You wouldn’t list your house without knowing what a buyer will check. Your Shopify store deserves the same preparation.
This checklist walks through all twelve valuation factors, with a simple scoring system you can use to assess your store in under an hour. Print it. Score yourself. Know where you stand before buyers tell you.
Score Your Store Before Buyers Do
The 12-Factor Framework
Score each factor as Strong (2 points), Average (1 point), or Weak (0 points). Total possible: 24 points.
| Category | Factors | Scoring Criteria |
|---|---|---|
| Financial (5) | Growth, Margins, SDE Stability, Revenue Concentration, AOV | Score 0-10 |
| Operational (4) | Traffic, Owner Hours, Age, SOPs | Score 0-8 |
| Risk (3) | Customer Concentration, Platform Dependency, Supplier Dependency | Score 0-6 |
Score interpretation:
- 18-24 points: Premium store. Expect 3.2x-4.0x multiple.
- 12-17 points: Average store. Expect 2.5x-3.2x multiple.
- Under 12 points: Discount store. Expect 1.5x-2.5x multiple.
Financial Factors (5)
1. Revenue Growth Rate
☐ Strong (2 pts): 30%+ YoY growth sustained over 12+ months
☐ Average (1 pt): 10-20% YoY growth
☐ Weak (0 pts): Flat or declining revenue
2. Profit Margin Quality
☐ Strong (2 pts): 25%+ margins held steady for 24+ months
☐ Average (1 pt): 15-25% margins with some fluctuation
☐ Weak (0 pts): Under 15% margins or volatile swings
3. SDE Stability
☐ Strong (2 pts): Monthly SDE variance under 10% with documented patterns
☐ Average (1 pt): Some variance with explainable seasonality
☐ Weak (0 pts): Wild unexplained swings month-to-month
4. Revenue Concentration
☐ Strong (2 pts): No single SKU exceeds 20% of revenue
☐ Average (1 pt): Top SKU at 20-35% of revenue
☐ Weak (0 pts): One SKU above 35% of revenue
5. Average Order Value (AOV)
☐ Strong (2 pts): AOV $75+ with stable or increasing trend
☐ Average (1 pt): AOV $40-$75
☐ Weak (0 pts): AOV under $40 or declining trend
Operational Factors (4)
6. Traffic Diversification
☐ Strong (2 pts): 3+ channels, no source over 40%, majority owned traffic
☐ Average (1 pt): 2-3 channels with moderate concentration
☐ Weak (0 pts): Single-channel dependence or 80%+ from one source
7. Owner Hours
☐ Strong (2 pts): Under 10 hours weekly with trained team
☐ Average (1 pt): 10-20 hours weekly
☐ Weak (0 pts): 30+ hours weekly with no delegation
8. Store Age
☐ Strong (2 pts): 36+ months of consistent revenue
☐ Average (1 pt): 12-36 months
☐ Weak (0 pts): Under 12 months
9. Systems & SOPs
☐ Strong (2 pts): Written SOPs for all core processes
☐ Average (1 pt): Some documentation, gaps remain
☐ Weak (0 pts): Everything in the founder’s head
Risk Factors (3)
10. Customer Concentration
☐ Strong (2 pts): No customer above 10% of revenue
☐ Average (1 pt): Top customer at 10-25%
☐ Weak (0 pts): One customer above 25%
11. Platform Dependency
☐ Strong (2 pts): Multi-platform revenue with owned email list
☐ Average (1 pt): Primary platform + secondary channel
☐ Weak (0 pts): 90%+ from one platform with no backup
12. Supplier Dependency
☐ Strong (2 pts): Multiple suppliers with formal contracts
☐ Average (1 pt): Primary + backup supplier identified
☐ Weak (0 pts): Single supplier with no backup
Factor Weighting Table
Here’s how each factor contributes to your multiple:
| Factor | Strong | Average | Weak |
|---|---|---|---|
| Traffic Diversification | +0.5x | 0x | -0.5x |
| Revenue Growth Rate | +0.4x | 0x | -0.4x |
| Owner Hours | +0.4x | 0x | -0.4x |
| Profit Margin Quality | +0.3x | 0x | -0.3x |
| Store Age | +0.3x | 0x | -0.3x |
| Customer Concentration | +0.3x | 0x | -0.3x |
| Supplier Dependency | +0.2x | 0x | -0.2x |
| Platform Dependency | +0.2x | 0x | -0.2x |
| SDE Stability | +0.2x | 0x | -0.2x |
| Systems & SOPs | +0.2x | 0x | -0.2x |
| Revenue Concentration | +0.2x | 0x | -0.2x |
| Average Order Value | +0.1x | 0x | -0.1x |
How Buyers Score Your Store
Buyers use essentially this same checklist during due diligence. They start at 2.5x, score each factor, and adjust. The final multiple is the sum of your strengths minus your weaknesses.
The power of scoring yourself first: you discover your weaknesses before buyers do. You have time to fix them. You can document what you can’t fix. You enter negotiations knowing exactly where you stand.
Put It All Together
1. Score all twelve factors. Use the checklist above.
2. Calculate your total score. Out of 24 possible.
3. Identify your three weakest factors. These are your biggest discounts.
4. Fix what you can in 90 days. Target the high-impact factors first.
5. Re-score and list. Every improvement adds to your multiple.
Frequently Asked Questions
What score do I need for a premium multiple?
18+ out of 24 points puts you in premium territory (3.2x-4.0x). 12-17 points is average (2.5x-3.2x). Under 12 points means significant discounts (1.5x-2.5x). Most stores score between 10 and 16.
How long does it take to improve my score?
SOPs and AOV can improve in 30-60 days. Owner hours in 90 days. Traffic diversification in 3-6 months. Growth in 3-6 months. A focused 90-day sprint targeting three factors can add 4-6 points to your score.
Should I be honest with my self-score?
Yes—brutally honest. The purpose is to find weaknesses before buyers do. Inflating your score only hurts you. If you’re not sure, score yourself lower. Buyers will be conservative, and so should you.
Can I improve my score without increasing revenue?
Absolutely. SOP documentation, owner hours reduction, supplier diversification, and platform de-risking all improve your score without changing revenue. These are the highest-ROI improvements you can make before listing.
Should I use a broker to score my store?
A broker can provide an objective score and identify improvement opportunities you might miss. For stores over $100K, this analysis often justifies the commission. See our broker guide.
Score Your Store Before Buyers Do