The Business Lifecycle Vulnerability Audit

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100% confidential and anonymous

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Takes exactly 2 minutes (7 quick questions)

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Includes a private stage-specific action plan

Stage 1

The Danger Zone (Critical Risk)

0–20 points

Stage 2

The Vulnerable Founder (Moderate Exposure)

25–45 points

Stage 3

The Operator (Low Risk)

50–70 points

Your answers place you in one of these three stages. Nobody sees your result but you.

From the publishers of the Senior Partner Finance Series.

How to Read a Financial Report Like a Senior Partner

1 / 7

[Cash Flow] If your largest client delayed payment by 45 days, what is the immediate impact on your operations?

None. We maintain 3 to 6 months of liquid cash reserves.

It would be tight, but we could manage using our overdraft/credit lines.

We would struggle to make payroll or have to take on emergency debt.

2 / 7

[The Exit] Do you currently know the exact multiple (valuation) a buyer would pay to acquire your business today?

Yes, we run an annual valuation and optimize our EBITDA specifically for a future exit.

I have a rough guess based on revenue, but nothing formal.

No, I haven't thought about exiting. I'm just trying to survive this quarter.

3 / 7

[Systems Dependency] If you (the owner) were completely incapacitated and could not work for 30 days, what would happen to the business?

It would run seamlessly. Standard Operating Procedures (SOPs) govern daily tasks, and a manager handles delivery.

It would survive, but growth would stop and balls would be dropped.

Revenue would immediately halt. The business is 100% dependent on me.

4 / 7

[Payroll] Are you absolutely certain your current payroll structure is 100% compliant with the latest IRS/HMRC regulations regarding employee vs. contractor classification?

Yes, we use compliant software and our classifications are regularly audited.

I think so, but I handle it myself and regulations change quickly.

No, I am worried we might fail an audit and face back-tax penalties.

5 / 7

[Margins] Over the last 12 months, how accurately have you tracked your true “Net Profit Margin” against your industry average?

We review it monthly; we are currently beating the industry average.

We check it quarterly or at year-end, but I'm not sure how we compare.

I look at top-line revenue and the bank balance. Margins are a blind spot.

6 / 7

[Debtor Days] How systematized is your accounts receivable (A/R) collection process?

Fully automated. Invoices go out instantly, and automated reminders chase late payments at 15 and 30 days.

Mostly manual. I or my assistant chase payments when cash gets tight.

We don't have a system. We have outstanding invoices sitting unpaid for over 60 days.

7 / 7

[Tax Provisioning] How do you currently provision for your end-of-year corporate tax liabilities?

We automatically transfer a fixed percentage of revenue into a separate tax-reserve account every month.

We leave cash in the main operating account and hope it covers the bill.

Tax season is usually a scramble; we often have to dip into personal funds or loans to cover the bill.