5 Reasons Why You Shouldn’t Get an Office in Japan

Chris Kirkland
no office
Chris Kirkland ‘HoboCEO’ |credit| | Photo by Tony McNicol

When you are doing business in Japan, image is important, but offices are not. There isn’t an office your small business or startup can afford that will give the type of image that will impress an important Japanese customer. Your money is better spent on suits and restaurants than a fancy office. Here are five reasons why.

1) No one will ever visit your office, unless they want to sell you something.

Face time with customers is an important part of getting things done. But the nature of business in Japan means the company in the weaker position visits the company in the stronger position. As a startup in Japan, you are in the weaker position. Expect to spend a lot of time in taxis and on trains visiting potential clients and partners.

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2) They won’t respect your office anyway.

The more successful the other side is, the less likely they are to visit your office. They are probably paying a boatload for their fancy office, so why would they bother to leave it? Unless you are a well-established company that can afford a prime location in Marunouchi or Roppongi Hills, go simple. If you are already a huge company expanding in Japan, go big.

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3) Japanese virtual offices are cheap.

Running a small business, I’ve learned to avoid the large, international serviced office spaces like Servcorp and Regus. Their business model is geared toward large companies like Google, Ebay and other multinationals. When using them, expect to pay for EVERYTHING! Print? Pay up. Pencil? Pay up. If you aren’t that cost conscious, Servcorp and Regus will have flagship addresses; they start at around $400, but quickly jump in price.

For those who are a bit more wary of throwing out wads of yen, there are a number of domestic virtual offices with very good locations listed on this site that include an address and virtual telephone numbers for under $200 a month. And Kaori-san’s virtual assistant service provides virtual telephone numbers in Japan for $16 if that’s all you need.

4) Japanese offices are expensive.

Foreign companies that enter the Japanese market are always shocked by how expensive the initial cost for office space is in Japan. In addition to the rent, its not uncommon to be required to pay 6-12 months of rent or deposit upfront. Or 1-3months in “key money”, which is like money you throw off a tall building, because you will never see it again. Then there are buildout costs, which have no limit. It’s a large financial commitment and getting a traditional office means you are in it for the long haul (at least three years). The alternative is renting a SOHO (Small Office Home Office), which range around $3 000 a month.

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5) Humble offices increase your chances of patronage.

For Japanese companies, office location is about prestige. If you are trying to gain patronage from a Japanese company, it helps to look humble. A successful partnership in Japan means joining a family and it’s a long term commitment. Whoever is your deal champion will want to see your company grow as a result of your relationship with them. So let them see that you have room to grow. It will be hard not giving up a discount on services when you have an expensive office in Tokyo Towers!

This guest post was written by Joseph White,the marketing director of Kaori-san, a service that provides bilingual virtual assistants in Japan. It’s also great for businesses working with Japanese companies. The service is a inexpensive alternative to hiring Japanese secretaries.

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