Legacy Foundation Business and Leadership

Archive for June, 2009

A recent Australian government paper which examined the future of Japan made the point that the GDP of the Kanto region alone (the area around Tokyo and Yokohama) amounted to more than the combined GDP of Indonesia and Thailand. The GDP of Aichi prefecture in central Japan represents almost 3% of total world GDP. The late 1990?s witnessed an explosion in the number of foreign companies moving into and upgrading their presence in Japan. Clearly Japan remains a force to be reckoned with – even taking into account the growing economic and political importance of China.

First glimmer of change

What we see shaping up in Japan now is significant historical change – the emergence of a country which must, if it is to survive, become truly international in its cultural, economic, political and business life. The evidence is beginning to show: long-overdue deregulation of key business sectors, most notably the financial sector, plus the need to cast beyond Japan’s shores for greater foreign investment and know-how, means that Japanese companies are coming to the realisation that without deeper and closer ties with non-Japanese partners, the future of the country will remain bleak.

Organisations such as Merrill Lynch are examples of overseas companies now entering the Japanese market with renewed vigour: from an historical perspective, this key trend is an excellent example of what the Japanese call “gaiatsu” – or pressure from outside. The past shows that without external stimuli – such as that of China in the 6th century, the United States in 1853 and the Allied Occupation of Japan following the end of the war in the Pacific – nothing of momentous significance happens in Japan. Maintaining the status quo fits the Japanese societal preference for harmony but at the same time, it can cause complacency and stagnation – as we have witnessed in Japan for close on a decade. All of this is set to change – and the changes will undoubtedly gather pace.

What does this mean for non-Japanese working with the Japanese inside and outside Japan? Firstly, the potential for increased and closer co-operation has never been greater. Foreign companies setting up or enhancing their presence in Japan will face the challenges of importing new management concepts to replace those Japanese methods which have served the country well but which have no place in the global market of the 21st century. How is this going to be done? Read the rest of this entry »

Home business opportunities existed even before the advent of the internet. But, they were fewer and largely localized. But the internet has brought along several thousand opportunities and today people from any part of the world can access home business opportunities through the internet. Let us consider some quick steps to choose the best out of these.

1. Identify your strong areas

Most of the internet based home business opportunities are diverse in nature. From building websites to writing articles to fixing software problems or even writing software, there is a whole lot. Therefore, it is essential to identify your own strength before looking at these opportunities. Once you know that you can excel in one or more of these areas, you search becomes more focused and worthwhile.

2. Using freelance websites

There are several freelance website which offer a host of home biz opportunities. Elance, Get A Freelancer, O’desk etc. lead the pack. You can register for free with most of these sites. Once you become a registered user, you can participate in the bidding process against advertised positions.

3. Ability to work without supervision

One of the major attributes of home business opportunities is your ability to work in the absence of any supervision. Assignments accepted by you are expected to be delivered on specified dates and time and any delay will set off a chain reaction. Even if you find it difficult to complete an assignment, courtesy demands that you keep the client informed. For the right talent, there is possibly no dearth of opportunities though.

Imagine opening 20 new business locations without having to foot the bill for real estate, equipment and development costs or taking on any of the risk. Even more, imagine finding managers to run all those locations, who are just as committed to growing the company as you, and you don’t have to pay them a dime. Finally, imagine that these managers will hire, fire and manage all employees as well as foot the bill for all operating costs and expenses. Sound far-fetched?

Not if you’re planning to enter the franchise industry, one of the fastest ways to grow a small business without breaking the bank. For many companies, franchising a business (or licensing) is a sensible way to achieve rapid, profitable growth without giving up any control or ownership. Going from a single location to a dozen in a couple years, or a hundred in ten years is possible and well-documented because franchise owner-investors put up all investment capital, shoulder all risk and assume all day-to-day operating responsibilities.

It’s expansion, using OPM – Other People’s Money. Also, the franchise company gets paid handsomely for teaching others the secrets of how to operate its business. First, there’s the up-front “membership” or franchise fee of $20,000 to $50,000 paid for using the brand name and operating methods. In addition, there are continuing royalties of 5% to 10% of gross sales for ongoing advice and consultation. In essence, a franchise development program allows a company to get out of the trenches and become a highly-paid general overseeing its soldiers. Long-term options are also attractive. Build an empire and relax, or let the franchise company be acquired by an increasing number of large companies that look for small, but growing franchise companies. According to the International Franchise Association, 900 new companies have franchised in the last three years.

ENTERING A NEW BUSINESS

A company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills. Since these new skills are rarely present within existing personnel, an outside franchise expert is needed to train existing personnel and plan the transition. The first step involves determining whether or not a business can franchise, and if so, what needs to be developed. Next, strategic franchise planning is necessary to create a “blueprint” for successful expansion efforts. Experience shows that, just like a building, the foundation developed at the beginning will create lasting consequences affecting the relative success (or failure) of the entire venture. Legal (franchise disclosure document, franchise agreements) and operational documents (franchise operations manual, franchise training program) are prepared and drafted and finally a franchise registration process is required in some 14 states, depending on which state(s) the company sells franchises. These phases are discussed below. Read the rest of this entry »