Soliloquy of the President [land usage] vol.38
The “6 grand strategy” of land use.
All the works and businesses in the world have “laws” and “principles”. Allthe people who are successful in work or business comply with these laws.
Contrary all those who fail don’t know these laws or don’t comply even if theyknow.
I went independent at age 24 years old and I am in business for 40 years now,
almost all the presidents who I knew, are gone now. Everybody wentbankrupt or gone out from business. The life span of 6% of companies 10years, in 100 companies . 0.3% in 20 years, 3 companies out from 1,000, 0.3%
in 30 years, only 3 companies out from 10,000 can survive. Others wentbankrupt. It is a terrible number but correct number. There are only a few
companies that are successful. They go bankrupt in 20 or 30 years even if
they are survive 10 years.
So why? It is “human” in a nutshell. That is not because of “God”, thecompany goes bankrupt because of human “greed”, “gain” and “profit”.
Companies that look only after turnover, profit, outlets and such, and notjust the service for customers go bankrupt. But because they are human,
they work hard for growing turnover and open more outlets. Now there
comes out the “laws” and “principles” that commit human errors all the time.
Laws and rules must be made that human keep all the time.
I’ll talk about land management although it is the same in any business. ①
Create a “purpose” of the business. The land usage must serve the people
and the world. ② next is the “target”. My aim in the land usage business is“to make my family happy and increase the assets”. I’ll not do the landbusiness if my family is against it and could be a quarrel. I’ll not work hard
to make deficit. The goal is that my family lives in harmony and healthy andincrease assets. ③ When the goal is set then next is the “quantitativeevaluation”, sum up the turnover and add up the occupancy rates,“qualitative evaluation” such as residents satisfaction, the grade ofequipment, I make a plan for the target numbers.

④ Before the plan I make a “policy manual” and “strategy” of the business.
So, what are the “6 grand strategies” of my land usage? The No. 1 is the “ideaand objective that can win”. Here is my answer to all 5 questions of Dracker
teacher. What is our “mission”? Who is the “customer”? What is the “value”
for the customer? What is the “outcome”? The “plan” will give some answer. I
call the most important things in this business “law, theory and principle”.
No. 2. “Grasp the present condition to win”. Must analyze the Japanesemarkets and competitors, the vacancy rate is 30%. No3. ”Winning start”.
Those lease managers who made a loser start will lose all the time. They
cannot even rebuild the building. No.4. The “winner management” can raise
the rent even in buildings that get older even 20 or 30 years. Only I say inJapan that please study the “age-specific rental management”. Albert
Einstein discovered in the 20th century that “winning fund management” is
the “compound interest”. 100 million yen will be 620 million in 10 years (20%compound interest). No. 6. At last, I am the only one in Japan who speaks
about the next 3 generation in land usage “100 years to win” but nobody
listens seriously. It is unfortunate. Those “rules, theories and principles” thatI made myself I will protect and execute. I am confident that this is the only
way that everybody can continue successfully. Is that a mistake?