Exit Readiness

Exit Readiness Assessment

Monthly variance reports or board reports

Yes, we use cloud-based accounting software

Yes, we use desktop-based accounting software

No, we manage our finances manually (e.g., spreadsheets)

No, we outsource all accounting and do not access the software directly

Yes, with historical accuracy and board review 

Full accrual basis with supporting schedules (e.g., deferred revenue, accrued expenses, prepaid items, etc.)

Full accrual basis (both revenue and expenses are recorded when earned or incurred)

Accrual basis for revenue only (revenue is recorded when earned, but expenses are recorded when paid)

Cash basis (record revenue and expenses when cash is received or paid)

Yes, fully defined and documented with metrics tracked at each stage

Partially defined, with some documentation and occasional tracking

Loosely defined or tribal knowledge, but not written down or followed

5+ channels performing and converting consistently

3–4 channels converting with some variability

1 channel converting well, others inactive or underperforming

No, we are utilizing all relevant and proven channels in our category

We’ve identified a few we haven’t tapped yet

Yes, multiple key channels remain untapped or unexplored

Not sure / haven’t evaluated competitor GTM strategies

Extremely defendable — we have proprietary IP, strong brand loyalty, exclusive contracts, or network effects

Very defendable — multiple layers of defensibility such as high switching costs, proprietary processes, or recurring locked-in customers

Moderately defendable — clear niche or differentiation but no hard barriers to entry

Somewhat vulnerable — commoditized offering with minimal customer stickiness

No defensibility — easily replicated or replaced product/service