2522 Why Do Our Customers Really Come to Our Shisha Bar?

 

July is always a tricky month for us. It’s the periodical test season at universities in Kyoto, and that means our usual flow of student customers slows down.

Our shisha bar, Zerobase, is located in Demachiyanagi, right in the heart of Kyoto’s university area. We’re surrounded by major schools—Kyoto University, Doshisha University, Ritsumeikan University. Many of our regulars are students, especially those from Kyoto University, since the Commodity Faculty is just across the street.

But during exam season? They vanish into the libraries. And unfortunately, this month’s revenue fell below average.

Our store manager, Kenji, came to me for advice:

“How can we minimize the impact this month?”

He proposed a simple idea—a short-term student discount during the exam period.

As usual, I told him:

“If you believe it’ll work, go ahead. It’s your call on how to turn things around.”

But something kept me thinking. I remember that I recently re-read a book that I love, “Competing Against Luck” by Clayton Christensen, which introduces the Jobs to Be Done framework.

So I asked Kenji a simple but powerful question:

“Why do our customers really come to our shisha café?
Is it because the price is cheap?
Because the flavors are unique?
Because you’re handsome?
Or maybe because our drip coffee is special?”

He went silent.

So I gave him a summer task: read the book and summarize it in a simple report.

A week later, he called me back. Instead of going for a discount campaign, he suggested something different:

“Let’s hold a collaboration event with a fortune teller. Lowering prices won’t necessarily bring more customers, and it could even have a negative effect on how other customers perceive our value.”

His idea wasn’t exactly what I expected, but I agreed with his decision. More importantly, I was happy to see him thinking beyond just price.

What I really wanted him to discover was this:

Which “customer jobs” can our shisha café truly solve?

This little episode might be the trigger for Kenji to start prioritizing the Jobs to Be Done mindset in his marketing decisions. And for me, that’s already a step in the right direction.

2517 Losing Sight of the Goal: A Lesson from My Shisha Business

We often miss our goals when outcomes deviate from expectations. In those moments, it's tempting to reach for quick fixes—like patching a deep wound with a band-aid. But these stopgap measures rarely work. They fail because they don’t address the root causes, and more often than not, they lack a foundation in fact-based analysis.

Take my own experience with our shisha business. We’ve been hovering at the break-even point, so I asked our store manager, Kenji, for ideas on how to pivot toward stable profitability. Kenji, aware that our current status doesn’t inspire confidence among stakeholders, proposed a couple of ideas.

One was to partner with local companies and offer shisha sessions as part of their employee benefits—essentially a B2B approach to build a stable income base. The other was to provide consulting services for café operators.

Honestly, both suggestions made me uncomfortable. While creative, they felt misaligned with our original goal: to grow a high-quality shisha and café business. Especially the consulting idea—it’s simply too early. We’re still refining our own operations; it’s premature to advise others. He had a few other proposals as well, but none were grounded in the core objective we set for this fiscal year.

I shared my concerns with Kenji and reminded him of the balanced scorecard we created last month. I didn’t have to say much—Kenji is a sharp and capable team member. He immediately realized his proposals had strayed from the KPIs and strategic direction we had agreed upon. This is precisely why setting clear KPIs and aligning them with our mission, vision, and values (MVV) is so important. They serve as our compass.

I also encouraged him to revisit the business books I had previously recommended. He agreed, even saying he would purchase and read them. That small act reflects the kind of shared learning culture we’re trying to build.

This episode illustrates how easy it is to drift from your original purpose—to fall into what I call “the cliff.” We forget our golden rules, lose our direction, and end up reacting instead of acting. But having a well-defined MVV, clear goals, and measurable KPIs keeps us anchored.

I’m now reflecting on how to truly turn our business around, not through detours, but by returning to the fundamentals we committed to at the beginning of this fiscal year.

2505 Lessons on Going Concern: Insights from My Shisha Business

In November, I took over a shisha bar business, knowing full well that it wouldn’t turn a profit immediately. Despite this, I occasionally feel the weight of the financial burden as the business continues to draw on my cash reserves. While this situation is manageable for another six months, I remain optimistic that the business could become profitable within a year.

At present, revenue falls short of covering expenses, but there’s a silver lining: the income is consistent and reliable, flowing steadily into the bank account regardless of my personal involvement. This is a testament to the hard work and dedication of my excellent Gen-Z staff. Their efforts have allowed the business to maintain a stable operational rhythm, even as I focus on my other ventures.

The shisha bar is my first tangible portfolio outside of consulting, a field that heavily depends on my direct involvement and external factors. Unlike consulting, which often feels like chasing external validation, the shisha bar is an opportunity to build something concrete.

While the business has yet to reach sustainability, it is buoyed by a genuine demand for shisha and the loyalty of our customers. This has given me a deeper understanding of the concept of "going concern" in real-world business operations.

I believe the business has the potential to become sustainable, but I am acutely aware that success is not guaranteed. The future depends on the actions and strategies my team and I implement. This sense of control is both daunting and empowering. Unlike investments in stocks or real estate—where performance is largely out of your hands—the fate of a business like this is directly tied to your decisions and efforts.

I wouldn’t call myself a risk-taker; in fact, I lean toward the safer side. However, running a business like this feels more controllable and tangible compared to passive investments, where all you can do is observe their performance from the sidelines.

The journey has been a tremendous learning experience. I am still uncertain whether the shisha bar will grow into a major part of Growth Unlimited Corporation (GUC). However, it has already given me invaluable insights into the concept of "going concern" and what it truly means to invest your time, energy, and resources into building something from the ground up.

2502 Leadership Missteps: Reflections on Nissan and President Yoon Suk Yeol

 

Nissan has recently announced a significant reduction in its workforce, cutting 9,000 jobs, due to declining revenue forecasts for 2024. Analysts attribute this downturn to strategic missteps by the CEO and COO, including flawed business planning and an unappealing vehicle lineup.

Financial Times

In a parallel development, South Korean President Yoon Suk Yeol declared martial law in an emergency address, citing threats from North Korea and political obstruction by the opposition-led parliament. This drastic measure, executed hastily, was met with widespread protests and parliamentary opposition, leading to its revocation within hours. Commentators now anticipate President Yoon's potential resignation due to the backlash.

The New Yorker

These incidents raise questions about the absence of effective counsel and communication within leadership teams. It appears that both Nissan's executives and President Yoon may have disregarded dissenting opinions, leading to detrimental outcomes.

Nissan, as a leading global automaker, undoubtedly employs talented professionals capable of offering critical insights. Yet, reports suggest that the company failed to meet sales targets and made misguided manufacturing investments. This scenario mirrors the early 2000s, when Nissan underwent restructuring under Carlos Ghosn due to similar issues of pride and oversight.

As a small business entrepreneur, these events prompt self-reflection. Recently, I decided to engage a major marketing firm, Recruit, to address our stagnant social media marketing efforts. This decision was made unilaterally, without consulting my team, due to their limited expertise in this area. While outsourcing aims to allow my team to focus on their strengths, I recognize that top-down decision-making can lead to issues similar to those faced by Nissan and President Yoon.

I now realize the importance of inclusive decision-making and plan to address this in our next meeting or through a regular video message. I intend to apologize for not fostering collaboration and to emphasize the value of team input in our strategic choices.

2501:Reflecting on 2024: A Year of Growth and New Beginnings

As we bid farewell to 2024 and welcome the New Year, I find it essential to reflect on the journey we've undertaken at Shinyo Intelligence. This year has been marked by significant milestones, relentless dedication, and the rekindling of a cherished family legacy.

Establishing Shinyo Intelligence

In January, I took the decisive step to establish Shinyo Intelligence, inspired by my grandfather's company, Shinyo Interia, which closed in the late '90s due to the absence of a successor. His unwavering commitment to his business has been a guiding light, and reviving his legacy has been a profound honor.

First Consulting Engagement

March brought our first consulting order, a testament to the trust clients place in our expertise. This opportunity not only validated our efforts but also set the stage for future growth in the consulting arena.

Acquisition of the Shisha Business

A significant highlight was acquiring a shisha business in Kyoto. This venture has expanded our portfolio and introduced us to a vibrant community. Our shisha café now thrives with seven dedicated Gen-Z staff members whose energy and creativity have been invaluable.

Lessons from a Year of Relentless Pursuit

Operating tirelessly, without weekends, has underscored the importance of resilience and passion in entrepreneurship. This year has been pivotal in building connections and adapting swiftly to new challenges, laying a solid foundation for our future endeavors.

Looking Ahead: Empowerment and Growth

As we step into the New Year, our focus will be on:

• Stabilizing the Shisha Business: We aim to foster an environment that encourages autonomy and innovation among our staff. By empowering them to make decisions and contribute creatively, we believe the business will achieve new heights. Research indicates that employee autonomy can significantly enhance innovation performance.

• Expanding Consulting Expertise: I am committed to enhancing my project management consultancy skills, preparing for the next phase of business expansion. Continuous learning and adaptation are crucial in the ever-evolving consulting landscape.

Gratitude and Forward Momentum

I extend my heartfelt gratitude to our team, clients, and supporters who have been instrumental in our journey. Your belief in Shinyo Intelligence propels us forward. Here's to a New Year filled with promise, growth, and shared success.

Wishing everyone a prosperous and fulfilling New Year.

Warm regards,

Daisuke INUZUKA

CEO, 伸葉インテリジェンス/GUC Growth Unlimited Corp 

2448b Reflections on a Month of Transformation: Tuckman’s Theory in Action with Gen-Z

 

As I observe the November sales results, marking the first month since I took over the operation on November 2nd, I find myself reflecting on just how transformative these past 30 days have been. Though it’s only been a month, it feels like much longer—so much has happened in such a short span of time.

In these 30 days, my team and I made significant progress:

1. Redefined the shop’s concept and established its Mission, Vision, and Values (MVV).
2. Finalized job descriptions and hiring contracts.
3. Launched a renovation plan.
4. Conducted a pricing and positioning analysis.
5. Improved flavor inventory management.
6. Introduced an incentive guideline.
7. Streamlined the procurement process.
8. Rebranded the shop from “Home is” to “Zerobase.”
9. Installed an 85-inch display for promotional content.
10. Upgraded technology with a MacBook, ThinkPad, and iPhone renewal for staff use.
11. Registered the shop on Hot Pepper Beauty to enhance customer outreach.

Looking back, I’m astonished at the pace of change and the volume of decisions and actions we undertook in such a short time. While I initiated many of these changes as the owner, they could not have been realized without the commitment and dynamism of my team, all of whom are Gen-Z.

One unique challenge during this period was that I worked remotely from Yokohama between November 7 and 22. Yet, despite this physical distance, the energy and momentum from my team never wavered. This experience highlighted the power of teamwork, particularly when viewed through the lens of Tuckman’s theory of group development.

Tuckman’s Theory: A Real-Time Experience

Tuckman’s theory, which outlines the stages of forming, storming, norming, and performing, felt vividly real during these 30 days. This is especially true when working with Gen-Z, whose candid and straightforward nature brings these phases to life in a way that is both raw and refreshing.

Forming Stage:
When I first took over, there was noticeable tension and uncertainty among the staff. Many had doubts about the new direction and were unsure if I truly understood their challenges or shared their vision. Their expressions and behavior revealed a mix of apprehension and hope, as though they were searching for clarity in a foggy future.

Storming Stage:
From November 2 to around November 15, we experienced a storming phase. During this time, there were small but critical conflicts among the team as they adjusted to new processes, expectations, and my leadership style. This period wasn’t easy for anyone, but it served as a crucible for growth.

I later learned that the team held an internal meeting following an incident on November 15. Although I wasn’t involved in the details, some suggestions and feedback were shared with the CTO, who openly acknowledged that he had learned valuable lessons from the staff’s input. His honesty and humility deeply impressed me. To show my appreciation, I invited him for a night out at a traditional Japanese noodle shop, where we discussed our learnings and the team’s journey so far.

Norming Stage:
By November 25, there was a noticeable shift. The team’s communication became warm, collaborative, and dynamic. What had once been a group of individuals unsure of their roles was now a cohesive team with shared goals. The transformation was palpable, and the energy was inspiring.

Performing Stage:
As we approach the end of November, I can see the team moving into the performing stage. They’ve begun to take ownership of their roles, confidently sharing ideas, and implementing improvements. The shop has started to run smoothly, with each member contributing to its success.

The Power of Working with Gen-Z

One of the reasons I value working with Gen-Z is their straightforwardness and transparency. Unlike more experienced professionals who might filter their feedback or act with guarded professionalism, Gen-Z team members express their opinions openly, allowing me to address issues head-on. Their honesty not only accelerates problem-solving but also fosters a culture of trust and mutual respect.

This month has been an indispensable learning experience for me. Witnessing Tuckman’s theory unfold in real-time with a team of Gen-Z professionals has deepened my appreciation for their adaptability, creativity, and potential. It has also reinforced my belief in the importance of patience, humility, and creating an environment where everyone feels heard and valued.

As I look to the future, I’m excited to see how this team continues to grow and thrive. If the past 30 days are any indication, the journey ahead will be nothing short of extraordinary.