Top 10 Challenges for Startups in Japan to Go Global

Challenge 1: Decision Making Speed

Just takes too much time to make decisions. They need to ask their bosses permission for every small decision as no one dares to take responsibility for their actions.

Challenge 2: Success in Japan

Many of them are already modestly successful in Japan.  In other words, the Japanese will not risk too much which limits their aggressiveness in the new market.  Also, even if they fail, there is a place to return.

Challenge 3: Attitude towards language

By emphasizing too much on language skills, they just wait until they can speak “perfect” English. In some cases, they start going to language school after opening an overseas offices which puts them further behind.

Challenge 4: Focus on “BIG” success

By focusing too much on huge deals, such as getting millions from VCs or selling the business for billions–many Japanese start-ups fail to plan for sustainable revenue.

Challenge 5: Understand the different markets.

Most of their products are services that are tailored towards the Japanese domestic market.  In order to expand their business outside of the country, Japanese companies need to fine tune those products and services for the overseas market.

Challenge 6: Too modest.

Modesty is one of the biggest beauties of the Japanese.  When it comes to the business field,  it can be an obstacle.  The Japanese presentations are just too modest to impress people.

Challenge 7: Lack of bravado.

Sometimes you need to be able to have some bluster and bravado, to be able to talk things up.  The Japanese need to learn how to make 1 look like 10 at times.

Challenge 8: Budget is just too small.

OK, they are looking for a huge global success.  But, where is the budget for it? Even if they earn decent revenue in Japan, the Japanese are just not willing to spend a decent amount to be successful in the new market.

Challenge 9: Prioritize dealing with Japanese staff and vendors.

Even though they try to go global, they prefer hiring Japanese employees and dealing with Japanese vendors in Japanese which limits their reach of their network in the new market.

Challenge 10: No solid business plan.

Especially those who provide web services, many just focus only creating an exciting product without any plans on making money. They are just hoping to attract investment based on the number of free account users they have signed up.