Manny Reyna, MBA, PMP - Consultarian - Fractional CFO Service, Army Veteran, CPA Candidate.
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Miyamoto Musashi was a legendary samurai who is said to have fought and won over 60 duels and lived into his 60s at a time when the average person only lived until their mid-30s. He wrote one of the greatest books of all time—a book that is world-renowned and whose principles are heavily followed by many top executives in Japan. It's The Book of Five Rings, a blueprint based on self-reliance, strategically outsmarting your opponent and how to live one’s life based on "the Way of Strategy."
The five rings are based heavily on the five Japanese Buddhist elements (earth, water, fire, wind and emptiness), as well as Musashi’s own principles.
I have read the book over 10 times myself. I carry it with me daily and use it to make my own business decisions. It can be applied to every facet of daily life and any type of problem or dilemma. Here are some key quotes from Musashi's book that explain the five rings, and what I think they mean for entrepreneurs.
Earth
“Know the smallest things and the biggest things, the shallowest things and the deepest things...These things cannot be explained in detail. From one thing, know ten thousand things. When you attain the Way of Strategy, there will not be one thing you cannot see. You must study hard.”
Business implication: As an entrepreneur, it is imperative that you not only understand your industry, but also your company’s vison, mission, values and, most importantly, your “why.” Self-reliance and resilience are key to overcoming obstacles and competitors in business. This kind of grit that entrepreneurs are most notoriously known for is what Musashi is implying must be honed and tapped into.
Water
“In strategy your spiritual bearing must not be any different from normal. Both in fighting and in everyday life, you should be determined though calm."
Business implication: Musashi emphasizes that you must maintain a calm demeanor at all times in order to capitalize on the small window of opportunity that presents itself to you. Having a bearing of anything other than normal or calm can cause you to see things from a clouded point of view, and thus you could miss a crucial opportunity, such as the chance to land a large contract or pitch to an investor. You also could overlook the details of a deal and come out on the bottom.
Fire
“There is nothing wrong with the principle 'one man can beat ten, so a thousand men can beat ten thousand.' You must research this. Of course you cannot assemble a thousand or ten thousand men for everyday training. But you can become a master of strategy by training alone with a sword, so that you can understand the enemy's strategy, his strength and resources, and come to appreciate how to apply strategy to beat ten thousand enemies."
Business implication: Strategically anticipating your opponent’s moves before meeting them on the competitive business landscape is an absolute must to guarantee your company’s chances of success. Furthermore, being proactive instead of reactive and researching your competitors ahead of time gives you an advantage, and in business, an advantage can be the difference between success and failure.
Wind
"Some of the world's strategists are concerned only with sword-fencing, and limit their training to flourishing the long sword and carriage of the body...Some other schools have a liking for extra-long swords. From the point of view of my strategy, these must be seen as weak schools. This is because they do not appreciate the principle of cutting the enemy by any means."
Business implication:
Successful entrepreneurs are aware of their competitors and well-informed about disruptive innovations within their respective industries. Failed entrepreneurs and enterprises become complacent and content with their positions only to be “cut down” by their competitors and fade into obscurity. Staying informed and leading from the front are attributes Musashi would have condoned in today’s world.
Emptiness
“By knowing things that exist, you can know that which does not exist...In the void is virtue, and no evil. Wisdom has existence, principle has existence, the Way has existence, spirit is nothingness.”
Business implication: Lastly, and perhaps the most important of all traits in entrepreneurship, is having the ability to adapt and overcome by applying Musashi's other four principles. Starting a business and attempting to fill a void that is non-existent is a surefire way to fail. Therefore, keep in mind the above-mentioned principles as a guide on how to reach success as an entrepreneur by using the proper strategies tailored to each and every situation.
It is easy to see why so many Japanese executives look to The Book of Five Rings when making strategic decisions for the companies they are leading. In today’s business world, it is vital to understand the world around you to be able to build a more successful and sustainable business. The landscape of business is arduous and can be metaphorically compared to the front lines. When you meet your competitor, you should already be laying claim to victory by employing these principles and defeating your opponent before the battle has even begun.
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