---
title: Do all the stores have surplus!?  The danger of this.
description: All the shop have surplus!?  The danger of this.
image: https://blog.assentia-hd.com/hubfs/Businessman%20standing%20in%20front%20of%20opened%20doors%20and%20making%20decision.jpeg
---

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# Do all the stores have surplus!?  The danger of this.

![Akira Tsuchiya](https://app.hubspot.com/settings/avatar/a388bcd440947d185082b011694402a5) 

[Akira Tsuchiya](https://blog.assentia-hd.com/en-us/ceoblog/author/akira)

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Are the stores in the red really bad?  
When you run stores, some stores will be in the red for sure.  
Management reaction to this situation varies and it differs.   
Close the stores immediately.  
Close the stores within certain period.

Because the stores with a surplus compensate for this loss on the whole, the shops in the red can keep on being run haphazardly without a sense of urgency.

All sorts of responses.

My opinion is that;  
Assign an excellent and competent store manager to the store in the red.  
Provide a proper budget and have them perform various challenging projects.   
Once in the black, give them the greatest praise and reward benefit for the outstanding performance.

This is because they are building the know-how which is necessary for the company to grow.   
When you run a company, the store in the red will absolutely pop out.   
Office worker type, bureaucratic, store manager is pleased to be assigned to a store in the black.  
The store manager whose goal is to set up on his own is pleased to be assigned to a store in the red.  
Comparing this to the human body, to make a surplus means maintaining blood volume in the body   
Shutting down a store in the red is the action to stop the bleeding.  
To turn a store from deficit to surplus is the action of actively going out to get food for the production of blood.   
The most important thing!

Often, there is no sense of urgency with a store in the black.   
They may feel pressure to balance meet their budget...  
Effort and improvement is not happening, there are other things that can only happen at a shop in the red.  
This difference is as different as Maslow's desire for survival and desire for social recognition.  
The optimum is that 3% of all store should be in the red.

That is where excellent store managers continue to create know-how for the future.  
Enter through the narrow gate! Effort turns into sustenance. This effort is absolutely necessary for the company's growth  
Innovation and effort, without them a strong corporate entity cannot be born and when all shops have achieved a surplus, the certain result is that shops in the red will occur again.

Ultimately, managing is this cycle. Thus becoming stronger. Companies which rode on market trends, growing with no hardship or effort, are fragile.  They cannot improve on their own. “Companies with too strong a sales force do not have product appeal, because the sales force can sell anything.” “Companies with too strong a product appeal have a weak sales force, because the product is so good it can be sold without any effort.”

A company we support in a provincial city, will not develop a new business in the heart of a metropolis. First, they develop in regional cities where the population is small. It is a test of the business conditions whether customers come and are satisfied without active sales.Then, while studying the situation in local cities with a small population, we conduct various marketing events and from these create our know-how. Making it applicable all over the country. This is management’s boon – reward for effort.   
I think there are many ways to strengthen companies, so please consider these for your reference.  
Assentia Holdings, Inc.  
Akira Tsuchiya

![Akira Tsuchiya](https://app.hubspot.com/settings/avatar/a388bcd440947d185082b011694402a5)

#### Akira Tsuchiya

[Follow me on my website](http://assentia-hd.com) [Follow me on Facebook](https://www.facebook.com/atutiya) [Follow me on LinkedIn](https://www.linkedin.com/in/akira-tsuchiya/) [Follow me on LinkedIn](https://twitter.com/Atutiya)

Our background In 1991, we started the business that was not yet found in Japan, or even in the world. That business was to become an agency who provides franchise store-development service. We came up with the idea to persuade companies to join a franchise as their new business; our target was not individuals, but the small and medium-sized enterprises who already established with their businesses. With that as a start, we managed to expand over 30 franchise brands including various restaurant brands i.e. Bakery Restaurant St.Marc(650 uint in Japan, BBQ “Gyu-kaku”(850 unit in Japan), Katsudon “Katsuya”(350 unit in Japan), Sushi delivery “Gin-no Sara”(730 unit in Japan), and from other hospitality business categories i.e. Second-hand automobile dealer “Gulliver”(450 unit in Japan), Second-hand golf club dealer “Golf Partner”(350 unit in Japan), Women’s fitness club “Curves” (2,000 unit in Japan as a master franchisor of the American brand), by selling new businesses to small to medium-sized enterprises in Japan. Number of the stores we successfully opened are over 8000 ! During this time, in 1996, Akira has established a company, Prime Link Co.Ltd., to start a business that we become franchisee ourselves to grow the business. In 2001, Prime Link Co, Ltd., became the very first franchise business company that is listed on the stock market(Nasdaq Japan). In 2006, Akira left Prime Link and started our company, Assentia Holdings, Inc. In 2010, Akira has established Assentia Holdings PTE. Ltd. in Singapore, and started the business to connect Japan and the world. During the last 5 years, our client’s franchise stores have spread in 19 countries（180 unit) in the world. Japanese food business and Japanese-style service are catching a great deal of attention from the world. Our work is spreading out from Asia to Oceania, Middle Eastern, Europe and North, Central and South America. Published a business book "Gain F&B franchise business opportunities in Asia"

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