Crave to learn
Aug 8th 2023
Shoichiro Tanaka CEO TANAAKK
The talent TANAAKK finding is self motivated learning personallity.
The ultimate goal of TANAAKK
The ultimate goal of TANAAKK is “independence” which is the result from the power of wisdom. If everything would taken away, the real power is the power to “reproduct value again from scratch”. TANAAKK got 1,000 times, 100,000% ROI in 10 years. founder Shoichiro Tanaka started this company in July 2013 from only US$10,000 in bank account (mostly debt from bank) and ten years later this company have over US$5 million net asset, US$5 million in turn over, and US$2 million annual operating cash flow without substantial debt. About return the caluculation is only by real cash. Just mentioning the marketcap of US$50 million stock value. It is not so extreme as compared to the historical tech company success but I think this result is the best for us because there is only 9% outside investor (no venture capital)and 91% of the company is mostly holded by insider, including 80% founders stake.
What we are curious is what works and what do not works in this real society. We believe there is fundamental truth to make business outcome such as incremental revenue, income, operating cashflow.
The power of “independence”
I started my own business on 2006 when I entered the University of Tokyo, law faculty. Since then, I tried a lot of business and supported lots of small and midsize business and large enterprise. Gradually, I have realized the biggest power of “independence” . The ability to control all of action I want to do, and the right to refuze any action that I do not want to do. I can select any of the aspects of our organization. My customer, partner and employees. I can refuse any one who is free-riding our ecosystem or any fake workers that pretend busy to do something without adding value.
This privilage give me the best willing to decide which way I go in my whole life. The pleasure of independence is the highest priority to me than getting a lot of equity finance in a short timeflame.
I have hypothesis that any hyper growth organizations’ culture had matured when that company is very small. We cannot change the habit and culture, physically inertia of everyday behaviour after the company and ecosystem grow larger.
Sun rises and water flows
The luckey thing of my life is, I started to want to be billionaire when I was 7 years old because I was poor and dependent, since then I spend a long time to become rich (now 36 years old), so I can learn a lot of physical constraints around the world.
There is no company that have more than 30% EPS 5-year average growth after reaching US$10 billion. 14% is the best record for the biggest earner over US$100 billion net income with 7% revenue growth. 14% EPS is generated by cost controlling effort in capital, procurement, manufacturing and distribution. Additionally there is big continuous stock buyback. It seems there is some physical constraints in it.
Even if the company accumulate a lot of debt and equity over US$100 billion, they cannot perform better performance than previous year. Money cannot affect customer’s purchasing power and behaviour. Less money can breed company to be more efficient as if “less water breed grape more sweet”. There is physical constraints in financial world that is as if sun rises and water flows.
It’s take a long time to build huge wealth. “Rome wasn’t built in a day” that’s why I have become more tolerant about the wealth creation and expansion.
The personality TANAAKK is finding and educating
The ideal status of TANAAKK is, if the biggest customer go away, we can survive: if the most profitable market decline, we can find another market to invest in: In the worst economic climate, we can grow faster than anyone as we could grow revenue, just like recent growth by 1,000% in COVID crisis. The proper state of us is “if everything would go away, our TANAAKK team can build excellent community again”. That reproduction capability we are training by providing HITSERIES, supporting our clients jump into new industry and make operating cash flow.
What skill or attitude is required to survive in ever-changing dynamic industries?
That is the question from TANAAKK.
To outperform benchmark, we have to behave as professional business person. That personality is more generalists look than specialists. We are not finding specialist who scope what to do in very narrow scale. We are finding challenger who crave to learn, has elasticity towards structural economic change, capability to drive stakeholders profit with limited information. These kind of skillset and personallity, behaviour, habit is required for TANAAKK team. TANAAKK’s distingished engineers have to learn history of supernations rise and fall, history of reserve currency, mecanism of gorvenment and bank, debt and leverage ; to build just one hyper growth product. Project management, coding and testing is not enough for engineers to be independent towards the world. Domestic, narrow way of thinking will out of date after decades. We surely get short-term achievements but are thinking very, very long-term to be independent. Interoperablilty is required to be independent. Autonomous “cell devision” system, value reproduction process and control is required.
Crave to learn
Why I have thinking about such things, that is because I am very hungry to know what is the real principle of this world and craving for what action or habit makes TANAAKK character.