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Before you fix anything, it helps to know exactly where you stand. This scorecard measures your business the way a seasoned operator or an acquirer would, across the things that decide whether your revenue is durable: your commercial mix, your concentration, your recurring work, how fast you get paid, and your margins. In about five minutes you get an honest score, a Level, and the single best place to start.
The Level is where the business stands today. It is a different thing from the three Stages of the growth motion in The Commercial Growth Playbook, which are the work you do to move up a Level.
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Three ways to use this scorecard
- On a computer: score it right below. Nine lines, about two minutes. Your level is worked out for you, including the rule where the weaker half governs.
- On a phone, or to keep your numbers: make your own copy in Google Sheets. Enter the nine numbers and it reads your two half-scores and your Level, dates the score, and sets your 90-day re-run date.
- No Google account? Download it for Excel and open it in Excel or any spreadsheet app.
https://gem-resource-hub-calculators.nyc3.cdn.digitaloceanspaces.com/health-scorecard/index.html
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What it measures
Nine lines, each scored 0, 1, or 2, split across two halves. Score every line against the guide below. The worksheet carries the same nine lines with a table to total them.
Commercial Growth Health, five lines, 0 to 10.
- Commercial revenue mix: count only direct-relationship commercial revenue. That means work an owner, property manager, facility director, or general contractor (GC) called you for directly, including owner-controlled insurance work where you were the insured's choice. Commercial losses assigned to you by a carrier or a third-party administrator (TPA) do not count here, because that revenue is rented the same way a residential program assignment is, and it leaves on the program's decision, not yours. Score 0 for under 25% of revenue in direct commercial, the residential-heavy band most $1.1M to $5M shops sit in. 1 for 25 to 50%. 2 for over 50%, where the mix has flipped and $50M+ operators live.
- Concentration, your single largest source: one carrier, program, or referral relationship, counted at the parent company, measured as a share of revenue. 0 for over 25%. 1 for above 10% and up to 25%. 2 for 10% or less.
- Contracted, recurring commercial revenue (Master Service Agreements, or MSAs): 0 for none. 1 for one or two. 2 for three or more active agreements.
- Commercial sales ownership: 0 for no one owning commercial. 1 for someone who splits time with residential. 2 for a dedicated owner with a weekly cadence and follow-up discipline.
- Exit and enterprise readiness: 0 for a residential or program-dependent book only. 1 for some commercial. 2 for a diversified, owner-independent commercial book.
Getting-Paid Health, four lines, 0 to 8.
- Average days to get paid, invoice to cash: 0 for over 75 days. 1 for 45 to 75 days. 2 for under 45 days.
- Blended gross margin: 0 for under 30%. 1 for 30 to 40%. 2 for over 40%. The 30% and 40% bands are RocketLevel working thresholds. For comparison, the Restoration Industry Association (RIA) Cost of Doing Business Report (FY2024 data) puts blended gross margin at 69% under $1M, 62% at $1M to $2.99M, 45% at $3M to $29.99M, 39.5% at $30M to $49.99M and 38.7% at $50M and up.
- Deductible collection: 0 for rarely tracked or collected. 1 for collected sometimes. 2 for collected up front as standard practice.
- Accounts receivable (AR) ownership and cadence: 0 for no one owning collections. 1 for chased ad hoc. 2 for a named owner running a weekly AR aging cadence.
A number sitting exactly on a threshold scores 1, with one exception. Read the numeric lines literally: exactly 25% commercial mix scores 1, exactly 50% scores 1, exactly 25% concentration scores 1, exactly 45 days scores 1, exactly 75 days scores 1, exactly 30% margin scores 1, exactly 40% margin scores 1. The exception is the healthy end of concentration: exactly 10% scores 2, because that is where The Concentration Risk Playbook draws its healthy zone and the two should agree. On the five lines that are a judgment rather than a number, take the harder read.
Where these numbers come from