I am Yoshida, president of Yamada Shusei Ltd., a professional apparel garment repair group in Nagaoka City, Niigata Prefecture.
There are two possible approaches for SMEs to achieve breakthroughs. There are two ways to achieve breakthroughs: “steadily solidify your footing” and “set a distant goal and take on the challenge. Each approach has its advantages and disadvantages, and the specific business models differ.
(1) Method of steadily solidifying from the feet up
1) Advantages
・Stable growth: By steadily building a solid foundation, you can achieve stable growth while minimizing risk. Builds trust with customers and encourages repeat business.
・Optimization of resources: It is easy to achieve short-term results by efficiently utilizing limited resources. In particular, it is possible to expand business without strain by meeting
existing customer needs.
2) Disadvantages
・Limitations to growth: A steady-state approach may not be suitable for companies seeking rapid
growth. There is a risk of not being able to respond quickly to market changes.
∙ Decline in competitiveness: While other companies are taking innovative approaches, if you stick to a
steady growth, you may lose competitiveness.
3) Specific business models
・ Cultivate niche markets: Establish a position in a market with little competition by offering
specialized products and services to a specific customer base. Examples include
community-based restaurants or online stores specializing in a particular hobby.
(2) How to challenge with a distant goal
1) Advantages
・Fostering innovation: By setting big goals, it is easier to foster a culture of innovation throughout
the company. This will encourage the introduction of new ideas and technologies,
and increase the chances of taking a leadership role in the industry.
・Differentiation in the marketplace: Clear goals make it easier to differentiate your company from
others and attract customers. In particular, business models that solve social issues
are more likely to gain the support of customers.
2) Disadvantages
・Increased risk: Pursuing big goals also carries the risk of failure, especially for small and medium-
sized businesses with limited funds and resources. Especially for small and medium-
sized enterprises with limited funds and resources, failure can have a fatal impact.
The process of pursuing a distant goal may not yield short-term results, which may
reduce employee motivation.
3) Specific business models
・Start-up innovation: A business model that aims for rapid growth through the development of new
technologies and services. Examples include technology-based fintech companies
and green businesses that address environmental issues.
(3) Conclusion
For SMEs to achieve breakthroughs, it is important to understand these two approaches and choose appropriately according to their situation and market environment. The steady foundation approach promotes stable growth, while the far-sighted approach is necessary for companies seeking innovation. By striking a balance between the two, sustainable growth can be achieved.
