Corporate Profile (as of March 24, 2010)
Company Name: Venture Link Co., Ltd. (Tokyo Stock Exchange – Code 9609) Founded: March 1, 1986 Capital: 14.7 billion Japanese Yen Employees: 183 (355 in the Group) as of December 31, 2009 Major shareholders: NIS Partners Fund #1 Investment Partnership Incubator Bank of Japan, Limited Carchs Holdings Co., Ltd. Silver Arrow Mobile Inc. NIS Lease Co., Ltd.
Main business line: 1. Business matching support for small/medium enterprises 2.Education business centered in developing character education contents 3.Planning and operation of training/seminars for new businesses opportunities 4.Training programs for management executives and employees; management consulting service
Business Concepts: Venture Link has been building its foundations on a business concept of New Business Creator since its inception. In 2005, the company added a new business concept of Human Value Innovator with a new initiative to support human resource development in the group companies as well as in our partnering enterprises that operate certain franchise brands with us. We have designed four stages for business development through which we create new business opportunities and augment social values in business environments.
Stage 1: Creation of Network Venture Link has been building a sizable business network of approximately 60,000 small and medium sized enterprises through alliances with local financial institutions across Japan. A wide range of management information and business opportunities is provided to our clients (small businesses) in the network. This network gives Venture Link an opportunity to create support services to help foster the growth of our member companies, including Business Matching Service, Tokyo Business Summit and low cost management consulting service. This membership network lays the foundation of the diversity of Venture Links business strategy. In July 2009, a new membership program of BmC (Business Matching Club) has started, and then a new business matching portal site named WizBiz, Nippon Keieisha Club was launched in October 2009. All initiatives will be continued to enhance the membership foundations through providing solutions to management executives and employees of members.
Stage 2: Presenting Useful Management Information through the Network Venture Link collects management information and intelligence from all sources within the network including associated financial institutions and member companies. We then analyze the information as a think tank of the banks and member companies, and then deliver valuable management information and business opportunities back to the members. Included in such information provided are reports on management know-how (strategy planning, HR development, etc.) and useful business matching leads directly beneficial to creating new earnings opportunities for small enterprises both in real (seminars) and virtual (web-based) formats.
Stage 3: Distribution of Service and Products through the Network By leveraging accumulated purchasing power gained by the diverse membership network, the Venture Link group is able to procure services and products at lower costs directly from manufacturers and distribute for the benefit of small businesses to help achieve cost cutting. We act as a purchasing agent by creating transactions among members, and assist them to improve their purchasing performance. The company also provides enhanced employee welfare service and programs to member companies.
Stage 4: Creating New Business Opportunities within the Network We create new business values and opportunities by connecting business to business in the network. Given many of small and medium enterprises in Japan hold unique and excellent business concepts and products, Venture Link helps them promote these products and services to marketplaces through effective business matching vehicles. The business opportunity is presented to small and medium sized enterprises nationwide at the Stage 2, allowing them to capitalize on the opportunity. Stage 3 provides products and service needed by them for start-up. From the synergetic effects created between the Stages 2, 3 and 4, new business opportunities continue propagating and expanding, thereby helping to further strengthen the network itself.
Business Perspectives: Venture Link has been supporting the companys mission of Revitalizing small and medium enterprises will foster the growth of the Japanese economy since it was incorporated. For the coming five years starting in 2009, we are committed to creating a new value in the society by focusing on the two strategic imperatives, ie. Development of human resources (education) and generating new jobs (revitalizing small and medium enterprises).
Development of Human Resources (Education) The companys human resource development (education) efforts have initially started with education and training of workforce working at retail environments. We have been successful in identifying how individual potentiality within part-time students coming from different backgrounds can be effectively developed for successful business people. We have also proved the know-how effectively works at a variety of chain units (including foodservice, used car dealership, used golf equipment store and cram schools).
Backed with the track records, the company pursued to indentify fundamental motivations within youth for working and living well. We have developed the “7 Habits for Juniors” program for elementary to high school students, and implemented it through a wide alley of private schools.
Staring in 2010, our initiatives will be further expanded to new product development for adult education and career development for pre-work force at college. This will accelerate revitalizing small and medium enterprises in providing education for work ethics and human resource development. We strongly believe the human resource development is the only asset with unlimited potentiality.
Generating new jobs (revitalizing small and medium enterprises) For the last decade, Venture Link group has created 80,000 new jobs domestically. The business concept of starting a franchise chain in diversified industries such as foodservice, car dealership, education, health and personal care, and recreational businesses and rolling out the chain nationwide has brought about new jobs equivalent to 80,000 full time workers.
Unstable labor market will continue underlying all possible challenges in the Japanese domestic economy for coming years. We firmly believe some fundamental environments must be created to ensure small enterprises be revitalized which will in turn achieve further growth of the Japanese economy. Such environments will include supports to small businesses to strengthen their core businesses, opportunities to proactively enter into new business expansions, access to new business opportunities and strong supports to achieve overall success in both core and new businesses.
Building Network for New Business Creation:
Stage 1: Creation of Network Venture Link as the New Business Creator builds business network of small and medium sized enterprises through alliances with financial institutions. A wide variety of management information is provided to the network members. We leverage business seeds and needs derived within the network and supports clients for successful entry into new business expansion and building effective organizations.
Installation of Business Matching Club In response to vigorous needs of small businesses in expanding sales channels, enhancing merchandise and promoting proactive strategic initiatives, Business Matching Club is very effective. We are poised to support overall management of members through business matching service to include not just a company referral, but also cost-cutting measures in purchasing raw materials and supplies.
WizBiz Business Matching Portal Site This portal site promotes business matching between members and helps find the best customers for selling/buying opportunities out of a wide range of products and services offered by any certain industries. Participants are clients of 90 financial institutions nationwide, currently approximately 45,000 companies registered within less than 6 months of the launch of the “WizBiz” site as of the end of March 2010.
Stage 2: Presenting Useful Management Information through the Network Venture Link collects and analyzes valuable management intelligence from banks and member enterprises, and reinvent them into useful management information, and presents to the network in different formats in a timely fashion.
Management Seminar A variety of seminars are offered for small business owners and key management personnel ranging from management solution seminars to employees’ office manner seminars, featuring special topics of the time at a number of locations nationwide.
Business Reports Approximately 2,000 different reports on issues of high interest to managements including market trends, know-how to enter into a new business, management theory and methodology, tax management and health are available.
Tokyo Business Summit This business matching event held annually to present opportunities to small business has achieved a strong track record of transactions among exhibitors and attendees year by year. Many exhibitors in the past endorsed this event as one of the most effective venues to expand their sales channels into new regions in the country as many attendees are motivated to close a deal on site. http://www.business-summit.jp
New Business Information Information on new business opportunities is available to the network members.
Stage 3: Distribution of Service and Products through the Network Through accumulated purchasing power gained by the membership network, the company assists members to improve their purchasing performance in the capacity of a buying agent. We also provide a variety of employee welfare service and programs to member companies.
Cost Down Service Volume purchase achieves a substantial cost reduction in procuring daily necessities including office supplies, materials, uniform from numerous vendors in and out of the network. Product lines havevirtually no limits, and any members can inquire their needs to acquire supplies at favorable prices.
Employee Welfare Service Venture Link provides product/service contents of employee welfare programs to small/medium enterprises at minimum costs. These programs are used for their own employee benefits and for increasing customer satisfaction for each member. The contents cover a wide range of needs from travel, eating out, health, pleasures to daily life style.
Stage 4: Creating New Business Opportunities within the Network New business ventures have emerged from the synergy of Stages 1 through 3. They have broadened the scope of the network, and the flow of information and products has become immense. Venture Link’s strategy in selecting optimal business portfolio lies in the policies to develop businesses that are mostly needed to better the society, suitable and viable for small and medium enterprises. We have three important criteria in identifying our business seeds, that is, serving the community, low investments and synergy effects to core business of small enterprises. These criteria will be used to evaluate all business opportunities Venture Link provides support for.
Food Manufacturing and Retail Venture Link has been developing franchise chains of restaurant business since 1999 and food retail stores since 2004. The market trends have since changed from a low price orientation to emphasis on safe and healthy products. From this change, a business opportunity has emerged to directly connect food manufacturers and agricultural growers having strong commitments about the quality of products with retail stores desiring to offer quality products to consumers. We have also evolved into a function of a factory-less manufacturer to support manufacturers having unique products. We are committed to enhancing safety and health in food, and to promoting food manufacturers of strong Japanese brands.
Education Venture Link has supported the success of many franchisee units during its chain development in the past, and has particularly focused on education and training of staff at each business location as the key factor for success. In the middle of drastic changes occurring among young generations who easily lose enthusiasm and motivations to work and live well, we have identified this trend presenting a serious threat for the future of Japan. Education plays a vital role in solving these problems. Venture Link as a private entity should be able to act to improve the situation, and has started to offer educational programs in the perspectives of developing human resources accountable for the future of Japan and serving the community at the same time.
Business Segment: The Venture Link group operates in the following four business segments.
1) Membership Segment Core service includes creating a network of small and medium enterprises in cooperation with financial institutions nationwide, through which we provide business matching opportunities and useful management information. The company has been developing this service since its inception, and now it provides the company with an infrastructure for all businesses developed. As of the end of the fiscal year, we have 135 financial institutions (or 24.1% of total 561institutions in Japan) in the alliance with approximately 60,000 member companies.
2) Education Segment Offerings in this segment are 7 Habits® for J" for character education and e-Learning programs (English, math and read/ writing) for elementary to high school students. These contents are distributed through private mid/high schools and prep schools nationwide.
3) New Business Segment Segment includes new businesses under R&D or start-up phases. In this fiscal year, foodservice in East Asian region (China and Taiwan) provides main revenue.
4) Other Business Segment Services include management support for small/medium enterprises, including investments and financing to clients.
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