I am Yoshida, president of Yamada Shusei Ltd., a professional apparel garment repair group in Nagaoka City, Niigata Prefecture.
According to the June 5 credit report, the number of corporate bankruptcies in May exceeded 1,000 for the first time in 11 years, and the total for January-May 2024 was 4,111 , the first time in 11 years since 2013 that the annual number has exceeded 10,000.
As factors contributing to this trend, it is pointed out that the timing of the end of Corona-related support, the depreciation of the yen, high prices, and labor shortages are weighing on management.
Small business owners, myself included, need guidance in these situations.
(1) Assess and analyze the financial situation
Review financial position, explore possibilities for improving cash flow and reducing costs, and develop short- and medium-term financial plans.
(2) Improve efficiency of business activities
We improve management efficiency through the use of digital technology. We will also focus on developing human resources with knowledge and skills useful for business activities.
(3) Understand market needs
We will analyze demand trends for products and services so that we can respond quickly to market changes.
(4) Optimize management resources
We will effectively use management resources, including human, financial, and material resources, to support our business activities.
(5) Strengthen risk management
We will assess risks to changes in the external environment and implement countermeasures.
(6) Review of management plans
We will periodically review our management plan and formulate strategies that match the current situation.
(7) Utilize government support
We will proactively utilize support measures provided by the government and local governments.
These guidelines are based on the “Guidelines and Basic Policies by Business Sector” provided by the Small and Medium Enterprise Agency, and contain useful information for the development of management capacity improvement plans.
In times of difficult business environment, it is important to go back to the basics of management and aim for sustainable growth; this is what I am trying to do.
I myself am still searching for a way forward, and I intend to take more specific measures that suit my company, including consultations with lawyers, tax accountants, laborers, small and medium-sized enterprise diagnosticians, and other specialists.
