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2005年度（2005.4～2006.3）　ワークショップ講演

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Record of Workshop/Lecture

Date: July 28, 2005
Lecturer: Mr. Eiji Tanaka, President and Representative Director of BB Net corp.
Theme: How to reduce the risk associated with venture businesses (“Venture” is different from “adventure”) for the development of venture businesses in the Kansai-Osaka area.
Recorded by: Shoko Sakamoto and Norio Sumida

Please refer to the record of Mr. Tanaka’s previous lecture at the Workshop on April 15, 2004:
http://www.gscc-entre.com/J/workshop/2004/ent_02.html

1. Profile of the lecturer
After working at Daihatsu Motor Co., Ltd. for four years and two months, Mr. Tanaka left the company in order to start a venture business. He worked at Funai Consulting Co., Ltd. in order to study venture businesses. During his three years and seven months of consulting work there, he was attracted by the idea of starting a business supporting the bakery and confectionery industry. He entered and worked at TIVOLI, a cookie maker, for two and a half years in order to deepen his knowledge of this industry. Having finished his various preparations, he started his venture business in 1995. He later established BB Net corp., in 2000. He operates portal sites, each specialized in a specific line of business, which provide comprehensive support for small and medium-sized specialty shops. Mr. Tanaka’s company has made a successful IPO.

2. Summary of the lecture
Referring to his experience as an entrepreneur and his support of over 130 venture businesses, Mr. Tanaka explained how tough creating a new business is. He said: We cannot fail in any business. Once we start a new business, we must make it a success. The failure of a business causes so many unhappy events; thus, creating a new business is a big commitment. For a new business to succeed, it must have as its objective a “great cause,” meaning that it must contribute to the happiness of people and society. Entrepreneurs should always have such a great cause. Actually, most entrepreneurs do have a great cause for their business; however, each entrepreneur should have a specific reason for focusing on that cause. If they have such unique motivation, entrepreneurs will be able to convince other people of the worthiness of their new business. In addition, entrepreneurs must be as knowledgeable as possible about the basic mechanisms of society. Since such knowledge can be acquired in corporate business, entrepreneurs must take full advantage of their various experiences working at companies. They must also know how to deal with their business partners and understand the functions of financial institutions. Such practical knowledge is essential to entrepreneurs - they must have the basic knowledge and common sense required in social life. In that sense, people with lots of experience in business are more qualified to be entrepreneurs than are inexperienced young people. Entrepreneurs must have initial funding available when they start their business. Naturally, people who are seriously thinking about creating a new business usually have saved, let’s say, three million yen as initial funds. In addition, when doing business, we must always bear in mind that while we should not take an “all-or-nothing” life-risking gamble, we must take the utmost care to anticipate the worst-case scenario. In the management of the business, 10% of the requirement is technology and 90% is the entrepreneur’s philosophy or idea. In the real world, hard work is rewarded as long as we do the right thing. In the long run, the principle of cause and effect ensures that all people get what they deserve.
Mr. Tanaka taught us not only how to do business, but also how to live.

3. Q&A
(1) You support entrepreneurs by providing them with initial funds. How do you assess and select candidate entrepreneurs?
The basic requirement is that they can be our partner. I support only those entrepreneurs whose business I would like to see grow. We assess their aspirations. Namely, I judge how serious they are in creating a new business. From my long experience, I can know an entrepreneur’s character and philosophy by reviewing their financial statements.

(2) In your business supporting entrepreneurs, what percentage of the businesses you supported were successful?
Using the baseball term, I do not hit home runs, but my batting average is not bad; I try to hit as many singles as possible. I never need home runs. To be successful, we should create new business with great care and avoid every unnecessary risk. We should anticipate the worst-case scenario of no initial sales. We must arrange sufficient funding to deal with such a case. We must also come up with ideas for how to use available funds effectively.

(3) What is essential in managing a business?
The answer to that is justice. As the business becomes bigger and stronger, we must be more prudent in preventing wrongdoing. As long as we do the right thing, we will be rewarded. That’s the world in which we live.

Mr. Tanaka giving an energetic lecture

4. Summary of the discussion
Every story Mr. Tanaka told was based on his personal experience. His speech was crisp and brief, but persuasive and full of the wisdom he has acquired from experience. We came to understand his basic philosophy, the determination required of entrepreneurs, and the great difficulties they will face. We were encouraged by his assertion that “hard work is rewarded as long as we do the right thing and put heart into it.”

Mr. Tanaka and attendants after the lecture

 

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