2003年度（2003.4～2004.3）　ワークショップ講演

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Mr. Chohachi Ono, Advisor to Venture Link Co., Ltd.

Based on his belief that one must design one’s own life, Mr. Chohachi Ono has been contributing to the growth of the food service industry through human resource development, franchising and stock listings. The former director of Link Consulting Associates-Japan (LCA-J) and then Venture Link spoke about the things entrepreneurs must keep in mind.

<The Foundation of Venture Link>
Many operations in the food service industry still have not taken advantage of the opportunities for expansion (increase in number of outlets and stock listing), considered as they are simply a means of earning a livelihood. This is because there are few well-developed services to help operators build operating systems. The mission of Venture Link is to provide operators with opportunities for initial public offerings (IPO), and to contribute to the revitalization and growth of the food service industry by supporting improvements to the organizational structure and competence of operators.

Venture Link is characterized by its unique franchising methods and the creation of a large network of member corporations. Tie-ups with local financial institutions nationwide have made possible a huge network with 100 thousand members, and the company is providing members with useful information. In addition, the company provides human resources for the corporations Venture Link has invested in, along with information on realizing their goals with their operators, such as improvements in profitability and growth.

The greatest strength of franchising lies in the fact that it allows individual managers with average skills to achieve a certain level of success through a profitable business model created by the headquarters of a franchise chain (FC) and intensive management reform. In addition, Venture Link discloses the evaluations of individual managers and workers and the rewards for their efforts, so that they can have their own goals to achieve. The Venture Link system allows every manager and worker to enjoy benefits that conform to their own purposes and goals. A company should be a place where individuals can realize themselves, whatever their titles. This is Mr. Ono’s philosophy.

<A Message to Entrepreneurs>
In Japan, few people draw up and strive to realize clear life and career plans when they are young. This is one of the adverse effects of lifelong employment. Companies, however, no longer protect individual employees.

The first step for success as a manager or top executive in a company is to identify life and career plans and take the steps that are necessary now to realize them. Running a business implies helping every single person connected to it realize themselves by creating a company with high ideals that contributes to society and continues to grow. It is not exaggerating to say that such an operation depends on how well a manager has designed his/her life and business plans so that they are in step with each other.

Four conditions are necessary for starting a business and making it successful:

1. A manager who strives for self-improvement and self-realization
The manager must put energy into the business through his/her high ambitions and strong belief that the enterprise is useful and contributes to society. Successful managers hold in common a clear vision of their goals and the ability and willingness to share their vision. Managers who lack these qualities cannot attract excellent personnel or raise funds.

2. A clear business model
It is a fact that approximately 70% of new businesses fail. The fundamental reason for failure is a poorly developed business model. Abstract business models lack the support of specifically designed corporate activities, roles and plans to keep the business running. It is not enough just to make up a business model. Several revisions based on recognition and analysis of the strengths, weaknesses and uniqueness of the company are essential. Managers without clear business models will not succeed in business, let alone be able to manage their personnel.

3. Competent partners
Few managers are completely competent in every aspect of management. It is essential to have a starting management team of “comrades” who share the corporate vision and complement each other’s abilities. This will have an influence on later financing and the growth of the company.

4. Fundraising through investments rather than loans (better relationships with financial institutions)
Many managers use bank loans to support the corporate foundation, and repayment often weighs heavily on management. Raising funds through “investments” by venture capital groups (VCs) or angel investors should be considered, in addition to using loans, to avoid an excessive debt burden. Enhancing management and the organizational structure is a matter of course for attracting such investors. More importantly, the preparations and activities prior to a company’s launch have a significant influence on its success and on the sort of investments the company will be able to attract. Preoccupied with the red tape involved in founding a company, many believe that waiting until after the founding date to start business-related activities is all right. Before establishing the business, however, much energy must be put into fine-tuning the business model, reinforcing weaknesses, and accumulating specific achievements by cultivating sales channels and methods. Such efforts lead to better credit from VCs for easier fund-raising, and the fact of having VC investors on board will become “collateral” for bank loans with more favorable conditions. Both loans and investments must be used purposefully in accord with the business plan.

Finally Mr. Ono advised would-be entrepreneurs not to aim for huge successes at the beginning. Efforts to make a small matter successful produce a small achievement, which leads to another, and that accumulation of small achievements will contribute to great success. He said would-be entrepreneurs should learn these steps in practical businesses.

Mr. Ono said in the lecture that the average age of employees of Venture Link is 29, and someone pointed out in the Q&A session after the lecture that human resource development makes no sense if the employees leave the company. Mr. Ono answered that the company does not employ people who hope for lifelong employment and it is predictable that excellent employees will establish their own businesses. He thinks that their establishing businesses based on the venture spirit that they acquired in his company will contribute to the revitalization of the industry. He also said that his company has a mandatory retirement age of 50 for management, and so provides young people with more opportunities. Regarding the qualities of good partners for starting a business, Mr. Ono said that he focuses on their consciousness of being “comrades” and on their reliability and loyalty through thick and thin, rather than on their competence.

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