# Founder decision readiness diagnostic: 12-question scoring tool

**Scope:** US pre-seed to Series A businesses, usually 2–50 employees. Evidence reviewed 28 October 2026. Advice is about the *process*, not a promise of an outcome.

## What the score means

This is a **structured self-assessment developed for this desk**, not a psychometrically validated instrument or a prediction of startup success. Use it before a pivot, fundraise, executive hire or market-entry decision. Answer for **one named decision only**; do not give your whole company a generic readiness score.

**Scoring:** For each of the 12 statements choose **A = 0 points**, **B = 1 point** or **C = 2 points**. Total possible **0–24 points**. If a critical legal issue or data breach risk is present, apply the hard-stop escalation regardless of total score.

| # | Question | A — 0 | B — 1 | C — 2 |
|---|---|---|---|---|
| 1 | Is the decision written as a question with a date? | Vague goal | Defined but no deadline | Clear choice, accountable owner, deadline |
| 2 | Are at least three credible alternatives recorded? | Only my preference | Two partly explored | Status quo + meaningful alternatives tested |
| 3 | Does customer evidence include recent actual behaviour? | Opinions/praise only | Some interviews | Paid/observed signals and contrary cases |
| 4 | Is cash runway reconciled to actual commitments? | Guess | Spreadsheet not checked | Finance-reviewed base/downside case |
| 5 | Can the first step be reversed without disproportionate loss? | No idea | Partially | Bounded experiment with stop-loss |
| 6 | Is there a named condition that would change your mind? | No | Informal | Measurable threshold and date |
| 7 | Has someone with no stake challenged the preferred choice? | No | Informally | Dissent written and reviewed |
| 8 | Are investor, adviser and supplier conflicts mapped? | Unknown | Verbal disclosures | Written interests and reporting rights |
| 9 | Are financing, employment, legal and other specialist risks screened? | No | Suspected | Reviewed / counsel route identified |
|10 | Are confidential inputs and AI processing controlled? | Unknown | Policies assumed | Approved data flow and retention rules |
|11 | Is the communication and approval path clear? | No | Partial | Team/board authority and comms recorded |
|12 | Is there a review checkpoint and assigned owner? | None | Date but no metrics | Owner, metrics, stop/persist rules |

YC's pivot guidance and interview lecture support the *concept* of explicit learning and sound customer evidence, while this specific scoring scale is the desk's own editorial design. [All about pivoting — Y Combinator](https://www.ycombinator.com/library/6p-all-about-pivoting) [How To Talk To Users — Y Combinator](https://www.youtube.com/watch?v=z1iF1c8w5Lg)

## Results and recommended action

| Score | Label | Interpretation | Next step |
|---|---|---|---|
| **0–7** | Not yet framed | High chance of an avoidable process failure; missing basic inputs | Do a one-page decision brief and 13-week cash check before committing |
| **8–14** | Hypotheses, not yet evidence | Some facts exist but contradiction, authority or downside is unclear | Run the Pre-Mortem Workbook and test two most material assumptions |
| **15–20** | Decision-ready with gaps | A credible basis exists but crucial objections may be unresolved | Commission a bounded independent review only for the missing high-cost issue |
| **21–24** | Process well documented | Good decision hygiene, **not** guaranteed outcome | Make the authorised choice and review at the agreed checkpoint |

## Critical escalation rules (override score)

- **Securities / fundraising:** if an adviser will solicit investors, negotiate trades or receive a close-contingent fee, pause and seek securities counsel before proceeding; SEC guidance identifies registration risk. [Broker-Dealers — US SEC](https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/broker-dealers)
- **Funding instrument:** if dilution, SAFE conversion rights or board approval are unclear, review documents with qualified counsel; YC describes the SAFE structures but does not replace legal advice. [The SAFE — Y Combinator](https://www.ycombinator.com/safe)
- **Confidentiality / AI:** if the plan includes uploading unapproved pitch decks, personal data or board papers to a third-party AI system, obtain approval and controls before upload; NIST offers voluntary risk guidance. [NIST Generative AI Profile, AI RMF](https://www.nist.gov/publications/artificial-intelligence-risk-management-framework-generative-artificial-intelligence)
- **Founder safety / unlawful action:** urgent legal, employment or safeguarding issues are never resolved by a numerical quiz.

## Example scoring — hypothetical seed-stage pivot

A CEO has a clear six-week deadline, two alternatives, eight friendly interviews, a rough runway model, no independent sceptic and an informal board update. The CEO might score 1+1+1+1+1+0+0+0+0+0+1+0 = **6/24**. That score does **not** say “pivot”; it says the decision process is not yet sufficiently evidenced. The next move is to reconcile cash, obtain contradictory customer data and formalise a stop condition before spending more runway.

## Suggested follow-up tool pathway

**Weak on Q3:** Pivot-or-Persist Blind-Spot Diagnostic. **Weak on Q4:** financial scenario model and possibly a fractional finance specialist. **Weak on Q7:** Constructive Challenge Evidence Audit. **Weak on Q8:** Funding Offer Independence Map. **Weak on Q10:** Founder Confidentiality Boundary Builder. **Weak on Q11–12:** Decision-Specific Adviser Brief Builder and bounded decision review.

## Product/UX implementation notes

Keep all score inputs on the founder's device by default; offer an explicit opt-in for saving or emailing results. Show reasons next to each score, allow answers to be changed, and display the red-flag override before any lead form. A result page should give the founder a downloadable **decision checklist**, not imply a clinical, financial or investment certification. No contact information is needed to see the score.

## Related founder FAQs

### Is this a validated readiness test?

No; it is a transparent editorial screening tool, not a statistical assessment or success forecast. Scores help prioritise missing decision work.

### Can a high score mean we should pivot?

No. It indicates better process documentation, not a particular strategic recommendation. Evaluate the underlying customer and cash evidence. [All about pivoting — Y Combinator](https://www.ycombinator.com/library/6p-all-about-pivoting)

### What if I do not know my runway?

Do not guess a high score for cash readiness. Reconcile finance data and ask a financial professional to review material uncertainties. [Burkland: Strategic Finance for Startups](https://burklandassociates.com/services/strategic-finance/)

### Can my chief of staff complete this for me?

They can collect evidence and draft the answers, but the authorised founder or decision-maker should review and own the result.

### Should I upload private board information?

No, not to an unapproved external tool. Use redacted notes and assess model/processor privacy controls first. [NIST Generative AI Profile, AI RMF](https://www.nist.gov/publications/artificial-intelligence-risk-management-framework-generative-artificial-intelligence)

### What happens if we fail a legal gate?

Treat the issue as an escalation regardless of the point total. Seek qualified advice before securities, employment or corporate actions. [Broker-Dealers — US SEC](https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/broker-dealers)

### Is a perfect score a guarantee?

No; uncertainty and unknown outcomes remain even with a strong process. Use review triggers and preserve contradictory evidence.

## Sources

- [All about pivoting — Y Combinator](https://www.ycombinator.com/library/6p-all-about-pivoting)
- [How To Talk To Users — Y Combinator](https://www.youtube.com/watch?v=z1iF1c8w5Lg)
- [Broker-Dealers — US SEC](https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/broker-dealers)
- [The SAFE — Y Combinator](https://www.ycombinator.com/safe)
- [NIST Generative AI Profile, AI RMF](https://www.nist.gov/publications/artificial-intelligence-risk-management-framework-generative-artificial-intelligence)
- [Burkland: Strategic Finance for Startups](https://burklandassociates.com/services/strategic-finance/)

## Evidence gaps for the next research pass

- Prospective validation of score distribution with real founder users
- Testing whether score bands predict improved process rather than outcomes
- Accessibility and privacy review of a future interactive implementation

## FAQs
### Is this a validated readiness test?
No; it is a transparent editorial screening tool, not a statistical assessment or success forecast. Scores help prioritise missing decision work.
### Can a high score mean we should pivot?
No. It indicates better process documentation, not a particular strategic recommendation. Evaluate the underlying customer and cash evidence. [All about pivoting — Y Combinator](https://www.ycombinator.com/library/6p-all-about-pivoting)
### What if I do not know my runway?
Do not guess a high score for cash readiness. Reconcile finance data and ask a financial professional to review material uncertainties. [Burkland: Strategic Finance for Startups](https://burklandassociates.com/services/strategic-finance/)
### Can my chief of staff complete this for me?
They can collect evidence and draft the answers, but the authorised founder or decision-maker should review and own the result.
### Should I upload private board information?
No, not to an unapproved external tool. Use redacted notes and assess model/processor privacy controls first. [NIST Generative AI Profile, AI RMF](https://www.nist.gov/publications/artificial-intelligence-risk-management-framework-generative-artificial-intelligence)
### What happens if we fail a legal gate?
Treat the issue as an escalation regardless of the point total. Seek qualified advice before securities, employment or corporate actions. [Broker-Dealers — US SEC](https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/broker-dealers)
### Is a perfect score a guarantee?
No; uncertainty and unknown outcomes remain even with a strong process. Use review triggers and preserve contradictory evidence.

## Sources
- [All about pivoting — Y Combinator](https://www.ycombinator.com/library/6p-all-about-pivoting)
- [How To Talk To Users — Y Combinator](https://www.youtube.com/watch?v=z1iF1c8w5Lg)
- [Broker-Dealers — US SEC](https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/broker-dealers)
- [The SAFE — Y Combinator](https://www.ycombinator.com/safe)
- [NIST Generative AI Profile, AI RMF](https://www.nist.gov/publications/artificial-intelligence-risk-management-framework-generative-artificial-intelligence)
- [Burkland: Strategic Finance for Startups](https://burklandassociates.com/services/strategic-finance/)