Entrepreneur Association of Tokyo
Featured Member - Steve Sneddon

Interview - September 02, 2003

Steve Sneddon incorporated EuroPacific, a footwear importer, distributor and retailer with offices and showrooms located in Harajuku, in 1997 with his business partner Meyrick Tillman.

EuroPacific is an exclusive importer and distributor of a number of European fashion footwear brands which are distributed to footwear stores, independent fashion boutiques, clothing chains and department stores throughout Japan.

In addition, EuroPacific owns and operates nine oftheir own retail stores throughout Japan under the "Shoe BAR" name. Annual turnover for the company is in excess of 1 billion Yen. The store web sites can be found at: www.shoebar.com and www.jumpshoes.com

When did you start your first business? What was it? What lessons did you take away from that experience?
[[Steve]] My partner and I co-founded EuroPacific in 1997. Prior to working at EuroPacific I was working for a French footwear distributor, first in their Tokyo and then in their Hong Kong offices. After living in Hong Kong for 10 months setting up and running their offices there I decided to come back to Tokyo and try with a good friend of mine to branch out on our own.

One of the most valuable (and obvious) lessons is to get as much experience as you can in your chosen field before going out on your own. Simply put, if you want to open a restaurant, work in one first.

It will make life a lot easier if you have a good knowledge of how that type of business works before you set up on your own. It will also enable you to have a good contact base before you even start and that is invaluable.

What are some of the challenges you have faced in starting your business(es) and how did you overcome them?
[[Steve]] There are new challenges everyday when you first start a new business. Some are easily solved, others are not. One of the main challenges for us at the beginning was obtaining the tariff quota needed to import leather shoes into Japan. This involved a huge amount of paperwork and checks. However if you stick with it and work within the system things will work out eventually.

Financial restraints can also be very difficult. As a start up we initially needed to pay suppliers before production even started but would then have to wait for up to 60 to 90 days after delivery to our customers before receiving payment . There is very little or no COD here. This made for a very tough first couple of seasons, but we aware of this going into it which at lest enabled us to prepare somewhat. How did you form your business(es)? (Yugen Kaisha, Kabushiki Kaisha, etc.)

How long did the start-up process take?
[[Steve]] We incorporated in Japan as a Y.K in 1997 and then as a K.K. in 2001.
In order to save costs, when we originally incorporated as a Y.K. we had a very good Japanese friend of ours do all of the paper work on our behalf.
The K.K. was then done by our accountant. The process for each was around a month.

Where do you see your business(es) in 5 years?
[[Steve]] In 5 years we hope to increase the number of Shoe BAR stores from the present 9 stores to around 15 stores. We hope to establish and maintain a unique position for Shoe BAR among shoe retailers as having the best selection of young fashionable and internationally branded footwear in the industry.

We plan to further increase distribution of our agency brands. We now have partner distribution companies in Taiwan and Australia and plan to find companies in other parts of Asia to distribute the brands we represent.

Do you see yourself as an entrepreneur? Why?
[[Steve]] No, not yet. Although certainly not a dictionary definition, I feel an entrepreneur is someone who starts a successful business and then sells it before starting another new business. That or they have a number of different businesses running smoothly with good management teams in place leaving them the time to do / plan new businesses. For me that is what being an entrepreneur is all about. We are not at that stage. Until that time I feel am simply a small business owner.

What piece of advice would you give to a person wanting to start his or her own business in Japan?
[[Steve]] Get experience in your chosen field first.
Never burn bridges. Courtesy (especially with rivals) costs absolutely nothing.
Never be afraid to ask for help.
As soon as you feel you can afford it hire someone who has more experience in the field than you do, it makes sense and you will learn a lot more, and a lot quicker.

Can you recommend any resources such as books, websites, or support centers for entrepreneurs in Japan?
[[Steve]] Trade organizations (most fields have at least one and some have 3 or more), trade magazines and their publishers, exhibition organizers....
There are also those resources aimed particularly at the foreign start up in Japan such as the embassies, ACCJ, BCCJ etc.

Who are your mentors in business?
[[Steve]] Too many too mention all of them, but a lot of the suppliers we work with have been a great inspiration and a great source of information for us. My former boss was also an inspiration to me.

What makes you happy?
[[Steve]] The company of good friends and family. Working in a field I truly enjoy. The chance to meet and work with some great people all over the world. Getting into the countryside when I can for weekends of outdoor sports and relaxation.

www.shoebar.com