Common Sense Scoring

How to Measure Business Readiness — Using Common Sense Scoring for Growth

How ready is your business for the future?
 

If you’re like most owners, your gut might say, “We’re doing fine.” But when it comes to selling, scaling, or succession, fine often isn’t good enough.

The reality is that business readiness isn’t about gut feeling — it’s about proof.

And one of the most effective ways to measure that proof is through a simple yet powerful tool called Common Sense Scoring.


What Is Common Sense Scoring?

Common Sense Scoring is a practical assessment framework introduced by Christopher Snider in Walking to Destiny and taught in the CEPA program.

It’s based on the Value Acceleration Methodology™, helping owners evaluate how prepared their businesses are for transition by scoring six critical value factors across the 4Cs of Value — Human, Structural, Customer, and Social Capital.

The beauty of the system is in its simplicity:

You can’t improve what you don’t measure — and you can’t measure what you don’t define.

The Scoring Scale

Each value factor is scored on a scale from 1 to 6:

6 — Perfect
This area can’t be improved.
 
5 — Best-in-class
Top 10–20% in your market.
 
4 — Above average
Measurable, documented, and proven.
 
3 — Below average
Partially documented but inconsistent.
 
2 — Weak
Informal or undocumented processes.
 
1 — Nonexistent
Not yet on your radar.
 
After rating each factor, you total your points and divide by 36 (the highest possible score). The resulting percentage reveals how ready your business truly is.

  • Below 58%: Below average (red zone) — high risk.
  • 59–66%: Moderate — improving, but not yet attractive to buyers.
  • 67% (Green Zone): Above average — attractive and ready.
  • 72%+ (Blue Zone): Best-in-class — premium multiple potential.


What Does the Score Tell You?

Your readiness score provides a snapshot of both risk and potential.

For example:

  • high Human Capital score shows a strong, independent leadership team.
  • low Structural Capital score signals inefficiency or dependency.
  • balanced score indicates a company that can scale, transfer, and thrive.


By identifying your weakest areas, you can target value acceleration efforts where they’ll have the biggest financial impact.


How Scoring Drives Growth

Common Sense Scoring isn’t just about exit readiness — it’s about growth readiness.
Every point you gain in readiness translates into measurable enterprise value.

Here’s why:

  • Businesses with documented systems and strong leadership can sell for 2–3x higher multiples.
  • A one-point improvement in overall readiness can represent millions in potential value.
  • High-scoring companies attract better talent, retain customers longer, and weather downturns more effectively.


Putting Scoring Into Practice

Here’s how to get started:

  1. Identify your value factors. Choose six elements for each of the 4Cs (e.g., leadership development, customer diversification, documented processes).

  2. Score honestly. Use objective criteria, not emotion — think like a buyer, not an owner.

  3. Document proof. Only “above average” scores if you can prove it.

  4. Target low scores first. These represent your biggest opportunities for growth.

  5. Reassess quarterly. Continuous improvement is the heart of value acceleration.


Many CEPA-trained advisors use this framework as a dashboard, revisiting it every 90 days to track improvement over time.


The Power of Data-Driven Readiness

When you use Common Sense Scoring, you shift your perspective from “How am I doing?” to “How do I prove it?”

This clarity turns uncertainty into action and emotion into measurable progress.
 As Walking to Destiny reminds us:

“What you can measure, you can manage. What you can manage, you can grow.”


In Closing

Whether your goal is to sell, scale, or simply gain freedom, knowing your readiness score is the first step.

Once you can see where your business stands, you can take deliberate, measurable steps toward higher value — and a more significant company.

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