Business Modelling

There are a lot of different ”modells” out there…

Lean Canvas- the business plan in one page!

What is Lean Canvas?• Lean Canvas is the very first step for evaluating a business idea and

for identifying the riskiest assumptions to be tested.

• The concept is to briefly and concisely explain a business model to a person (or yourself) who does not know anything about your idea.

• It only takes a few minutes to create a first draft and it will help anyone with a business idea to get more clarity on their thoughts.

• You should come back and revise the canvas as your business ideaprogress!

Three Key Rules1) Write sentences in the canvas that are specific and concise and keep

them simple, straight to the point, and meaningful.

2) When the first draft is ready, go through each step, telling this story to yourself: we will help these people (customer segments) to solve (problem) by providing them (solution). They will know about us through (channels) and they will be convinced to join us because (value proposition) and because we already (unfair advantage). We will charge them by (revenue) and we believe this will cover our (costs). We will measure our performance by tracking (key metrics). It should all flow and make sense, like it is a story where everything is linked. If not, the Lean Canvas needs more work.

3) Prepare a canvas for each customer segment of your business idea. This is because each customer segment may have different problems, solutions, channels, revenue, costs, etc.

Anatomy of the Lean Canvas

Example : UBER in LONDON- a step-by-step guide

Problem & Existing Alternatives• What problem(s) are your idea solving?• Write a brief description of at least the

top 3 problems• What are the strongest frustrations or

aspirations that your potential customers have.

• How can these problems be solved today?• Who are the current competitors of your

future business?

Custermer Segments &Early Adopters• Who is having these pains?• Who do you think is suffering because of the

problems you are going to solve?

• Who do you think feels those problems the most?

Four elements to an early adopter:• Early adopters have the problem. • Early adopters know they have the problem. • Early adopter have the budget to solve the problem• Early adopters have already put together their

makeshift solution.

Solution• What are you going to do to solve

customers problems?Here you should describe your business idea not in a technical way, but with brief and concise sentences that explain what the customer experience is going to be.

• Each problem should be matched by a solution.

Unique ValueProposition & High-Level Concept

A Unique Value Proposition is a sentence that tells why what you do is different from competitors and why that difference matters to customers. It describes the unique way your are going to provide value to your customers.How would you describe your business to target customers in one just ONE sentence?

How would you briefly describe what you do?The high level concept is a single and very short statement that describes your business idea.

Channels• How are you going to acquire your

customers?

• Once you have a product designed to solve customers problems in a unique way, how are customers going to know about that?Are you going to use Academic publications, Social media? Paid Online advertising? Google adWords? PR? Cold calls? Partnerships?

Unfair Advantage• What makes you special?

The unfair advantage is NOT the competitive advantage that you believe you will have once you have launched the business. Instead, it has to be something that you already have, and cannot be copied or bought, and would require a considerable amount of time for anyone else to build.

• An unfair advantage makes you different from anyone else willing to launch the same exact business.

Revenue Streams & Cost Structures

• How will you charge your customers for solving their problems? Try to list here the top 3 ways you will charge your customers. It’s ok not to put numbers at a very early stage, just how you are planning to charge them or get money from your product.

• What are the expected costs to run your business? It’s ok not to put numbers at a very early stage.

Key Metrics• How are you going to measure your

business performance?

• A good framework is a funnel called AARRR:

Which are the customers’ actions that you are going to track to define the steps above and monitor your business performance?

Prepare a canvas for each customer segment

Passengers Drivers

Business Model Canvas - UBER

Now it is your turn….