Japan SoftBank

"“Since it rained today, there were few customers.” “Since the weather will likely be good tomorrow, I’m sure things will go well.” This is what was said. Having heard such words from his father since childhood, Masayoshi Son keenly felt, “It’s not good management to be swayed by whether it’s sunny or rainy in a single day. I won’t run businesses that are influenced by external conditions like the weather.” However, the technological innovation of the digital information industry, in other words, changes in external conditions, is rapid. Trends come and go quickly, and even if a hit product is explosively successful, its lifespan is extremely short. But Masayoshi Son was firmly determined not to get deeply involved in being constantly chased by the development of such new products. Therefore, Masayoshi Son reached the conclusion, “I won’t rely on a single product with large hits or misses. I want to create a company that provides infrastructure with less fluctuation in trends.” Infrastructure, as defined by the word, is the social and industrial foundation, and is more of a base. If likened to the transportation network of traditional industrial society, it corresponds to general roads and highways. On highways, the installer collects fees from drivers at toll booths. Masayoshi Son must have thought, “By providing infrastructure, let’s become the toll booth of the digital information industry.” That way, hit products of the moment would have to rely on the infrastructure held by SoftBank, and SoftBank itself could stably grow. ◆ Narrowing new businesses through “Nine Conditions” Based on this idea, Son continued to explore what business to pursue for a year and a half. Every time he came up with an idea and developed a business plan, he applied “Nine Conditions” to filter it. The “Nine Conditions” were as follows: [Condition One] Once a business is undertaken, it cannot be stopped halfway. Therefore, it must be a sustainable business. [Condition Two] Naturally, it must be a profitable business. [Condition Three] It must be a growing industrial sector. The industry structure itself must not be in a recession or decline. [Condition Four] It must be a business that can become the core of a future corporate group. [Condition Five] It must be a business that cannot easily be imitated by others. [Condition Six] It must be a business that doesn’t require large capital investment. [Condition Seven] It must be a business that is useful to society and contributes to societal development. [Condition Eight] It must be a business that one can engage in interestingly. [Condition Nine] If you undertake it, you must absolutely become the number one company in that field. If you can’t become number one, don’t even start. After thoroughly investigating, they focused on the wholesale of packaged software for personal computers. This was the only business that met all the conditions. Masayoshi Son finally saw light at the end of the tunnel that seemed to have no exit. Since returning home, Masayoshi Son continued to employ two part-time employees hired during the market research period and launched the business. This was effectively the founding of “Japan SoftBank” (now SoftBank) as a wholesaler of packaged software for personal computers. It was a start that was unimaginably humble compared to today’s “world SoftBank,” with just two desks. ◆ Establishing “Japan SoftBank” In September of 1981, Masayoshi Son established “Japan SoftBank” (with a capital of 10 million yen) and started the wholesale business of packaged software for personal computers. Among the people he met at a seminar in Fukuoka, there was someone who had created “Management Comprehensive Research Institute Co., Ltd.” on a corner of Japan TV Street in Ichigaya, Tokyo. Masayoshi Son invested 50% with this company to establish a new company. The headquarters was just renting a room at the Management Comprehensive Research Institute with two desks. Masayoshi Son was appointed as the representative director."

"“Since it rained today, there were few customers.” “Since the weather will likely be good tomorrow, I’m sure things will go well.” This is what was said. Having heard such words from his father since childhood, Masayoshi Son keenly felt, “It’s not good management to be swayed by whether it’s sunny or rainy in a single day. I won’t run businesses that are influenced by external conditions like the weather.” However, the technological innovation of the digital information industry, in other words, changes in external conditions, is rapid. Trends come and go quickly, and even if a hit product is explosively successful, its lifespan is extremely short. But Masayoshi Son was firmly determined not to get deeply involved in being constantly chased by the development of such new products. Therefore, Masayoshi Son reached the conclusion, “I won’t rely on a single product with large hits or misses. I want to create a company that provides infrastructure with less fluctuation in trends.” Infrastructure, as defined by the word, is the social and industrial foundation, and is more of a base. If likened to the transportation network of traditional industrial society, it corresponds to general roads and highways. On highways, the installer collects fees from drivers at toll booths. Masayoshi Son must have thought, “By providing infrastructure, let’s become the toll booth of the digital information industry.” That way, hit products of the moment would have to rely on the infrastructure held by SoftBank, and SoftBank itself could stably grow. ◆ Narrowing new businesses through “Nine Conditions” Based on this idea, Son continued to explore what business to pursue for a year and a half. Every time he came up with an idea and developed a business plan, he applied “Nine Conditions” to filter it. The “Nine Conditions” were as follows: [Condition One] Once a business is undertaken, it cannot be stopped halfway. Therefore, it must be a sustainable business. [Condition Two] Naturally, it must be a profitable business. [Condition Three] It must be a growing industrial sector. The industry structure itself must not be in a recession or decline. [Condition Four] It must be a business that can become the core of a future corporate group. [Condition Five] It must be a business that cannot easily be imitated by others. [Condition Six] It must be a business that doesn’t require large capital investment. [Condition Seven] It must be a business that is useful to society and contributes to societal development. [Condition Eight] It must be a business that one can engage in interestingly. [Condition Nine] If you undertake it, you must absolutely become the number one company in that field. If you can’t become number one, don’t even start. After thoroughly investigating, they focused on the wholesale of packaged software for personal computers. This was the only business that met all the conditions. Masayoshi Son finally saw light at the end of the tunnel that seemed to have no exit. Since returning home, Masayoshi Son continued to employ two part-time employees hired during the market research period and launched the business. This was effectively the founding of “Japan SoftBank” (now SoftBank) as a wholesaler of packaged software for personal computers. It was a start that was unimaginably humble compared to today’s “world SoftBank,” with just two desks. ◆ Establishing “Japan SoftBank” In September of 1981, Masayoshi Son established “Japan SoftBank” (with a capital of 10 million yen) and started the wholesale business of packaged software for personal computers. Among the people he met at a seminar in Fukuoka, there was someone who had created “Management Comprehensive Research Institute Co., Ltd.” on a corner of Japan TV Street in Ichigaya, Tokyo. Masayoshi Son invested 50% with this company to establish a new company. The headquarters was just renting a room at the Management Comprehensive Research Institute with two desks. Masayoshi Son was appointed as the representative director."

"Establishing “Japan SoftBank” In September of 1981, Masayoshi Son established “Japan SoftBank” (with a capital of 10 million yen) and started the wholesale business of packaged software for personal computers. Among the people he met at a seminar in Fukuoka, there was someone who had created “Management Comprehensive Research Institute Co., Ltd.” on a corner of Japan TV Street in Ichigaya, Tokyo. Masayoshi Son invested 50% with this company to establish a new company."