Methodology
How the readiness check decides
The check uses ten plain questions and a published rule order. It does not use a statistical model. It does not produce a score.
Result order
- Not yet ready to list if the business has fewer than 12 months of active sales, or average monthly net profit is under $2,000 across the last 12 months (including break-even or losses). The published broker minimum is not an Exit Signal guarantee of acceptance.
- Need more information if a critical answer is “Not sure”. Two or more unknown answers also produce this result.
- Prepare first if any answer could stop a sale, or if two or more answers drag the price.
- Ready to explore otherwise. If one risk or a noncritical unknown remains, the result shows it alongside any positive factors.
The timing question never changes the reading. It only changes how much preparation time may be available.
When the valuation path appears
The Empire Flippers valuation path can appear for Ready to explore or Prepare first, but only when the seller reports at least 12 months of active sales, at least $2,000 average monthly net profit over the last 12 months, and no active Amazon account-health problem. Below-minimum, unknown-profit and short-history answers cannot reveal the valuation path. These are preliminary self-reported checks, not broker acceptance or a promised valuation. Empire Flippers’ published criteria are the authoritative source and may change.
Every question and effect
| Question | Answers that can change the reading |
|---|---|
| Business age | Under 12 months: too early. |
| Average monthly net profit | Under $2,000 (including break-even/loss): below published broker minimum. Not sure: unknown. |
| 12-month profit trend | Down less than 20%: drag. Down more than 20%: blocker. Not sure: unknown. |
| Top-product revenue share | More than 60%: drag. Not sure: unknown. |
| Trademark + Brand Registry | No: drag. Not sure: unknown. |
| Amazon account health | Active warning/suspension/listing block: blocker. Not sure: unknown. |
| Owner hours | 20+ hours/week: drag. |
| 12-month P&L | Spreadsheet-only: drag. No: blocker. |
| Supply chain | One unreliable supplier: drag. Not sure: unknown. |
| Sale timing | Neutral; advice only. |
For this check, net profit means revenue minus normal business costs such as inventory/COGS, Amazon fees, advertising, shipping, and overhead. Owner draws are not automatically a business expense; owner salaries and discretionary adjustments should be reviewed with an accountant or Empire Flippers. The 12-month P&L should reconcile with Amazon payouts and the other bank/account records, rather than treating payouts alone as profit. Use “Not sure” if your calculation is unreliable.
Privacy of the readiness answers
The readiness answers stay in your browser in this candidate build and are not transmitted to Exit Signal. The separate Empire Flippers valuation tool is operated by Empire Flippers and follows their data practices.
Corrections
If something is wrong or out of date, email danny@getexitsignal.com.