The Lean Canvas Model
In this Blog, we will cover in minimal detail, an overview of the Lean Canvas Model. The Lean Canvas model is a abbreviated business plan designed to give an idea to would be business owners, the feasibility of their business plan. The appeal of this business model is that it takes a minimum of time and doesn’t require the level of detail that a traditional business plan would. It also assumes, as is likely with new business ventures, that you will not have fleshed out many of the details that you need to know in order to create a traditional business plan. Lean Canvas assumes that there is much that a new business owner may not know or have access to in terms of information and numbers.
The Lean Canvas Model is comprised of 9 parts:
Each of the 9 parts of the Lean Canvas model can be filled in with a minimum of detail about your particular business to give you a broad scope idea of what information that you will need to gather before carrying on. In this blog, we will give a quick outline of the 9 sections and will go into more detail in a blog for each section.
Problem
When creating a business, it is most helpful to have as little competition as possible doing the same thing as you. When you are thinking of a problem within the lean canvas model, you want to think of a problem within your community that the business might fill. To phrase it differently, what is a need in your area that your business can help with.
Customer Segments
Customer Segments are your target market. The people that will frequent your business. They may be distinguished by age, location, income level, or even hobbies they may enjoy. While some businesses appeal to almost everyone, knowing all of your target market may help you will what hours to be open and even what product to promote where and when.
Unique Value Proposition/ Mission Statement
The unique value proposition is how your business will stand out. It is your mission statement. This is a concise statement that states your business name, where you are, and what need you fill. It is your purpose in starting your business.
Solution
The solution is directly connecting your business as the solution to the problem presented in the LCM section 1. It allows you to explain easily how your business fills in a gap in the community that other businesses do not. At this stage, if you find that your business does not do that, this is where you might make tweaks or even change your location.
Channels
Channels should be thought of as the way to get the word out to your customers. Generally this is in advertising. The places that you advertise is informed by your customer segments.
Revenue Streams
Revenue streams is where your money comes from. Is it selling a product, meaning something you can hold, or a service, meaning something you do for clients. Many businesses have multiple revenue streams and it important to know what all of those can be.
Cost Structure
Cost structure is what it costs to maintain your business. What bills do you need to pay and what materials do you need to buy?
Key Metrics
Key metrics could also be called your business goals. These may change and morph over time, and may vary greatly from business to business, but this is a measurement of if, in your view, your business is successful.
Competitive Advantage
The competitive advantage for your business is how you stand out against similar businesses. This usually involves creating a comparison to similar businesses both in and out of your area.
Hopefully this description will help you out in creating your business plan using the Lean Canvas Model. Check out the video below for some more information. https://youtu.be/JFOTgRbrxzg
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