The five oldest companies still operating today were founded in Japan more than 1000 years ago. In this article, we’ll explore the secrets behind building ever-lasting companies and the valuable business lessons they teach
Fact: Japan is home to over 33,000 businesses that have been in operation for at least a century, accounting for 40% of the world’s total. Every year, over 1,000 businesses celebrate their 100th anniversary. That’s why it’s so important to dig deeper into the valuable business lessons they have to offer.
There is even a Japanese term for businesses that have survived for more than a century, kept ownership within the same family, and continued to operate in the same industry.
They are known as “shinise” firms.
So what’s the secret behind building ever-lasting brands and companies?
And what are the most valuable business lessons that we can learn from them?
Well, if you are looking to build a business that will stand the test of time as we do, join us in exploring the valuable business lessons from Ancient Japan!
If you don’t feel like reading, you can watch the video version on YouTube. Now let’s dive in.
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Lesson #1 – Focus on long-term success
If we had to use just one word to describe Japanese businesses, it would be “sustainable.”
Most people agree that sustainable growth means meeting today’s needs without putting tomorrow’s needs at risk. The idea here is that sustainability doesn’t happen overnight by magic. Instead, it is the work of many generations working together.
Shinise companies have been around for so long because they value two important things: being around for a long time and keeping to traditions.
Most of the time, the CEO of a Japanese business stays in charge for two to four years. In that short amount of time, his job is to meet the expectations of shareholders.
But “shinise” companies don’t list their stocks on a public market. The opposite of this is how they run their business.
The valuable business lesson here is that short-term profits are not the end goal when you plan on being around for more than 100 years.
They also make sure not to get off course. They are always looking for a balance between new ideas and old ways of doing things.
Japanese business owners all agree that making money is important for staying alive. But they don’t try to make as much money as possible right now.
The main thing they want is for their business to last. They do this by making long-term connections with both customers and workers.
The Japanese phrase “hosoku nagaku,” which means “thin and long,” says everything about this way of thinking.
The idea here is that stability over time is more important than change in the short term.
If you want to be around for a long time, it goes without saying that you shouldn’t try to make the most money in the short term.
It is essential to establish a relationship with customers and keep in touch with them.
This means making high-quality products that last. By actively asking customers for feedback, they can keep improving their services.
Such businesses want to survive not only for the sake of their family 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 one thing:
Owners have a much longer time horizon and patience. This is less common among U.S. entrepreneurs.
Furthermore, shareholders are not always regarded as the primary constituent of Japanese businesses. Rather, customers are frequently treated as the priority.
This is beautifully reflected in a common Japanese saying: Ok-yak-u-sama wa kam-i-sama desu.
This means The customers are gods.
But it’s not just that. Long-term sustainability and success are also tied to the next business lesson.
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Lesson #2 – Tradition matters more than profits
Some Japanese businesses have been around for a long time because their owners knew something very important:
In a changing business environment where traditional values and practices are being lost, how important it is to keep a good reputation in the city where they do business.
These companies have stayed at the top of their fields. Even more impressive is that they did it when Japan was “Westernizing” and bigger international companies were becoming more of a threat.
They have a high social standing in part because they put tradition above making money. Yes, they make and sell Japanese traditional crafts. But they also stand for and teach the values of the local area.
Shinise companies are like the keepers of local traditions because they do this. And if you want to be around for a long time, this is a valuable business lesson.
People in Japan love their traditions, which gives these businesses a strong foothold in the area.
Shinise companies are also an important part of the places where they are based. There are a lot of businesses in Shinise that care about the community as well as the quality of their services.
And this is also a very important aspect to us.
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#3 – Quality over quantity
Businesses are getting more and more pressure to improve from customers in the US and around the world. This means that they need to be more open about how they work.
People are getting more and more annoyed that they have to buy new things every few years. This is especially true in the business of making consumer technology.
Most products today are made so they can’t be fixed or are made to break down over time. Because of this, people want to know how to fix the things they buy.
Because of this, it’s not surprising that Kintsugi, a Japanese art form, is becoming more popular in the West. Kintsugi is the art of fixing broken pottery and giving it a new life.
Every day, more and more people find out how bad it is to buy things quickly and cheaply. Businesses and customers are starting to wonder if this is the right way to go.
As people start to switch, this is a business lesson that will become more and more important.
The truth is that we don’t care about things that are free and care more about things we have to pay for.
Using this method, it’s safe to say that the “speed shopping culture” makes us less likely to respect and value it.
“Quality over quantity” is a philosophy that stresses doing things well and paying close attention to the details.
Japanese companies believe that they should go the extra mile to make sure their products and services are of high quality. They think that this will create loyal customers who will buy their products instead of those of competitors.
This strategy is based on the idea that making good products is a good way to get customers to stick with you. So, customers are willing to pay more and keep doing business with the company for years to come.
Japanese businesses pay very close attention to every little thing. Whether it’s how they make their products, the quality of the materials they use, or how they treat their customers.
This attention to detail comes from a desire to get everything just right. This means making products that are not only useful but also beautiful and fun to use.
Quality is more important to Japanese companies than quantity because it helps them build trust with their customers.
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#4 – Elegant simplicity is everything
Shibui is a traditional Japanese style that puts an emphasis on beauty that is simple, elegant, and understated. It is a way of thinking that means peace, balance, and harmony.
Shibui is a business term that talks about a company’s design, its brand, and the overall customer experience.
When it comes to design, shibui means to make something simple but elegant by using natural materials and simple designs. Companies in Japan try to make sure that their products look good and work well. So, their products are both pretty and useful.
Shibui is a key part of a company’s logo, packaging, and marketing. The branding should be simple and elegant, with a focus on quality and ease of use.
This gives the customer a sense of trust and dependability.
This is such a valuable business lesson because trust and dependability are far from easy to build.
Shibui is a Japanese word that means “customer experience.” It means how a business treats its customers. In this way, Japanese companies try to make sure the workplace is calm and productive.
The customer service is friendly, quick, and doesn’t bother you. This makes you feel peaceful and at ease. They achieve this by balancing beauty and elegance with efficiency.
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#5 – The design must be an experience in itself
In Japan, there is a beautiful saying called “mono no aware” that shows how much people value the beautiful moments that only last a short time.
This idea is found in many parts of Japanese culture, including their products, which are not only useful but also beautiful to look at.
A great example of how this philosophy works in real life is the Furoshiki, which is a traditional Japanese wrapping cloth. Beautiful fabric is used to make these cloths, which they use to wrap gifts or carry things.
By folding the Furoshiki into a certain shape, you can make a beautiful piece of art that can be used again and again.
But this love of beauty doesn’t limit itself to traditional things. This is why this business lesson is so valuable.
The “mono no aware” philosophy can be used to design even modern products. Take, for instance, a suitcase.
With good craftsmanship and design, even a simple suitcase can feel like a luxury item.
Japanese companies know that even the smallest details can make a big difference in quality. Accordingly, they hold themselves to high standards when approaching work.
This requires a strong commitment to excellence, a willingness to go the extra mile, and a deep appreciation for beauty and elegance.
Final thoughts
The longevity and success of Shinise firms are a statement for:
- focus on long-term sustainability
- priority of tradition over profits
- value of quality over quantity
There are many things history can teach us. And while the Japanese certainly know what they’re doing, we recommend expanding your vision to other regions and cultures as well.
We recently went through the history of the Ancient Greeks and extracted a lot of valuable information that we consider quite eye-opening. You can read it here.
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As we move towards a more sustainable future, these valuable business lessons from Ancient Japan should serve as inspiration for modern entrepreneurs and businesses. See you next time!
