Have you ever thought something like this?
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• I want to add a new item to my current lineup of services and boost sales in a big way!
• I want to turn the idea in my head into something real and bring it to market!
• I want to reach a new target audience and add another pillar of revenue!

Did you know there's a subsidy program that's perfect for forward-thinking entrepreneurs and business owners like you?

What… you didn't know?

Don't worry (laughs). It's no surprise you hadn't heard. Applications only opened very recently, on September 13. And at that point it even came with the caveat, "pending approval by the Shizuoka Prefectural Assembly."
I'll confess that I myself only learned that the subsidy was open for applications after seeing an article in the September 14 edition of the Shizuoka Shimbun.

Expanded Management Support for Small Businesses
—Prefecture's September Supplementary Budget Proposal: 100 Million Yen Allocated for Subsidies—
(Headline excerpted from the Shizuoka Shimbun)

So in this article, we'll introduce this "still barely known new subsidy."

What exactly is this subsidy? What can you get it for, and how much?

Let's get right into an overview of the subsidy. First, its name: the Small Business Management Capability Improvement Project Subsidy.

It subsidizes the expenses required for new initiatives involving innovations and improvements aimed at "developing new demand" or "improving productivity."
(Quoted from the official Shizuoka Prefecture website)

That's what it is.

1. How much can you receive?

Part of the expenses incurred in carrying out the projects described above is subsidized.
Specifically, two-thirds of the expenses paid, up to a maximum of 500,000 yen (excluding consumption tax).

In a nutshell,

you get 500,000 yen back on up to 750,000 yen (excluding tax) in expenses

That's what it is.

2. What kinds of expenses are covered?

They include "development costs, machinery and equipment costs, PR costs, outsourcing fees, subcontracting fees, and more."

1. Development costs… materials and the like used when creating prototypes in the course of developing new products.
2. Machinery and equipment… the cost of purchasing necessary machinery. However, "general-purpose items" such as computers and cars are not eligible.
3. Publicity expenses... Production and advertising costs incurred to announce new products or services. Advertising costs such as flyers, brochures, website production, insert advertisements and internet advertising are eligible.
4. Consignment expenses... Fees paid when seeking advice from experts and the like.
5. Outsourcing expenses... Costs incurred when commissioning production or processing to an outside party, such as for prototyping a new product.

That covers about it.
That said, the expenses most likely to actually be approved as subsidy-eligible costs are

publicity expenses

, I believe. Machinery and equipment would be the next best option.

Publicity expenses cover deliverables such as flyers, brochures and websites, while machinery and equipment covers the machines themselves. What these have in common is that they are 'visible things.' Visible things make it easy to prove that the project was carried out exactly as stated in the subsidy application.
However, there is a difference between publicity expenses and machinery/equipment: with machinery and equipment, you are required to prove that it is 'equipment specific to the content of the application'—in other words, that it is 'not something that can be used for general purposes.'
In that respect, publicity expenses such as flyers, brochures and websites are easier to evaluate.

Of course, other expenses (development, consignment and outsourcing costs) are fine too. However, you must submit evidence proving that the money was genuinely spent to carry out the work covered by the subsidy. I have received a different subsidy in the past, and I had a hard time substantiating raw materials for development costs and outsourcing costs.
Even so, if it is something truly necessary to energize your business, you should definitely include it in your application.

3. Who is eligible to receive the subsidy?

'Small-scale enterprises (excluding companies that have previously received approval of a Business Innovation Plan).'

You may be wondering, 'What exactly is a small-scale enterprise?' Let me add some explanation on that point.
Basically, it depends on the 'number of full-time employees.' That number varies depending on the industry classification of the main business you operate.

*Officers are not counted as employees.

Some people may wonder, 'We manufacture and sell our own products—what about us?'
If your company has 5 or fewer, or 20 or more employees, you can judge right away, but if you have between 6 and 20, the decision may be difficult.
'Are we a manufacturer? Or a retailer?' Depending on how the industry is interpreted, eligibility to apply may differ.
In such cases, the decision comes down to 'what your principal business classification is.' If you are unsure, it is best to consult your tax accountant or your nearest Society of Commerce and Industry or Chamber of Commerce and Industry.

What kind of business activities qualify for the subsidy? How does it differ from other subsidies?

Next, let me explain what kind of content is eligible for the subsidy.
Common to this 'Small-Scale Enterprise Management Capability Improvement Project Subsidy' and other subsidies alike is that it must be

'a project involving new initiatives undertaken so that the company can continue to grow into the future'

.
Simply saying 'We don't have a website, so we'd like to make one' or 'The restroom in our shop is old, so we'd like to replace it' is unlikely to be approved.
For example, referring to the cases above, you would need reasons such as

'Having a website would be effective in making the XX we are working on widely known.'
'In order to win the support of XX, an important customer segment, an interior renovation like △△ is essential.'

Reasons of that kind are required.
On top of that, this 'Small-Scale Enterprise Management Capability Improvement Project Subsidy' adds one more requirement.

That is the point described below.

1. Something your company has never done before, or a substantial improvement of something existing
2. Something undertaken with the aim of developing new demand or improving productivity 3. Aiming to obtain approval of a Business Innovation Plan
3. Something carried out after formulating a three-year management vision

In other words, rather than merely wanting to 'publicize' the services you currently provide or the products you currently make, you must make the case that

'this is a new initiative for our company'

'this is an initiative aimed at new target users we have not previously pursued'

.

And it is desirable to have a plan that, once the business grows, can 'aim to obtain approval of a Business Innovation Plan.'
Of course, obtaining a Business Innovation Plan is not mandatory, but a business with that level of potential is preferred.

As an aside, Shizuoka Prefecture has long been nationally renowned for its strong focus on obtaining Business Innovation Plan approvals. As you can see from the data on the number of Business Innovation Plan approvals on the Small and Medium Enterprise Agency website, there were 405 cases in 2012, 352 in 2013 and 375 in 2014—the highest number in the country.
However, in 2015, despite significantly increasing the number to 447, Shizuoka dropped to second place behind Saitama's 766, and in 2016 Shizuoka's 539 again trailed Saitama's 832.
So personally, I think this subsidy may well reflect Shizuoka Prefecture's determination to once again top the nation in Business Innovation Plan approvals.

In any case, there is no doubt that undertaking unprecedented, innovative initiatives to grow a business is necessary for us business owners as well.
Using a subsidy application as an opportunity to think about the future of your company is not a bad idea at all.

To receive the subsidy, you must apply with a plan and be selected!

From here, we get to the most crucial question: 'What do I need to do to receive the subsidy?'

First, meeting the requirements introduced above is the absolute prerequisite. However, that does not mean anyone who meets the requirements will receive it.
To receive the subsidy, you must prepare a business plan on a prescribed form, describing the content of your project, the expenses it requires, and the expected cost-effectiveness.
You then submit it through your nearest Society of Commerce and Industry or Chamber of Commerce and Industry.
Only after that business plan is reviewed by examiners commissioned by Shizuoka Prefecture and is approved (selected) do you gain the right to receive the subsidy.

In other words, unless your plan convinces the examiners that 'this is worth pursuing with tax money (a subsidy)', it will not be selected.
That said, the documents to submit are not that numerous, nor is the process burdensome. Above all, if simply submitting documents can get you up to 500,000 yen or more, it is certainly not a bad deal.

• I want to add a new item to my current lineup of services and boost sales in a big way!
• I want to turn the idea in my head into something real and bring it to market!
• I want to reach a new target audience and add another pillar of revenue!

If you have hopes like those described above, why not give it a try?

Thinking of applying to strengthen your PR? We're here to help.

Having read this far, you may feel you understand the subsidy in general—but what should you actually do?
Applications for the Small-Scale Enterprise Management Capability Improvement Project Subsidy are submitted through your nearest Society of Commerce and Industry or Chamber of Commerce and Industry, so if there is a representative you know well, it would be a good idea to ask them.
And if you don't have someone you can easily ask? In that case, please feel free to contact us.

Alternatively, if you are planning to strengthen your publicity through flyers, brochures, websites and the like, consulting us will allow us to update your business plan into one that is 'more likely to be selected.'

1. An overwhelming selection rate of '84.6%.' We have extensive know-how.

We are a production company that creates flyers, brochures and websites, but we have a strength that clearly sets us apart from other production companies.

That is our exceptional strength in subsidy applications.

Let me give an example.
Recently, applications were being accepted for the 'IT Introduction Subsidy.' This subsidy was open nationwide and received a large number of applications from all over Japan. As a result, the selection rate is said to have been roughly 20% to just under 30%.
Under those conditions, 11 out of the 13 applications we submitted were selected. With a selection rate of 84.6%—more than three times the average—we have been able to submit business plans that experts recognize.

Of course, it is true that the purpose differs somewhat from this Small-Scale Enterprise Management Capability Improvement Project Subsidy, and we cannot promise that your plan will definitely be selected.
Even so, the fundamental points for creating a business plan that gets selected are the same for any subsidy, and above all we have achieved a high selection record even before the results introduced here.

So if you are serious about obtaining a subsidy and energizing your business, we are confident we can be of help.

2. Consultation through application preparation is completely free!

You may think the fee for us to help you draft your business plan must be high. But that is not the case at all.

Consultation through application preparation is completely free!

Naturally, if your application is not selected there is no charge—and even if it is selected, we charge no application fee whatsoever.

So where do we earn our compensation? We ask that you commission us to produce the advertising materials for the selected project.

Free? How can that be possible? You may be skeptical, but the reason is simple.

Because we are confident we can create business plans that get selected.

As mentioned earlier, not every application gets selected. But if we are confident of a high selection rate, we believe it is more than worth it for us.

3. However, we can accept only the first 5 companies.

That said, we cannot accept every request. This subsidy has a short application deadline of October 10, so the number of applications we can assist with is limited.
Accordingly, we will limit the number of applications we assist with to '5 companies only.'
In addition, we may decline to prepare a business plan in the following cases.

• When the content of the application involves no advertising material production work at all.
• When you plan to have another company create your promotional materials.
• When you are not prepared to seriously commit to the work involved in creating a business plan.
• When, based on our interview, the likelihood of your application being accepted appears extremely low.

If none of the above apply to you, please don't hesitate to get in touch with us!