Entrepreneur and investor Andrew Susanto, from the HW Group, shared valuable insights and tips for aspiring entrepreneurs on what to consider when starting a business venture. According to Andrew, one crucial aspect that entrepreneurs should understand is that in business, when you succeed, you gain profits, but even if you fail, you gain knowledge.
"The easiest way (to measure business success) is to make a profit. If our business is bleeding, how long can we sustain it? Three to six months of bleeding, don't let it drag on," Andrew said in the Cuap Cuap Cuan podcast.
Andrew believes that if a business is still losing money or burning cash for three to six months, there's a high likelihood that the venture will fail.
"For conventional businesses, it's three to six months (of burning cash). If it's longer than that, you need to reevaluate why you're not making a profit," he continued.
However, for large businesses, especially those in the technology sector, Andrew acknowledges that they likely have a well-calculated plan for when they will reach the break-even point (BEP).
When asked what entrepreneurs should do if their business is not generating profits, Andrew emphasizes the importance of introspection.
"If you're not making a profit, introspect first on why you're not succeeding. Don't just start a new business and hope to make a profit; that's odd. Introspect and fix the issue first, and once you understand why you couldn't make a profit, then you can start a second business. Whether you're making a profit or not, you need to understand the reasons behind it, and then you can grow," he added.
Regarding time management, Andrew reiterates that one must be fully committed to their business venture. Working while running a business is an ineffective approach.
When starting a business, it's advisable to calculate the budget plan (RAB), break-even point (BEP), and projections beforehand. However, Andrew suggests that these calculations don't need to be excessively detailed.
"Don't overthink it. If your calculations show that you've reached 80% of your desired figure, just go for it! In business, whether you make a profit or not comes later. If you succeed, you make a profit; if not, you gain knowledge," he affirmed.
Andrew's insights highlight the importance of dedication, introspection, and a balanced approach to calculations when embarking on an entrepreneurial journey. Embracing both potential profits and the invaluable lessons learned from failures is crucial for aspiring entrepreneurs seeking long-term success.