[Column] Development of New Businesses (1) Points of Success and Failure

I would like to introduce a column article.

An era that demands strategy. One perspective on this is new business ventures. ■Common points of failure in new business ventures: (1) Operating in a completely unknown field, lacking knowledge and know-how. (2) Even if funds and materials are secured, there are no suitable personnel. (3) Insufficient understanding of the market and demand. (4) High risk and high return with significant investment amounts. (5) Unclear investment amount estimates. (6) Misjudgment of the timing for withdrawal. (7) Expansion into different industries based on the owner's president's unilateral decisions and personal interests. ■Success points from successful examples: (1) Related industries or business types to the current business. (2) Transitioning upstream (manufacturing) or downstream (retail). (3) Growth areas, networks, and timing that align with current trends. (4) Utilizing systems that allow for the incorporation of know-how (e.g., franchising). (5) Leveraging assets such as land, buildings, and employees from existing businesses. Relying solely on existing businesses that target the same products to the same customers makes it increasingly difficult to achieve appropriate profits. Therefore, one strategic perspective is new business ventures. When new businesses succeed, they can generate significant benefits for the company.

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