How is personal readiness/preparedness assessed?

Personal readiness or preparedness, especially in the context of exit planning, involves evaluating both the psychological and practical aspects that owner-managers must consider before transitioning out of their business. The Common Sense Scoring Scale is designed specifically to assess an owner's readiness on multiple levels, including emotional, strategic, and timing considerations.

This tool takes a holistic view, allowing advisors to gauge not only a business owner's financial readiness but also their mindset and strategic alignment regarding the exit process. Questions posed on this scale may cover aspects such as confidence in personal decisions, quality of the preparation, and the alignment of personal and business goals. Thus, the efficacy of the Common Sense Scoring Scale lies in its ability to provide a nuanced assessment that goes beyond mere financial figures, encouraging a comprehensive evaluation that addresses the multifaceted nature of personal readiness.

Other methods mentioned, such as financial statements, client surveys, and market analysis, may provide insights into financial health or customer perspectives but do not effectively capture the subjective and psychological readiness of the business owner, making them less suited for assessing personal readiness in the context of an exit strategy.