Lean Canvas: A Startup Business Model
The Lean Canvas, created by Ash Maurya, is an optimized version of the BMC specifically for lean startups. It’s based on modern product management principles like handling uncertainty, validated learning, and innovation accounting. Maurya made key changes to the original BMC sections to address the riskiest segments and make them more actionable:
- Key Partners was replaced with Problem: Addresses the common startup failure of not having the right product/market fit, emphasizing correctly identifying market needs.
- Key Activities was rebranded to Solution: Aims to constrain entrepreneurs to evaluate every idea for a solution, also a great place to define your Minimum Viable Product (MVP).
- Resources were switched onto Key Metrics: Focuses on a few essential metrics to minimize chaos and prevent wasting time and resources on wasteful activities.
- Customer Relationships was skipped in favour of Unfair Advantage: Reminds the startup that success depends on differentiation from competitors and helps plan for future competition.
Key Takeaways
- Product management is a strategic role that bridges customer needs, business goals, and technical feasibility.
- Product managers are responsible for a product’s lifecycle, from ideation to launch and beyond.
- They work closely with cross-functional teams to ensure product success.
- Key responsibilities include defining product strategy, prioritizing features, and conducting market research.
- Effective product management drives innovation and aligns products with business growth.
How the Business Model Canvas Can Help Established Businesses
The BMC’s versatility allows it to be applied beyond startups, helping established companies strategize new initiatives or analyze competitors’ success. It helps to:
- Detect opportunity gaps and find new perspectives.
- Create competitors’ business models and compare them to yours.
- Keep track of external changes in each building block.
- Pitch investors using a visual representation.
- Test new business models.
- Map out potential changes.
- Align your team’s goals and actions.
- Look at the business from a customer’s perspective.
- Analyze new opportunities, partners, and channels.
The goal for established businesses is not just to confirm what is known but to find flaws and pinpoint ways to make business processes more effective.
What Now? Life After the Business Model Canvas
The BMC is designed to be an ongoing tool, a “map to guide your ship”. After laying out your business model, you can continue to use it for:
- Dashboard: Track changes in building blocks and satisfaction levels, and colour-code complex elements to focus team attention.
- Meetings: Use it as a brainstorming instrument to unify new ideas and manage them.
- Understanding Customers: Create BMCs for your customers to understand their business models, as SAP sales teams do in their pre-sales process.
- Onboarding: Provide new hires, especially top management, with an immediate understanding of the company’s standing.
As Alex Osterwalder states, “The same products, services or technologies can fail or succeed depending on the business model you choose. Exploring the possibilities is critical to finding a successful business model.” Instead of spending months on a strategy that may not materialize, the BMC allows for on-the-go adjustments, helping you stay connected with your team and on the same page.
To get started with your own Business Model Canvas, download our easy-to-use Business Model Canvas template here to start creating your own. Just fill in the sections and export your canvas in minutes.