
The Five Questions Scorecard
For each question, determine if the answer indicates “Ceiling possible” or “Floor only”:
Question 1: Can AI Replicate This In Six Months?
- YES → Floor only
- NO → Ceiling possible ✓
Question 2: Is Switching Cost Greater Than 12 Months of Fees?
- NO → Floor only
- YES → Ceiling possible ✓
Question 3: Does the Product Become the System of Record?
- NO → Floor only
- YES → Ceiling possible ✓
Question 4: Is There a Services and Implementation Layer?
- NO → Floor only
- YES → Ceiling possible ✓
Question 5: Does Data Gravity Compound Over Time?
- NO → Floor only
- YES → Ceiling possible ✓
Classification
| Score | Classification | Implication |
|---|---|---|
| 4-5 | Strong Ceiling | Advance to full Ceiling diligence |
| 3 | Weak Position | Higher risk, requires exceptional execution |
| 0-2 | Floor Only | Evaluate on Floor criteria or pass |
The Critical Rule
If the answers are ambiguous, it’s middle. Pass.
Ambiguity is a signal, not a challenge to overcome. Companies with clear structural positions have clear answers to these questions.
This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.









