Using GPT into ERP to analyse business

1. What is your business worth?

In GPT, you have to know the value of your assets (including intangibles).

2. What are your cashflows?

In GPT, you have to know the cash flows of your business.

3. What are your expenses?

In GPT, you have to know all of your expenses.

4. How do you make money?

You need to know how each customer makes money for you and what % they are worth.

5. Where is the competition?

You need to know where the competition is and how big their businesses are.

6. Do you have any "unfair advantages"?

For instance, Uber has unfair advantages because people like using the app and it's hard for competitors to copy it. A unfair advantage doesn't mean illegal or unethical. It just means that no one can easily replicate what you do.

7. What is your moat?

Your moat is all of the above combined with intangibles that make it hard for others to compete with you in any way (like brand, network effects, etc).

8. How much cash do you need to survive? And when will that happen?

If a competitor comes along and matches all of your unfair advantages plus adds some more then what happens if they suddenly steal all of your customers away (which can happen if they offer a better product or lower prices). This is called "burn rate". You have to be able To Survive this burn rate until either new revenues come in or another investor gives you more money so that there will be enough cash on hand for them to not worry about getting their money back before they get paid back by new revenues coming in. This takes about 12-18 months on average but there's always exceptions.

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