ValuCompass Questionnaire
These questions allow us fully view any business from every angle using our 18 Value Drivers. These Drivers are used as a standard business framework to help identify operational issues within any business and assess the value of your business.
Business Owner's Name
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First Name
Last Name
Business Name
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Advisor Name
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First Name
Last Name
Number of Full-time Employees
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Year Business Established
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Type of Entity
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S Corporation
Sole Proprietorship
Partnership
Limited Liability Company (LLC)
C Corporation
My business objective is to...
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Create Sustainable Growth
Prepare to Sell My Business
Acquire Another Business
Strengthen My Operations
Renovate or Repair my Operations
Align My Team
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Discover Assessment
Let's take a look at your business operations.
Business Capital
Within the next 24 months, will you need access to more capital?
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Yes
No
Do you have a personal financial plan that dovetails your business and personal objectives?
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Yes
No
Discover Core Eighteen Drivers
Let's explore each individual driver.
Growth
Growth refers to a company's top line revenue.
Does the business have a history of consistent growth greater than its competitors, coupled with projected future revenue growth above the market's rate?
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My business is on fire.
We're growing at a good clip.
We're holding steady.
Business is slowing down.
Honestly, things aren't so good right now.
Potential Market
The larger the market (tapped and untapped) the more attractive it is because it represents more opportunities. However, being a leader in a smaller niche is also attractive. Even if you have a true competitive advantage, a growth market is always favored.
Does the market support significant growth of the business?
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Our market is enormous.
Our market is very large.
Our market is pretty big.
Our market is on the smaller side.
Our market is pretty small.
Market Share
If your company sells products or services in more than one market, think about your primary market, or the market that is most fundamental to the success of your company.
Does the business own the highest percentage of the available market relative to its competitors?
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We have the highest share of the market.
We're near the top.
We're right in the middle.
We're one of the smaller players.
We're practically invisible.
Recurring Revenue
A fundamental metric in measuring the value of a business is the degree to which it can generate recurring, profitable revenue from customers. Stick revenue occurs when buyers are compelled to keep purchasing from a company. Contracts are the best way to guarantee future revenue, but other examples include a long-term lease on a high traffic location, a strong loyalty program that rewards future purchases, etc.
Can the business rely on a portion of future revenue from contractually committed customers?
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We have assurances of nearly all future revenue.
We have assurances of more than half our future revenue.
We have some contracts or other reasons why we're confident on future revenue.
We have only a few contracts or other reasons why we're confident in future revenue.
We're not very confident in our future revenue.
Barriers to Entry
Barriers to entry may include legal, capital, and/or market barriers.
Are there significant obstacles facing a new entrant into the business' market?
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It's nearly impossible to break into our market.
It's pretty tough, but doable.
Our market has some notable barriers.
There are a few barriers.
Almost anyone can set up shop.
Product Differentiation
A unique product or service that customers prefer will keep them coming back to you versus someone else, and may allow you to charge more.
Does the business have a product/service with unique characteristics that provide a competitive advantage?
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We offer something completely unique, and that's why customers like us.
We have some important differences.
We offer something different that customers like.
We have a few small things that set us apart.
We look like everyone else.
Brand
A strong brand name that resonates with your customers can add significant value to your company.
Does the business have a recognizable brand that reinforces the business' presence in the marketplace and supports the business' objectives?
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Our brand is everything and everyone knows us.
We have a pretty strong brand that folks recognize.
Our brand is solid but not special.
Our brand isn't very strong.
We don't have a brand.
Margin Advantage
Margins are simply a measure of how efficiently you make money. The better your margins, the more valuable your company.
Does the business enjoy gross and net margins greater than the industry norm?
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Yes, we're printing money compared to our competitors.
Our margins are better than most.
Our margins are solid, like everyone else's.
We're making money but less than most.
We're struggling to make any money.
Customer Share
Valuable companies have many different customers including long term customers, new customers, and developing customers. You want to avoid putting all your eggs in one basket (or just a few baskets) to minimize risk.
Does the business have a well-diversified customer base?
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We have so many customers we won't lose sleep if a few leave.
We can lose a few customers and still be fine.
We can lose some customers but we'll feel it.
It would be really tough if we lost even one customer.
If any of our customers left, we'd be out of business.
Business Overview
Think about the culture of the company as a whole, versus the personality of any one individual within the company.
Can an outsider easily obtain a holistic understanding of the business, including the business' performance, practices, culture, discipline, and mission?
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Yes, our business is very easy to figure out.
One could figure it out with some digging.
Some stuff is easy to figure out, the rest probably not.
It wouldn't be easy.
It would be nearly impossible.
Financial
Effective financial practices should adhere to accounting best practices and federal and state compliance regulations, while remaining in line with your long-term goals and future growth plans. Your objective here is to establish consistency and transparency in financial reporting.
Are all of your business' financial matters in order and do you follow best practices?
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Yes, and we would be 100% comfortable if we were audited.
We're pretty on top of our finances.
We' do an OK job of managing our finances.
We could do a better job of managing our finances.
We don't pay much attention to our finances beyond how much money we have in the bank.
Sales and Marketing
Sales and marketing success is driven by more than just persuasive personalities. It requires a process-driven approach that is customer-focused while supporting overall company goals.
Can the business produce revenue in a proven and systematic way, ensuring the business is sustainable and not simply based on the efforts of individuals within the business today?
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We have an effective sales and marketing process that anyone can learn.
We have a sales and marketing process, but it would take time for someone to learn it.
We have a sales and marketing process, but our success is more about our people.
We're pretty reliant on a few sales and marketing people, but we could get by if they left the business.
If our key sales or marketing folks left, we would have some big problems.
Operations
Running a business will always be challenging. building a solid foundation of smoothly operating practices can make it much easier to scale and maintain.
Does the business have the ability to deliver on the sales promises made to the marketplace and to deliver in a systematic and process-driven manner?
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Yes, our business runs like a well-oiled machine.
We're pretty good.
We do an OK job.
We could do a better job.
We could really use some help.
Customer Satisfaction
Simply put, satisfied customers are loyal customers. They drive repeat business and revenue, both of which are essential to the longevity of the business.
Does the business track and use key measures to meet customer expectations at all levels?
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Yes, we know exactly how we're doing with our customers at any point in time.
We have a pretty good idea most of the time.
We have the ability to check when we need to.
Not completely sure.
We really don't know.
Senior Management
Think about who would run the company for an extended period of time if the business owner disappeared for a while (got sick, took a long vacation, etc.). Do you have someone or a team in place who could take over if needed? If your management team is simply an individual, assume your senior management team is just that individual.
Does the business have a leadership team/individual in place to realize the business' vision and mission while helping the owner achieve his/her objectives?
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Yes, we have an outstanding management team.
We have a very good management team.
Our management team is pretty solid, most of the time.
Our management team isn't always clicking.
We could, but don't really have a management team, or our team is a bit dysfunctional.
The business doesn't have any other employees besides the business owner.
Human Resources
Simply said, Human Resources is all about people. It can be sticky, difficult, full of legal land mines, and if not managed properly, can be very costly to an organization. It's worth spending some time here to make sure you're following best practices, you're in compliance with all relevant (and ever changing) laws, and properly managing and nurturing one of your company's most important assets!
Does the business have the ability to find, develop, and retain quality individuals that enables success in all aspects of the business?
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Yes, we can easily find, hire, and retain the best of the best, if and when needed.
We're pretty good.
We're OK.
We can use some help.
HR is a problem for us.
The business does not have any other employees besides the business owner.
Legal
There's nothing like legal problems to distract you from your mission. From tax law to human resources, proper legal compliance applies across many facets of the business.
Do you have all legal matters in order, documented, and does the business follow best legal practices?
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Yes, we are completely buttoned up.
We're pretty good.
We're doing an OK job.
We could do a better job.
Legal matters are a bit of a headache for us.
Innovation
The one constant in business is change. The more your company encourages and rewards innovation at every level, the more you will be able to stay ahead of changes and continue to prosper.
Does the business understand that innovation is invaluable to creating an ongoing competitive advantage and does it have a proven and systematic way to drive and capture innovation at all levels and encourages innovation in every area of the business?
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Yes, we drive and capture innovation at every level within the organization.
We're pretty good at encouraging and capturing innovation.
We recognize good ideas when they bubble up.
We look at new ideas, but tend to just stick with what's working.
We don't put a lot of energy into new and unproven ideas.
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Protect Assessment
Understanding the business' value lays the foundation for your business and personal protection planning. Next is to determine if you have any risks that could impact the viability of the business and impact your current and future financial outlook.
Business Funding Your Retirement?
Will you be reliant on the business in some capacity to help fund your retirement?
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Yes, I will be reliant on the business to help fund my retirement.
No, I will not be reliant on the business to help fund my retirement.
Reliant on the Business
How will you be reliant on the business to fund your retirement?
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I will need the proceeds from the sale of the business.
I will continue to work part-time in the business.
I will earn a "consulting fee" from the new ownership team.
I will continue to receive a salary from the business even though I am no longer working in it.
I will always maintain an ownership stake in the business.
Have Outside Assets
Do you have assets outside the business to fund retirement?
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Yes, I have assets outside the business to fund retirement.
No, I do not have assets outside the business to fund retirement.
Have Outside Income
Do you have income outside the business to fund retirement?
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Yes, I have income outside the business to fund retirement.
No, I do not have income outside the business to fund retirement.
Protecting Your Standard of Living
You can't protect what matters most without protecting who matters most. The business is most likely your largest asset and your main source of income - today and into the future. It's important to ensure your loved ones are protected financially regardless of whether the business is part of that future or not.
How will you protect your standard of living? Check all that apply.
I have a sufficient emergency fund saved (minimum 6 months total income, liquid)
I have life insurance
I have disability income insurance
There are people in the business that could step in and run it while I'm away and pay my salary
My spouse makes good money
Family Members Involved
Do you have family members involved in the business?
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Yes, I have family members involved in the business.
No, I do not have family members involved in the business.
Multiple Family Members
Do you plan to leave the business to multiple children?
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Yes, I plan to leave the business to multiple children.
No, I do not plan to leave the business to multiple children.
Dividing Family Ownership
How do you plan on dividing up the ownership interest in the business between multiple children?
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Equally divided, regardless of each child's involvement in the business
Those working in the business get ownership
The children can figure it out themselves
I don't care, it won't be my business anymore
Ownership Partners
The business may be vital to the livelihoods of your family, your employees, and your community. Protecting it helps ensure that the business continues to thrive when planned, or unplanned, obstacles come along and offer peace of mind to those who depend on it most.
Do you have ownership partners?
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Yes, I have ownership partners.
No, I do not have ownership partners.
Business Overhead Insurance
Do you have Business Overhead Expense insurance to keep the lights on should an owner be out of work for an extended period of time?
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Yes, I have business overhead expense insurance.
No, I do not have business overhead expense insurance.
Buy-Sell Agreement
Do you have a buy-sell agreement?
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Yes, I have a buy-sell agreement.
No, I do not have a buy-sell agreement.
Buy-Sell Agreement Funded
Is the buy-sell agreement funded?
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Yes
No
Buy-Sell Agreement Funding
How is your buy-sell agreement funded? Check all that apply.
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Life Insurance
Disability buy-out insurance
Cash flow from the business
Installment payout
Loan payout
Buy-Sell Life Insurance Type
What type of life insurance is funding your buy-sell agreement?
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Term
Permanent
Buy-Sell Life Insurance Value
What is the value of the life insurance that is used to fund your buy-sell agreement?
Buy-sell life insurance death benefit
Disability Buy-Out Insurance
What is the value of your disability buy-out insurance?
Disability Buy-Out insurance value
Buy-Sell Agreement Signed
Is the buy-sell agreement signed?
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Yes
No
Buy-Sell Agreement Reviewed
When was the buy-sell last reviewed?
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Less than 1 year ago
1-3 years ago
More than 3 years ago
Other Business Insurances
Do you have any of these other types of business insurances in place? Check all that apply
Workers Compensation
Commercial P&C Insurance
General Liability Insurance
Professional Liability (E&O) Insurance
Employment Practices Liability Insurance
Key Employees
A key employee can be defined as someone working on the business today that you would take with you if you were to leave your current business and start a new one. You started the business with a set of values that turned a passion into a successful enterprise. That's why it's important that the key people you depend on most for its success and those who will eventually represent the next generation of leadership are committed to the continuity of that vision.
Do you have key employees?
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Yes
No
Key Employee Salary
What is the total of all of our key employee's salaries?
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Loss of Key Employee
What is in place to protect the business from the loss of a key employee? Check all that apply
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Key employee life insurance
Key employee disability insurance
Currently don't have any protection in place
Key Employee Life Insurance
What is the value of your key employee life insurance?
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Key employee life insurance death benefit
Key Employee Disability Insurance
What is the value of your key employee disability insurance?
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Key employee disability insurance benefit
Key Employee Loyalty
Do you offer benefits designed specifically to keep your employees loyal?
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Yes
No
Key Employee Benefits
What benefits designed specifically to keep your key employees loyal do you offer? (Check all that apply)
Generous salary with incentive compensation
Pension/profit sharing plan
Non-qualified deferred compensation
Executive Bonus Plan
Split Dollar Plan
Individual Disability Income Insurance
Supplemental Life Insurance
Employee Benefits Package Reviewed
When was the last time your employee benefits package was reviewed?
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We review it every year
Within the last 3 years
Within the last 10 years
More than 10 years ago
Succession Plan In Place
Do you have a written and communicated succession plan in place?
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Yes
No
Successor Identified
Have you identified a successor to the business?
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Yes
No
Successor Informed
Has your chosen successor been made aware that they are taking over the business?
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Yes
No
Successor Ready Today
Are you confident in your chosen successor's ability to take over the business today if he/she were forced to?
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Yes
No
Ideal Exit Strategy
What is your ideal transition strategy?
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Gift the business to a family member
Sell the business to an inside buyer, such as a key employee, the business partner, or a family member
Sell the business to an outside buyer
Take on a private equity partner
ESOP
Liquidate the business
I don't ever plan to leave
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Roadmap Assessment
This assessment addresses the business stage, your planning goals, and action plan for attaining those goals.
Business Stage
What stage would you consider the business to be in?
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START-UP - operating for under 2 years, usually self-funded. Solely reliant on founder for success. Negative cash flow with a reliance on debt financing.
GROWTH - operating for 4 years or more. Ownership reinvesting profits back into business to diversify and expand. Positive cash flow with rapid revenue growth.
MATURE - Well established in industry. No longer reliant on founder for success with management team in place. Positive cash flow with flat revenue.
TRANSITION - strong market position and efficient operations. On the brink of being sold or transferred. Ownership team ready to exit and do something else.
What do you estimate the business is worth today?
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Business Goals
What are your current short to medium-term goals for the business? (select no fewer than 3 and no more than 5)
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Cash, Capital, and Liability Management - Review assets and liabilities and strategies for obtaining and managing financing and credit relationships.
Evaluate Entity Structure - ensure my current entity structure is appropriate in terms of meeting my business needs and tax circumstances.
Grow My Business - grow the value of my business, either by organic strategic development or acquisition.
Liability Protection - Minimize liabilities and develop and maintain business continuity.
Protect My Business - Protect the current value of my business by minimizing business, personal and financial risk.
Employee Benefits - Review and update my employee benefits package, including retirement savings vehicles, protection products, fringe benefits, cafeteria plans, and health insurance.
Key Employee Planning - Implement strategies to attract and retain top talent as well as protect the business from the loss of a key employee.
Build a Strong Management Team - Develop a team of leaders who makes me as redundant as possible.
Business Transition and Succession Planning - Implement a succession plan that allows for an orderly and efficient transfer of ownership in the event of disability, death, retirement or other triggering event, including buy-sell agreements and sources of funding.
Enhance the Transferability of My Business - Improve the operational areas in my business to make it more attractive and sellable to potential acquirers.
Begin Intergenerational Transfer - Begin to embark on a strategy to select and train a successor and systematically transfer ownership of the business to the next generation.
Exit Phase Planning- Focus on my goal of exiting the business by developing a roadmap and timeline for transition.
Personal Capital Management - Coordinate the business goals with my personal estate and protection planning as well as determine the appropriate exit strategy to achieve my retirement income goals.
Create a Plan for the Distribution of the Assets in my Estate - Create a plan that is both fair and equitable to all my heirs, including those active in the business and those not, and helps ensure the continuity of my business and maintains family harmony.
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