Plan to start own buisness, but hardly enough money

[D.capypara]

Hi guys. I just lost my job recently due to my previous company going bankrupt,
so now I am exploring the options I have. My main desire would be to set up my
own company here, but after consulting a company that helps to set up companies
for foreigners, I realised that not only do I not have the 5 million yen capital, I
also do not have enough to pay that company for using their services (if i decide
to use their services).

Before I give up on trying to set up my own company here, I would like to know
if there were any people like me (wants to start own company but not enough
cash) and what you did in the end. Did you give up? Did you borrow the cash?
Or did you save up everything by yourself?

Lastly, are there any other types of companies that a single person can start
up here in Japan other than Kabushiki Gaisha?

Thanks for reading this.

[edin日本]

Business plan? Product? Kickstarter may be your friend...

[KansaiBen]

Lastly, are there any other types of companies that a single person can start
up here in Japan other than Kabushiki Gaisha?

Thanks for reading this.

If you are a sole operator you can start as a kojin kigyo by filing the papers at the tax office. It is used when you are the sole operator and there are no partners in your business. No capital investment is required either.

I fail to see how you will get a business off the ground though if you have no cashflow.

[D.capypara]

Business plan? Product? Kickstarter may be your friend...

It falls into the category of 貿易. To keep it simple the plan is just to
export Japanese stuff out to other countries and import stuff from
other countries into Japan.

[D.capypara]

I fail to see how you will get a business off the ground though if you have no cashflow.

Exactly, which is why I would want to hear how some of you guys who have started your
own business, how you did it if you had no capital.

[ttokyo]

My main desire would be to set up my
own company here, but after consulting a company that helps to set up companies
for foreigners, I realised that not only do I not have the 5 million yen capital, I
also do not have enough to pay that company for using their services (if i decide
to use their services).

Seems you ONLY need the Y 5 mio capital if your new company is also supposed to be the visa sponsor. Check here :

"Requirements for the Investor/Business Manager Visa
The Investor/Business Manager Visa tends to have higher hurdles than most of the other types of visas. Therefore just satisfying the incorporation requirements specified in the Companies Act will not be enough to qualify for applying for this visa. There are of course many requirements; however the following two must be given consideration during the incorporation process.

Minimum capital requirement: As a benchmark anyone considering applying for the Investor/Business Manager Visa will need to incorporate the company with a minimum of 5 million yen initial registered capital or an equivalent cash investment.
Registered office: When applying for this visa, in principle a residential address may not be used for the registered company address. There is a requirement that the space used for the office is distinctly separate from any living space and that property lease agreements clearly state that the property is designated for Commercial Use. "

http://injapan.gaijinpot.com/live/vi...-manager-visa/

[KansaiBen]

Exactly, which is why I would want to hear how some of you guys who have started your
own business, how you did it if you had no capital.

Depends on what kind of business you are planning to do. If you are selling products you can get customers to pay cash up front but its a good idea to have some inventory. I would not allow more than a week between receiving money and customer receiving product.

Get an overdraft facility on a Japanese credit card. Keep in mind you will pay 18-20% a year for the use of someone else's money.

Approach a bank for an unsecured loan. May be difficult if you have no banking record in Japan.

People want to be paid before they sell you products or as soon as they provide you services. If you have no capital its hard to see how you can be in business unless you borrow the money from somewhere.

[trip_hop]

People want to be paid before they sell you products or as soon as they provide you services.

Typical contract terms between companies in Japan are yoko-barai (pay at the end of the month following receipt of invoice) or yoko-yoko-barai ( (pay at the end of two months following receipt of invoice).

Of course, you need to establish credibility, often in the form of submitting documentation on your business, financial status, etc.. Much easier between companies. If this is just on an un-secured personal basis, mae-barai (payment in advance) is required.

[KansaiBen]

Of course, you need to establish credibility, often in the form of submitting documentation on your business, financial status, etc.. Much easier between companies. If this is just on an un-secured personal basis, mae-barai (payment in advance) is required.

They will want to know of course that you will still be in business when it comes time for you to pay them.

My guess is its unlikely they will extend credit to a fledgling company unless they know you have something to back it up such as security or financial assets.

When I order stuff from Amazon I usually have to pay by credit card first before they send me anything. When I did MLM I would have to buy the products first before selling them again, it was hard to get people to pay upfront when they ordered from me though.

[trip_hop]

My guess is its unlikely they will extend credit to a fledgling company unless they know you have something to back it up such as security or financial assets.

You'll often find in business here that a first time transaction requires payment up front, but that subsequent transactions follow Japanese payment systems, subject to established limits.

[shonanfred]

It falls into the category of 貿易. To keep it simple the plan is just to
export Japanese stuff out to other countries and import stuff from
other countries into Japan.

Strong yen may make exporting a pain in the arsehole (depending on what you are exporting duh).
Fred
PS providing a service requires very little start-up capital duh.

[hml]

Strong yen may make exporting a pain in the arsehole (depending on what you are exporting duh).

Perhaps, but if your margin is big enough...

[edin日本]

I think most of us got into business because we saw a niche where the Japanese weren't offering a product or felt we could do it better than the Japanese. What you are looking to do is something sites like Rinkya has already got covered.

In my case I started out by bringing in seeds to Japan of plants such as herbs. I concentrated on bringing in the unusual ones such as the really hot peppers, ethnic herbs such as Thai basil etc. I've seen my market dwindle as more and more of the big seed companies have moved in and taken over this market.

I've been doing likewise with tropical fish for years and have built up a market which is now being undercut by the economy and the power supply situation.

In my case I haven't relied upon bank loans, I've saved, scrimped, bought used equipment and worked on building a market.

[AlphaKimori]

Strong yen may make exporting a pain in the arsehole (depending on what you are exporting duh).
Fred
PS providing a service requires very little start-up capital duh.

If your Japanese is good, you can also start with translation service which will cost you almost nothing.

[shonanfred]

Perhaps, but if your margin is big enough...

So...buy something in yen, add a margin and then sell it abroad?
Fred

[shonanfred]

If your Japanese is good, you can also start with translation service which will cost you almost nothing.

Or you can fake it like I do..... :P
Fred

[twelvedown]

Just set up a really good internet site in English, Chinese and Korean and sell slightly smutty animation stuff (plastic models etc) to the growing global Otaku army. Buy it secondhand in Akiba, take a few good pics of each object, mark it up by 500% and you're off to the races.
I'd do it myself if I weren't so bone-lazy.

(and while people SHOULD pay their taxes I doubt anyone would even notice)

Oh and Edin, good for you. Your type of small business is the heart and soul of shopping.

[D.capypara]

Wow thanks for all the replies guys. Its really helpful.

I think most of us got into business because we saw a niche where the Japanese weren't offering a product or felt we could do it better than the Japanese. What you are looking to do is something sites like Rinkya has already got covered.

In my case I started out by bringing in seeds to Japan of plants such as herbs. I concentrated on bringing in the unusual ones such as the really hot peppers, ethnic herbs such as Thai basil etc. I've seen my market dwindle as more and more of the big seed companies have moved in and taken over this market.

I've been doing likewise with tropical fish for years and have built up a market which is now being undercut by the economy and the power supply situation.

In my case I haven't relied upon bank loans, I've saved, scrimped, bought used equipment and worked on building a market.

Before you mentioned it, I didnt even know there was a site called Rinkya lol. I am taking a look at that now.

[D.capypara]

Seems you ONLY need the Y 5 mio capital if your new company is also supposed to be the visa sponsor. Check here :

"Requirements for the Investor/Business Manager Visa
The Investor/Business Manager Visa tends to have higher hurdles than most of the other types of visas. Therefore just satisfying the incorporation requirements specified in the Companies Act will not be enough to qualify for applying for this visa. There are of course many requirements; however the following two must be given consideration during the incorporation process.

Minimum capital requirement: As a benchmark anyone considering applying for the Investor/Business Manager Visa will need to incorporate the company with a minimum of 5 million yen initial registered capital or an equivalent cash investment.
Registered office: When applying for this visa, in principle a residential address may not be used for the registered company address. There is a requirement that the space used for the office is distinctly separate from any living space and that property lease agreements clearly state that the property is designated for Commercial Use. "

http://injapan.gaijinpot.com/live/vi...-manager-visa/

Yeah that is exactly my case =( I need to change my visa status unless I go and find a job in my current industry.

[Chromedome]

Exactly, which is why I would want to hear how some of you guys who have started your
own business, how you did it if you had no capital.

I've known a few guys max out there credit cards and import/export a lot then sell like crazy. Some fail, some succeed. Some are still trying.... 2 have very big businesses now and have made a small fortune.

You don't have to go in too deep though...start out small and let it snowball. Work a few part time jobs while it's growing.

[D.capypara]

PS providing a service requires very little start-up capital duh.

Yeah, but that is not the problem in my case. For me its the need to provide
5mil yen and have a physical office which I would end up paying monthly rent
for (that I dont even need at all) that is the problem.

[shonanfred]

Yeah, but that is not the problem in my case. For me its the need to provide
5mil yen and have a physical office which I would end up paying monthly rent
for (that I dont even need at all) that is the problem.

Get married.
Fred

[Effected After]

Yeah, but that is not the problem in my case. For me its the need to provide
5mil yen and have a physical office which I would end up paying monthly rent
for (that I dont even need at all) that is the problem.

As someone said earlier, register as a kojin-jigyou (self employed). You don't need to have capital to start, and you don't need to have a physical office either, you can work from home.

That said, you can rent shared office space for as little as 20000 yen.

[ttokyo]

Yeah that is exactly my case =( I need to change my visa status unless I go and find a job in my current industry.

That's what I suspected. But shelling out Y 5 mio plus consulting fees to set up a company just to get a working visa sounds extremely desperate to me. Without any viable business plan, that capital will also be gone within a couple of months. I'd rather concentrate on finding a new job - why does it have to be in the same industry ? Otherwise rather 'cut your losses' and leave the country, before you run completely out of money.

[D.capypara]

As someone said earlier, register as a kojin-jigyou (self employed). You don't need to have capital to start, and you don't need to have a physical office either, you can work from home.

That said, you can rent shared office space for as little as 20000 yen.

Hmm i did not know that part about shared office space. I have looked at a few
of the real estate companies and office space is always more than 60000 yen if
its in Tokyo.

[D.capypara]

That's what I suspected. But shelling out Y 5 mio plus consulting fees to set up a company just to get a working visa sounds extremely desperate to me. Without any viable business plan, that capital will also be gone within a couple of months. I'd rather concentrate on finding a new job - why does it have to be in the same industry ? Otherwise rather 'cut your losses' and leave the country, before you run completely out of money.

Isnt it almost impossible to get a working visa for different industries? Anyway finding a new job seems to be the most viable plan for now. I guess I will have to postpone my setup business plans until I have more capital.

[ttokyo]

Isnt it almost impossible to get a working visa for different industries? Anyway finding a new job seems to be the most viable plan for now. I guess I will have to postpone my setup business plans until I have more capital.

I know several people (including myself) who have 'legacy' visa status and nobody seems to care that the actual job has changed, the old visa just gets extended. I know an programmer who did his IT work as 'specialist in humanities'.

[thefg]

Hi guys. I just lost my job recently due to my previous company going bankrupt,
so now I am exploring the options I have. My main desire would be to set up my
own company here, but after consulting a company that helps to set up companies
for foreigners, I realised that not only do I not have the 5 million yen capital, I
also do not have enough to pay that company for using their services (if i decide
to use their services).

Before I give up on trying to set up my own company here, I would like to know
if there were any people like me (wants to start own company but not enough
cash) and what you did in the end. Did you give up? Did you borrow the cash?
Or did you save up everything by yourself?

Lastly, are there any other types of companies that a single person can start
up here in Japan other than Kabushiki Gaisha?

Thanks for reading this.

If you have a something that is marketable and likley to turn a profit you dont need any money yourself

the money will come to you.

Ive set up a few companies. My 1st company I started with zero of my own funds.

I had a good idea
I contacted some VCs and some people who I knew had money and showed them my business plan


They funded it 100% and inturn got shares
In my first company that was to the tune of 1M USD (paid in in this particular case as a loan, to the company NOT me) and they got 40% of the shares.

Fortunately things went well and the company was able to repay the loan within 3 years!! and turn a healthy profit.

I sold the company after 10 years for a healthy sum.


Bottom line is you need

1) a good idea that could be profitable
2) a good business plan
3) the ability to sell your idea/plan
4) access to VCs


good luck

[AlphaKimori]

thefg, did you get a Japanese VC to fund you? I presume that you would have needed a Japanese business plan then? Also, ideas are a dime a dozen so you must have some sort of relationship going with the VC first. Please let us know more. Thanks!

[thefg]

thefg, did you get a Japanese VC to fund you? I presume that you would have needed a Japanese business plan then? Also, ideas are a dime a dozen so you must have some sort of relationship going with the VC first. Please let us know more. Thanks!

Last time I ended up with three wealthy businessmen (Swiss, German and Singaporean) each was interested in a new venture so they formed a company to invest in mine. I didnt know them before.


I met them through my biggest (potential) customer and approached them separately with my BP in english. Once they each agreed I introduced them to each other and set it up that way.


The idea being each investor was easier to 'sell' to as they felt they were sharing the risk with others and of course their exposure was 1/3.


The investors knew the business knew the biggest potential customer, and knew each other (by reputation), so all i had to do was convince them i was trustworthy and sell them the technology.

Whole process took about 6 months start to finish.

Ideas are a dime a dozen but good novel workable potentially profitable ideas are rare - thats what the VCs dont have - thats why they need people like us. If you have something dont undervalue the value of an idea.

Also you must decide when is the best time to approach. you have to protect your idea from the VCs (who may just steal it) why must they need you after you tell them the idea? To ensure they do you have to think about applying for a patent before approaching, or if not a patentable idea you can register a tradename, buy a domain name, or start the business (small scale) and grow some market recognition - you get the idea.

good luck, theres NOTHING at all quite like growing a business!

[Effected After]

I started my own business, but I started it on the side while working at my old company. After I had built up a client base, I quite the company and started working fully for myself. After I had a year of income statements, the bank gave me a loan to do some hiring and move to larger offices. I'll probably try again in a year to bump that loan to an even bigger one, so that we can expand further. What the banks want to see are good numbers, and that you are managing your business well.

It takes time, and it's a slower process, but when all is said and done, I'll own the whole business.

[thefg]

I started my own business, but I started it on the side while working at my old company. After I had built up a client base, I quite the company and started working fully for myself. After I had a year of income statements, the bank gave me a loan to do some hiring and move to larger offices. I'll probably try again in a year to bump that loan to an even bigger one, so that we can expand further. What the banks want to see are good numbers, and that you are managing your business well.

It takes time, and it's a slower process, but when all is said and done, I'll own the whole business.

yes thats the downside of getting in VCs. but some businesses cant grow organically, some need to hit the ground running to stand any chance of succeeding - especially tech based companies. depends also on your target customer. my 1st customer was Intel they dont like to risk investing in time or products from very small companies - need to show some presence.

in addition a great way to more gaurantee sucess is if your VCs/business partners bring more than cash - if as in my case they have industry contacts and knowhow - often worth its weight in gold/shares

often the choice comes down to owning 100% of a small business thats growing slowly or owning a smaller % of a bigger business that grows very fast.


both ways have merit depends on case

[Effected After]

often the choice comes down to owning 100% of a small business thats growing slowly or owning a smaller % of a bigger business that grows very fast.

Definitely. This is my first business, and it's a small business. I'm already working on a business plan for another business (this one with a partner), and our final intention being to get investors for it. It will be a much larger initiative than my current. A large part of the plan is that it will require services my current company provides. So even though I'll be bringing in investors for the second venture, and they will partially own it, it will also grow the company that I fully own. Win-win for me!

[buddyjiang]

Hey there, im currently working in japan for 2-3 years and currently looking for my own opportunity .
im working under a Social gaming industry and currently holding a 5 years working (engineer visa).
(still valid for next 4yrs). im thinking to quit my company and start doing my own stuff. being a freelancer.

as i explored this website. someone mentioned about kojin jigyou and im really interested .
Pls fill me with information regarding kojin jigyo. the procedure,how to apply and what document do i need to get that visa.


your reply and opinion is appreciated.
thank you very much

[YOYO1221]

To get an investor visa, you have to have proof that you have 5mill yen in your bank account under your name. If not, you can't get the visa and you cant start your own company. Speaking from personal experience, I hired a immigration lawyer to get my investor visa and it was a pain in the ___. You have to provide the following:

-proof of 5mill buy showing a copy of your bank book
-you have a valid office (rental contract and it can not be your residence)
-pictures of your office
-personal profile as well as employee profile if you have
-business plan (including sales numbers, operating expenses, when you may see revenue)
-proof of local tax payment
-some other stuff that you can easily get at the ward office

Many people say you need 2 japanese staff registered but according to my immigration lawyer, he said this was not needed... even if it was mentioned...

Anyways, you can not start a company and become Daihyo (CEO) without this visa. Unless you marry a japanese girl and get a spouse visa. Or if you meet someone nice enough to just give you the money and start a company with you. Highly unlikely but maybe not impossible.