The Jenga Test: How to Spot a Truly Sellable Business cover image

The Jenga Test: How to Spot a Truly Sellable Business

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In hundreds of business transactions, we've discovered a simple truth: a truly sellable business is like a well-built Jenga tower.

 

You should be able to remove any single piece without the whole structure collapsing.

 

 

This is the Jenga Test - four critical questions that reveal whether a business is built to last or ready to topple.

 

For buyers, these questions help identify solid opportunities.

 

For sellers, they show where to strengthen your business before going to market.

 

 

 

Can the Owner Step Away Without Chaos?

 

This is the ultimate test. Remove the owner block from your business Jenga tower - what happens?

 

In an unsellable business, removing the owner means:

  • Customers don't know who to call

  • Employees can't make basic decisions

  • Bills don't get paid on time

  • Sales processes grind to a halt


In a sellable business, the owner's departure barely causes a ripple because:

  • Systems and processes drive daily operations

  • Management team handles decisions independently

  • Customer relationships are institutional, not personal

  • Financial operations are automated or well-staffed

For buyers, this means spending time observing how the business runs when the owner isn't there.

 

For sellers, it means starting to make yourself unnecessary well before you plan to sell.

 

 

 

Is the Client Base Diversified?

 

Pull out your biggest client block. Does everything collapse?

 

An unsellable business often has:

  • One client representing 30%+ of revenue

  • A few key accounts providing most income

  • Heavy reliance on personal relationships

  • No systematic way to acquire new clients


A sellable business shows:

  • No client exceeds 10-15% of revenue

  • Broad customer base across sectors

  • Institutional client relationships

  • Proven customer acquisition system

For buyers, examining customer concentration isn't just about numbers - it's about understanding the stability of those relationships.

 

For sellers, it's about building a broad foundation that can support the business through transitions.

 

 

 

Are Key Suppliers and Employees Replaceable?

 

Try removing any single employee or supplier block. What breaks?

 

Warning signs include:

  • "Only Sarah knows how to handle that account"

  • "We get 80% of our inventory from one supplier"

  • "John's the only one who understands our software"

  • "That client only works with Mike"


Strong businesses have:

  • Cross-trained teams

  • Multiple supplier relationships

  • Documented processes and procedures

  • Shared client relationships

For buyers, this means looking beyond the organizational chart to understand real dependencies.

 

For sellers, it's about building redundancy and reducing single points of failure.

 

 

 

Are Critical Contracts Assignable?

 

This is often the hidden Jenga block that brings everything down.

 

Can key contracts transfer to a new owner?

 

Problems to watch for:

  • Non-assignable client contracts

  • Lease agreements requiring landlord approval

  • Supplier contracts tied to current ownership

  • License agreements that don't transfer


What you want to see:

  • Clearly transferable contracts

  • Standard assignment clauses

  • Limited change-of-control restrictions

  • Documented client consent processes

For buyers, this requires careful due diligence with legal counsel.

 

For sellers, it means reviewing and potentially renegotiating agreements before going to market.

 

 

 

Putting It All Together

 

The strongest businesses can lose any single element without failing:

  • The owner goes on vacation

  • A major client leaves

  • A key employee departs

  • A supplier relationship changes

For sellers, this means systematically strengthening your business around these four areas.

 

Start with your weakest block - where would your business Jenga tower wobble most?

 

 

For buyers, these four questions provide a framework for evaluating opportunities.

 

Look beyond the financials to understand the structural integrity of the business.

 

 

Remember: The best time to run the Jenga Test isn't during a sale - it's now.

 

Whether you're building to sell or looking to buy, understanding these four critical elements can mean the difference between a successful transition and a costly collapse.

 

 

Ready to start applying the Jenga test?

 

Search all the businesses for sale in Australia here.

 

To find your next business.