#Japan #Shibuya #Oggworks #Integrated Management #Business Bankruptcy

Why Do Profitable Companies Go Bankrupt?

In recent years, a disturbing trend has emerged in the business landscape. Despite being profitable, many companies are facing bankruptcy. According to a report by Teikoku Databank, the number of corporate bankruptcies in Japan skyrocketed by 12.9% in 2024, primarily affecting small and medium-sized enterprises (SMEs). Within the span of three years, this figure has risen by a staggering 26%. The reasons behind this increase are multifaceted, but the challenges faced by SMEs, such as labor shortages and financial difficulties, are at the forefront.

The Launch of Oggworks’ Integrated Management Service

Faced with these social challenges, Oggworks LLC, based in Shibuya, Tokyo, has announced an innovative service aimed at fostering sustainable growth in SMEs. The service integrates financial improvement and marketing enhancement within one cohesive framework, specifically designed to support regional economic revitalization. Starting at just 60,000 yen per month, this accessible pricing strategy provides a roadmap suggesting over 3 million yen in potential annual improvements, ensuring business stability and resilience.

A Concerning Snapshot of Corporate Bankruptcies

The alarming statistics reveal a pressing need for support within the SME sector. Businesses in industries such as restaurants, manufacturing, and construction, with revenues between 30 million and 500 million yen, are particularly vulnerable. Even profitable enterprises are at risk of bankruptcy due to cash flow challenges exacerbated by the declining labor force. Traditional management support methods often isolate financial professionals from marketing experts, neglecting the core issue of sustainable cash flow generation. Oggworks aims to unify these elements to break this cycle.

Identifying Support Needs and Objectives

Oggworks' integrated approach is characterized by the following:
1. Specialized Support Teams: A collaborative team of financial experts, including members from reputable auditing firms, works alongside marketing specialists. Additionally, they partner with a network of other professionals, including accountants and administrative scriveners, to provide comprehensive support. Advisors with real industry experience bolster this team dynamic.

2. Visibility Through Numerical Analysis: The service begins with an initial consultation to identify areas for improvement. In-depth analysis leads to specific actionable recommendations that consider both government programs and financial restructuring to optimize funding conditions. In many cases, a potential annual adjustment of over 3 million yen can be confirmed, although actual outcomes will vary based on an individual company's situation.

3. Cost-Effective Solutions: The service is designed to be as affordable as hiring a new employee. With continuous support starting at just 60,000 yen per month, businesses can receive expert guidance immediately. Communication to align project goals is prioritized, with regular progress checks to ensure satisfaction. Companies are free to discontinue service if expectations are not met.

Target Companies for Service Implementation

This service caters specifically to labor-intensive industries such as restaurants, manufacturing, and construction, targeting SMEs with annual revenues between 30 million and 500 million yen. The goal is to stabilize operations by improving financial processes and marketing efficiency.

Foundations of Improvement Assessments

Critically, the approximations of improvement possibilities come from strategic blends of government program utilization, enhanced financing conditions, and marketing efficiency.

• - Government Program Utilization: Potential improvements from leveraging government programs are estimated at approximately 1.5 million yen.
• - Cost Reduction from Financial Restructuring: Estimated savings of around 1 million yen can be achieved through better financial conditions.
• - Sales Improvement from Marketing Efficiencies: Similarly, optimizing marketing can yield close to 1 million yen in revenue enhancements.

Comparative Analysis of Costs and Benefits

The cost of hiring a new employee ranges from 240,000 to 300,000 yen annually, plus training costs and time to reach full efficiency. In contrast, Oggworks’ service starts at just 72,000 yen a year, providing specialized insights immediately, with significant improvement potential.

Compliance and Future Expansion

Oggworks ensures that its service adheres to legal standards by collaborating with specialists for tax filings and subsidy applications. The firm plans national expansion by 2025 and aims to host financial improvement seminars addressing challenges arising from post-COVID recovery.

Exclusive Management Diagnosis Session

As part of the service launch, Oggworks is offering an exclusive management diagnostic session for the first 30 companies. This includes quantified improvement assessments based on consultation feedback and a tailored report integrating financial and marketing recommendations. Interested companies can apply through Oggworks' website.

Testimonials from Industry Experts

Outside industry professionals have commended Oggworks' approach, noting that an integrated view of finance and marketing is vital for the sustainable growth of SMEs.

For further information, Oggworks LLC can be contacted via email at [email protected] or by phone at 050-1726-2265.

By tackling the pressing issues of labor shortages and financial instability, Oggworks aims not only to secure business longevity but also to invigorate the local economy.