Use this guide to determine whether a business is a transferable enterprise—or just a job with risk.

Key Evaluation Questions

• Does the business generate cash flow *without* the owner working full-time?
• Are there employees, systems, and processes in place?
• Would a buyer need to work 60+ hours/week to maintain current revenue?
• Is there documented goodwill, recurring revenue, or transferable client relationships?
• Could a manager or third party step in and operate the business?

Common ‘Job’ Businesses

• Solo consultants, tradespeople, or creatives
• One-person service firms (e.g., bookkeeping, coaching)
• Personal-brand driven businesses with no staff or SOPs

Indicators of a Transferable Business

• At least one full-time employee (non-owner)
• Documented procedures, CRM, or software systems
• Financials that support hiring a replacement for the owner
• Existing customer contracts or subscription revenue

SBA Underwriting Tip

If removing the owner collapses the business, the deal may be unfinanceable.