods. Many vending machines are capable of making change, and some of the more sophisticated ones accept paper money or credit cards. . You'll need a solid plan for the successful launch of a business. A Capital Plan The two biggest problems a new business faces are the same as they were 20 years ago (when I heard them at business school), and probably 200 years ago: undercapitalization Undercapitalization refers to any situation where a business owner cannot acquire the funds they need. Usually, this refers to a business that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy. and lack of a clear business plan. This one yen bonanza Bonanza saga of the Cartwright family. [TV: Terrace, I, 111–112] See : Wild West may only exacerbate the problem; at least you used to have to come up with [yen]10 million. Question: which business is more likely to be undercapitalized Undercapitalized A business has insufficient capital to carry out its normal functions. undercapitalized Of, relating to, or being a firm that has insufficient long-term equity to support its assets. , Business A, with [yen]10 million paid-in-capital, or Business B, with one yen paid-in-capital? And for which business is the founder likely to spend more time on a detailed business plan? Answer: it's the same company. As for the business plan, I'm not talking about the type that Barry Givens says would "make God really laugh." I'm talking I'm Talking was a 1980s Australian funk-pop rock band, noted for launching vocalist Kate Ceberano. History After the break-up of the Melbourne-based experimental funk band Essendon Airport in 1983, members Robert Goodge (guitar), Ian Cox (saxophone) and Barbara Hogarth about, first, articulating the purpose of your business in a way that distinguishes it from others and makes it easy to recite by every one of your employees, clients and vendors. A tip: "Being the best______(fill in the blank) in the industry" doesn't cut it. Nor does "making a profit" or the more direct and honest "making a ton of money." That's like saying the purpose of your car is to hold gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by . Yes, you need profits, but that's not the purpose of your particular company any more than the purpose of your life is to eat, drink and breathe. Vision, Mission & Values What you really need, besides the "one yen," is enough capital to get started and a business plan that motivates you and your team and makes your customers want to do business with you. You also need to be able to communicate your mission in a clear and compelling way. "What makes you different from other sports agencies?" I asked a budding budding, type of grafting in which a plant bud is inserted under the bark of the stock (usually not more than a year old). It is best done when the bark will peel easily and the buds are mature, as in spring, late summer, or early autumn. entrepreneur about two years ago. "That's easy--our values." "So what are the specific values that distinguish you from other companies?" "Uh, um, well, it's all of them." "If I ask your staff to name your company's guiding values, what would they say?" "Well, we haven't really shared them with everyone ..." Before you laugh off this ill-fated entrepreneur (struggling to keep his business together after all his key managers quit last year), let me ask you some questions. Can you describe the purpose of your company ... in 30 seconds or less? Is it a compelling story? Can you tell me the top three (or five or seven) values that guide (or will guide) your firm's actions? Do your managers share them? Do you even know your managers' guiding values? You see, that's the big mistake firms of all sizes make. They think that by writing up a mission or a vision statement, or a set of guiding values, they are now a "values-driven" company. But are they really? Everyone has a set of guiding values, whether they've articulated them or not. But just because you've tacked a statement on a wall does not mean all employees share those values. If you're in the early stage of starting a business, you must take time to discuss your values and those of your senior managers/partners. This makes them real. Those core values can be the cornerstone of your whole business. They will shape the way you sell, the way you present, the way you evaluate your staff. And they will guide your growth, no matter what level of initial capital you choose to invest. [ILLUSTRATION OMITTED] Andrew Silberman is president and chief enthusiast A person who enjoys using computers and electronic equipment. Enthusiasts like technology and are willing to learn more of the ins and outs of a product than the average consumer, who just wants to use it. An enthusiast is more like a "prosumer." See consumer and prosumer. for Advanced Management Training Group (http://www.amt-group.com), Developing Global Thinkers since 1992. He's the author of Andrew's Ax, a monthly newsletter you can subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; (free!) by writing info@amt-group.com. |
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