24 Quick Questions | The Numbers Advisors

Answer each of the following questions on a scale of 1 to 6:

1 – I don’t know what you’re talking about.

2 – I’ve thought about it, but really haven’t done anything.

3 – Below average, but I’ve done something and can prove it.

4 – Above average, and I can prove it.

5 – Best in class, top 15-20% of businesses, I have documents in place.

6 – We’re World Class

Are you ready to sell your business?

Death: Do I have a will in place? Do I have a Trust in place? Is there a plan to replace me in the business in the event that I pass away? Key man insurance?

Disability: Is there a plan in place to operate the business if I’m no longer able? Think talent, leadership, and knowledge.

Divorce: Is there a Shareholder or Buy/Sell agreement in place between spouses? Equity split 50/50?

Health: Is there a plan in place to operate the business if I’m no longer able due to health issues?

Accidents: Is there a plan in place to operate the business if I’m suddenly no longer able?

Family Tragedy: Is there a plan in place to operate the business if I had to step away for 3-6 months?

Market Risks: Are my finances structured in a way to allow me to withstand significant swings in the overall market or economy?

Diversification: Does my personal portfolio have a broad enough mix of assets so that one segment doesn’t cause lasting harm to my assets?

Personal Loans / Debt: Is my personal debt structure so leveraged that it would prevent business loans?

Personal Lawsuits: Is there a firewall between my personal and business worlds? Personal Umbrella policy in Place?

Loss of Earning Power: Am I properly insured? Is there a succession plan in place?

Long-term Care: Am I properly insured? Is there a succession plan in place?

Customers: Do I actively manage my client payment terms & A/R? No client provide >25% of my revenue?

Key People: Am I developing key people? Are they capable? Are they motivated to stay? Do they have freedom in the business?

Business Interruption: Do I have a disaster recovery plan in place?

Economy: Do I have 6 months of Operating Capital available excluding personal assets?

Distress: Active A/R management? Proper Financing? Unprofitable clients? Cost controls in Place?

Partner Disagreements: Buy-Sell agreement in place

Business Loans / Debt: Is the business over-leveraged? Does it have the ability to get more financing?

Compliance / Legal Issues: Do I follow all the regulations that apply to my business?

Data / Information: Do I take appropriate steps to protect both my data and my clients’ data?

Owner Dependence: Could I go on vacation for 4 months and still get paid every 2 weeks?

Technology / Machinery: I all equipment maintained correctly? Do I make timely upgrades in equipment?

Environmental / Safety: Do I comply with the regulations that apply to my business?

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