Business Readiness Assessment

Name *

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Planning Horizon: You want (or know you will have to) leave your business within: *

Email *

1. You have researched the way the market will value your business *

I have no idea. Maybe some amount more than I paid for it?
My friend at the club told me how much I could get
My CPA told me I could get 3 times the revenue
I have researched actual selling prices

2. Your family understands and fully supports the idea of selling the business and how life will be after that. *

Completely 100% true. They would sign a paper agreement on that.
I've told them and they understand the situation but they are very anxious.
I told them about it and I am sure they will support it once they get used to it
I'm the one doing the work and burning out. I'll tell them when I know more, but they're just going to have to get used to it

3. You understand the capital resources you'll need to sustain your lifestyle after you leave the business. *

True, I have all the resources I will need, regardless of what price I get for the business.
True, I have the resources I will need, assuming I get even a less than attractive price for the business
I don't know how to calculate how much money I will have or what I will need to get for te business to make ends meet.
I don't know what my financial needs will be at that time.

4. How many of the professional advisors noted below do you already have in place and ready to work with you on the sale of the business? *

At least 5 of the 7
At least 4 of the 7
At least 2 of the 7
One or none of these 7 people are working with me yet on this matter

Who to count: (1) Business attorney, (2) CPA, (3) financial advisor, (4) spouse/significant other, (5) key employees, (6) exit advisor, (7) business broker. Please count them as "in place" ONLY if you have already worked with them (not "I'm going to do that").

5. What would happen if you were incapacitated or unable to participate in the business for an extended period (several months)? *

It would be a goatrope and the business would probably fold.
It owuldn't be pretty but they could probably figure it out after a few weeks.
My team has proven its ability to run the business without me for 30 days or more.
I have a detailed contingency plan, all the affecgted parties know what to do, and the team has run without me for 30 days or more.

6. Which of the assessments below do you run on your business at least annually? *

At least 4
3-4
1-2
None so far

Assessments to count: (1) business accomplishment of strategic objectives; (2) refresh of strategic environment and annual objectives; (3) assessment of year-on-year P&L; (4) assessment of year-on-year-balance sheet; (5) personal goal and financial gap analysis; (6) key personnel assessments.

Which of the following exit strategies have you considered for your company? *

Closing up shop and going away quietly (with nothing)
Pass it on to family
Transfer to key employees
Pass it on to all employees via an ESOP
Sell it to a third party

Contact us to learn more about your options and the conditions and timelines that go with each one.

leave have your

Closing up shop: don't plan for it, don't fall into it

Unfortunately, 87 percent of owners do just that, either by not thinkng about it or by leaving it too late to do anything else. A business is sellable for some price as long as it is open. Given the right timeframe, it may be possible to improve it to command a very nice price! And there are othetr options beyond closing or selling, but they take time to put in place.

7. How much does this business depend on you to actually operate (day-to day, not your overall guidance and management)? *

The work we do requires skills that most employees don't have. Customers expect and deserve my level of expertise.
I could probably teach someone to do the work but we don't usually have that kind of time available. And then they quit. It's faster and better if I just do it myself
I have processes in place so everyone knows what to do. They only come to me with major exceptions
I've taken extended vacations (20 days or more) with minimal communication and the business ran just fine.

Have you tried extensive involvement in the activities you will be doing after leaving this business? *

I have dozens of things that would occupy a lot of my time and I can't wait to get started.
I've been on 1-2 week golf (fishing, whatever) trips and now I'll be able to do that for a whole month if I want.
I plan to start or buy another business
I have 3-4 things that I've already been involved in for quite while but haven't been able to engage fully.

"I'm going to go fishing... play golf... travel the world... spend time with the grandkids." All great goals. But wanting to spend more time on a hobby, avocation, travel, or family is a lot different from doing it 30-40 hours a week, 52 weeks a year. If you only have one thing on your mind, within 12 months, you'll be miserable, and your family will be telling you either to find some more hobbies or go back to work.

9. Be ruthless with this one: are you a people person or more of a loner? *

I enjoy interacting with other people and get bored very easily if I have nothing specific to do
I am sociable but I also make time to get on with my work or personal stuff
You can't run a business or sell anything without other people, so it's just part of the job. You do what you have to do, but eventually you get to go home and get away from it until tomorrow.
I'm pretty isolated from my business as it is. Much of what we do is online.

This may be a bit counter-intuitive. The more the business is the center of your life, the more you're going to resist taking steps towards letting it go.

10. What actions have you taken already to prepare the business for eventual transition? *

I have a valuation as to what it could be worth and have a defined plan (that we are following!) to get it ready.
I'm going to keep doing what I'm doing. I don't want to spook the employees and we have plenty of time.
I'm just starting to think about this whole matter and haven't done much yet
That's over 3 years from now. I tihnk we have time to wrry about that in the next year or so.

11. How are you handling key employees that you (or a new owner) depend on to run the business? *

I have non-compete agreements and formal promotion plans in place for my key employees
I'm in a commodity market. Anyone who leaves can be replaced fairly easily.
I would make myself available for 30 days or more to any new buyer to show them the ropes.
I don't really have any. Whatever the business needs done, I can do.

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This isn't a time for improvement. It's a time to get what you can while you can.

Closing up shop: don't plan for it, don't fall into it

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