Recently, several gaishi companies have approached me to help them find staff for new offices they are setting up in Japan. Many of these companies deal in new media products or services and they are now ready to enter Japan as part of their worldwide expansion strategy. Working for a start-up company brings with it extra benefits, but also extra challenges and risks and depending on your current circumstance can be a great career move. So what are some of the advantages and disadvantages of working for a start-up gaishi company?

Advantages:

Advantages may include increased responsibility, possibility of having an influence in your industry and the potential to make large bonuses. Often a new company coming into Japan sets up with only a small team to begin with (say 5-10 people) who’s job it is to kick start the business in Japan and begin generating sales as soon as possible. Therefore, usually the initial key positions are for a Country Manager and also sales and marketing staff.

Country managers for these start-ups are often expected to be the face of the business in Japan and therefore need to have charisma and be OK with receiving attention, and taking responsibility. Marketing and sales people need to be able to push a product or service that may be completely new, unheard of and untested, Therefore you should be innovative and able to use unique marketing and sales techniques.

Gaishi companies coming into Japan understand they need to pay to get the best people on their teams, but are not so willing to pay extravagant salaries for staff in a market where they have no proven results. Therefore it is common for these companies to incentivize new team members with large bonuses and stock options etc. Although these practices may require you to take pay cut, they offer great upside potential should you prove to be top performer. If the company grows very fast, then stock options (not salary) are the element that is likely to make you very wealthy.

Disadvantages:

There is risk in working for a new company. If things don’t go well and expectations from head office are not met then the Country Manager is likely to be blamed. In a worse case scenario – if the business fails then being part of failed business is not an attractive thing for anyone to have on his or her resume. Furthermore, if the company is in direct competition with an existing Japanese company there is likely to be fierce competition and even some dirty tactics such as bad mouthing etc. to try and force the foreign company to fail and leave Japan.

So, like any opportunity, working for a gaishi start-up has its potential plusses and minuses. The above are generalizations and every situation is different, so keep this in mind as you consider any start-up opportunity. Nevertheless, start-ups can be a great springboard for your career if you’re careful about choosing the right one. Good luck!