Part 2: The Essential Elements of a Financial Plan
office-babaakira— Revenue, Costs, and Profit Alone Are Not Enough! —
In Part 1, we explained that a financial plan is the core document that demonstrates the credibility of your business in numbers when applying for a Business Manager Visa in Japan.
Now, let’s break down what exactly needs to be included in your financial plan—starting with the basics.
✅ First, Understand the Basic Structure
A financial plan typically includes the following three key elements:
- Projected Revenue (Sales Forecast)
- Projected Costs (Expenses)
- Profit (Revenue – Expenses)
However, these alone are not enough. What immigration officers are really looking for is backed-up and internally consistent numbers.
1. Justifying Your Revenue Projections
A simple statement like “¥500,000 per month × 12 months = ¥6,000,000 in annual sales” is not persuasive on its own.
✅ Tips to Make Your Revenue Projections Credible:
- Who is your target customer?
- How will you attract them? (advertising, SNS, referrals, etc.)
- How did you decide your pricing?
- What makes you competitive compared to others?
For example:
“We offer an online wellness support service at ¥30,000 per month, targeting small local clinics. We aim to sign contracts with 10 clinics in the first year.”
This kind of realistic and specific model makes your projections far more convincing.
2. Covering All Expense Categories
Commonly overlooked cost items include:
- Office rent and utilities
- Labor costs (including the representative’s salary)
- Social insurance premiums and outsourcing fees
- Inventory costs and logistics
- Advertising and software subscriptions
A key point: Avoid setting your representative’s salary at zero.
It raises concerns about your personal living expenses and the plan’s overall realism.
3. Profit ≠ Cash Flow
Even if your plan shows a net profit, you may still run into cash shortages.
Examples:
- Large upfront costs for equipment
- Delayed payments from customers
- Initial spending before any income begins
That’s why it’s highly recommended to attach a cash flow projection or funding plan. It shows how you’ll manage your funds throughout the year.
4. Plan for at Least Three Years
Although Business Manager Visas are typically granted for 1 or 2 years initially, showing a 3-year financial outlook demonstrates your long-term vision and stability.
A common and realistic scenario:
- Year 1: Operating at a loss
- Year 2: Reaching break-even or slight profit
- Year 3: Sustained, stable growth
Projecting overly optimistic, steep revenue increases can sometimes backfire and appear unrealistic.
Summary: Use Realistic, Well-Justified Numbers
Your financial plan is not about presenting ideal numbers—it’s about proving you have a doable, sustainable business.
In the next article, we’ll look at real-world examples of good and bad financial plans, and how to present numbers that immigration officers can trust.
Follow me!
