What is ‘Back Of The Napkin Business Model’
A slang term that refers to the representation of the basic components of a business model excluding any fine details. It incorporates only the core ideas and success factors of the business. The name comes from the notion that a quick outline of a business can be easily sketched on the back of a napkin to sufficiently demonstrate its fundamental concepts.
Explaining ‘Back Of The Napkin Business Model’
The slang term comes from a hypothetical scenario in which an entrepreneur pitches an idea to a potential investor over coffee, dinner or a drink. The entrepreneur quickly sketches the business model on the back of a napkin to demonstrate the feasibility of the business.
This type of business model should probably only be used as part of the initial stages of planning. A final business model should be drafted for clarity and color, including complete details on all operations as well as the short-term and long-term visions of the business. Without a clear understanding of how a business will operate and bring in sustainable revenues, the probability of building a successful company is low.
Back Of The Napkin Business Model FAQ
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- The back of the napkin: Solving problems and selling ideas with pictures – www.tandfonline.com [PDF]
- From service to experience: Understanding and defining the hospitality business – www.tandfonline.com [PDF]
- Dynamics of openness in SMEs: A business model and innovation strategy perspective – somaesthetics.aau.dk [PDF]
- Business Model Design: Networking, Innovating and Globalizing-eBooks and textbooks from bookboon. com – 18.104.22.168 [PDF]