This document provides a template for creating a business canvas to validate problem-solution fit with customers. It instructs the user to focus on one or two key customer segments and validate problems through customer behaviors like willingness to pay or provide feedback. The template includes sections for problems, solutions, competitive advantages, alternatives, value propositions, revenue models, and impact statements. The goal is to gain insights from customers in order to build a profitable business addressing their needs.

1. Problem Solution UniqueValueProp
High-LevelConcept
CompetitiveAdvantage Customer Segments
KeyMetrics Channels
CostStructure
Impact Statement
RevenueStreams
List your top 1-3 problems.
EarlyAdopters
Company Name ___________________________
ExistingAlternatives
List how these problems are being
solved today.
Outline a possible solution for
each problem.
List the key numbers that tell you
how your business is doing.
Single, clear, compelling message
that states why you are different
and worth paying attention.
List your X for Y analogy, i.e.
YouTube = Flickr for videos.
Something that cannot easily be
bought or copied.
List your path to customers
(inbound or outbound).
List your target customers and
users.
List the characteristics of your
ideal customers.
List your fixed and variable costs. List your sources of revenue.
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2. General Instructions
• Job #1 is to find & validate problem-solution fit (eventually leading to product-market fit & building a profitable business)
• Use one canvas per customer segment & limit your initial focus to no more than 2 segments
• Validation can only be proven through customer behavior, not customer accolades. Behaviors include:
• A customer is willing to pay you to help solve their problem (NRE or cost sharing or pre-orders)
• A customer is willing to test your prototype and provide data/feedback
• You observe a customer going through great pain today to solve a problem
• A customer introduces you to a decision-making colleague (ideally with an endorsement)
• Learning prototypes (sketch, 3D prints, storyboards, etc.) are great tools
Customer Segments & Customers
• Customers are not necessarily users. Who will pay you for your product?
• Be as specific as possible – company/role/name
Customer problems
• These should be actual customer problems or opportunities. Beware of circular arguments (ex. fuel cells have not achieved significant market penetration due
to high cost… the problem is high cost, so we will solve it with low cost fuel cells)/ Try to focus first on the problem space, not the solution space. In the
previous example, what is the underlying problem? Is it range, recharge time, energy density, etc.?
Solution & Competitive Advantage
• What specifically will you sell? How does it uniquely address the biggest problems you have validated? Where in the supply chain do you envision
participating?
• Your solution should include appropriate “whole product” elements required by your customer (software, service, warranty, channels, financing, etc.)
• Why can you win? What is it that you’ll do better than anyone else in the world? If you have IP, what does it allow you to do that no one else can do?
• Avoid “first mover advantage” as your primary or only advantage
Alternatives
• Again, consider the problem space, not the solution space. THERE ARE ALWAYS ALTERNATIVES! How else can the customer solve their underlying problems?
Doing nothing is almost always an alternative.
Unique Value Prop
• Always consider the value proposition from the perspective of the customer. How does your solution create value for the customer?
• As a startup, your value proposition must be especially large to compensate for the risk your customer takes on by buying from you
Customer’s Revenue Model & Impact
• This is where you quantify your value prop. How do your customer’s financials improve the day after they implement your solution?
• It is often best to compare yourself against the “next nearest competitive solution”
• Done well, this analysis gives incredible insight and will inform your eventual pricing strategy
Market Entry Plan
• Is there a specific niche or subset of customers you will attempt to sell to first, second, third?
• What is your revenue model and cost model? What do you anticipate your profit margins will be?
Impact Statement – How can you impact your intended customers in a way no one else can? For example, “we build the world’s most precise and reliable
sensors for power distribution networks. Our sensors when fully deployed will save power utility companies more than $5B”
problem-solution fit