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Business plan vs Lean Canvas

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Business plans take too long to write, are seldom updated, and almost never read by others but documenting your hypotheses is key.

Lean Canvas solves this problem using a 1-page business model that takes under 20 minutes to create, will be read by more people, and lets you focus on building your business - faster.

Published in: Business
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Business plan vs Lean Canvas

  1. 1. BUSINESS PLAN VERSUS LEAN CANVAS Hashtag: #leanstack 550+ 5-Star reviews LEANSTACK ASH MAURYA @ashmaurya ash@leanstack.com
  2. 2. Haveyou ever written a business plan?
  3. 3. Didyou enjoy the process?
  4. 4. 2 out of every 100 entrepreneurs write business plans AND enjoy the process
  5. 5. Business Plan versus No Plan A recipe for going around in circles
  6. 6. Solution Awesome The Innovator’s Bias ` ? ?
  7. 7. Business Plan versus Business Planning
  8. 8. Business Plan versus Business Planning A document investors make you write that no one reads
  9. 9. 66% of successful products report drastically changing their plans along the way.
  10. 10. Business Plan versus Business Planning A document investors make you write that no one reads A critical thinking exercise for avoiding the innovator’s bias
  11. 11. Whatis the job of a business plan?
  12. 12. Whatdo both investors and entrepreneurs want?
  13. 13. The hockey-stick curve
  14. 14. TRACTION matters above everything else Yay!
  15. 15. 01 Your business model NOT your solution is the true product
  16. 16. Solution Awesome The Innovator’s Bias ` ? ?
  17. 17. Solution ? Your “solution” is NOT the product
  18. 18. Problem Solution Unique Value Proposition Unfair Advantage Customer Segments Key Metrics Channels Cost Structure Revenue Streams ? ? ? ? ? ? ? ? ? Your business model is the product
  19. 19. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth paying attention Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Key Metrics Key activities you measure Channels Path to customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License. PRODUCT MARKET
  20. 20. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth paying attention Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Key Metrics Key activities you measure Channels Path to customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License. PRODUCT MARKET
  21. 21. Business Model Canvas
  22. 22. Problem Solution Unfair Advantage Key Metrics Lean Canvas versus Business Model Canvas
  23. 23. Problem Solution Unfair Advantage Key Metrics http://leanstack.com/why-lean-canvas
  24. 24. 02 The true job of an entrepreneur is systematically de-risking their business model.
  25. 25. Problem Solution Unique Value Proposition Unfair Advantage Customer Segments Key Metrics Channels Cost Structure Revenue Streams ? ? ? ? ? ? ? ? ? Systematically de-risk your vision
  26. 26. Problem Solution Unique Value Proposition Unfair Advantage Customer Segments Key Metrics Channels Cost Structure Revenue Streams ? ? ? ? ? ? ? Systematically de-risk your vision
  27. 27. Problem Solution Unique Value Proposition Unfair Advantage Customer Segments Key Metrics Channels Cost Structure Revenue Streams ? ? ? ? Systematically de-risk your vision
  28. 28. Problem Solution Unique Value Proposition Unfair Advantage Customer Segments Key Metrics Channels Cost Structure Revenue Streams ? Systematically de-risk your vision
  29. 29. Problem Solution Unique Value Proposition Unfair Advantage Customer Segments Key Metrics Channels Cost Structure Revenue Streams Systematically de-risk your vision
  30. 30. Through a series of conversations advisorscustomers investorscompetitors entrepreneur team
  31. 31. Solution Unfair Advantage Customer Segments Key Metrics Cost Structure Revenue Streams Defensibility Market Size Margins Traction Investors care about traction above everything else. - Venture Hacks
  32. 32. Problem Solution Unique Value Proposition Customer Segments Revenue Streams Who Currency The Promise ?
  33. 33. 03 Finding a business model that works is a search problem NOT an execution problem.
  34. 34. Document your Plan A Time
  35. 35. Document your Plan A Time
  36. 36. Optimal Maximum Local Maximum
  37. 37. Document your Plan A Time
  38. 38. Document your Plan A Identify riskiest parts of your plan Time
  39. 39. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Time
  40. 40. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Time
  41. 41. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Time
  42. 42. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Time
  43. 43. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Validate Qualitatively Time Product/Market Fit
  44. 44. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Validate Qualitatively Scale Verify Quantitatively Time Product/Market Fit
  45. 45. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Validate Qualitatively Verify Quantitatively Time Scale
  46. 46. ASH MAURYA @ashmaurya ash@leanstack.com 550+ 5-Star reviews LIFE’S TOO SHORT TO BUILD SOMETHING NOBODY WANTS Get more content here: LeanStack.com

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