Process & Organizational ReadinessDecember 22, 20253 min read
The Bus Factor: How Many People Can Your Company Lose and Survive?
A single number, honestly calculated, that tells a buyer more about operational risk than most of the data room.
The bus factor is the number of people who could leave before the company can no longer operate or ship. In small software businesses the honest answer is frequently one.
Calculating it properly
- List the systems required for the business to earn revenue
- Name every person who can independently operate each one
- Remove anyone whose knowledge is untested in the last six months
- Take the smallest remaining count
Raising the number from one to two is usually a quarter of deliberate work and one of the highest-return actions available before a sale.
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