The Lean Canvas Will Make Your Business Plan Better
I was talking with a friend of mine earlier about what it takes to start a business. We talked about vision, strategies for innovation, funding, market research, etc. Like lots of entrepreneurs, me included, he also said he felt like he needed a business plan, which meant he needed information and a process for creating a meaningful, effective business plan.
Everyone talks about a business plan, but few entrepreneurs actually create them. And when they do, they are usually a lot of wishful thinking designed to get money-loans or investors. The Small Business Administration has a helpful series of articles outlining the contents of the various sections a model business plan that are worth reading.
I have found, though, that before you start your business plan, there are several tools that will make the business plan process much easier and more useful. Some are simple: write down 5 people you know personally that would buy the product or solution you’re selling. Some are more complex: SWOT analysis, PEST analysis, TOWS Matrix.
One of my favorites is the Lean Canvas.
If you are familiar with the brilliant work of Alexander Osterwalder in his Business Model Generation, you will recognize similarities between the Business Model Canvas and the Lean Canvas.
Differences Between the Lean Canvas and the Business Model Canvas
There are significant differences between the two, of course. The Lean Canvas adds Problem, Solution, Key Metrics, and Unfair Advantage and removes Key Activities and Key Resources, Customer Relationships, and Key Partners. We’ll discuss the reason for these variations this week as we walk through the various aspects of the Lean Canvas and applying them to a specific business.
In the meanwhile: do you have a business plan? If so, do you use it? If not, why not?