Turning your vision into realistic plans can be challenging for entrepreneurs. While you may have an unbeatable, solid idea in your mind, getting it drafted and implemented effectively can be an arduous task. Thus, transforming your new business/ expansion ideas into unique products and services calls for the formulation of a coherent plan. Luckily, lean canvas comes to the rescue as it enables you to reach the heart of your idea. Moreover, it offers a clear picture to everyone, allowing you to showcase your crucial concept to the relevant parties.
What is a lean canvas?
The lean canvas is a one-page business modeling tool that enables you to deconstruct a startup idea into its key and most risky assumptions. Additionally, it serves as a strategic plan to guide and navigate you all the way from ideation to building a successful startup. This plan typically features several blocks to enable you to map out some critical points, which will allow you to turn your business vision into a concrete reality. Thus, a lean canvas is an amazing startup tool for entrepreneurs to make their life easy!
Listed below are the popular elements of the lean canvas. Continue reading to gain a better understanding of when to use this business model tool.
Problem
This is one of the critical elements of the lean canvas, as identifying and understanding the fundamental problems of your customers is a significant step towards troubleshooting the concerns. Therefore, you should use this section to list down the top challenges that your potential customers experience.
Customer segments
Customer identification is another vital step to consider in a lean canvas. Note down your target audience by including several customer segments in this section. Furthermore, you can consider tying together your business challenges and customer segments to think about the most appropriate solutions.
Unique value proposition
The unique value proposition section sits in the middle of the canvas because it represents what you are proposing to your customers. Thus, it signifies the exceptional value of your business. Hence, consider what makes your product, services, and brand different from your competitors that are trying to combat similar challenges.
Solutions
While you may not have an ideal solution right away, the lean canvas enables you to identify your challenges and opportunities, further enabling you to get started. However, sometimes you might want to figure out the right solution to your challenges. In that case, you should consider talking to your customer segments to determine their needs, demands, and expectations of your business.
Channels
The channels section of your lean canvas allows you to determine the most appropriate medium that you will use to reach out to your customers. These are also referred to as the marketing and advertising methods you should consider using to benefit your business. These channels can include digital marketing solutions such as SEO, to more traditional media such as radio, print, and TV.
Revenue stream
Figuring out a reliable source of revenue is highly crucial for every business entity. The pricing model of your products and services is a critical part of what you are offering. Thus, you should carry out thorough research and testing before setting the actual price.
Cost structure
Some operating costs include technology, market research, staff costs, and other relevant costs that allow you to run and market your product. Thus, by figuring out your one-off and recurring costs, you can estimate the number of customers you will need to break even or reach your desired results.
Key metrics
Key metrics allow you to measure your business’s performance. This enables you to identify some of the key activities you should watch closely to understand how your audience reacts to your products and/or service offerings.
Unfair advantage
Unfair advantage comprises your strengths that no other business has. It allows you to stand apart from the rest. While this is the last step of your lean canvas, it is often considered one of the complex tasks. However, your unfair advantage can comprise anything from your super-efficient workforce to endorsements from experts.
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