This document introduces the lean canvas tool for brainstorming business models. It is divided into 9 segments and is used to sketch multiple business model hypotheses targeting different customer segments. The lean canvas prioritizes problems, customers, and unique value propositions. It provides a simple format to test business model assumptions and track learning through iteration. The document outlines 3 steps: 1) brainstorm customers, 2) sketch multiple canvases, 3) prioritize where to start based on factors like customer pain, ease of reach, price and market size. Compared to lengthy business reports, the lean canvas is portable, flexible, and fosters creativity through its concise, problem-solution focused approach.

2. LEAN CANVAS
INTRODUCTION
TO
LEAN CANVAS
Day 2
1-MAR-15

3. WHAT IS A LEAN CANVAS
• The lean canvas is the perfect format for brainstorming
possible business models, prioritizing where to start and
tracking ongoing learning .
• It is a business model hypothesis testing tool – also called
the lean canvas
• A lean canvas is divided into 9 segments

4. Steps in Creating a Lean Canvas
 Step 1 - Brainstorm possible customers
-Distinguish between customers and users
-split broad customers segments into smaller ones
-sketch a lean canvas for each customer
 Step 2 - Sketch multiple lean canvas
- This section will give you an outline of the process for sketching a lean canvas
- Sketch a canvas in one sitting
- Its ok to leave section blank
- Think in the present
- Use a customer – centric approach

5. Step 3- Prioritize Where to Start
 Once the lean canvas is sketched for each customers segment , lay them
aside and select business model to start with
 The objective is to find a big enough market you reach with customers who
need your product that will pay a price you can build a business around
Customer pain level
Ease of reach
Price
Market size

6. Components of a lean canvas
1. Problems
1. Customer Segments
2. Unique value propositions
3. Solution
4. Channels
5. Cost structure
5. Revenue Streams
6. Key Metrics
7. Unfair advantage
The components are arranged by
priority (with 1 being the highest
in priority level)

7. How to create a Lean Canvas

8. Lean canvas Vs. Business Reports
Lean canvas Business reports
• Lean canvas is short and crisp
• It is a portable and quite flexible
• Lean canvas explores multiple
customer segments
• It is simple problem solution
oriented approach which
enables the entrepreneurs to
develop step-by-step
• Business reports are too lengthy
and voluminous
• Because of there volume they
are difficult to carry, it cannot be
altered as it contains detail
analysis
• Business reports focuses on a
selected customers
• It fosters candid understanding ,
creativity , discussion and
constructive analysis