Distill a business plan in a streamlined business model canvas
Use the lean canvas template to outline the advantages, targets, challenges, risks, cost structures, and opportunities of a business strategy. The lean canvas is a visual framework popular with entrepreneurs, startups, and articulate their business model and identify key components necessary for success.
Created by Ash Maurya, The lean canvas provides a straightforward way to evaluate your business opportunities. It helps you break down your business idea into key factors and gives you a visualization of your business strategy. It’s also easier for others to read through and give feedback on than a standard business plan.
To create a lean canvas model, you only need to answer the nine elements. They include:
What is the problem that your company intends to solve? What pain points do your target customers or personas face, and how do they relate?
Clearly express what the problems are, and how your solution can address them.
The solution your product or service provides that solves the problem(s) you wrote down in the “Problem” step.
In other words: What does your product or service do, and why would someone be interested? Highlight the unique features or benefits that differentiate your solution from competitors.
Your unique value proposition is what makes your brand different from similar brands that already exist. Develop a clear and compelling value proposition that communicates the unique value your business provides to customers. This helps you convince people to buy from your brand instead of a competitor’s.
Identify any unique advantages or strengths that set your business apart from competitors. This could be proprietary technology, key partners or strategic relationships, industry expertise, a known history of strong customer relationships, or a strong brand reputation.
The segments of people you’re targeting with your product or service. These are the people who would get the most value from your brand.
Are they early adopters of technology? What technology do they use? Go into detail about their characteristics, habits, attitudes and more to create actionable personas.
The metrics you can use to measure how successful your business is and whether your product is effective. These could include customer acquisition cost, customer lifetime value, conversion rates, or revenue growth milestones.
Note: Key metrics can be a mix of general metrics like “units sold” and more product-specific metrics.
For example, if your product is a solution for productivity or time management, one product-specific metric you could measure is “time saved on tasks.”
Determine the most effective channels of communication you will use to reach your target customers and deliver your solution. Consider both online and offline channels that align with your customer's preferences.
Common channels include your website or social media profiles, with other examples being live events, an app, and email, or out-of-home advertising.
This includes everything cost related you need to account for, like marketing and promotion, manufacturing or production, technology, and your people.
Will customers pay for your product or service? How much will you charge? Will there be different pricing models for different customer segments?
Outline how your business will generate revenue. Some common examples are product sales, speaking engagements, and consulting services.