How to write a business plan required for a business management visa?

In order for a foreigner to manage a company and develop a business in Japan, he/she must obtain a “Management/Administration” visa. There are various documents required to obtain a business management visa, the most important of which is a “business plan.

The main points of this article are as follows.

✓Although academic and professional background is not a requirement to apply for a business management visa, (1) a feasible business plan, (2) business size (capital of at least 5 million yen or at least 2 full-time employees), and (3) a business office are required. ✓A business plan is an important document in the examination process when applying for a business management visa, and serves as the basis for the examiner to evaluate the feasibility of the applicant’s business. ✓The business plan must demonstrate feasibility, including the nature of the business, the motivation for starting the business, the size of the market, business partners (purchase routes, sales routes), revenue and expense plans, marketing (attracting customers, advertising), knowledge necessary for management, relevant work experience, and Japanese language skills. ✓The business plan should be prepared in Japanese and supporting documents should be provided. In addition, the business operations to be performed by management should be clearly defined.

In this article, we will explain how to make a business plan, an important document for the business management visa, as well as key points and cautions.

1. What is a Business Management Visa Japan?

The visa required for foreigners to manage a company and develop business in Japan is the “Management and Administration” visa. Various conditions are necessary to obtain a business management visa, but the basic requirements are as follows.

1-1. Outline of Business Management Visa

The business administration visa is a status of residence issued to foreigners who manage or control a business in Japan.

This visa allows foreigners to stay in Japan, establish a company, and conduct business activities. The Business Management visa is important for entrepreneurs and foreign business owners who are invited to Japan because it applies not only to the establishment of a new business in Japan but also to the management of an existing business.

1-2. Eligibility and application requirements for the business administration visa.

Eligibility and application requirements for the Business Management Visa are as follows

Business Management Visa Eligibility

The Business Management Visa is mainly intended for foreigners who

• Entrepreneurs starting a new business: Foreigners who plan to start, manage or control a new business in Japan
• Existing Business Managers: Foreign nationals invited to manage an existing business in Japan
• Japanese Branch Manager of a foreign company planning to establish a branch in Japan: Japanese Branch Manager of a foreign company planning to establish a branch in Japan and to manage or control the branch

Business Management Visa Application Requirements

In order to apply for a business administration visa, the following conditions must be met

Demonstrate a feasible business plan.

The business plan must be specific and feasible. Details are described below.

Business size (capital of at least 5 million yen or at least 2 full-time employees)

To obtain a business administration visa, you must meet the business size requirements. Specifically, you must meet one of the following

1. The amount of capital must be at least 5 million yen
2. At least two full-time employees

Since hiring full-time staff from the beginning of the establishment is costly in terms of management, most companies generally provide at least 5 million yen in capital.

Must have secured a place of business

An office, store, or other location that will actually be used to operate the business must be secured, and the business must be ready to begin operations.
The following is a summary of the results of the study.

Education and work experience are not requirements

In order to manage a company in Japan, it is necessary to meet the “business size (capital of at least 5 million yen or hiring at least 2 full-time employees)” and “existence and securing of a place of business” criteria. The Business Management visa is unique in that it does not require the academic or work experience requirements of a work-related visa as a condition. In other words, as long as you have the funds (5 million yen or more) to establish a business in Japan, you can apply for the visa.

If you can meet these requirements, you can take the first step toward obtaining a business administration visa. What is also important is the preparation of a concrete and feasible business plan.

1-3. Points to keep in mind when inviting family and friends to Japan

We often receive inquiries about inviting family members or friends to Japan on a business management visa.
In such cases, it is necessary to be more careful than usual. Especially when inviting family members or relatives, the Immigration Bureau tends to be more strict in its screening process. This is to prevent false entry into Japan by abusing the business administration visa system.

Unfortunately, there have been a number of cases where people have attempted to obtain a business administration visa simply to bring their relatives to Japan, without any actual management activities. Such inappropriate use of the visa is subject to strict scrutiny by the authorities.

Therefore, if a family member or acquaintance truly wishes to obtain a business administration visa, special consideration should be given in preparing the application. The Immigration Bureau will closely examine a wide range of factors, including the applicant’s business experience, educational background, the specific purpose and content of the start-up, and even Japanese language ability. In such cases, it is essential that the applicant clearly demonstrate his or her management skills and the feasibility of the business plan. It is also necessary to prove that the business in Japan is not merely nominal, but involves substantial economic activity.

It is also important for the inviting party to be prepared to explain that the person’s expertise and experience are truly necessary for the business, not just a personal relationship. By preparing a detailed business plan and concrete evidence to support the need for the invitation, the applicant will have a better chance of passing the screening process smoothly.

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2. How to write a business plan required for a business management visa application

A business plan is a document that is considered important in the examination process when applying for a business management visa. It is the basis for the examiner to evaluate the feasibility of the applicant’s business. The business plan must explain the following items.

• Business Details
• Motivation for starting a business and market size
• Suppliers (purchasing and sales channels)
• Income and expense plan for sales and expenses
• Marketing (customer attraction and advertising)
• Knowledge required for management, relevant work experience, Japanese language skills

Below are specific instructions and examples for each section of the business plan.

2-1. Business Details

The first item in the business plan is the overall picture of the business. It is important for the examiner to first get an overall picture of the business.

The business outline should include a brief description of the specific type of business that will be conducted. For example, clarify the type of business, the services or products to be provided, and the goals of the business. By presenting an overall picture of your business in an easy-to-understand manner, you will be able to show the examiner the specificity and feasibility of your business.

sample description

Based in Tokyo, our company sells high quality Japanese cosmetics to the Japanese and international market. The main products handled will be skin care products, makeup products, and hair care products, with a focus on popular products from 00 and 00 companies. The goal is to achieve sales of 10 million yen in the first year and annual sales of 50 million yen within three years.

2-2. Motivation for starting a business and market size

Next, explain why you decided to start the business and the size of the market. In this part, you will describe your motivation and background for starting the business, as well as the current status and potential of the market in detail.

The market research method involves analyzing the size, growth potential, and competitive landscape of the target market and using the results to demonstrate the advantages of your business. Use of specific data and statistics can enhance persuasiveness. Collect reliable research data and use it as the basis for your rationale.

sample description

The motivation for starting the company was a strong feeling that the high reliability and quality of Japanese cosmetics are recognized overseas.

In the Chinese market in particular, there is a strong yearning for brands that are “made in Japan (Japanese-made) = luxury,” and demand for Japanese cosmetics is increasing. 2020 total cosmetics imports in China will exceed $16 billion, with Japanese products accounting for $3.9 billion (24.7%) of that amount. Against the backdrop of this market growth, we have decided to export and sell Japanese cosmetics.

2-3.Suppliers (purchasing and sales channels)

Your business plan should also include detailed information about your suppliers. Specifying what purchasing and sales channels you have in place will enhance the credibility of your business.

To demonstrate the reliability of your business partners, attach contracts, memoranda of understanding, and information about the companies with which you do business. This will help prove that the business has an actual business presence. Specific business partner information is an important element in supporting the reliability and stability of the business.

sample description

Supplier: Company 00 (with contract), Company 00 (with contract)

Sales destination: major department stores in China (with contracts), online platform 00 (with contracts)

We have already concluded business contracts with Company 00 and Company 00, enabling us to provide a stable supply of products. We also have a basic contract with a domestic sales destination in China, and have a good sales forecast from the first year.

2-4.Income and expense plan for sales and expenses

The most important part of the business plan is the income and expense plan for sales and expenses. This is essential to demonstrate the economic feasibility of the business. It should cover at least one year and preferably three years.

When creating an income and expense plan, base the plan on realistic numbers. Include specifics such as sales projections, expenses, profit projections, etc., and clearly state the basis for these projections. Use actual projected expenses and market research results to present a credible plan.

sample description

Estimated sales: Average monthly sales of 1 million yen in the first year, and annual sales of 12 million yen.

Expenses: Total expenses for the first year are 8 million yen (5 million yen for product purchases, 1.2 million yen for office rent, 1 million yen for advertising, and 800,000 yen for personnel).

Profit Projection: The company aims for a net profit of 4 million yen in the first year.

Rationale for income/expense plan: According to market research, demand for Japanese cosmetics is increasing year by year, and the first year sales target was set based on existing sales contracts.

2-5.Marketing (customer attraction and advertising)

A marketing strategy is an essential component of a successful business. The business plan should detail how the business will attract customers and promote its products and services. This will demonstrate to the examiner the business’ ability to attract customers and compete in the marketplace.

Identify what methods you will use to reach your target market and how you will advertise your products and services.

sample description

Our marketing strategy will utilize both online and offline channels. Our primary target markets are China’s affluent and beauty-conscious young adults. We will use the following methods to attract and promote customers

1. SNS Marketing:
   – Utilize social networking platforms such as WeChat and Weibo to increase brand awareness.
   – Post content regularly to strengthen engagement with followers.
   – Collaborate with influencers to showcase product reviews and usage.
2. Sell on e-commerce sites:.
   – Sell online through major Chinese e-commerce sites such as Taobao, Tianyao, Alibaba, etc.
   – Run promotional campaigns on each e-commerce site, offering discounts and special offers for first-time buyers.
3. Sales in Department Stores:.
   – We will partner with high-end department stores in major cities in China to secure sales space.
   – Regular pop-up events will be held in the department stores to allow customers to experience the products first hand.
4. Partnership with beauty salons:
   – Partner with beauty salons and esthetic salons to sell our products.
   – As a special offer to customers of beauty salons, we distribute samples of our products.

2-6.Knowledge required for management, relevant work experience, Japanese language skills

The manager’s own skills and experience will also be described. This is to demonstrate that the manager has the necessary skills to run a successful business.

Specify management’s past work experience, accomplishments in related work, expertise, and Japanese language skills. For example, describe past successful projects and certifications obtained. This will demonstrate management’s ability and credibility to the examiners.

sample description

• Management Skills:.
  – Over 10 years of experience in the cosmetics sales industry
  – Trilingual in Chinese, Japanese and English
  – Graduated from 00 University with a degree in Economics
  – In my previous position, I have successfully implemented marketing strategies for Japanese cosmetics products for the Chinese market, which resulted in a threefold increase in sales.
  – Has obtained JLPT N1 and has no problem in business communication in Japanese.

It is important to include detailed and specific information. By including these items in detail, your business plan will be more persuasive and your business management visa will be more secure. Specific and feasible plans should be included in the business plan.

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3. Points to keep in mind when preparing a business plan

A business plan is a document that establishes the stability and continuity of a business to the examiner and should be prepared with care. This section describes some of the points and cautions that should be paid special attention when preparing a business plan.

3-1. Business plans should be written in Japanese.

The application documents for the Business Management Visa must be prepared in Japanese. Since this is a document to be submitted to the Japanese Immigration Office, it is required to be written in precise Japanese and to summarize the contents in a straightforward manner.

Avoid typographical errors in the document, describe it in an easy-to-read style, and add explanations to technical or industry terms as necessary. If you are not confident in your ability to express yourself in Japanese, consider asking a specialist to prepare a business plan for you.

3-2. prepare supporting documents for the business plan

To reinforce the content of the business plan, it is useful to attach supporting documents such as the following. This will enhance the credibility and specificity of the project.

• Contracts
  Attach a contract or memorandum of understanding with the supplier to prove the actual business relationship.
• Quotations and catalogs
  Quotations and catalogs related to the purchase and sale of products are shown to provide the basis for revenue projections.
• Market research materials
  Attach market research results and statistical data to prove market size and demand.

3-3. Clarify the tasks to be performed by management

When applying for a business management visa, it is important to clearly indicate what duties the applicant will perform as a manager. It is necessary to prove that the applicant is specifically concentrating on management duties and performing the appropriate role. The manager must be dedicated to management duties.

Below are some pointers for clarifying the nature of the business operations.

For restaurants, retail stores, and other store management

In the case of a restaurant, the proprietor is not permitted to be engaged exclusively in the cooking business.

The manager must concentrate on the overall management and operation of the business, and the cooking must be entrusted to a professional cook. However, it is possible for management to be involved in some of the actual business activities, as long as this is not the main business.

In order to prove that management is clearly performing management duties, it is useful to provide specific details of management’s daily work schedule. For example, by specifically describing the weekly work schedule and how much time management devotes to what tasks, it is possible to emphasize that management is dedicated to management tasks.

For businesses other than store management

While it is also not permissible for the manager of an IT company to be primarily engaged in engineering work, it may be permissible for the manager of a consulting or design company, for example, to be involved in some current business activities if such activities require a high level of expertise. However, care must be taken regarding the ratio of such involvement, and basically, a balance must be maintained between management duties and actual business activities.

It is important to keep these points in mind when applying for a business management visa to clearly describe the duties to be performed by the business manager. By describing your business in detail and showing that you are dedicated to your management duties, you can increase the success rate of obtaining a business management visa.

4. Summary

✓Although academic and professional background is not a requirement to apply for a business management visa, (1) a feasible business plan, (2) business size (capital of at least 5 million yen or at least 2 full-time employees), and (3) a business office are required. ✓A business plan is an important document in the examination process when applying for a business management visa, and serves as the basis for the examiner to evaluate the feasibility of the applicant’s business. ✓The business plan must demonstrate feasibility, including the nature of the business, the motivation for starting the business, the size of the market, business partners (purchase routes, sales routes), revenue and expense plans, marketing (attracting customers, advertising), knowledge necessary for management, relevant work experience, and Japanese language skills. ✓The business plan should be prepared in Japanese and supporting documents should be provided. In addition, the business operations to be performed by management should be clearly defined.

Preparing a concrete and credible business plan with these points in mind is extremely important in obtaining a business management visa. By effectively demonstrating the stability and continuity of your business to the examiner, you can increase your chances of success in obtaining a visa.

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