Introduction to the Lean Canvas
CoMotion Innovation Workshop
From Idea To Plan
Ken Myer
[email protected]
Agenda
• ‘Lean Canvas’ Business Model vs. Business Plan
• Documenting Your Business Model Hypothesis
(Lean Canvas)
• Defining the Problem Space
• Identifying Target Customers
• Examples
Lean Canvas
‘Lean Canvas’ Business Model
vs. Business Plan
Lean Business Model vs. Business Plan
Full narrative of how you will build
a profitable and sustainable business.
Lean Business Model vs. Business Plan
A visual hypothesis representing the key Full narrative of how you will build
elements of your prospective business. a profitable and sustainable business.
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Key Activities Channels
Cost Structure Revenue Streams
PRODUCT MARKET
Why Create A Canvas?
Most startups fail from lack of paying customers
Startup:
Temporary organization used to search for a repeatable
and scalable business model.
- Steve Blank
Why Create A Canvas?
Your Initial Goal:
Improve the likelihood of success and reduce
the risk of failure.
Enable yourself to actually
Make the jump into a full-time entrepreneur
Lean Canvas
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Top 3 Problems
Key Metrics Channels
Existing
Alternatives
List how these
problems are
solved today
Cost Structure Revenue Streams
PRODUCT MARKET
Defining The Problem (or Opportunity)
Do you have a problem worth solving?
• Separate the problem from the solution
• Think about users and buyers (customers)
• Talk to potential users and buyers
• Understand current alternatives to your solution
• This will help scope your first Minimally Viable Product
(MVP)
Defining The Problem (or Opportunity)
Nature of Problem/Opportunity
• Who is affected?
• How are they affected?
• What are the implications of being affected?
• Why hasn’t problem already been solved?
• What is the root cause of the problem? (5 Why’s)
Size of Problem/Opportunity
• How many are effected (size/geographic scope)?
• Is the problem/opportunity growing?
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Target Customers
1 2
Key Metrics Channels
Early
Adopters
List the
characteristics of
your ideal customer
Cost Structure Revenue Streams
PRODUCT MARKET
Segmenting Brings Focus
Learn the characteristics and needs of a clear target to:
- Focus your message
- Improve the odds of delivering value with your first
minimally viable product & follow-on improvements
- Create a brand barrier to entry from competitors
- Lock up supplier or partner relationships
Focus on Early Adopters First
Segmenting Your Target Customers
Focus on common needs:
• Geography
• Industry / sub-industry
• Class of product
• Product usage
• Organization size (measured by revenue, number of employees, etc.)
• Product delivery model
• Special use or needs
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Top 3 Features Can’t be easily
copied or bought
Single, clear
3 compelling 3
message that
states why you
are different and
1 Key Metrixs worth buying. Channels
2
2
3
Cost Structure Revenue Streams
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
3 3
Key Activities Channels
1 2
Path to Customers
3
4
Cost Structure Revenue Streams
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
3 3
Key Activities Channels
1 2
3
4
Cost Structure Revenue Streams
Revenue model
Life time value 5
Revenue
Gross margin
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
3 3
Key Activities Channels
1 2
3
4
Cost Structure Revenue Streams
Customer acquisition costs
Manufacturing costs
6 5
Distribution costs
People, etc.
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
3 3
Key Metrics Channels
1 2
Focus areas that
drive revenue 3
and customer
retention 4
7
Cost Structure Revenue Streams
6 5
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Top 3 Features Can’t be easily
Top 3 Problems Target Customers
copied or bought
Single, clear
3 compelling 3
message that
1 states why you
2
are different and
Key Metrics worth buying. Channels
Existing Early
Alternatives Focuss areas that Path to Customers Adopters
List how these
drive revenue 3 List the
and customer
problems are retention 4 characteristics of
solved today 7 your ideal customer
Cost Structure Revenue Streams
Customer acquisition costs Revenue model
Manufacturing costs
6 Life time value 5
Distribution costs Revenue
People, etc. Gross margin
PRODUCT MARKET
The California A.M. Crunch Wrap
The Country A.M. Crunch Wrap
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
• Traditional egg • Urban, morning
based breakfasts commuters.
difficult to eat
while driving. - 18-42 year old
males.
- Multiple items - $25K - $60K
to deal with. median income
Key Metrics Channels
- Eat a take out
- Risk of spillage breakfast at least
twice each week.
- Greasy hands
- Not overly health
or diet conscious.
Cost Structure Revenue Streams
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
• Traditional egg • We bring all your • Urban, morning
based breakfasts breakfast favorites commuters.
difficult to eat together into one
while driving. delicious and no - 18-42 year old
mess meal. males.
- Multiple items - $25K - $60K
to deal with. median income
Key Metrics Channels
- Eat a take out
- Risk of spillage breakfast at least
twice each week.
- Greasy hands
- Not overly health
or diet conscious.
Cost Structure Revenue Streams
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
1. 3-5 breakfast Proposition Advantage Segments
foods in one
• Traditional egg package. • We bring all your • Urban, morning
based breakfasts 2. Can be eaten breakfast favorites commuters.
difficult to eat with one hand. together into one
while driving. 3. No utensils, no delicious and no - 18-42 year old
messy hands. mess meal. males.
- Multiple items - $25K - $60K
to deal with. median income
Key Metrics Channels
- Eat a take out
- Risk of spillage breakfast at least
twice each week.
- Greasy hands
- Not overly health
or diet conscious.
Cost Structure Revenue Streams
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
1. 3-5 breakfast Proposition Advantage Segments
foods in one
• Traditional egg • We bring all your • Urban, morning
package.
based breakfasts breakfast favorites commuters.
2. Can be eaten
difficult to eat together into one
with one hand.
while driving. delicious and no - 18-42 year old
3. No utensils, no
mess meal. males.
messy hands.
- Multiple items - $25K - $60K
to deal with. median income
Key Metrics Channels
- Eat a take out
- Risk of spillage breakfast at least
Existing Taco Bell twice each week.
- Greasy hands Stores
- Not overly health
or diet conscious.
Cost Structure Revenue Streams
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
1. 3-5 breakfast Proposition Advantage Segments
foods in one
• Traditional egg • We bring all your • Urban, morning
package.
based breakfasts breakfast favorites commuters.
2. Can be eaten
difficult to eat together into one
with one hand.
while driving. delicious and no - 18-42 year old
3. No utensils, no
mess meal. males.
messy hands.
- Multiple items - $25K - $60K
to deal with. median income
Key Metrics Channels
- Eat a take out
- Risk of spillage breakfast at least
Existing Taco Bell twice each week.
- Greasy hands Stores
- Not overly health
or diet conscious.
Cost Structure Revenue Streams
Additional in-store equipment $2.99 per unit sold gross revenue
Additional in-store food ingredients 55% gross margins (78% with soft drink)
Marketing/promotion
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
1. 3-5 breakfast Proposition Advantage Segments
foods in one
• Traditional egg • We bring all your • Urban, morning
package.
based breakfasts breakfast favorites commuters.
2. Can be eaten
difficult to eat together into one
with one hand.
while driving. delicious and no - 18-42 year old
3. No utensils, no
mess meal. males.
messy hands.
- Multiple items - $25K - $60K
to deal with. median income
Key Metrics Channels
- Eat a take out
- Risk of spillage - TV marketing breakfast at least
- Social referrals Existing Taco Bell twice each week.
- Greasy hands Stores
- Not overly health
or diet conscious.
Cost Structure Revenue Streams
Additional in-store equipment $2.99 per unit sold gross revenue
Additional in-store food ingredients 55% gross margins (78% with soft drink)
Marketing/promotion
PRODUCT MARKET
Lean Canvas
Problem Solution Unique Value Unfair Customer
1. 3-5 breakfast Proposition Advantage Segments
foods in one
• Traditional egg • We bring all your - First mover • Urban, morning
package.
based breakfasts breakfast favorites branding commuters.
2. Can be eaten
difficult to eat together into one - Infrastructure
with one hand.
while driving. delicious and no allows for new - 18-42 year old
3. No utensils, no
mess meal. configurations males.
messy hands.
- Multiple items - $25K - $60K
to deal with. median income
Key Metrics Channels
- Eat a take out
- Risk of spillage - TV marketing breakfast at least
- Social referrals Existing Taco Bell twice each week.
- Greasy hands Stores
- Not overly health
or diet conscious.
Cost Structure Revenue Streams
Additional in-store equipment $2.99 per unit sold gross revenue
Additional in-store food ingredients 55% gross margins (78% with soft drink)
Marketing/promotion
PRODUCT MARKET
Lean Canvas
Case Illustration:
Microfinancing by Grameen Bank
MICROFINANCE EXAMPLE
Pioneered by Muhammad Yunus
Studied how to design a credit
delivery system to provide banking
services to the rural poor
Founded the Grameen Bank in 1983
Gives small loans to impoverished
people in Bangladesh without requiring
collateral
MICROFINANCE EXAMPLE
“These millions of small people with their
millions of small pursuits can add up to create
the biggest development wonder."
– Muhammad Yunus
Prepare a Lean Canvas
for the
Grameen Bank
(Have a print-out for class discussion,
no need to senf by email)
