Virtual Office client at Shiodome Shibarikyu Building
After 14 years as a corporate worker, Natsuhiro Kato founded KATO MUSIC & ENTERTAINMENT (the company is hereafter referred to as KME) four years ago. He currently operates 5 companies and has achieved FIRE (Financial Independence, Retire Early) at the age of 41, which is something he attributes to his shared office.
In this interview, we asked Mr. Kato in detail about how he started his business, the secret to his success, and why he uses a shared office rather than a rented office space.
“I wanted to enjoy my life every day and from a relatively young age, I desired the freedom to make my own choices, which may have inspired me to start my own business.”
KME is a brand marketing company with strengths in the entertainment field, particularly music and art. The company operates a total of 5 businesses, including production, PR, and event planning/management.
Recently, I launched and managed the “TAKESHIBA PORT MUSIC FESTIVAL,” which is part of a redevelopment plan for the Takeshiba area in Tokyo.
It is true that I have no employees, but none of the 5 businesses can be run by one person. In other words, I manage the projects by assigning members to each one. There are a few hundred members in total that have been involved so far. The network I built in my 20s-30s has been very helpful.
KME is a company built on trust with its members, and my network full of excellent people is one of my company’s assets. My main job is to build a project from scratch, create a structure for the project, and manage it until it is completed.
"My grandmother and mother were both music teachers, so there was always music playing in my house. Growing up in such a household, I always loved classical music and its elegant worldview. That’s how I came up with the idea of “Morning Classic.””
My father was an office worker who worked at the same company from when he graduated college to when he retired. On weekdays, he was busy working from the morning until late at night. On the weekends he would take my family to various places, and I feel lucky to have had a wonderful childhood.
But when I thought about the possibility of a similar life for myself in the future, I honestly didn't like the idea. Every day seemed difficult for him. I wanted to enjoy my life every day and from a relatively young age, I desired the freedom to make my own choices, which may have inspired me to start my own business.
After graduating from university, I worked for a major publishing company. I built a career in advertising and marketing in an environment where many people aimed for independence rather than lifelong employment. Vaguely deciding that I would be independent by 35, I moved to a second advertising agency when I was entering my 30s. When I was about to start my own business at 32, I moved to a third company.
The company was mainly involved in producing sales promotion material, but I also used my previous experience in advertising to start a business in-house.
During my interview, I declared that I would be independent in 5 years. Normally, I don't think they would hire someone like that, but thanks to an understanding president, they let me work how I wanted.
"I ended up moving into a shared office by chance when I first started my business, but no matter how you calculate it, I believe that a shared office is the best way to reduce fixed costs.”
In my third year at the company, I launched an influencer marketing service centered around Instagram, as it was gaining popularity at the time. Unfortunately, this business did not do well.
In-house entrepreneurship is attractive because of its low risk, as there is no need to invest one's own capital, but it was difficult to proceed according to my own plans. At the time, I was the only one in the company who understood the power of influencer marketing and social media. As a result, it did not lead to a business that was able to contribute to the company.
When I was working for my third company, I started a morning activity event called “Morning Classic” as a side job. This was around the time of the “morning activity boom,” when people were making the most of their morning hours before going to work.
My grandmother and mother were both music teachers, so there was always music playing in my house. Growing up in such a household, I always loved classical music and its elegant worldview. That’s how I came up with the idea of “Morning Classic.”
It was a huge success. 150 people lined up as early as 7:00am for the event, where they could listen to live classical music, enjoy breakfast at a café, and mingle with other participants.
It was my first experience where I was able to produce the output I wanted, and it was a great feeling because I was able to succeed without being complacent. I received a lot of media coverage and made connections with major music producers, so I took the opportunity to quit my job and start my own business.
"I recently used the Dubai location, and it was a wonderful experience. The interior design and atmosphere were similar to the location I normally use, making me feel at home. I was impressed by how polite the staff was, from the way they spoke to their greetings.”
There is data that 80% of start-ups go under within 3 years. I may get some hate for saying this as a young man who is in his fourth year of entrepreneurship, but I am grateful that I can continue my business.
In order be successful, it is necessary to reduce fixed costs. That is the main reason I don’t have any employees, but I came to this conclusion because of past mistakes.
I am a game enthusiast and have experience making and selling a “Werewolf” board game. Out of the 1000 units, only 100 were bought by core fans. The other 900 remained in stock.
There are fixed costs associated with storing inventory. In any case, running costs should be kept at a minimum. I realized the importance of this and made sure to reduce fixed costs when starting my own business.
That is correct. In addition to a security deposit and key money, you need to pay about half a year’s rent as a security deposit when renting a leased office. You also have to provide other infrastructure such as office furniture.
Having said that, I didn’t really compare the costs of rented offices and shared offices at the time. I ended up moving into a shared office by chance when I first started my business, but no matter how you calculate it, I believe that a shared office is the best way to reduce fixed costs.
"Currently, the Servcorp secretaries answer all my phone calls. My company would not be able to operate without Servcorp.”
Servcorp’s international presence is by far the biggest difference between Servcorp and other shared office providers. Having 30 locations in Japan and over 150 worldwide, they are a large-scale company.
I recently used the Dubai location, and it was a wonderful experience. The interior design and atmosphere were similar to the location I normally use, making me feel at home. I was impressed by how polite the staff was, from the way they spoke to their greetings.
Yes, it is. I think Servcorp is perfect for working from anywhere. The areas around the locations are great. In Japan, Servcorp is located in business areas, such as here in Shiodome and Marunouchi, and the overseas locations are in the center of major cities.
I don’t necessarily want to work at a resort when I travel, so the Servcorp locations are the perfect fit for me. I am planning to go to the Malaysia location next.
Before signing with Servcorp, I looked at some of their competitors’ shared offices and found that some of them were not well decorated and looked like chain cafes, although their address was in Ginza.
I also have many opportunities to meet with clients and customers, so I feel that the quality of customer service is important as well as the interior design of the office. The secretaries at Servcorp are very attentive and polite. For example, they never leave anyone waiting at the entrance. It has been very helpful that they serve tea and guide my guests to the lobby.
I request for my payments to be made in one transaction and use the phone answering service. I used to take all the calls myself, but it became a hassle because some of the enquiries did not lead to business, so I stopped answering calls from unknown numbers. Looking back, there were probably some missed business opportunities.
Currently, the Servcorp secretaries answer all my phone calls. My company would not be able to operate without Servcorp. I highly recommend this, as you can get high-quality service for just a few tens of thousands of yen per month.
"I think it would be a shame to go back to being a corporate worker after having gone through the trouble of starting a business, and for that reason I recommend using a shared office. You can register your business and sign a short-term contract, which reduces risk.”
As a senior entrepreneur once told me, “Just give it a try first.” If you try to achieve success all of a sudden, it will be difficult to take the first step, so try it even if you fail. Failure leads to success later.
If you start off with a rented office space, you run the risk of incurring a large debt if you fail. In other words, you should avoid signing a lease for an office that costs hundreds of thousands of dollars just to look good. I want to tell everyone one by one just how important this is. Reducing fixed costs is necessary for stable management, and I don’t think I would have been able to continue my business if I hadn’t kept that in mind.
I think it would be a shame to go back to being a corporate worker after having gone through the trouble of starting a business, and for that reason I recommend using a shared office. You can register your business and sign a short-term contract, which reduces risk.
I feel comfortable working at the Shiodome location because I can work in an environment that feels like my second home and I am surrounded by the warm staff. The location is also fantastic as a business base because it is a short walk from Hamamatsucho and Daimon stations.
“No matter what location you go to they are always kept in pristine condition and it’s easy to use and focus on your work.”
“An office is not all about location and rent. Productivity from employees and customer satisfaction are invaluable by-products if you get your choice right.”
“Servcorp provides great value and a lot of advantages for fast-paced companies which want to concentrate on their core business.”
