AMA Podcast (S-02, E-13, Session 3 of 3・The Fall) with Steven Gan, the founder of Japan's first debt collection agency run by a foreigner

AMA Podcast (S-02, E-15) with Dominic Carter, CEO, The Carter Group and co-founder of Living Best

Japan is experiencing one of the most significant demographic shifts in modern history, including a shrinking population, rapid aging, labor shortages, depopulation of rural areas, and increasing strain on healthcare and social infrastructure. However, this seemingly dire situation is not all doom and gloom. For entrepreneurs, investors, and care providers willing to look beyond the headlines, these challenges are creating new markets. This episode of the Real Gaijin’s Ask Me Anything (AMA) series features an expert in this emerging field, Dominic Carter [https://www.linkedin.com/in/dominiccarterjapan/], CEO, The Carter Group [https://the-carter-group.com/en/]. Who is he? Dominic was born and raised in Australia. He studied marketing and Japanese at the University of New South Wales. Dominic began his career at Millward Brown [https://mmaglobal.com/sponsors/kantar-millward-brown], a branding, media, and communications consultancy, before relocating to Japan at age 24 to establish and lead the company’s local office. A serial entrepreneur with over 25 years of experience building and leading businesses in Japan, Dominic has cultivated strong relationships with clients and partners in various sectors, including market research, market entry, executive search, ad tech, video gaming, and VR. He specializes in prescient marketing analysis and strategy attuned to Japanese culture and the nuances of the Japanese buyer. He is now the CEO of The Carter Group. Through its network of affiliated firms and investments, The Carter Group supports the success of global companies in Japan. In 2022, Dominic co-founded Living Best [https://living-best.tech/], a pioneering age-tech platform that identifies high-potential longevity and age-tech concepts from North America and beyond. The platform connects these concepts with commercial opportunities and capital in Japan. His work bridges technology and philosophy, drawing on Japanese concepts such as ikigai (living with purpose・生きがい) and pin pin korori (living well and dying quickly・ピンピンコロリ) to guide innovations that enhance quality of life as we age. Dominic has delivered keynotes at major global forums, including the AGE-WELL Conference in Canada [https://agewell-nce.ca/conference] and the Centre on Aging and Health’s Distinguished Lecture at the University of Regina [https://www.uregina.ca/events/2025/03/2024-2025-centre-on-aging-and-health-distinguished-public-lecture-with-dominic-carter-live-long-die-short.html]. He regularly contributes to the broader business community through guest lectures and consultative roles, offering his insights on market entry, entrepreneurship, and consumer and societal megatrends in Japan. On the agenda We explored the opportunities created by Japan’s demographic trends in sectors such as aging technology, health technology, elder care innovation, robotics, automation, preventive healthcare, wealth management, and AI-driven productivity solutions. Dominic explained that we should view Japan not as a case study in decline, but rather as one of the world’s most important real-time laboratories for aging societies and the businesses built to serve them. Key Takeaways * Japan’s aging population is more of a predictable business opportunity than a crisis. Japan’s demographic challenges have been apparent for decades and are often exaggerated as an impending catastrophe. Although caring for the current elderly population is resource-intensive, Japan has largely managed the transition successfully. A bigger challenge lies ahead: the large group of people currently in their 50s will eventually require support from a much smaller younger generation. This will create strong demand for technologies and services that help people maintain their independence for longer periods of time. * Age-tech encompasses far more than nursing homes and caregiving robots. Dominic defines it as any product or service that helps people compensate for, prevent, or manage the effects of aging beginning as early as age 50. This spectrum ranges from wellness and preventive technologies, such as fitness tracking, gait analysis, brain training, and personalized health monitoring, to care-focused solutions, including fall detection systems, mobility aids, exoskeletons, and caregiving robots. This broad definition expands the total addressable market far beyond traditional elder care. * The biggest commercial winners will solve problems without creating more work. Many promising technologies fail because they disrupt existing workflows or create additional burdens for caregivers and care facilities. Solutions that operate quietly in the background, reduce costs, lower hospital readmission rates, improve safety, or seamlessly integrate into daily routines are far more likely to be adopted than technologies that require extensive retraining or behavioral changes. * Personalized wellness may become one of the most important age-tech sectors. Although robotics and autonomous transportation currently attract the most attention, Dominic believes that the larger, long-term opportunity may be in personalized health optimization. Advances in diagnostics, biomarkers, AI-driven health monitoring, individualized treatments, and preventive interventions could help people extend their healthy life span, delaying or even avoiding the need for formal care. Japan, a country where people already embrace regular health screenings, may prove to be a particularly fertile market for such solutions. * The future belongs to proactive individuals who take responsibility for their own aging journey. Personal responsibility was a recurring theme throughout the discussion. Dominic emphasized that many people in their 50s and 60s recognize that they cannot rely on the family-based support systems enjoyed by previous generations. Those who actively plan ahead, embrace technology, maintain digital literacy, monitor their health, and experiment with new solutions will likely be better positioned to remain independent and enjoy a higher quality of life as they age. Timeline Substack does not yet have the functionality to allow you to use a link to jump to a specific section like YouTube’s “chapters.” Please refer to the times listed below to navigate through our hour-long conversation. Thank you for your understanding. Links * Substack: https://substack.com/@dominiccarter [https://substack.com/@dominiccarter] * LinkedIn: https://www.linkedin.com/in/dominiccarterjapan/ [https://www.linkedin.com/in/dominiccarterjapan/] * The Carter Group Website: https://the-carter-group.com/en/ [https://the-carter-group.com/en/] * Living Best Website: https://living-best.tech/ [https://living-best.tech/] * The World’s Real-time Laboratory for Age-Tech White Paper: https://living-best.tech/age-tech-white-paper/ [https://living-best.tech/age-tech-white-paper/] #DominicCarter #TheCarterGroup #LivingBest #AgingSociety #Demographics #AgeTech #HealthTech #Longevity #SilverEconomy #JapanBusiness #JapanEconomy #HealthcareInnovation #ElderCare #DigitalHealth #MedTech #ドミニクカーター #カーターグループ #リビングベスト #ヘルステック #長寿 #シルバーエコノミー #ヘルスケアイノベーション #高齢者ケア #デジタルヘルス #メドテック #長寿経済 #RealGaijin #リアル外人 Please note that you can subscribe to Real Gaijin for free. If you are so inclined, you can also purchase an annual subscription for a relatively small fee. However, I understand that even the lowest level of annual subscription allowed by Substack may seem too high for many. If you just want to buy a coffee for Real Gaijin (or maybe a green tea), you can also make a small donation here: https://buymeacoffee.com/realgaijin [https://buymeacoffee.com/realgaijin] All levels of support - including just liking a particular article and/or leaving a comment - are very welcome. Thanks again for reading. While Real Gaijin [https://realgaijin.substack.com/] lives in Substack [https://realgaijin.substack.com/], you can also find Real Gaijin on a few other platforms (listed in alphabetical order). https://www.instagram.com/real_gaijin_on_substack/ [https://www.instagram.com/real_gaijin_on_substack/] https://www.threads.net/@real_gaijin_on_substack [https://www.threads.net/@real_gaijin_on_substack] https://www.tiktok.com/@real.gaijin [https://www.tiktok.com/@real.gaijin] https://x.com/Real_Gaijin_ [https://x.com/Real_Gaijin_] https://www.youtube.com/@RealGaijin [https://www.youtube.com/@RealGaijin] https://www.linkedin.com/in/mark-wilt-kennedy/ [https://www.linkedin.com/in/mark-wilt-kennedy/] Get full access to Real Gaijin at realgaijin.substack.com/subscribe [https://realgaijin.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

AMA Podcast (S-02, E-14) with Daiichi Kunii, CEO of ReDelta

Currently, there are hundreds of thousands of SMEs in Japan with no designated successor. Despite having solid financials and a long list of satisfied customers, many of these firms are at risk of ceasing operations because there is nobody to take over once the current owner retires, becomes incapacitated, or passes away. Thus, there are ample opportunities to acquire such firms or take an equity stake in them. But how do you uncover such opportunities, determine the seller’s motivation, assess business performance, and navigate Japan’s cultural and legal landscapes to close a deal? This episode of Real Gaijin’s Ask Me Anything (AMA) series features a Japanese individual with an extensive background working with foreigners. Who is he? Daichi Kunii [https://open.substack.com/users/119565579-daichi-kunii?utm_source=mentions] (國井大地) was born and raised in Japan and is now the CEO of ReDelta [https://redelta.co.jp/en], a Tokyo-based boutique M&A advisory firm. Previously, Daichi worked at Deloitte Touche Tohmatsu [https://www.deloitte.com/jp/ja/about/group/deloitte-touche-tohmatsu-en.html], where he gained extensive experience in cross-border M&A and developed deep expertise in global financial practices and complex transaction structures. In 2019, he founded ReDelta, an enterprise dedicated to connecting Japanese SMEs with their counterparts in the ASEAN region. On the agenda We covered the following topics and also took several questions: * What kind of opportunities are available (industries, scope, geography, etc.)? * What is the process for assessing a potential seller and approaching them with an offer? * What kinds of deal structures are possible and common (e.g., full- or partial-equity acquisition, seller rollover, support for the post-merger integration transition/hand-off, advisory contract)? * What are past success cases? * What are the pitfalls regarding the potential clash of business cultures and expectations on both sides? Key Takeaways * Japan’s SME market, driven by succession, is dominated by privately held small businesses that are often underappreciated. These businesses are in sectors such as food and beverage (F&B including small-scale restaurants and pubs, which are called izakaya in Japanese), small-scale manufacturing, and hospitality, especially traditional inn (ryokan) and hot spring (onsen) properties. Many manufacturing firms facing succession issues generate less than US $7 million in annual revenue and have only 10–12 employees. Meanwhile, ryokan deals may involve approximately $2 million in annual revenue and profit margins below 10–15%. The “Japan M&A Finder [https://app.redelta-ma.com/en]” database from ReDelta includes hundreds of current opportunities that are much smaller in scale (can check 3 opportunities/month for free or pay US $150/month for unlimited access). Valuations commonly use EBITDA multiples of 3x–6x, and deals often close within three to four months because the financial structures are relatively simple. With prices like these, it should be possible to recoup the initial investment within three to four years. An important nuance is that many buildings, machinery, and facilities were fully depreciated decades ago and may have a balance sheet value of only 1 yen, even though they are still operationally valuable. Daichi also noted that, while distressed sellers may occasionally accept discounted offers, foreign buyers should generally avoid “lowball” tactics. Offers materially below 90% of the asking price can damage trust and reduce the likelihood of a successful transaction. Additionally, ReDelta usually charges fees equivalent to 3% of the valuation or $7,000, whichever is greater. Separate fees for post-acquisition consultation are charged monthly and vary depending on the size of the business. * Trust and employee continuity often outweigh price in Japanese succession deals. Daichi emphasized that sellers care deeply about their employees’ and the local community’s future after retirement. Foreign buyers who demonstrate respect for staff, long-term commitment, and genuine appreciation for the business culture are far more likely to succeed. In many cases, buyers must formally commit to maintaining associate employment for two to three years post-acquisition. Sellers are often reassured when buyers present the acquisition as a means of preserving the company, protecting jobs, and continuing the founder’s legacy rather than as a hostile takeover. * Two distinct categories of foreign buyers are emerging in Japan’s succession-driven M&A market. According to Daichi, many Singapore-based buyers act primarily as financial investors, focusing on acquiring businesses with significant assets, such as ryokans and hotels, for their land and real estate value. In contrast, many North American and European buyers are “hands-on” operators seeking a lifestyle change, retirement opportunity, or long-term relocation to rural Japan. These buyers often become personally involved in managing the business after the acquisition and are motivated as much by lifestyle and community integration as by financial returns. While many transactions are completed in cash, financing is also possible through Japanese regional banks, megabanks, or lenders in the buyer’s home country, particularly in Singapore. * Buying an existing Japanese business is often faster and less risky than starting one from scratch, especially for foreigners. Daichi argued that acquisitions allow buyers to “buy time” by inheriting existing employees, customer relationships, operating licenses, distribution channels, and stable revenue streams. This is particularly valuable for foreigners who are unfamiliar with Japanese business culture or lack local networks. Rather than spending years building trust and infrastructure, buyers can immediately step into an operating business and gradually modernize it. * The biggest risks are often cultural and operational, not financial. Daichi noted that many small Japanese firms have relatively simple accounting structures, meaning legal compliance, labor practices, permits, and cultural integration matter more than sophisticated financial engineering. Foreign buyers may face resistance in rural areas where employees and communities are unfamiliar with foreign ownership. Establishing credibility, clearly communicating intentions, and respecting local culture are essential for long-term success. The “storytelling” around why the buyer wants the business can materially affect employee morale and seller confidence. * Preparation and seriousness strongly influence whether Japanese sellers agree to a deal. Daichi stressed that first impressions are critical. Those who thoroughly research the company, understand the founder’s background, ask informed questions, and show genuine respect tend to gain seller confidence quickly. Conversely, buyers who appear opportunistic or poorly prepared often fail, even if they become more serious later on. In Japan’s SME succession market, personal credibility and relationship-building are central to successful M&A execution. Timeline Substack does not yet have the functionality to allow you to use a link to jump to a specific section like YouTube’s “chapters.” Please refer to the times listed below to navigate through our hour-long conversation. Thank you for your understanding. Key contacts (and resources) * ReDelta Website: https://redelta.co.jp/en [https://redelta.co.jp/en] * Japan M & A Finder: https://app.redelta-ma.com/en [https://app.redelta-ma.com/en] * LinkedIn: https://www.linkedin.com/in/daichi-kunii/ [https://www.linkedin.com/in/daichi-kunii/] * Substack: Japan Bridge Insights #DaichiKunii #ReDelta #JapanSMEs #JapaneseBusiness #MandA #JapanBusiness #CrossBorderMAndA #JapanInvesting #SMEAcquisition #BusinessAcquisition #Entrepreneurship #JapanOpportunity #AcquireInJapan #SuccessionPlanning #PrivateEquity #ASEANBusiness #ForeignEntrepreneurs #JapanEconomy #DealMaking #國井大地 #株式会社リデルタ #リデルタ #日本企業 #中小企業 #事業承継 #後継者不足　#クロスボーダーMandA #企業買収 #日本投資 #中小企業MandA #事業買収 #起業家 #日本経済 #日本ビジネス #事業承継問題 #プライベートエクイティ #ASEANビジネス #外国人起業家 #日本で起業 #企業再生 #ディールメイキング #地方創生 #RealGaijin #リアル外人 Please note that you can subscribe to Real Gaijin for free. If you are so inclined, you can also purchase an annual subscription for a relatively small fee. However, I understand that even the lowest level of annual subscription allowed by Substack may seem too high for many. If you just want to buy a coffee for Real Gaijin (or maybe a green tea), you can also make a small donation here: https://buymeacoffee.com/realgaijin [https://buymeacoffee.com/realgaijin] All levels of support - including just liking a particular article and/or leaving a comment - are very welcome. Thanks again for reading. While Real Gaijin [https://realgaijin.substack.com/] lives in Substack [https://realgaijin.substack.com/], you can also find Real Gaijin on a few other platforms (listed in alphabetical order). https://www.instagram.com/real_gaijin_on_substack/ [https://www.instagram.com/real_gaijin_on_substack/] https://www.threads.net/@real_gaijin_on_substack [https://www.threads.net/@real_gaijin_on_substack] https://www.tiktok.com/@real.gaijin [https://www.tiktok.com/@real.gaijin] https://x.com/Real_Gaijin_ [https://x.com/Real_Gaijin_] https://www.youtube.com/@RealGaijin [https://www.youtube.com/@RealGaijin] https://www.linkedin.com/in/mark-wilt-kennedy/ [https://www.linkedin.com/in/mark-wilt-kennedy/] Get full access to Real Gaijin at realgaijin.substack.com/subscribe [https://realgaijin.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

AMA Podcast (S-02, E-13, Session 3 of 3・The Fall) with Steven Gan, the founder of Japan's first debt collection agency run by a foreigner

Foreign businesspeople often push the boundaries of conventional business practices in Japan. They have the vision, technical expertise, and drive necessary to think outside the box and achieve their goals. Japan, a conformist and chronically conservative society, often needs this kind of disruptive leader. Periods of foreign influence help propel Japanese society forward. Today’s guest has a lot in common with Carlos Ghosn, the former head of Nissan. Both are foreign businesspeople who gained prominence as outsiders in Japan’s challenging business environment, only to face serious legal consequences. However, their responses to these consequences differ significantly. Our guest admitted his wrongdoing, submitted to the Japanese legal process, and served his prison sentence despite his strong conviction that he had done nothing wrong. In fact, he had sought legal advice prior to launching his business to support his position. In contrast, Ghosn denied the charges and fled the country to avoid prosecution. These cases highlight the broader narrative that, while they both reflect the risks faced by outsiders navigating Japan’s institutional and cultural boundaries, especially in legal “gray areas,” they also illustrate different approaches to accountability, justice, and personal responsibility. Real Gaijin is privileged to introduce exceptional foreigners who, in one way or another, have made Japan their home or are closely involved with the country. Each story offers insights into how to best interact with the Japanese, and today’s guest is no exception. Who is he? Meet Steven (”Steve”) Gan, an American business professional, author, and credit risk expert. He founded the first debt collection agency run by a foreigner during Japan’s turbulent post-bubble era and has spent decades living and working in Japan. Steve chronicled this experience in his 2016 memoir, Making It & Breaking It in Japan: My True Story of Songs, Sins, and Solitary. The book became an Amazon bestseller in the Foreign Cultures category and is valued by educators and executives seeking a cross-cultural understanding of Japan’s business environment and legal systems. After returning to his hometown of Chicago, Steve founded Stellar Risk Management Services, Inc. in the U.S. His work emphasizes intercultural management and financial ethics, bridging U.S.–Japan business practices. Three stories in one As it is simply not possible to do justice to Steve’s long tenure in Japan in a single hour-long podcast, we have split this true story into three pre-recorded sections. * Initial experience in Japan and working for a traditional Japanese company * Starting the country’s first debt collection agency run by a foreigner, which achieved extraordinary success * Colliding with the harsh justice system and eventually facing legal consequences that led to his imprisonment in Tokyo Episode 3 of 3: “I fought the law, and the law won” We discussed how Steve’s business ran afoul of the authorities, leading to his imprisonment. Steve explained how he navigated this crisis both in and out of court appearances and being locked up in the Tokyo Detention Center in a country with a 99% conviction rate, thanks mainly to the tremendous support of his immediate family, business colleagues, and loyal customers. Key take-aways * In Japan, disruption often triggers institutional resistance rather than market competition: Steve’s business succeeded by introducing an aggressive, outcome-based debt collection model that filled a clear market gap. However, success itself became the liability. As the firm grew from a niche operation into a thriving, national business, it began to threaten established professional monopolies, especially those in the legal sector. Rather than competing based on service quality or pricing, the “Committee that Guards Against Illegal Activities Performed by Non-Attorneys” (now “Committee on Regulation of Non-Lawyer Activities”・非弁護士取締委員会) of the Tokyo Bar Association leveraged a regulatory interpretation of Article 72 of the Attorney’s Law to challenge the legitimacy of the entire model. This illustrates a structural dynamic in Japan: innovation that encroaches on protected domains often invites administrative or legal suppression rather than open competition. * Legal ambiguity can persist until it is forcefully resolved, and the process can outweigh the substance: Despite multiple legal opinions supporting Steve’s business model, as well as the active use of his service by law firms, some of Japan’s “mega-banks,” and government entities, the company operated in a “gray zone” that remained vulnerable. The subsequent investigation revealed a system heavily oriented toward procedural outcomes, particularly obtaining a signed confession, rather than adjudicating underlying legality. The inability to have legal counsel present during questioning, pressure to sign statements, and high conviction rate all point to a system driven by process where compliance matters as much as legal merit. It is important to note that back in 2004, Japan still lacked a formal plea-bargaining system. This reflected a criminal justice framework that relied more heavily on prosecutorial discretion, confessions, and negotiated remorse than on American-style legal dealmaking. This changed in 2018 when Japan introduced a limited form of plea-bargaining known as the “cooperative agreement system.” However, Japan’s system remains far narrower in scope than the American version: it is primarily designed for white-collar and organized crime investigations and focuses on suspects providing evidence against other individuals or organizations rather than simply pleading guilty to their own crimes in exchange for reduced punishment. Ultimately, Steve’s refusal to concede guilt prolonged the process, exposing how legal ambiguity is often resolved through pressure rather than clarity. * Foreign-led innovation in Japan carries asymmetric risk, especially when it scales up: Steve explicitly frames his experience as a cautionary tale: Being a foreign disruptor amplifies visibility and vulnerability. Early-stage novelty may be tolerated—or even celebrated—but once the model gains traction and begins to reshape an industry, the level of scrutiny intensifies. Media exposure, such as book publication and an NHK documentary, accelerated growth and backlash, effectively forcing regulators to act. The comparison to other high-profile foreign executives underscores a broader pattern: Outsiders can catalyze change in Japan, but they lack institutional protections and informal networks that buffer domestic actors. Therefore, scaling innovation is not just a business challenge, but also a political and cultural one. Link to Session 1 of 3 Link to Session 2 of 3 Silver lining Despite experiencing such a tumultuous journey, which included the meteoric growth of a startup only to be dealt a proverbial “Go to Jail. Go directly to Jail. Do not pass Go. Do not collect $200” card from the Japanese equivalent of the game of Monopoly, there is a silver lining. Steve still loves Japan and was able to “rise from the ashes like a phoenix.” After returning to the United States in 2005, he founded Stellar Risk Management Services in Illinois. Today, the company advises Fortune 500 clients on credit, collections, and financial risk strategies. The company specializes in helping firms expand safely while minimizing exposure to bad debt. Today, Steve publishes a monthly newsletter written in Japanese called The Stellar Journal, which is distributed to roughly 14,000 readers. Timeline Substack does not yet have the functionality to allow you to use a link to jump to a specific section like YouTube’s “chapters.” Please refer to the times listed below to navigate through our hour-long conversation. Thank you for your understanding. Books (by Steve) * 青い目の債権取り立て屋・奮闘記 [https://www.amazon.co.jp/%E9%9D%92%E3%81%84%E7%9B%AE%E3%81%AE%E5%82%B5%E6%A8%A9%E5%8F%96%E3%82%8A%E7%AB%8B%E3%81%A6%E5%B1%8B%E5%A5%AE%E9%97%98%E8%A8%98-%E5%B0%8F%E5%AD%A6%E9%A4%A8%E6%96%87%E5%BA%AB-R-%E3%82%AD-2-1/dp/4094052216] (“Chronicle of the Struggles of a Blue-Eyed Debt Collector”): Published in Japanese. * Making It & Breaking It in Japan: My True Story of Songs, Sins, and Solitary [https://www.amazon.co.jp/-/en/Steven-Gan-ebook/dp/B082Z8HNG7/]: Published in English. Key contacts Website: https://www.stellarrisk.com/ [https://www.stellarrisk.com/] Newsletter: https://www.stellarrisk.com/blog [https://www.stellarrisk.com/blog] LinkedIn: https://www.linkedin.com/in/stgan/ [https://www.linkedin.com/in/stgan/] IAESTE Internship: https://iaeste.org/internships [https://iaeste.org/internships] Japan America Society of Chicago: https://jaschicago.org/ [https://jaschicago.org/] Thunderbird School of Global Management: https://thunderbird.asu.edu/ [https://thunderbird.asu.edu/] #JapanBusiness #ForeignEntrepreneurs #StevenGan #CrossCulturalBusiness #JapanLegalSystem #BusinessEthics #CarlosGhosn #DebtCollection #TokyoBarAssociation #TokyoDetentionCenter #ExpatLifeJapan #日本ビジネス）#外国人起業家 #スティーブンギャン #異文化ビジネス #司法制度 #ビジネス倫理 #カルロスゴーン #東京弁護士会 #債権回収 #米国公認会計士 #外資系企業 #アドバンスアンドアソシエイツ株式会社 #延滞売掛金の回収 #与信管理相談士 #キャッシュフロー問題 #日本での外国人生活 #東京拘置所 #RealGaijin #リアル外人 Please note that you can subscribe to Real Gaijin for free. If you are so inclined, you can also purchase an annual subscription for a relatively small fee. However, I understand that even the lowest level of annual subscription allowed by Substack may seem too high for many. If you just want to buy a coffee for Real Gaijin (or maybe a green tea), you can also make a small donation here: https://buymeacoffee.com/realgaijin [https://buymeacoffee.com/realgaijin] All levels of support - including just liking a particular article and/or leaving a comment - are very welcome. Thanks again for reading. While Real Gaijin [https://realgaijin.substack.com/] lives in Substack [https://realgaijin.substack.com/], you can also find Real Gaijin on a few other platforms (listed in alphabetical order). https://www.instagram.com/real_gaijin_on_substack/ [https://www.instagram.com/real_gaijin_on_substack/] https://www.threads.net/@real_gaijin_on_substack [https://www.threads.net/@real_gaijin_on_substack] https://www.tiktok.com/@real.gaijin [https://www.tiktok.com/@real.gaijin] https://x.com/Real_Gaijin_ [https://x.com/Real_Gaijin_] https://www.youtube.com/@RealGaijin [https://www.youtube.com/@RealGaijin] https://www.linkedin.com/in/mark-wilt-kennedy/ [https://www.linkedin.com/in/mark-wilt-kennedy/] Get full access to Real Gaijin at realgaijin.substack.com/subscribe [https://realgaijin.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

AMA Podcast (S-02, E-12, Session 2 of 3・The Rise) with Steven Gan, the founder of Japan's first debt collection agency run by a foreigner

Foreign businesspeople often push the boundaries of conventional business practices in Japan. They have the vision, technical expertise, and drive necessary to think outside the box and achieve their goals. Japan, a conformist and chronically conservative society, often needs this kind of disruptive leader. Periods of foreign influence help propel Japanese society forward. However, such innovations can sometimes cause such a stir that those in power become determined to quash gaiatsu (外圧), or external influence, that threatens the status quo. Today’s guest has a lot in common with Carlos Ghosn, the former head of Nissan. Both are foreign businesspeople who gained prominence as outsiders in Japan’s challenging business environment, only to face serious legal consequences. However, their responses to these consequences differ significantly. Our guest admitted his wrongdoing, submitted to the Japanese legal process, and served his prison sentence despite his strong conviction that he had done nothing wrong. In fact, he had sought legal advice prior to launching his business to support his position. In contrast, Ghosn denied the charges and fled the country to avoid prosecution. These cases highlight the broader narrative that, while they both reflect the risks faced by outsiders navigating Japan’s institutional and cultural boundaries, especially in legal “gray areas,” they also illustrate different approaches to accountability, justice, and personal responsibility. Real Gaijin is privileged to introduce exceptional foreigners who, in one way or another, have made Japan their home or are closely involved with the country. Each story offers insights into how to best interact with the Japanese, and today’s guest is no exception. Who is he? Meet Steven (”Steve”) Gan, an American business professional, author, and credit risk expert. He founded the first debt collection agency run by a foreigner during Japan’s turbulent post-bubble era and has spent decades living and working in Japan. Steve chronicled this experience in his 2016 memoir, Making It & Breaking It in Japan: My True Story of Songs, Sins, and Solitary. The book became an Amazon bestseller in the Foreign Cultures category and is valued by educators and executives seeking a cross-cultural understanding of Japan’s business environment and legal systems. After returning to his hometown of Chicago, Steve founded Stellar Risk Management Services, Inc. in the U.S. His work emphasizes intercultural management and financial ethics, bridging U.S.–Japan business practices. Three stories in one As it is simply not possible to do justice to Steve’s long tenure in Japan in a single hour-long podcast, we have split this true story into three pre-recorded sections. * Initial experience in Japan and working for a traditional Japanese company * Starting the country’s first debt collection agency run by a foreigner, which achieved extraordinary success * Colliding with the harsh justice system and eventually facing legal consequences that led to his imprisonment in Tokyo Episode 2 of 3: Start-up Success in Tokyo We discussed how Steve founded and successfully developed the first debt collection agency run by a foreigner in Japan in 1992. He introduced international credit risk practices to a tightly regulated market. Through publications, seminars, and television appearances, Steve became a prominent advocate for professional credit management and corporate accountability. His firm served hundreds of clients, promoting transparency and modern business standards in Japanese finance. Key take-aways * In Japan, relationship-first networking can be a primary engine of business creation: Steve deliberately used informal settings, especially izakayas (Japanese pubs) and karaoke, as a structured strategy to build trust, exchange business cards, and generate leads. These relationships later translated directly into clients, partnerships, and market insight. This demonstrates that social integration is often a prerequisite to gaining a foothold in the market. * Successful market entry often depends on identifying structural inefficiencies and navigating legal constraints creatively: Steve identified a clear gap: small-to-mid-sized debt collection was underserved due to stigma (association with the Yakuza or Japanese mafia) and misaligned incentives for law firms. By leveraging a legal workaround (partnership structures) and targeting neglected claims, he created a viable niche. The broader takeaway is that opportunities in Japan often exist in regulatory gray zones or culturally avoided sectors. * Reframing a stigmatized industry through ethics and value creation can enable growth: Rather than using coercion, Steve’s firm adopted a “soft collection” model, prioritizing dialogue, repayment plans, and employment support for debtors. This differentiated the company from the Yakuza and traditional collectors, reshaping its public image and enabling media exposure, institutional trust, and large enterprise clients. In effect, ethical repositioning became a competitive advantage. Spoiler alert Steve’s account of his first encounter with a skip tracing service (as advertised), which later turned out to be a local enforcer of the Japanese mafia, or Yakuza, will undoubtedly grab your attention. Skip to around 32:38. Link to Session 1 of 3 Link to Session 3 of 3 Silver lining Despite experiencing such a tumultuous journey, which included the meteoric growth of a startup only to be dealt a proverbial “Go to Jail. Go directly to Jail. Do not pass Go. Do not collect $200” card from the Japanese equivalent of the game of Monopoly, there is a silver lining. Steve still loves Japan and was able to “rise from the ashes like a phoenix.” After returning to the United States in 2005, he founded Stellar Risk Management Services in Illinois. Today, the company advises Fortune 500 clients on credit, collections, and financial risk strategies. The company specializes in helping firms expand safely while minimizing exposure to bad debt. Today, Steve publishes a monthly newsletter written in Japanese called The Stellar Journal, which is distributed to roughly 14,000 readers. Timeline Substack does not yet have the functionality to allow you to use a link to jump to a specific section like YouTube’s “chapters.” Please refer to the times listed below to navigate through our hour-long conversation. Thank you for your understanding. Books (by Steve) * 青い目の債権取り立て屋・奮闘記 [https://www.amazon.co.jp/%E9%9D%92%E3%81%84%E7%9B%AE%E3%81%AE%E5%82%B5%E6%A8%A9%E5%8F%96%E3%82%8A%E7%AB%8B%E3%81%A6%E5%B1%8B%E5%A5%AE%E9%97%98%E8%A8%98-%E5%B0%8F%E5%AD%A6%E9%A4%A8%E6%96%87%E5%BA%AB-R-%E3%82%AD-2-1/dp/4094052216] (“Chronicle of the Struggles of a Blue-Eyed Debt Collector”): Published in Japanese. * Making It & Breaking It in Japan: My True Story of Songs, Sins, and Solitary [https://www.amazon.co.jp/-/en/Steven-Gan-ebook/dp/B082Z8HNG7/]: Published in English. Key contacts Website: https://www.stellarrisk.com/ [https://www.stellarrisk.com/] Newsletter: https://www.stellarrisk.com/blog [https://www.stellarrisk.com/blog] LinkedIn: https://www.linkedin.com/in/stgan/ [https://www.linkedin.com/in/stgan/] IAESTE Internship: https://iaeste.org/internships [https://iaeste.org/internships] Japan America Society of Chicago: https://jaschicago.org/ [https://jaschicago.org/] Thunderbird School of Global Management: https://thunderbird.asu.edu/ [https://thunderbird.asu.edu/] #JapanBusiness #ForeignEntrepreneurs #StevenGan #CrossCulturalBusiness #JapanLegalSystem #BusinessEthics #CarlosGhosn #DebtCollection #TokyoBarAssociation #TokyoDetentionCenter #ExpatLifeJapan #日本ビジネス）#外国人起業家 #スティーブンギャン #異文化ビジネス #司法制度 #ビジネス倫理 #カルロスゴーン #東京弁護士会 #債権回収 #米国公認会計士 #外資系企業 #アドバンスアンドアソシエイツ株式会社 #延滞売掛金の回収 #与信管理相談士 #キャッシュフロー問題 #日本での外国人生活 #東京拘置所 #RealGaijin #リアル外人 Please note that you can subscribe to Real Gaijin for free. If you are so inclined, you can also purchase an annual subscription for a relatively small fee. However, I understand that even the lowest level of annual subscription allowed by Substack may seem too high for many. If you just want to buy a coffee for Real Gaijin (or maybe a green tea), you can also make a small donation here: https://buymeacoffee.com/realgaijin [https://buymeacoffee.com/realgaijin] All levels of support - including just liking a particular article and/or leaving a comment - are very welcome. Thanks again for reading. While Real Gaijin [https://realgaijin.substack.com/] lives in Substack [https://realgaijin.substack.com/], you can also find Real Gaijin on a few other platforms (listed in alphabetical order). https://www.instagram.com/real_gaijin_on_substack/ [https://www.instagram.com/real_gaijin_on_substack/] https://www.threads.net/@real_gaijin_on_substack [https://www.threads.net/@real_gaijin_on_substack] https://www.tiktok.com/@real.gaijin [https://www.tiktok.com/@real.gaijin] https://x.com/Real_Gaijin_ [https://x.com/Real_Gaijin_] https://www.youtube.com/@RealGaijin [https://www.youtube.com/@RealGaijin] https://www.linkedin.com/in/mark-wilt-kennedy/ [https://www.linkedin.com/in/mark-wilt-kennedy/] Get full access to Real Gaijin at realgaijin.substack.com/subscribe [https://realgaijin.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

AMA Podcast (S-02, E-11, Session 1 of 3・The Beginning) with Steven Gan, the founder of Japan's first debt collection agency run by a foreigner

Foreign businesspeople often push the boundaries of conventional business practices in Japan. They have the vision, technical expertise, and drive necessary to think outside the box and achieve their goals. Japan, a conformist and chronically conservative society, often needs this kind of disruptive leader. Periods of foreign influence help propel Japanese society forward. However, such innovations can sometimes cause such a stir that those in power become determined to quash gaiatsu (外圧), or external influence, that threatens the status quo. Today’s guest has a lot in common with Carlos Ghosn, the former head of Nissan. Both are foreign businesspeople who gained prominence as outsiders in Japan’s challenging business environment, only to face serious legal consequences. However, their responses to these consequences differ significantly. Our guest admitted his wrongdoing, submitted to the Japanese legal process, and served his prison sentence despite his strong conviction that he had done nothing wrong. In fact, he had sought legal advice prior to launching his business to support his position. In contrast, Ghosn denied the charges and fled the country to avoid prosecution. These cases highlight the broader narrative that, while they both reflect the risks faced by outsiders navigating Japan’s institutional and cultural boundaries, especially in legal “gray areas,” they also illustrate different approaches to accountability, justice, and personal responsibility. Real Gaijin is privileged to introduce exceptional foreigners who, in one way or another, have made Japan their home or are closely involved with the country. Each story offers insights into how to best interact with the Japanese, and today’s guest is no exception. Who is he? Meet Steven (”Steve”) Gan, an American business professional, author, and credit risk expert. He founded the first debt collection agency run by a foreigner during Japan’s turbulent post-bubble era and has spent decades living and working in Japan. Steve chronicled this experience in his 2016 memoir, Making It & Breaking It in Japan: My True Story of Songs, Sins, and Solitary. The book became an Amazon bestseller in the Foreign Cultures category and is valued by educators and executives seeking a cross-cultural understanding of Japan’s business environment and legal systems. After returning to his hometown of Chicago, Steve founded Stellar Risk Management Services, Inc. in the U.S. His work emphasizes intercultural management and financial ethics, bridging U.S.–Japan business practices. Three stories in one As it is simply not possible to do justice to Steve’s long tenure in Japan in a single hour-long podcast, we have split this true story into three pre-recorded sections. * Initial experience in Japan and working for a traditional Japanese company * Starting the country’s first debt collection agency run by a foreigner, which achieved extraordinary success * Colliding with the harsh justice system and eventually facing legal consequences that led to his imprisonment in Tokyo Episode 1 of 3: Early Days We discussed Steve’s first experience of Japan during the Bubble Era. We heard how he survived and thrived as a newly qualified engineer from abroad in the completely unfamiliar environment of a traditional Japanese company in the early 1980s. Steve then recounted how he returned home to Chicago to earn an accounting degree and join the family business. Eager to return to Japan, years later Steve found a way to go back to Tokyo and take up a position at Nippon Motorola. This time, however, he was treated differently and had to forge new friendships using an unconventional approach. Key take-aways * Success in Japan is determined by adaptability, not just enthusiasm: Steve’s first internship was successful because he followed critical behavioral heuristics: patience, humility, and a willingness to “go with the flow.” In contrast, his later return was initially unsuccessful because he overcorrected—his excessive enthusiasm and assertiveness disrupted group harmony. The core lesson is that cultural calibration matters more than effort or intent. * Making an effort to learn the language is a high-leverage signal that unlocks social and professional access: Even minimal Japanese proficiency (e.g., greetings, phone handling, and basic interactions) significantly improved Steve’s ability to integrate into Japanese society, while his peers who avoided learning the language struggled. Beyond the mechanics of communication, speaking the language signaled respect and lowered barriers, accelerating the formation of trust both inside the company and in broader social settings. * Informal networks, such as izakaya (Japanese pub) and karaoke culture, are critical to relationship-building and business outcomes: Formal workplace channels failed to provide feedback or integration, but informal environments enabled authentic connection. Through repeated, low-pressure social participation, especially karaoke, Steve built relationships, gained acceptance, and generated business opportunities. This suggests that relational capital in Japan is often built outside of formal structures. Link to Session 2 of 3 Link to Session 3 of 3 Silver lining Despite experiencing such a tumultuous journey, which included the meteoric growth of a startup only to be dealt a proverbial “Go to Jail. Go directly to Jail. Do not pass Go. Do not collect $200” card from the Japanese equivalent of the game of Monopoly, there is a silver lining. Steve still loves Japan and was able to “rise from the ashes like a phoenix.” After returning to the United States in 2005, he founded Stellar Risk Management Services in Illinois. Today, the company advises Fortune 500 clients on credit, collections, and financial risk strategies. The company specializes in helping firms expand safely while minimizing exposure to bad debt. Today, Steve publishes a monthly newsletter written in Japanese called The Stellar Journal, which is distributed to roughly 14,000 readers. Timeline Substack does not yet have the functionality to allow you to use a link to jump to a specific section like YouTube’s “chapters.” Please refer to the times listed below to navigate through our hour-long conversation. Thank you for your understanding. Books (by Steve) * 青い目の債権取り立て屋・奮闘記 [https://www.amazon.co.jp/%E9%9D%92%E3%81%84%E7%9B%AE%E3%81%AE%E5%82%B5%E6%A8%A9%E5%8F%96%E3%82%8A%E7%AB%8B%E3%81%A6%E5%B1%8B%E5%A5%AE%E9%97%98%E8%A8%98-%E5%B0%8F%E5%AD%A6%E9%A4%A8%E6%96%87%E5%BA%AB-R-%E3%82%AD-2-1/dp/4094052216] (“Chronicle of the Struggles of a Blue-Eyed Debt Collector”): Published in Japanese. * Making It & Breaking It in Japan: My True Story of Songs, Sins, and Solitary [https://www.amazon.co.jp/-/en/Steven-Gan-ebook/dp/B082Z8HNG7/]: Published in English. Key contacts Website: https://www.stellarrisk.com/ [https://www.stellarrisk.com/] Newsletter: https://www.stellarrisk.com/blog [https://www.stellarrisk.com/blog] LinkedIn: https://www.linkedin.com/in/stgan/ [https://www.linkedin.com/in/stgan/] IAESTE Internship: https://iaeste.org/internships [https://iaeste.org/internships] Japan America Society of Chicago: https://jaschicago.org/ [https://jaschicago.org/] Thunderbird School of Global Management: https://thunderbird.asu.edu/ [https://thunderbird.asu.edu/] #JapanBusiness #ForeignEntrepreneurs #StevenGan #CrossCulturalBusiness #JapanLegalSystem #BusinessEthics #CarlosGhosn #DebtCollection #TokyoBarAssociation #TokyoDetentionCenter #ExpatLifeJapan #日本ビジネス）#外国人起業家 #スティーブンギャン #異文化ビジネス #司法制度 #ビジネス倫理 #カルロスゴーン #東京弁護士会 #債権回収 #米国公認会計士 #外資系企業 #アドバンスアンドアソシエイツ株式会社 #延滞売掛金の回収 #与信管理相談士 #キャッシュフロー問題 #日本での外国人生活 #東京拘置所 #RealGaijin #リアル外人 Please note that you can subscribe to Real Gaijin for free. If you are so inclined, you can also purchase an annual subscription for a relatively small fee. However, I understand that even the lowest level of annual subscription allowed by Substack may seem too high for many. If you just want to buy a coffee for Real Gaijin (or maybe a green tea), you can also make a small donation here: https://buymeacoffee.com/realgaijin [https://buymeacoffee.com/realgaijin] All levels of support - including just liking a particular article and/or leaving a comment - are very welcome. Thanks again for reading. While Real Gaijin [https://realgaijin.substack.com/] lives in Substack [https://realgaijin.substack.com/], you can also find Real Gaijin on a few other platforms (listed in alphabetical order). https://www.instagram.com/real_gaijin_on_substack/ [https://www.instagram.com/real_gaijin_on_substack/] https://www.threads.net/@real_gaijin_on_substack [https://www.threads.net/@real_gaijin_on_substack] https://www.tiktok.com/@real.gaijin [https://www.tiktok.com/@real.gaijin] https://x.com/Real_Gaijin_ [https://x.com/Real_Gaijin_] https://www.youtube.com/@RealGaijin [https://www.youtube.com/@RealGaijin] https://www.linkedin.com/in/mark-wilt-kennedy/ [https://www.linkedin.com/in/mark-wilt-kennedy/] Get full access to Real Gaijin at realgaijin.substack.com/subscribe [https://realgaijin.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]