1. Do you have a sense of how much your business is worth today and how to increase its value?
Rating = 1 I have no idea what my business is worth
Rating = 5 I know roughly what it is worth today and how to increase its value
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2. Do you have a long-term (3-5 years) strategy and financial forecast for the business?
Rating = 1 I don't have a long-term strategy or forecast. I am focused on this month/year only
Rating = 5 My long-term forecast is aligned with my business strategy
3. Have you performed a SWOT analysis of your business and engaged in capitalizing on Strengths and Opportunities and addressing Weaknesses and Threats?
Rating = 1 I have never done a SWOT analysis
Rating = 5 We undertake a SWOT analysis yearly and are systematically engaged in capitalizing on Strengths and Opportunities and addressing Weaknesses and Threats
4. Do you have visibility into the funding requirements of your business over the next 24-36 months?
Rating = 1 I don't have a long-term financial forecast nor a view into funding requirements
Rating = 5 Yes. We know how much is needed and by when
5. Have you taken steps to address your funding requirements over the next 24-36 months?
Rating = 1 I don't know how much money I need nor do I have any personal or family money that I can call on
Rating = 5 I know exactly how much money I will need and I have a very good sense of where to source funds outside of personal savings, friends and family
6. How experienced are you and your team in negotiating with capital sources or potential buyers?
Rating = 1 We have never dealt with VCs, private equity or potential acquirers
Rating = 5 Our team has extensive experience negotiating deals
7. Have you given careful consideration to your exit strategy / options?
Rating = 1 We haven't' considered an exit strategy
Rating = 5 Yes, we have carefully considered our options and have done some tax planning for it
8. Have you considered acquiring or merging with a competitor? If so, what is your experience in integrating an acquired company and realizing synergies?
Rating = 1 We have never given this any serious consideration
Rating = 5 We have actually acquired businesses and integrated them well
9. Do you subject your expansion plans / new investments through a rigorous financial and strategic analysis?
Rating = 1 We make these decisions based on instinct
Rating = 5 Yes, the finance team reviews them carefully and provides us with guidance
10. Are your books and corporate documents in good shape for an investor or potential buyer to do due diligence on your business?
Rating = 1 No, we are not prepared for a due diligence
Rating = 5 The books are in order and our data room gets updated regularly (every 6-12 months)
11. Do you have a board of directors, advisory board or CEO peer group that brings an outsider's perspective to your business? Do they have the skills / experience needed to help you grow your business?
Rating = 1 No. It is just me
Rating = 5 Yes, we have a great "support system" in place comprised of experienced outsiders that are relevant to our business
12. Do you have a contingency plan in place in the event of the loss of a major client, the obsolescence of a key product or service or a significant change in market dynamics for your business?
Rating = 1 Not really
Rating = 5 Yes. We have a set of measures we would take if our key client left us and are continuously monitoring the marketplace and looking to innovate
13. Does your Finance function mostly report on what has happened, and in summarized form, or do you have a robust Financial Planning & Analysis capability?
Rating = 1 Their focus is strictly on producing the monthly P&L, Balance Sheet and Cash Flow Statement
Rating = 5 Our FP&A capabilities are strong and provide us with detailed/granular analysis and planning
14. Does your finance team identify opportunities to improve efficiency, reduce costs or increase profits?
Rating = 1 Rarely
Rating = 5 On a regular basis
15. Do you have the support and input of the finance function when negotiating important client or supplier agreements?
Rating = 1 We don't involve our Finance team in these negotiations
Rating = 5 Yes. Always
16. Does your budget reflect your strategic goals and priorities? Does it allocate resources in alignment with your long-term strategy?
Rating = 1 I think it does…
Rating = 5 Certainly
17. In preparing your budget for the next year, are all line items subject to scrutiny or are there numerous "sacred cows"?
Rating = 1 We do have a number of sacred cows
Rating = 5 We use the Zero-based budgeting method, in which all expenses must be justified and approved for each new period
18. Do you update your budget forecast throughout the year based on year-to-date actual results and new developments?
Rating = 1 Never
Rating = 5 Monthly or quarterly
19. Do you have a rolling 13-week cash flow forecast?
Rating = 1 No
Rating = 5 Yes, and it is updated weekly or monthly
20. Have you integrated financial analysis and discipline into your pricing decisions?
Rating = 1 Not really. We price based on the competition
Rating = 5 Yes, we just don't follow the market. We make sure the prices make sense
21. Can you accurately asses your profitability by product, service, key client, market and/or distribution channel?
Rating = 1 We don't do any assessment
Rating = 5 We assess our profitability by each of these categories periodically
22. What steps have you taken recently to make your business faster, better and/or cheaper than the competition?
Rating = 1 We have been doing things the same way for many years
Rating = 5 We periodically review business practices, processes, procedures and costs to continually improve (every 6-12 months)
23. Do you manage the financial and operating performance of the business by monitoring key performance indicators (KPIs)?
Rating = 1 We don't use KPIs
Rating = 5 We use KPIs in all critical areas of the business
24. How often do you review unexpected or unusual increases in costs?
Rating = 1 Annually
Rating = 5 Monthly
25. Do you benchmark your performance against competitors?
Rating = 5 Periodically
26. How closely do you monitor Accounts Receivable and Accounts Payable and take steps to improve your working capital?
27. Have you considered outsourcing some non-core functions of the business within the past 12-18 months?
Rating = 1 We are not willing to outsource
Rating = 5 If its non-core, our policy is to outsource the activity
28. How strong is your management team? Is the company very reliant on its principals?
Rating = 1 If the principals were absent, the business would stall
Rating = 5 We have a strong management team in place capable of carrying it on in our absence
29. Does your company have a well-designed incentive/bonus plan based on quantifiable criteria (as opposed to a discretionary plan) that aligns company and employee interests and promotes the desired behaviors?
Rating = 1 No. Compensation is mostly fixed salaries. When bonuses are paid, they are based on the judgement of the CEO
Rating = 5 Our people know exactly what is expected of them and that they will be rewarded based on how they perform against those metrics
30. Does your company have financial processes and internal controls to support growth and mitigate fraud and waste?
Rating = 5 Yes, we have robust processes and internal controls
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