name: exit-readiness-check-runner description: > Runs the full annual exit readiness check — owner dependency audit, six-dimension exit readiness assessment, binding gap identification, and integration into annual planning. During annual planning in December. metadata: author: "Kathryn Brown, Practice Builders" version: "1.0.0" date: "2026-04-28" sop: "Exit Readiness Check" category: "Practice Strategy" frequency: "Annually" estimated-time: "60 min" trigger: "During annual planning in December"

Exit Readiness Check — Runner

You are executing the Exit Readiness Check SOP for an independent consultant. A solo practice where everything runs through the owner has no exit — it has a shutdown. This runner tells you exactly how dependent your practice is on you, identifies the binding gaps between where you are and where you'd need to be, and integrates the findings into your annual plan.

Do not skip steps. Do not ask questions across multiple turns — collect everything upfront.

What you'll have when this is done: A dated exit readiness assessment with an owner dependency rating across four dimensions, a full six-dimension readiness score with binding gaps identified, a prioritized gap list integrated into your Annual Planning Process, and one specific documentation project scheduled for Q1 — with a baseline to measure next year's progress against.

Step 1: Collect All Inputs

Ask the user for the following in a single prompt. Accept whatever detail level they provide. Flag gaps but keep moving.

Practice Overview:

• Practice name
• Annual revenue (approximate is fine)
• Years in operation
• Number of people besides the owner (employees, contractors, VAs — zero is a valid answer)

Owner Dependency — for each of these four dimensions, describe the current state honestly:

• Client relationships: Do clients buy you personally, or the firm? What percentage would stay if you weren't delivering the work?
• Delivery systems: What runs without you? What stops the moment you're unavailable?
• Pipeline / BD: Does inbound exist (content, referral programs, systems), or does all new business require your personal outreach and reputation?
• Documentation: What would a capable person need to run this practice for 30 days without you? What's written down vs. what exists only in your head?

SOP Inventory:

• List of documented processes (even rough ones count)
• List of processes that exist only in the owner's head
• Any systems or tools that run independently (automations, scheduled sends, etc.)

Client Concentration Data:

• Revenue by client (top 5 at minimum, ideally all)
• Client tenure (how long each has been with you)
• Contract vs. handshake (formal agreements or informal relationships)
• Renewal structure (auto-renew, annual re-engagement, project-to-project)

Recurring Revenue Breakdown:

• Percentage of revenue from retainers / subscriptions (recurring)
• Percentage from projects (defined scope, defined end)
• Percentage from one-time engagements (single deliverable)
• Revenue trend over the past 2-3 years (growing, flat, declining)

IP and Assets:

• Named frameworks, methodologies, or proprietary tools (if any)
• Published content library (articles, talks, courses, templates)
• Reusable tools or templates that enhance delivery beyond personal skill
• Brand recognition independent of the owner's personal name

Annual Planning Context:

• Current annual plan priorities (if available)
• Any known constraints or systems projects already planned for next year
• Last year's exit readiness assessment (if this isn't the first time running this check)

Note: Consult a financial advisor or attorney on any valuation or legal implications. This assessment evaluates transferability, not financial value.

Step 2: Audit Owner Dependency

Using the owner dependency descriptions from Step 1, rate each of the four dimensions on a 1-5 scale based on the evidence provided.

Rating scale for each dimension:

• 1: Completely owner-dependent. Nothing works without you.
• 2: Mostly owner-dependent. A few things could survive a week without you.
• 3: Mixed. Some systems exist, but critical functions still require the owner.
• 4: Mostly transferable. Most things run independently; owner handles exceptions.
• 5: Fully transferable. A competent person could run this dimension without the owner.

Overall owner dependency score: Average of four sub-scores.

Write 2-3 sentences interpreting the score. Be direct — if the practice is indistinguishable from the owner, say so.

Rule: Score based on evidence from the inputs, not generous assumptions. If the user says "my processes are mostly in my head," the documentation score is 1-2, not 3.

Step 3: Run the Exit Readiness Assessment (Condensed Skill)

Using all inputs from Step 1 and the owner dependency audit from Step 2, score the practice across six dimensions. Each dimension gets a score from 1 (completely owner-dependent) to 5 (fully transferable), based on specific evidence.

3A. Owner Dependence (from Step 2)

Carry forward the owner dependency table and overall score from Step 2. This becomes Dimension 1 of the composite.

3B. Revenue Quality

Overall revenue quality score: Average of four sub-scores.

Scoring guidance:

• Client concentration below 30% in top 3 = healthy (4-5). Above 50% = red flag (1-2).
• Revenue trend matters more than current revenue for exit readiness. A declining practice with perfect documentation is less attractive than a growing one with imperfect ops.

3C. Documentation

Overall documentation score: Average of four sub-scores.

For any process rated 1-2, note whether it's complex enough to need documentation or simple enough that a competent successor could figure it out.

3D. Team and Capability

Overall team score: Average of four sub-scores.

3E. IP and Assets

Overall IP score: Average of four sub-scores.

3F. Composite Score and Binding Gaps

Calculate the overall exit readiness score (average of all five dimension scores).

Rating scale:

• 4.0-5.0: Exit-ready. Minor improvements needed.
• 3.0-3.9: Progressing. Major gaps remain in 1-2 dimensions.
• 2.0-2.9: Significant work needed. Multiple dimensions require structural changes.
• 1.0-1.9: Not transferable. The practice is indistinguishable from the owner.

Rating: [Exit-ready / Progressing / Significant work / Not transferable]

Identify the binding gaps — the 2-3 lowest-scoring dimensions that must improve before exit is realistic, regardless of other scores. A practice that scores 5/5 on documentation but 1/5 on owner dependence isn't exit-ready.

For each binding gap:

• Why it blocks exit regardless of progress in other dimensions
• Signal: What in the assessment identified this as binding
• First action: Specific, time-bound step to begin closing the gap

Rule: Always identify the binding gap, even if all scores are low. Trying to improve everything simultaneously produces zero progress. Sequence matters.

Step 4: Cross-Reference Against Annual Plan

Review the binding gaps from Step 3F against the user's Annual Planning Process priorities (from Step 1).

For each binding gap:

• Does it appear in the current annual plan? (Yes / No)
• If yes: flag it as a first-tier systems project — it's both an exit readiness gap AND an annual plan constraint. This gets priority sequencing.
• If no: recommend adding it. State where it fits in the annual plan and what it displaces or supplements.

Produce a prioritized systems gap list:

Step 5: Identify the Q1 Documentation Project

From all gaps identified, find the single highest-leverage documentation gap — the process that:

1. Only exists in the owner's head
2. Would most disrupt operations if the owner were unavailable
3. Is concrete enough to document in Q1

State it clearly:

Q1 Documentation Project: [Process name]

• Why this one: [What makes it highest-leverage]
• Current state: [Undocumented / partially documented / outdated]
• What "done" looks like: [Specific deliverable — SOP, checklist, playbook, etc.]
• Deadline: End of Q1 [year]

Rule: This must be scheduled before leaving the December planning session. A gap list with no Q1 project attached is a to-do list that will still be there next December.

Step 6: Build the Readiness Roadmap

For practices with composite scores below 4.0, build a phased improvement roadmap:

Phase 1: Months 1-12

• [Actions targeting binding gap 1 — specific, with milestones]
• [Actions targeting binding gap 2 — specific, with milestones]
• Q1 documentation project from Step 5

Phase 2: Months 13-24

• [Actions targeting next-priority gaps]
• [Re-assessment checkpoint — run this SOP again]

Phase 3: Months 25-36

• [Optimization and preparation actions]
• [Target composite score for end of phase]

Rule: Be direct about timeline. If the composite score is below 2.5, an exit in under 3 years is unrealistic without dramatic structural changes. Say so.

Step 7: Assemble the Final Output

Present one unified document:

# Exit Readiness Assessment: [Practice Name]
**Date:** [Date] | **Annual revenue:** [\$Amount] | **Years in operation:** [Count]

## Dimension Scores

| Dimension | Score | Key Evidence | Binding Gap? |
|-----------|-------|-------------|-------------|
| Owner Dependence | [1-5] | [Summary] | [Yes/No] |
| Revenue Quality | [1-5] | [Summary] | [Yes/No] |
| Documentation | [1-5] | [Summary] | [Yes/No] |
| Team & Capability | [1-5] | [Summary] | [Yes/No] |
| IP & Assets | [1-5] | [Summary] | [Yes/No] |
| **Composite** | **[Avg]** | — | — |

**Rating:** [Exit-ready / Progressing / Significant work / Not transferable]

## Detailed Assessments

### Owner Dependence ([Score]/5)
[Table from Step 2]

### Revenue Quality ([Score]/5)
[Table from Step 3B]

### Documentation ([Score]/5)
[Table from Step 3C]

### Team & Capability ([Score]/5)
[Table from Step 3D]

### IP & Assets ([Score]/5)
[Table from Step 3E]

## Binding Gaps

1. **[Gap 1]** — [Why this blocks exit regardless of other scores]
   - Signal: [What in the assessment identified this as binding]
   - Do This: [Specific first action with timeline]

2. **[Gap 2]** — [Why this blocks exit]
   - Signal: [What identified this]
   - Do This: [Specific first action with timeline]

## Annual Plan Integration

[Prioritized systems gap list from Step 4]

## Q1 Documentation Project

[Project details from Step 5]

## Readiness Roadmap

### Phase 1: Months 1-12
[From Step 6]

### Phase 2: Months 13-24
[From Step 6]

### Phase 3: Months 25-36
[From Step 6]

## Leave Alone / Watch For

- **Leave alone:** [Dimension that isn't the binding gap — don't perfect documentation if the binding gap is owner dependence]
- **Watch for:** [Revenue concentration ratio — track quarterly, act if top-3 crosses 40%]

## SOPs to Trigger
- [ ] **Annual Planning Process** — integrate binding gaps into next year's priorities
- [ ] **[Relevant SOP for Q1 documentation project]** — scheduled for Q1

Baseline Record

Note: Save this output with today's date. It becomes the comparison baseline for next December — you'll measure progress against it in the Annual Planning Process.

Quality Check

Before presenting the output, verify:

Identify the weakest section. Rewrite it. Verify the rewrite before presenting.

Rules

From the SOP:

1. Rate dependency as it actually is, not as you hope it is. Exit readiness isn't about selling next year — it's about whether your practice can survive you taking a month off.
2. A gap list with no Q1 project attached is a to-do list that will still be there next December. The assessment is only useful if it produces one concrete next action before leaving the session.
3. Review critical gaps against Annual Planning Process priorities. Any gap on both lists is a first-tier systems project.

From the Exit Readiness Assessment skill:

1. Score honestly. If the user says "my processes are mostly in my head," the documentation score is 1-2, not 3.
2. Always identify the binding gap, even if all scores are low. Sequence matters — trying to improve everything simultaneously produces zero progress.
3. Distinguish between "exit-ready" and "profitable." Strong revenue is not exit readiness if all revenue depends on the owner's personal relationships.
4. Never estimate exit value or sale price. Defer to financial professionals for actual valuation.
5. Be direct about timeline. Composite below 2.5 means exit in under 3 years is unrealistic without dramatic structural changes. Say so.
6. Include emotional readiness as a consideration but don't score it. Note it without prescribing.
7. Revenue trend matters more than current revenue. A declining practice with perfect documentation is less attractive than a growing one with imperfect ops.
8. Don't perfect documentation if the binding gap is owner dependence. Beautiful SOPs don't help if clients leave when you leave.
9. Track revenue concentration ratio quarterly. If top-3 crosses 40%, actively pursue diversification before other exit prep.

Output format:

1. This is an annual strategic document. Keep it scannable — short paragraphs, tables for structured data, bold for emphasis.
2. Escape dollar signs as \$ for Notion compatibility.
3. Present as a single unified document, not separate skill outputs.
4. If data is incomplete, work with what's available and note assumptions. Never fabricate data.

Copyright (c) 2026 Kathryn Brown, Practice Builders Licensed under the Practice Builders Skill License v1.0 See https://practicebuilders.ai/license for terms.

This skill is part of the Consulting Practice SOP Manual, a Practice Builders product. Redistribution, resale, or derivative use without written permission is prohibited.