NEWS

Good afternoon, ladies and gentlemen!

Today, we are continuing our series on today's topic.

This time, we will use the example of starting an izakaya (Japanese style pub) as an example of what kind of process is necessary for foreigners who want to start a business in Japan.


Now that the spread of the new coronavirus has settled down, many foreign tourists are now visiting Japan.

In this context, urban areas and some tourist destinations are bustling with traffic and customers.

'Japan's restaurant industry is booming, and I'd like to open one!' Many foreigners may be thinking, "I would like to open a restaurant in Japan, as the restaurant industry is booming!

Many foreigners may be thinking, "Japan has a booming restaurant industry and I want to open a restaurant! If you do not have enough funds, you will not be able to open a restaurant.

What should you do if you do not have enough funds? This issue is a must for foreigners! We will introduce how foreigners can raise funds to run an izakaya in Japan. If you are a foreigner who is having trouble raising funds, please take a look at this article.

How can I reduce the opening fund?

When opening an izakaya, you want to keep the opening capital as low as possible. How can you reduce the opening capital?

Here we will show you how you can reduce your opening capital.

The main things you can do are

Cutting costs in the choice of property 

- Reducing the cost of interior work 

- Buying equipment with ingenuity 

- Planning and managing working capital 

Let's look at each of these in more detail.

Reducing costs in property selection 
The first is to reduce costs in property selection. The choice of property is very important in order to reduce the cost of opening a pub.

In city centres and popular areas, rent tends to be high and both deposit and key money are expensive.

Therefore, choosing an area in the suburbs or an area with relatively low rents can help keep costs down.

In addition, you can significantly reduce the cost of interior work by choosing a Inuki property with the interior already in place.

If you use a vacant property, you can use kitchen facilities, counters and even toilets that are already in place. This saves you money on the interior decoration costs, which account for a large part of the opening costs.

Reduce the cost of interior work 
Second, you can reduce the cost of interior work. Interior work costs are a major expense when opening a pub.

To reduce costs, it is useful to adopt a simple, functional design and avoid excessive decoration and expensive materials.

You can also save on construction costs by doing some of the work DIY (do it yourself). For example, painting walls or assembling simple furniture can be done by yourself to reduce costs.

Choosing the right contractor is also important, and you should get quotes from several contractors and choose the most cost-effective one.

Devise the purchase of equipment. 

Third, devise the purchase of equipment. Kitchen equipment and furniture. In addition, the cost of buying crockery has a significant impact on the opening capital.

Consideration can be given to second-hand equipment and furniture, rather than sticking to new equipment, which can save a considerable amount of money.

Second-hand items are often fully functional, and buying from reputable suppliers can help keep costs down while ensuring quality.

Another option is to use auction sites and recycle shops to get the equipment you need at a low cost.

Planning and managing working capital 
The fourth is planning and managing working capital. In the first few months after opening, profits are likely to be unstable, so working capital must be planned for.

By limiting initial purchases and starting with the minimum necessary stock, unnecessary waste of funds can be prevented.

You can also reduce raw material costs by considering multiple suppliers, negotiating prices and using discounts for bulk purchases.

Furthermore, labour costs can be reduced by actually assessing sales projections after the start of operations and avoiding overstaffing.

By utilising these methods, you can significantly reduce the capital required to open a pub and minimise costs.

Working to reduce costs is also very important to stabilise the business after opening.


How was your experience?

I would be happy if you could use this as a reference for your fundraising. You are here in Japan because you see the advantages!

We look forward to seeing you again in the next issue.


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