To successfully manage a startup or run a business in Japan, having strong business skills and specialized knowledge is essential—but equally crucial is effective communication with clients and partners. This is a challenge even for foreign executives who have been in Japan for years and are proficient in Japanese. In this article, we’ll explore why improving Japanese skills remains essential, using the case of an Indian finance consultant with over 20 years of experience in Japan.

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The Limitations of Mixing English with Japanese: Communicating with Non-Experts

This Indian consultant leverages their extensive finance expertise to collaborate with domestic and international companies. Thanks to their long career in Japan, they navigate daily conversations and business meetings in Japanese without difficulty. In the finance sector, many terms are borrowed from English, making it relatively easy to communicate using a mix of English and Japanese. However, challenges arise when dealing with clients or small business owners who lack financial expertise. In such situations, it becomes critical to explain concepts clearly in plain Japanese, avoiding jargon and English loanwords. During presentations, in particular, the clarity and accessibility of Japanese expressions can directly impact client understanding.

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The Need for Clear Explanations: Skills Beyond the JLPT

This consultant holds JLPT (Japanese Language Proficiency Test) N1 certification, demonstrating a high level of Japanese proficiency. However, the JLPT focuses on general vocabulary and grammar, leaving a gap when it comes to skills required in real business scenarios. For instance, instead of using the English-derived term “cash flow,” the consultant must reframe it in Japanese as “資金の流れ” (shikin no nagare, meaning “flow of funds”). Similarly, “risk hedge” needs to be rephrased as “リスクを最小限に抑える方法” (risuku o saishōgen ni osaeru hōhō, meaning “methods to minimize risk”). These adjustments require not just language proficiency but also a deep understanding of how to adapt explanations to the audience’s level of familiarity.

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The Importance of Japanese Language Training and Business Support

To tackle these challenges, foreign executives need education tailored to developing Japanese skills that are applicable in business contexts. Such training goes beyond the scope of the JLPT, focusing instead on real-life scenarios, including delivering presentations and explaining complex concepts simply and effectively. For startup founders and those aiming to establish businesses in Japan, mastering the ability to convey specialized knowledge clearly in Japanese becomes a powerful asset.

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Conclusion

Even foreign executives with long careers and extensive expertise in Japan face situations where they must further enhance their Japanese skills. This is especially true in specialized fields like finance, where communication must be tailored to meet client needs. For those pursuing entrepreneurship or startup success in Japan, a commitment to continually deepening their Japanese proficiency will pave the way for greater growth and opportunities.