Business Model Auditor

Business Model Auditor - Scale Stress Test

Overview

Executes a business model stress test using Alex Hormozi's scale and leverage principles, identifying fatal flaws before they kill the business. Exposes bottlenecks, calculates unit economics, and surfaces design-for-scale recommendations.

Hormozi's Core Principle: "A business model is only as good as its constraints. Can this scale without me?"

The Framework: The Scale Test

Key Questions:

1. Time Independence: Does revenue require YOUR time linearly? 2. Unit Economics: Does each customer generate more than they cost? 3. Bottleneck Clarity: What breaks first at 10x scale? 4. Leverage Type: Are you building assets or just working? 5. Margin Integrity: Do margins hold or erode at scale?

Execution Workflow

Step 1: Current Model Mapping

Ask the user:

Describe your business model:

>

1. How do you make money? (What do customers pay for?)

2. What's your average revenue per customer?

3. How much does it cost to acquire a customer?

4. How much does it cost to deliver what they bought?

5. How many hours do YOU spend per customer?

Model Summary Template:

Step 2: Unit Economics Deep Dive

Calculate the fundamental health:

Core Unit Economics:

Revenue Per Customer: $___
- Cost of Acquisition (CAC): $___
- Cost to Deliver: $___
= Gross Profit: $___
/ Your Hours: ___
= Effective Hourly Rate: $___

Health Check:

Step 3: Time Dependency Analysis

Ask the user:

How does your time relate to revenue?

>

1. If you took a month off, what would happen to revenue?

2. What % of delivery requires YOUR specific involvement?

3. What tasks ONLY you can do?

4. What tasks could be delegated?

5. What tasks could be eliminated?

Time Dependency Score:

Step 4: The 10x Stress Test

What happens if you 10x customers tomorrow?

>

1. What breaks first? (Delivery, support, quality, YOU)

2. What would you need to handle 10x? (People, systems, tools)

3. What would your margins look like at 10x?

4. How would customer experience change?

5. What's the actual capacity limit right now?

Bottleneck Categories:

Step 5: Leverage Audit

Four Types of Leverage:

Assess your current leverage:

>

1. Are you using labor leverage? (Team multiplies your output)

2. Are you using capital leverage? (Money working for you)

3. Are you using code leverage? (Software scales infinitely)

4. Are you using media leverage? (Content works while you sleep)

Leverage Score:

• 0 types = Trading time for money
• 1 type = Some leverage
• 2+ types = Real leverage
• 3+ types = Highly leveraged

Step 6: Model Stress Points

Identify where the model will break:

Stress Point Mapping:

Step 7: Fix Recommendations

For each bottleneck:

Priority Framework:

1. First: Fix the lowest-cost, highest-impact bottleneck 2. Second: Fix what directly impacts revenue 3. Third: Fix what impacts margin 4. Fourth: Fix what impacts customer experience

Output Format

See assets/output-template.md for the full structured report template (load when generating the audit deliverable).

Quick Scale Score (100-Point Assessment)

For fast validation without the full audit:

The "Would I Hire Me?" Test

Ask yourself:

"If this business had to pay me a salary for the work I do, would the economics still work?"

If revenue - your salary - all other costs < 20% margin, the model is too dependent on your free/cheap labor.

Model Evolution Paths

From Service to Productized Service:

• Package your service into fixed-scope, fixed-price offerings
• Create processes that others can execute
• Build systems that don't require your judgment

From Productized Service to SaaS:

• Identify the repeatable, automatable parts
• Build software to replace manual delivery
• Keep humans for high-value touchpoints only

From 1:1 to 1:Many:

• Group coaching instead of individual
• Courses instead of consulting
• Templates instead of custom work

Integration with Other Skills

Common Mistakes to Avoid

1. Ignoring your time cost: Counting "profit" without valuing your hours 2. Hoping margins improve: They usually get worse at scale without action 3. Hiring to fix bottlenecks: Sometimes the fix is automation or elimination 4. Scaling before fixing: 10x a broken model = 10x the problems 5. Complexity creep: Adding services that don't scale 6. Vanity revenue: Growing revenue while margins shrink

The Founder Replacement Test

Could someone else run this business at 80% effectiveness if you left for 6 months?

• If yes: You have a business
• If no: You have a job you created for yourself

When to Route Elsewhere

• If the problem is the offer → offer-architect
• If the problem is pricing → pricing-strategist
• If the problem is not enough leads → lead-channel-optimizer
• If you're stuck on what to fix first → execution-accelerator

Business Model Audit: [Business Name]

Executive Summary

Model Type: [Service/Product/Hybrid/SaaS] Health Score: X/10 Primary Issue: [Biggest bottleneck] Scale Readiness: [Not ready/Needs work/Ready/Excellent]

Unit Economics

Current State

Diagnosis

[Narrative assessment of unit economics health]

Time Dependency Assessment

Time Dependency Score: X/10

If You Stopped Working:

• Immediate Impact: [What happens day 1]
• 30-Day Impact: [What happens in a month]
• 90-Day Impact: [What happens in 3 months]

Tasks Only You Can Do:

1. [Task 1] — [Time spent] — [Can be changed: Y/N] 2. [Task 2] — [Time spent] — [Can be changed: Y/N] 3. [Task 3] — [Time spent] — [Can be changed: Y/N]

Time Independence Opportunities:

• [ ] [What could be delegated]
• [ ] [What could be automated]
• [ ] [What could be eliminated]

10x Stress Test

What Breaks at Scale

Capacity Limits

Current Maximum Capacity: X customers/month Limiting Factor: [What creates the ceiling] To 10x, You Need: [What would need to change]

Margin at Scale

Margin Trend: [Improves/Holds/Erodes] with scale

Leverage Assessment

Leverage Score: X/4 types active

Bottleneck Priority List

Critical (Fix Now)

1. [Bottleneck]

• Impact: [Revenue/margin/scale effect]
• Fix: [Specific solution]
• Cost: [Time/money required]
• Priority: [Why this is #1]

Important (Fix Soon)

1. [Bottleneck]

• [Same format]

2. [Bottleneck]

• [Same format]

Monitor (Fix Later)

1. [Bottleneck]

• [Same format]

Recommendations

Immediate Actions (This Week)

• [ ] [Quick win 1]
• [ ] [Quick win 2]

Short-Term (30 Days)

• [ ] [System to build]
• [ ] [Leverage to add]

Long-Term (90 Days)

• [ ] [Structural change]
• [ ] [Model evolution]

Model Evolution Path

Current State: [Description] Target State: [Where to evolve to]

Path:

1. [Step 1] — [Makes this possible] 2. [Step 2] — [Makes this possible] 3. [Step 3] — [Makes this possible]

End State Metrics: