BRI CEO Hery Gunardi Shares 5 Keys to Building a Successful Business

The President Director of PT Bank Rakyat Indonesia (Persero) Tbk, Hery Gunardi, shared tips for starting a business from a senior banker’s perspective at the Jogja Financial Festival in the Jogja Expo Center, Special Region of Yogyakarta, on Saturday. The event was attended by 1,000 participants from among MSME entrepreneurs, university students, school pupils, and the general public. Hery explained that there are five tips the public can follow to start a business.

Firstly, aspiring entrepreneurs should start in an industry with low entry barriers, meaning they can try types of businesses where competition is not tight or intense. “So, if you really want to start a business, enter an industry where the entry barrier is not difficult,” said Hery, who appeared alongside Chairman & Founder of CT Corp, Chairul Tanjung, in the Education Class session.

Secondly, he continued, is understanding market behaviour. Aspiring entrepreneurs must understand the landscape of the business they are targeting, both the buyers/clients and the competitors. “Who are the players? Who are the competitors? Who holds the largest market share? Why could they become big? Why could they advance further? So, we learn from those who are already advanced,” said Hery.

Thirdly, aspiring entrepreneurs must have good business and financial management, even when just starting out. From his experience leading BRI, many MSMEs fail due to weak financial recording. “Most still do not separate records for personal and business expenses; the records are the same. So, they do not know which is profit and which is loss, because the money is used for day-to-day living. The correct way is to separate personal and business financial records so you can see whether the business is making a profit or not,” Hery said.

Fourthly, he reminded that the crucial moment for a new business in the first six months is not about profit. The important thing in the early stage is cash flow. He reminded entrepreneurs that the production of goods must be smooth so that payments are not delayed. “For example, you actually have the potential for good cash flow, but you are still extending credit to customers, so your cash ends up being delayed. Usually, businesses run out of steam because their cash is insufficient,” he said. Therefore, governance must be good and disciplined.

Lastly, he advised start-up founders to be willing to develop their businesses by understanding technology. He gave the example of using social media to sell products. “Including using technology so that variable costs can decrease and you can compete. And technology, for instance, using the internet, then you can sell on TikTok, Instagram, and also carry out innovations on the digital and online side like that,” he said.

Echoing Hery, Chairul Tanjung also emphasised the understanding of technology for entrepreneurs and those about to start a business. According to CT, successful entrepreneurs are born because they succeed in creating unique products with a large market. An equally important aspect is that the product suits its generation. “That will make it thrive. And do not forget to utilise technology for the young generation now,” said CT.

CT stated that selling goods nowadays no longer requires a physical shop. This is because the majority of consumers from the millennial generation, Generation Z, to the alpha generation, are heavily dependent on e-commerce. “The influence of TikTok is extraordinary in terms of promoting and selling goods; it has far surpassed Instagram, let alone Facebook. So, you must understand technology,” said CT.