How are you set up for growing profits and value, and for making your business easier to run? Rate yourself on these traits of top-performing companies.

1Predictable Profits & Cash Flow

Effective Senior Leadership

You have an effective leadership team and the business can run smoothly in your absence.

The business runs smoothly in my absence
Partly true
Not really
No

People: Productive and Loyal

Your employees are productive and loyal.

Everyone nails their goals and people tend to stay a long time
Partly true
Not really
Both are a real problem

High Percentage of Recurring Revenue

You have a high percentage of recurring revenues.

We have written agreements for more than 80%
Partly true
Not really
We have written agreements for less than 20%

Strong Margins

You generate gross and net margins above the industry norm.

We do, and have data to prove it
Partly true
Not really
We don't know

Financial Reporting Processes

You have strong financial reporting processes.

We follow industry best practices and track our KPIs.
Partly true
Not really
No

Scalable Sales Process

You use a documented sales process.

We have a documented sales process that everyone follows
Partly true
Not really
We have people but no process used by all

Strong SOPs

You have documented operational processes.

We have documented processes for delivering on time and to spec
Partly true
Not really
We don't have documented processes

High Customer Satisfaction

You track customer satisfaction.

We collect and use customer satisfaction data
Partly true
Not really
Rarely

2Predictable Sustainable Growth

Strategic Vision, Planning, and Execution

You have a written vision, mission and strategy with the capacity to execute.

We have all 3, and use them
Partly true
Not really
We don't, or we don't know our capacity

Strategic Culture

You have a strong culture that you actively nurture.

Our culture drives our success
Partly true
Not really
We don't actively work on culture

People: Hiring and Training

You can easily hire and train new employees.

We easily find the right people who become productive quickly
Partly true
Not really
Both are a real problem

Large Market Size

The market supports significant growth of your business.

We can prove there’s a huge market for what we do
Partly true
Not really
We don't have any data

Unique Products/Services

Your products and services are unique.

We're totally unique and compete on value not price
Partly true
Not really
We're like everyone else

Scalable Marketing Process

You use a documented marketing process.

We produce leads in a proven and systematic way
Partly true
Not really
Our marketing is not methodical

Financial: Budget, Forecast, Actuals

You manage the business using a budget.

We use a budget and track forecasts vs actuals
Partly true
Not really
Never

Innovation Creates a Competitive Advantage

You foster innovation in every area of the business.

Innovation is a key competitive advantage for us
Partly true
Not really
We don't foster innovation

3Predictable Transferable Value

Strategic: Business Story

You have a document a lender or investor could read and get a complete understanding of your business.

We do and it's up to date
Partly true
Not really
We don't

Financial: Accurate and Credible Financial Reports

Your business financial reports and filings are accurate.

Our financial reports could easily be audited or used to support M&A
Partly true
Not really
We don't know

Legal: IP, Contracts, Governance and Litigation

Your legal house is in order.

Absolutely confident
Partly true
Not really
Legal is a problem

High Growth Compared to Market

Your business is growing faster than its competitors.

Yes and we can prove it
Partly true
Not really
We don't have any data

Large Market Share

You have defined your market and niche and have data showing you have dominant market share.

We have data proving our dominant market share
Partly true
Not really
We don't have any data

Broad Customer Base

Your business generates revenue from a large number of customers.

We have a good spread of customers
Partly true
Not really
We get most of our sales from one customer

Defensible Market

You can defend your market and future revenues from new competitors.

We have several defined and defensible reasons
Partly true
Not really
Anyone can play

Strong Brand

Your brand is a valuable competitive tool.

Our brand is a strategic asset
Partly true
Not really
No real brand

Bonus: Strength of M&A Market

Bonus: The market for selling your business is strong.

Our plans consider how the market impacts our equity value
Partly true
Not really
We don't track this