For those of you that remember the frenzy of the dot.com era, the phrase “business plans on napkins” conjures up images of ideas that attract money. There was no assurance that the idea could make money. It just seemed to be a good idea and there was a lot of money being thrown around during that time.
There is nothing wrong with business plans on napkins as long as two things happen. The first starts with the napkin. Can the owner of the idea explain it on a napkin? This is a simple concept that has a lot going for it. If an idea cannot be made clear in a few short sentences or diagrams, then maybe the idea needs some more work. The most powerful concepts are the ones that are quickly and clearly understood. People easily relate to them. They frequently ask, “Why didn’t I think of that?”
Simplicity is powerful because it is often based on common sense. Common sense is usually the most direct and honest connection people have with the reality of a situation. The late Jim Croce made millions on the common sense of not spitting into the wind or tugging on Superman’s cape.
In business, common sense often drives buying decisions. People know when something is right. More importantly, they know when something doesn’t feel right. Common sense triggers an emotional reaction to the reality of a situation, and is the greatest influencing factor on whether to buy or not to buy.
Therefore, if you have an idea that you can explain on a napkin, you probably have the beginning of a business that can make it. The idea is clear, explainable, and makes sense.
Devil In The Details
However, I said two things have to happen. The second is the detail that underlies the idea. Real world sets in and great ideas need to become reality. This requires planning, strategies, tactics, goals, capital, people, and time. Suddenly simple just became very complex.
The complexity of executing on an idea and turning it into reality does not have to be overwhelming. The stabilizing factor is the napkin, and the simplicity explained on it. The owner of the idea should frequently revisit the napkin. Don’t lose sight of what makes the idea work in the first place. It is clear, explainable and makes good common sense.
Build plans and organizations that bring the idea’s simplicity to life. Strategies should focus on how the idea connects to customers. For everyone that sees the napkin and connects to the idea, ask them how they feel; what emotions does it trigger? Accumulate that feedback and weave it into the strategic direction for the business.
Real Simple Construct marketing messaging that reflects the power of the idea’s simplicity. Simple phrasing, not flowery language, will drive connections with customers. Find investors “who get it” and believe it. Investors are a critical part of the team, and they need to be on board regarding the simple power of the idea. Hire people who get it and are passionate about it. Then give them the tools they need to execute.
While doing all of this, keep the clarity of the idea as explained on the napkin front and center. And don’t lose the napkin. Frame it and put it on the wall next to the framed first dollar you got from a customer. But before you frame it, make a copy of it for every employee and stakeholder in the business. The message and business plan, so clearly explained on the napkin, needs to anchor the business going forward.
Ken Cook is managing director of Peer to Peer Advisors, an organization that facilitates business leaders helping each other. You can reach him at kcook@peertopeeradvisors.com.
