How ready is your business to sell?

Ten questions, three minutes: see how ready your business is to sell or take investment, and the three changes that would add most value. Free.

Question 1 of 10 · Owner dependence

If you stepped away for three months, what would happen to the business?

What the scorecard measures

Buyers and investors judge a business on more than its profit. They look for risks that could make profit fall after they buy, and for signs it can keep growing without the owner. The scorecard covers the ten areas that most often move the price, or stop a deal altogether:

Owner dependence. Buyers pay less for a business that depends on its owner.
Management team. A capable second tier, ideally tied in with incentives, reduces risk for a buyer and often increases the price.
Recurring revenue. Predictable revenue is valued far higher than one-off sales.
Customer concentration. Heavy reliance on one or two customers is a major risk for a buyer.
Financial information. Buyers want reliable monthly numbers, clear margins by product or customer and a forecast.
Profit track record. Most businesses are valued on a multiple of profit, and a rising trend supports a higher multiple.
Systems and processes. Documented processes make the business transferable and easier to scale.
Growth plan. Buyers pay for future profit.
Legal and contracts. Missing contracts, unclear IP ownership or compliance gaps are common reasons deals fall through or prices drop.
Market position. A clear, defensible reason customers choose you protects margins and is what buyers are really paying for.

It is a quick guide, not a valuation. Even if you never plan to sell, the same improvements usually make a business more profitable and easier to run.