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[Column] ➃-➄ Small and Medium-Sized Enterprise Presidents are a Different Breed: Entrepreneurs are Always Forward-Thinking

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Always positive, with high creativity and proposal skills. Constantly thinking about the next steps by utilizing what is currently available and what is currently being done. The basic nature is frugal. However, this frugality means being unwilling to engage in activities that do not align with one’s values. They will invest 100 million yen in equipment but will fiercely reprimand employees for not justifying a 500 yen transportation expense. Employees often do not understand the reprimand. This is a common occurrence. While the company’s finances are tightly controlled, the household finances are often left to the wife. Many business owners cite their family and employees as their most important assets. Finally, the more a business owner is growing, the more straightforward they tend to be. They have a good understanding of their position. Business owners are often lonely. However, "loneliness" is different from "the naked king." In a company, there are almost no people who will offer opinions to the owner. The way a business owner behaves to gather information is to never say, "I have heard that, seen that, or know that." They know that saying so will prevent information from being shared. Because they have the ability to listen openly to others' explanations, information naturally gathers around them.

Company：マイスター・コンサルタンツ
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[Column] Principles for Unifying Organizational Groups ⑤

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The policy is the most important hub in management operations. The policy is like a railway. To reach a destination as intended, taking a train is more likely than driving a car. This is because the train has tracks. Even if you are careful, a car can get hit, and in traffic jams, you cannot reach your destination as planned. The company's policy is to lay down tracks so that all employees can fight with a clear direction throughout the year without confusion. This is embodied in the management plan. This policy is invisible. Therefore, it must be nurtured as if it were a living thing, carefully watered and exposed to sunlight, or it will quickly wither. A policy truly becomes a "policy" when it takes root and is infused with life. Infusing it with life means continually communicating this to employees and ensuring it permeates the organization. A plan with a policy brings joy and fosters growth, making its creation the most important task for a manager. The positioning of the policy is the fourth principle of unity. 〇 Direction for the future 〇 The hub for this year's performance creation. Without a policy, there would be no function to connect the future with the current fiscal year. This would leave employees confused. In terms of management operations, it is crucial and forms the backbone.

Company：マイスター・コンサルタンツ
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[Column] Why is cash flow chronically difficult?

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This is because no one other than the president is considering cash flow. Cash flow refers to understanding the situation of incoming and outgoing funds in the future and quickly taking balancing measures. "Without sales, there is no business; without funds, there is no sustainability." This is a fundamental principle of management, and it must connect as naturally as breathing in and out. When this connection is lacking, managers suffer. A common trait of companies that struggle with this connection is the prevalence of specialists who are overly focused on their own areas of expertise. Specialists are those who have no interest beyond their own fields and pay no attention to other strategies necessary for running the company. They may be involved in sourcing materials, producing products, and selling them, but they only care about delivery and inspection, completely ignoring the subsequent collection of payments and payment for purchases. Such individuals will likely insist that when the company runs out of funds and cannot issue bonuses, despite their hard work and increased sales, they wonder why this is happening. The principle that management cannot exist without funds is fundamental, and the lack of awareness regarding financial matters is particularly troublesome.

Company：マイスター・コンサルタンツ
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[Column] Think of management as participation from all employees, not just the president alone.

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Participation means thinking for oneself, making judgments, taking action, and accepting responsibility. It involves suffering, enjoyment, joy, and a sense of fulfillment from being needed. Small and medium-sized enterprises (SMEs) have basic hierarchies, including owners, executives, senior staff, mid-level employees, and general staff. Although each has different roles, the effort of all employees toward the same goal remains unchanged. A common issue in SMEs is that "the management's policies do not permeate thoroughly." This phenomenon occurs because there is no philosophy of employee participation. Recently, more companies have been creating management plans, but there are commonalities in the methods of those companies where policies are not well-communicated or enforced. In these cases, the owner creates the management policy, sets numerical targets, and then holds a presentation. While this approach is good for the owner in terms of summarizing policies and numbers, problems arise in the concretization of those plans. This is because the owner creates them alone, leading to the absence of "the functions of product strategies, tactics, and operations that embody the policies" within the company.

Company：マイスター・コンサルタンツ
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[Column] Why can't we do the obvious things as if they were obvious?

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It is not that one cannot do something due to a lack of ability, but rather because they have never done it before, do not know how to do it, or have not made it a habit; it is simply a difference in learning ability. To raise the growth level of a group of individuals in small and medium-sized enterprises with inferior basic abilities, creating an environment for the corporate foundation is the quickest way. Until the company is established and customers and products are somewhat in place, the president's effort and rhythm can somehow make things work. They can bring together a small group of people with strong personalities and attitudes who cannot do the obvious. However, once the company reaches a stable period and begins to increase its employees, without a management foundation, it becomes difficult to demonstrate "the power of unity." At that point, the gifts brought by expansion in scale become only risks. In other words, creating a management foundation means addressing the weaknesses of small and medium-sized enterprises, such as inconsistent methods, a lack of know-how within the company leading to reliance on specific individuals, and the inability to sustain decisions. This means creating an environment where it is easier for many employees to do what is considered normal.

Company：マイスター・コンサルタンツ
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[Column] Unique Technology for Creating Weapons to Fight

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Companies that have been established for over 10 years invariably possess unique technologies. It is because of these that they have been able to operate for a decade. The perspectives on unique technologies include: - Technologies for producing goods - Technologies for creating services - Specific technologies in individual fields - Core technologies There are two approaches to competition: "fighting to overcome weaknesses, which is a battle to bring negatives to a zero base," and "fighting to enhance strengths, which is a battle that can build on positives." Fundamentally, it is easier to achieve results by focusing on strengthening one's advantages. The key point in this approach is unique technology. - Unique technologies that are not found or cannot be replicated anywhere else - Unique technologies that exist in other companies but are outstanding or superior Identifying these unique technologies is one method of building strategy. Because unique technologies allow for services that differ from those of competitors, the greater the number of unique technologies, the more conditions can be created to win in competition.

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[Column] Development of the Mid-term Plan (2) Planning for Failure Prevention Measures

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Management has its good times and bad times. When executing a mid-term plan, one should also anticipate situations where things do not go well. Often, if one waits until a bad situation arises to consider stepping back, they miss the timing. First, I would like you to establish criteria for "under what circumstances to withdraw, to stop, or to scale back." Humans have a peculiar tendency to wishfully think that if only this or that could go well, or if only we could develop that customer, things would change. However, while clinging to that desire, management can lose its balance. It is important to set criteria for stopping execution from the outset. - Initial signs of failure - Methods to mitigate failure - Ways to withdraw from failure Additionally, from a different perspective, it is necessary to consider the "side effects that may arise and the potential losses" when deploying that strategy. Humans are creatures of habit. When trying to do something new, there is often a lot of "no" thinking. The key is how to dispel that. In this case, it is important to examine the inhibiting factors and consider means of overcoming them.

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[Column] Growth Trajectory of Small and Medium Enterprises 4: Growth Trajectory from the Stability Period

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When entering a stable period, companies can be divided into three patterns. The next phase after the stable period is marked by the threshold of one billion in general scale. There is a clear difference between companies that surpass one billion and those that do not. These differences can be categorized into the following three patterns. ■ Stagnation and Decline Period When a company reaches a stable period and the president fails to propose the next growth strategy, the company quickly becomes stagnant. Stagnation means that nothing changes for three years. As a result, performance declines. A stable period does not mean that performance remains consistently stable; it indicates that a certain foundation has been established. The operating level at which small and medium-sized enterprises break even is typically around 95 to 98%. If the gross profit margin drops by 3% or 4%, the company can quickly fall into the red. It is important to understand that companies that cannot propose further growth strategies will soon enter a stagnation and decline period. ■ Mild Growth Period The mild growth period refers to a situation where a company experiences slight growth due to favorable product selection, customer selection, and industry selection. While the company deals with excellent products and has good customers, if no action is taken, there may be slight growth along the current trajectory, but it will not be able to break through the one billion barrier.

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[Column] Growth Trajectory of Small and Medium Enterprises 6: From Expansion Growth Phase to Decline and Bankruptcy Phase

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Entering a period of expansion and growth, the stage aiming for 5 billion can be divided into two parts. ■ Decline and Bankruptcy Period This is a very dangerous state where growth slows down without substance, often leading to the worst-case scenario. Companies of this scale may appear substantial, but they lack real substance. They are desperately struggling to break free from the management styles of Osho and the pawn. The growth potential is what provides them with a grace period for this transformation. Once sales exceed 3 billion, the amounts of money coming in and going out fundamentally change by a digit. For small and medium-sized enterprises, a change by a digit in this context makes it difficult to cope with the situation, even just from the perspective of financial institutions, relying solely on the president's assets. Therefore, while consuming the "food" of growth potential, they must also develop the "blood and flesh" of balance; otherwise, they will be unable to maintain their existence.

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[Column] Growth Trajectory of Small and Medium-sized Enterprises 7: From Expansion Growth Phase to Growth Expansion Phase

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■Expansion Growth Period This period of expansion and growth leads to becoming a 5 billion company through the introduction of multifunctional developments (multiple business divisions and headquarters system). However, while the outward appearance is that of a medium-sized enterprise, the content of each multifaceted and multifunctional aspect remains that of a small to medium-sized enterprise, resulting in a phenomenon of significant gaps. The company expands its operations through a multifaceted approach. However, when looking at the content of these branches, they are essentially small to medium-sized enterprises. In a small to medium-sized enterprise that operates from a single location, the president is usually present, allowing for quick responses to issues and easy communication of company policies. In contrast, branches are led by branch managers. Therefore, the content of the branches is actually weaker in terms of structure than that of small to medium-sized enterprises. In other words, "the gross is a medium-sized enterprise, but the content of each aspect is often weaker than that of small to medium-sized enterprises." This leads to the frequent occurrence of various gaps. To surpass the 5 billion mark during this expansion growth period, it is essential to implement multifunctionality, namely the headquarters and business division systems; otherwise, operations will not run smoothly. Additionally, a characteristic of this scale is the clash between the "old" and "new" in various matters. Through this clash, it is necessary to achieve "fusion" and build what is essential for the company; otherwise, it will become difficult to manage from a human perspective.

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[Column] Activities and Management for Controlling the Team

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The team's performance is designed not to improve. Understanding this fact begins to reveal the meaning of achieving results through leadership and management. Small and medium-sized enterprises have a structure where profits do not emerge unless they do something beyond their monthly routine work, and without considering measures for performance gaps, achieving goals is impossible. Creating performance requires both activity and management. Activity refers to sales and production activities aimed at securing revenue and profit. In contrast, management involves checking whether things are deviating from their intended state. Interestingly, if activities are left unattended, revenue, gross profit margin, profit, productivity, and funds naturally decrease. On the other hand, if management is neglected, expenses, accounts receivable, and inventory naturally increase. In other words, if a group is not controlled, activities will be carried out according to individual judgment, and management is often neglected because it is seen as cumbersome. Thus, performance is structured in such a way that without the functions of controlled activities and management by people or teams, it will not improve. *For more details on the column, please refer to the related link. For further inquiries, feel free to contact us.*

Company：マイスター・コンサルタンツ
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Manufacturing Subsidy Consultant

Consultant support for the product development subsidy. 11th application (deadline for submission: 8/18) is currently open. Over 200 companies have been accepted.

Our company provides support for "Monozukuri Subsidy Application Assistance." Since general subsidies undergo a review after application, it is important to create a plan that meets the review criteria for each subsidy in order to be selected. Our company offers total support from proposal of subsidies to the creation of the plan and receipt of funds. Please feel free to contact us if you have any requests. 【Basic Support Flow】 1. Hearing on investment content 2. Plan creation 3. Application support 4. Achievement report support 【About the Monozukuri Subsidy】 The Monozukuri, Commerce, and Service Productivity Improvement Subsidy supports small and medium-sized enterprises and small businesses in making capital investments for innovative service development, prototype development, and improvement of production processes to respond to regulatory changes they will face over the coming years (such as work style reforms, expansion of employee insurance coverage, wage increases, and introduction of invoices). Additionally, special provisions are established for businesses facing tough conditions and those working on productivity improvements in the digital and green sectors. *For more details, please contact us.

Company：東京経営サポーター
Price：1 million yen-5 million yen

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Management Capability Improvement Plan Consultant

Support for the formulation of management improvement plans aimed at special depreciation or a 10% corporate tax deduction, additional points for small business sustainability subsidies, financial support, and other purposes.

Our company provides support for "Management Capability Improvement Plan Applications." If you have any requests, please feel free to contact us. 【Basic Support Flow】 1. We will create a Management Capability Improvement Plan based on the information gathered during the hearing. * Financial information such as settlement data will be required for the creation. 2. Once the plan is completed, we will send the data to the customer. 3. The customer will then mail it to the secretariat. 4. After the application, if there are any requests for corrections from the secretariat, we will assist until certification is obtained. 【About the Management Capability Improvement Plan】 You can receive the following preferential measures: ● 10% corporate tax deduction or special depreciation Eligible parties: Companies with capital of 100 million yen or less / Sole proprietors, etc. Target equipment: Machinery and equipment costing 1.6 million yen or more (new) Requirements: Equipment that improves productivity by an average of 1% or more per year ● Additional points for subsidies (valid for up to 5 years) - Such as the Small Business Sustainability Subsidy ● Financial support Expansion of credit guarantee limits by credit guarantee associations for small and medium-sized enterprises * For more details, please contact us.

Company：東京経営サポーター
Price：1 million yen-5 million yen

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Human Resource Management Equation: The Role of Allowances

An explanation of various allowances that are inseparable when considering monthly wages!

Monthly wages can be broadly divided into base salary and various allowances. The base salary is determined mainly based on factors related to the "quality of work," such as role responsibilities and individual capabilities, and is positioned as the core of the fixed salary corresponding to the prescribed working hours. In contrast, various allowances address variable wage issues and concerns specific to certain employees, serving an important function to complement the base salary. Specifically, they reflect four elements in wages that the base salary cannot fully cover: "amount, type, and location of work," and "living conditions." *For more detailed information, please refer to the related links. Feel free to contact us for further inquiries.*

Company：プライムコンサルタント
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Human Resource Management Equation: Management Goal Control and the Role of Middle Management

Explaining the necessity of a management team that supports the top management and the correct way of business succession!

In small businesses, it is common for not only the management executives but also the top management themselves to take on roles in production, development, sales, and other areas. While it can be criticized that the top management becomes half-hearted as a manager by also being a player, in the case of small businesses, it can rather be seen as a sign of a healthy organization. On the other hand, it would be problematic if the top management does not engage in the field, does not meet with important clients, and is not involved in development, resembling a "turtle" president in shogi. *For more details, you can view the related links. Please feel free to contact us for more information.*

Company：プライムコンサルタント
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consultant Product List and Ranking from 35 Manufacturers, Suppliers and Companies

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