Business Lessons From Ancient Japan | A Guide to Building A Long Lasting Business To Stand The Test Of Time

 Did you know that the 5 oldest companies still operating today in the world were all founded in Japan more than 1000 years ago? There’s even a Japanese term for businesses that have survived more than a century, kept ownership within the same family, and continue to operate in the same industry, they are known as “Shinese” firms.

Fact-finding survey of long-established companies (2019)

About 33,00 Long-established Companies with over 100 Years of Business History Nationwide –

Rental Offices, Sake Brewers, etc.  

Japan is home to over 33,000 business that has been in operation for at least a century accounting for 40% of the world’s total, every year over 1000 business celebrate their 1000th anniversary 

What’s the secret behind building ever-lasting brands and companies?

What are the most important lessons that we can learn from them?

Well if you’re like us and want to build a business that will stand the test of time, join us in exploring the most important business lessons from ancient Japan.

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#1 
Focus on long-term success 

If we were to use one word to describe “Shinise” Companies, It’s “Sustainable”. The widely accepted definition of sustainable development is that we must meet the need of the present without jeopardizing the future generations' abilities to meet their own needs.

 The implication here is that sustainability does not happen magically overnight but as a result of inter-generational cooperation over a long period. One of the reasons “Shinise” firms last so long is that they put a lot of emphasis on two important things “Longevity & Tradition “.

Usually in a Japanese business, the CEO holds the position for about 2 – 4 years and they have the mission to satisfy the expectation of shareholders. But “Shinise” firms do not publicly list their stocks, their way of doing business is the opposite of this in the sense that short-term profit is not their end goal, they are also careful about swerving from their original focus and constantly balancing opportunities to innovate with tradition. we’ll discuss more of this later in the article. 

Even if Japanese owners agree that profit generation is critical for survival “They do not prioritize short-term profit maximization” The key goal for them is to ensure the longevity of the business by creating and maintaining long-term relationships with customers and employees. 

The Japanese phrase Hosoku Nagaku which literally translates to Thin and Long perfectly captures this mindset, the idea here is that long-term stability is more important than short-term dynamism. 

Needless to say, maximizing short-term profit is not a good strategy when the goal is to be around for a long time instead it Is critical to cultivate and maintain relationships with customers because this translates to having good quality long-lasting products and actively seeking customer feedback so they can continue to improve their services and ensure that their customers are satisfied and well cared for, such business wants to survive not only for their families and employees but also for the sake of their customers who expect them to be around for generations to come.

 The extraordinary longevity of Japanese businesses appears to indicate that owners have a much longer time horizon and patience that is less common amongst US Entrepreneurs. furthermore, shareholders might not be regarded as the primary constituency of Japanese businesses rather it’s the customers that are constantly regarded and treated as the priority. This is beautifully reflected in a popular japan saying among Japanese business owners that go “Ok-yak-u-sama wa kam-i-sama desu, meaning, the customers are gods.

But it’s not just that, also long-term sustainability and success are tied to the fact that

#2
Tradition matters more than profits

 A key part of why some Japanese businesses stand the test of time is because they understand 1 vital thing, the importance of maintaining high social standing in the city they are operating in amid a changing business environment characterized by the loss of traditional values and practices.

 The changing customer taste due to Japan's westernization and the increase in competition from larger and international trading firms have made this company truly special, their high social standing partly comes from the fact that they put tradition above profit, as well as producing traditional Japanese crafts, they embody and reproduce local community values.

 In doing so Shinse firms are like custodians that protect local traditions and culturally there is a love of tradition in Japan that gives these firms cash of local customers and communities, Shinise firms are also very much embedded in the communities where they are based, as well maintaining family ownership and the quality of products many Shinise companies are committed to the welfare of the community and that is a thing we value in high regard 

#3
Quality over Quantity

Consumers in the united states and around the world are increasingly putting pressure on businesses to be better and transparent in their operations, consumers particularly those in the consumer technology industry are becoming increasingly dissatisfied with having to replace their products every few years if not sooner, As a result, consumers are demanding the right to repair products rather than having to replace them because the products are essentially designed to be unfixable or a have planned obsolesce.

  Given this context it is not surprising that the Japanese art of kintsugi in which broken ceramics are repaired and given new life is gaining traction in the West as more people become aware of the negative consequences of fast cheap and mindless consumption, it is expected that businesses and consumers will begin to question the status quo and move in the right direction. 

The truth is we value the things we paid for more than we value the free things, this logic can easily be extended to argue that fast fashion, fast furniture, or fast anything makes us less likely to respect and value products. 

At the heart of the quality over quantity philosophy, it focuses on excellence and attention to detail. Japanese companies believe that by putting in the time and effort to create high-quality products and services, they can build a loyal customer base that will choose their offering over their competitors, this approach is based on the belief that by delivering exceptional quality customers will be willing to pay a premium price and will continue to do business with the company for years to come. 

Japanese companies have a reputation for being meticulous in their attention to detail, whether in the design of their products, the quality of their materials, or the level of customer service they provide.

 This attention to detail is driven by a commitment to perfection and a desire to create products that are not only functional but also beautiful and enjoyable to use. Another reason why quality over quantity matters for Japanese companies is that it also helps to build trust and credibility with their customers by consistently delivering high-quality services.

 Japanese companies have earned a reputation for reliability and trustworthiness and this has allowed them to build long-term relationships with customers and established themselves as leaders in their respective industries.

#4
Elegant simplicity is everything

 “Chiboi” is a traditional Japanese aesthetic that emphasizes simplicity understated elegance and refined beauty, it is a concept that embodies a sense of tranquility, harmony, and balance. In business, chibi applies to the design, branding, and overall customer experience of a company. When it comes to design chibi means using minimalistic elements and natural materials to create a simple yet elegant product or service.

 Companies in Japan strive to create a harmonious balance between form and function ensuring their products are both beautiful and practical. In branding, chibi is reflected in a company’s logo, packaging, and marketing materials. 

The branding should be understated and elegant with a focus on simplicity and quality, and this creates a sense of trust and reliability in the customer’s mind as Chiboi's design packaging uses natural materials such as recycled papers and minimalistic colors and graphics. 

In terms of customer experience chibi applies to the way a business interacts with the customers, in this regard Japanese companies prioritize providing a peaceful and welcoming environment, the customer service is polite, efficient, and non-intrusive creating a sense of tranquility and comfort.

 A balance between beauty and elegance with efficiency Japanese businesses strive to create products and services that are both beautiful and functional and this leads us perfectly to the final lesson of the article.

#5
The design must be an experience in itself

In Japan there’s a beautiful idiom called “mono-ro-iware” which encapsulates the deep appreciation of the fleeting moments of the beauty in life, this philosophy is reflected in many aspects of Japanese culture including their products which are not just functional but also a feast for the eyes. 

A prime example of philosophy in action is the traditional Japanese wrapping cloth known as “furoshiki”. These gorgeous cloths are crafted from exquisite fabrics and used to wrap gifts and carry objects, the act of folding the “furoshiki” in a certain shape is a meditative experience that creates a stunning work of art that can then be used again and again. 

But this appreciation for beauty is not just limited to traditional items even modern products can be designed with a “mono-or-aware” philosophy in mind. Take for instance a suitcase, with careful crafting and design a simple suitcase can be transformed into a luxurious experience. 

Japanese companies understand that even the most minor details can make a big difference in the quality of their products and services and they go to great lengths to ensure that every aspect of their work is done with precision and care, this requires a commitment to excellence, a willingness to go the extra mile and a deep appreciation for beauty and elegance. 

So our lovely readers with all of this considered, this Is what you need to take home from this article, the longevity and success of the Chinese firms demonstrate the importance of focusing on long-term sustainability, prioritizing tradition over profits, and valuing quality over quantity by cultivating a long term relationship with customers.

 Emphasizing tradition and social standing and prioritizing quality these firms have managed to stand the test of time for over a thousand years. As we move towards a more sustainable future, these lessons from ancient Japan can serve as valuable inspiration for modern entrepreneurs and businesses.

And with all of this being said here is a question for you:

If you were to build a business, what are the core values you would value the most?

Make sure to drop your answer in the comments below, always so curious to know what you value the most, long-term value and sustainability

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We’ll see you back here tomorrow again our lovely readers, Take care.