While a company operates with a small team, it is not unusual for the business to run on a plan that exists mainly in the head of the country manager. Once the company enters a growth phase involving hiring and investment decisions, however, a plan that has never been written down makes it difficult to reach agreement with headquarters or align the team internally.
- The company wants to hire but has no basis for building a staffing plan
- There is no business plan format that can be used for a budget request to headquarters
- Revenue targets exist, but the milestones for reaching them are unclear
- A business plan was created, but there is no mechanism for tracking progress, so it has become a formality
This article explains how to build a business plan that helps a Japan entity grow beyond a small team.
Why a Small-Team Japan Entity Needs a Business Plan
While a company operates with a small team, it is not unusual for the business to run on a plan that exists mainly in the head of the country manager. Once the company enters a growth phase involving hiring and investment decisions, however, a plan that has never been written down makes it difficult to reach agreement with headquarters or align the team internally.
For foreign companies in particular, headquarters typically expects a business plan backed by numbers and clear reasoning when making investment decisions. A business plan also serves as material for explaining Japan-specific business practices and hiring market conditions to headquarters.
Elements to Include in the Business Plan
A business plan for growing beyond a small team should include the following elements.
| Element | What to Include |
|---|---|
| Market and competitive analysis | Business opportunities in the Japanese market, target customers, and the competitive landscape |
| Revenue and earnings plan | Revenue targets for the next one to three years and the initiatives and structure needed to reach them |
| Staffing plan | Timing, headcount, and roles for hiring, along with the associated costs |
| Return on investment (ROI) | Expected return on additional investment and the payback period |
| Risks and mitigations | Anticipated risks (legal, tax, hiring difficulty, and so on) and how to address them |
Operating Points to Make the Business Plan Work
A business plan should not be treated as finished once it is written. It is important to build in a routine — for example, quarterly — for reviewing progress and sharing any gap between plan and actual results with headquarters.
Using the business plan as material to help headquarters understand Japan-specific conditions, such as hiring lead times or differences in decision-making speed driven by local business practices, also tends to make subsequent investment decisions go more smoothly.
Summary
- In the growth phase beyond a small team, a plan that only exists verbally makes it difficult to reach agreement with headquarters or align the team internally
- Include market analysis, a revenue and earnings plan, a staffing plan, ROI, and risks in the business plan
- Review progress regularly and share any gap between plan and actual results with headquarters
- Also use the business plan as material to explain Japan-specific conditions to headquarters
Contact
JBN provides one-stop support for foreign companies, from building a business plan for Japan expansion through to execution.
To discuss building your business plan, please contact us.