Flowering Readiness Test
A diagnostic assessment to determine whether a company is ready to transition from growth to legacy - whether through exit, IPO, succession, or major transformation.
A diagnostic assessment to determine whether a company is ready to transition from growth to legacy - whether through exit, IPO, succession, or major transformation. The test scores maturity across four 'root systems' that must be deep enough to support the flowering event.
When to Use Flowering Readiness Test
Use when considering major transition (acquisition offer, IPO, succession, mission shift) for companies that are Series B+ OR bootstrapped with 5+ years profitability, have $10M+ ARR (B2B SaaS) or $25M+ revenue, are 5+ years old. Don't use for pre-PMF, unprofitable, or <3 year old companies.
How to Apply
Root 1: Technical/Product Maturity (0-10 points)
Assess product-market fit evidence, defensibility, and self-sustainability
Questions to Ask
- How many years of market presence with what retention rate?
- What moats exist (patents, network effects, technical lead)?
- Could the product sustain 3-5 years without new features?
Outputs
- Product-market fit score (0-3)
- Defensibility score (0-4)
- Self-sustaining score (0-3)
Root 2: Financial Maturity (0-10 points)
Assess profitability, cash flow sustainability, and capital efficiency
Questions to Ask
- Is the company GAAP profitable? What's the net margin?
- How many months of runway or is growth self-funded?
- Can reproduction be funded from cash flow?
Outputs
- Profitability score (0-4)
- Cash flow score (0-3)
- Capital efficiency score (0-3)
Root 3: Market Position Maturity (0-10 points)
Assess market share/dominance, customer loyalty, and competitive position stability
Questions to Ask
- What is market share? Is the company a category definer?
- What is retention rate and NPS?
- Is share growing, stable, or declining?
Outputs
- Market share score (0-4)
- Customer loyalty score (0-3)
- Competitive position score (0-3)
Root 4: Organizational Maturity (0-10 points)
Assess founder independence, leadership bench, and culture/values stability
Questions to Ask
- Can the business operate 1+ months without founder?
- Is there a full executive team with 2+ potential CEOs?
- What is turnover rate? Are values codified?
Outputs
- Founder independence score (0-4)
- Leadership bench score (0-3)
- Culture stability score (0-3)
Interpret Total Score
Sum all four root scores and interpret readiness
Outputs
- 35-40: Deep roots, ready to flower
- 25-34: Budding, strengthen weak roots first
- 15-24: Growing, not ready, build 2-3 more years
- 0-14: Seedling, focus on product-market fit