What is a Lean Business Model Canvas
The lean canvas is a lean startup version of the business model canvas. Ash Maurya designed it after becoming worried about the unsafe assumptions permitted by the business model canvas.
The Elements of The Lean Canvas
1. Problem: Each customer segment (CS) you consider working with will have a set of issues that must be addressed. List one to three high-priority problems that your CS has in this section. You don’t have a product or service to sell until you have an issue to address.
2. Customer Segments: The problem and Customer Segments are closely intertwined – without a CS in mind, you can’t think about their problems, and vice versa.
3. Unique Value Proposition: The UVP is located in the center of the canvas. A value proposition is a promise to offer value. It is the main reason a prospect should purchase from you. One approach to get your mind around this is to consider why you are unique and why your CS should buy/invest time in you.
4. Solution: Finding a solution to the problem is gold! You’re not going to grasp this right away; the solution is not in your office; it’s in the streets. So, go research your customer segment, interview them, and then use what you’ve learned.
5. Channels: Channels are ways for you to connect with your CS. Also, keep in mind that in the early phases, it is critical to focus on learning rather than scaling. With that in view, consider which channels will provide you with sufficient access to your CS while also providing you with sufficient learning. Email, social media, and advertisements are examples of channels.
6. Revenue Streams: The kind of model will determine how you price your business. It is, nonetheless, fairly typical for companies to reduce their costs, even offering it for free, in order to acquire traction; yet, this might cause a few issues.
7. Cost Structure: In this section, you should include all of the operating costs associated with bringing your business to market. The costs and projected revenue streams may then be used to establish a rough break-even point.
8. Key Metrics: Every business, regardless of size or sector, will have some important indicators that are utilized to measure success.
9. Unfair Advantage: This is the hardest section to fill. However, try to consider this because having an unfair advantage might assist when looking for partners and investors. Consider what you have that no one else purchase.
The Advantages of the lean canvas
- It concentrates on comprehending the problem that the business is attempting to address.
- Limits the “solutions” box by promoting basic, easily tested concepts.
- Proposes key indicators for determining if the business is on the correct track.
- Takes into account unknown situations, assumptions, and missing data.