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I was introduced to a concept today that I’d like to share with my audience: the million dollar napkin.

A gentleman by the name of Ryan Deiss told his story to me about how his mentor told him to document his business on a napkin.  He went on to explain that if you are not clear enough about the flow of your business to put it on a single napkin, you will never be successful!  Ryan took the challenge and found that it did indeed fit and also has made him millions since.  Sound crazy?

I thought so too at first, then when he drew it out I began to understand.  When most of us think about our business we come up with dramatic complex plans that need to be put in place before we even get started.  That is usually the first problem, but putting that aside for now.  Take a napkin and list the 3-5 steps or processes that take place in order for your business to work.  Here is an example:

1. People come in to a website (the funnel)
2. Given an opportunity buy a product or register (the offer)
3. Upsell a minor product (first upsell)
4. Upsell a major product (second upsell)
5. No -> Go to e-mail / webinar cycle (continued contact)

Would that fit on your napkin?  Absolutely!  In fact you could even elaborate some to get even more clear.  THAT my friends is really your business, take your napkin and frame it.  Keep it prominant in your office so that each time you go to make a business decision this napkin is a reminder of how your business really works.  For instance, if the above scenario is your business model than you would know immediately not to get drawn in to a service industry – Why?   Because you don’t sell a service, you sell a product and your business system is not designed to manage a service.

Welcome to why so many businesses fail, I know money has a lot to do with too.  I’m talking about the fundamentals of business management, most people aren’t 100% clear about what they do.  And whenever the next ‘great’ opportunity comes along they jump on it in order to expand and diversify their business.  It is only a GREAT opportunity if it works within the system you already have built and working.  And diversification is misused in business, to diversify doesn’t mean to change directions and bring in a new business model.  To diversify means to take the same model and apply it to a new product!

So if I sold blue widgets online successfully, then I would take the exact business structure and find a red widget and plug it in.  It really is that easy, define your business on a napkin … and start making money through business clarity!

Emily Leach