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3 Business Models

Revenue focus only

Business develop- ment

Brand and revenue control

Distributor (abdication of control)

  • Little effort, little control, little brand development

  • Distributors trust-worthy but busy

  • Recommend sending company rep to push things along

Rep Office

  • No registration required – very free format

  • Only business promotion

  • Can’t offer staff benefits, so hard to recruit

Branch Office

  • Simplest form of registered operation

  • But denotes lack of commitment to market

  • Opens HQ up to Japan law

Full Independent Operation

  • High risk, but full control, may still use sub-distributors/sales channels

  • Entity allows outside co-investment, IPO opportunities

  • Need to learn regulatory and procedural issues in Japan

  • Commits company to Japan, strengthens relationships

  • Recommend fully funded co., to hire locally and work CEO’s contacts

hard – proper funding will speed up returns to 12-18 months for profits

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