Lean Canvas Business Model

L E A N C A N VA S B U S I N E S S M O D E L 1

LEAN CANVASBUSINESS MODELTEST • MEASURE • MAINTAIN • INSTIGATE

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TA B L E O F C O N T E N T S 2thinkleanwith e•boost

Problem & Customer Segments

Unqiue Value Proposition

Solution

Key Advantages

Channels

Cost & Revenue

Key Metrics

I.

II.

III.

IV.

V.

VI.

VII.

TABLE OF CONTENTSI. Overview

II. How to Create a Lean Canvas Business Model

III. L.C.B.M: Homes for Soldiers

IV. Lean Canvas Business Model Template

V. Conclusion

VI. Appendix

• Captures the essence of your organziation

Concise• Easy to share• Read by more people• More frequently updated

Accessible

• Keeps everyone on track with the bigger vision• Focuses on the big issues while honed on details and day-to-day issues.

Effective• Business plan can take several weeks or months• Multiple lean canvas can be outlned in one afternoon

Fast

O V E R V I E W 3thinkleanwith e•boost

A Lean Canvas Business Model is a portable 1-page diagram structured to brainstormpossible business models, prioritize where to start, and track ongoing learning.

Business plans take too long to write, are seldom updated, andalmost never read by others.

• A single page business modelis much easier to share

Lean canvas business model (L.C.B.M)WHAT IS A LEAN CANVAS BUSINESS MODEL?

HOW DOES IT DIFFER FROM A BUSINESS PLAN?

WHY DO I WANT TO USE IT?

H O W T O C R E AT E Y O U R L E A N C A N VA S B U S I N E S S M O D E L 4

How to create yourLean Canvas Business Model

BRAINSTORMpossible audience

+ vs. +

DONOR & USERdistinguish between

sketch yourLEAN CANVAS


A user is someone who uses the services of your organization

A donor is someone that donates to your organization and/or contributes monetarily

P R O B L E M A N D C U S T O M E R S E G M E N T S 5

ListTOP

3PROBLEMS


TRAITS

Problem &Customer Segments

DONORS

USERS&

List your various Name different

U N I Q U E VA L U E P R O P O S I T I O N 6thinkleanwith e•boost

Unique Value Proposition

1Be

dIFFERENTMake sure your difference matters

2Focus on finished

story benefitsNote the benefits your customers deriveafter contributing to your organization

3 &Pick key words

own themNote: using a few “key words” consistently can also help drive your SEO ranking

A single, clear compelling message that states why your organization is different and

worth contributing too

HOW TO CRAFT A UNIQUE VALUE PROPOSITION

S O L U T I O N 7thinkleanwith e•boost

Solution

TACKLE SOLUTION

POSSIBILITIESfor each problem your organization faces

All your hypotheses have not been tested, so don’tget carried away with fully defining a solution just yet.Bind a solution to your problem as late as possible.

K E YA D VA N TA G E S 8thinkleanwith e•boost

Key Advantages

LIST THE KEY

ADVANTAGESyour organization possesses

that cannot be easily replicatedby a competitor

C H A N N E L S 9thinkleanwith e•boost

Channels

LIST THE

PAIDFREE &

CHANNELSyou can use to reach your user/donor

A channel is a set of activities used to reach your targeteduser/donor (i.e. blogs, workshops, books, social media etc.)

Start building and testing a pathto users/donors from day one

C O S T & R E V E N U E 10thinkleanwith e•boost

Cost & Revenue

streams OF FUNDS

Note which donations are restricted & unrestricted

List out theList out the

VARIABLEFIXED &

to run your organizationcosts

Fixed costs are costs that remain the same regardless of changes in activity (e.g. rent & insurance)

Variable costs are costs that vary in direct proportion to changes in activity (e.g. direct materials & labor

The breakdown of costs into fixed & variable components will help with flexible budgeting, break-even analysis, and short-term decision making.

DONOR&SOURCES

Restricted donations can only be used for the purpose specified by the donor (e.g. research for leukemia)

Unrestricted donations have no specific purpose other than to support yourorganization

that should be tracked

K E Y M E T R I C S 11thinkleanwith e•boost

Key Metrics

LIST THEactivities

SUCCESS

The key numbers that tell youhow your organization is doing

in order to measure

PROBLEM SOLUTION UNIQUE VALUE PROPOSITION KEY ADVANTAGES CUSTOMER SEGMENTSPROBLEM

KEY METRICSCHANNELS

COST STRUCTURE REVENUE STREAMS

Lean Canvas Business Model was adapted from http://leancanvas.com and Running Lean by Ash MauryaThe “Lean Canvas” visualization of business models was adapted from The Business Model Canvas and is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License


• Post Traumatic Stress Disorder (PTSD) & other Traumatic Brain Injuries(TBI) prevent injured veterans from working

• No place to call home

• No real support system

• Provide support network to encourage wounded soldiers to achieve their goals

• Provide adequate living space

• Offer ample housing and support time for proper recovery

• # of veterans that graduate the program

• > 85% of donations go to program funding

• > 35% Increase in donorship per year

As the ONLY organization that is centralized in helping veterans with PTSD or TBI, we provide homes for those who protect ours.

Users: • Medically discharged soldiers with PTSD and/or TBI- 18-26 years old

Donors: • Compelled individuals

• Corporate Sponsors

• Grants & other federal funding

Free:• Public Relations• Word of mouth• E-mail MarketingPaid:• Fund-raising events• Website

Fixed:• Veteran Housing Rent/Year ~ $35,000• Insurance/Year ~ $3,500• Salary ~ $0

Variable:• Utilities, Food, Support services

• Personal Donations ~ $10,000• Corporate Donations ~ $24,000• Fund-raisers ~ $6,000

• Federal funding ~ To be determined

• Powerful spokesperson

• Educated, professional and well-networked team

HOMES FOR SOLDIERSLean Canvas Business Model

PROBLEM SOLUTION UNIQUE VALUE PROPOSITION KEY ADVANTAGES CUSTOMER SEGMENTSPROBLEM

KEY METRICS CHANNELS

COST STRUCTURE DONATIONS/FUNDS

Lean Canvas Business Model was adapted from http://leancanvas.com and Running Lean by Ash MauryaThe “Lean Canvas” visualization of business models was adapted from The Business Model Canvas and is licensed uner the Creative Commons Attribution-Share Alike 3.0 Unported License


(List the top difficulties that

your organization faces)

(List what the possible solutions could be to your problems)

(List the activities that should be tracked in order to measure success)

(A short, clear and compelling message that states why your organiza-tion is different and worth donating too)

(List the types of people

that you would like to reach

with your efforts. Note the

differences between a

customer and a user, and

brainstorm who would be

your early adopters)

(List the free and paid

channels you can use to

reach your customer)

(List out all your fixed and variables costs to run your organization) (List the current streams of funds or donations used to maintain your organization)

(List the key advantagesyour organization possesses that cannot be easily copied by a competitor)

(ENTER YOUR ORGANIZATION)Lean Canvas Business Model

A P P E N D I X : I N R O D U C T I O N 14

APPENDIX:INTRODUCTION

The Lean Canvas Business Model was built on the methodology described in

“Running Lean” a book by Ash Maurya. The lean canvas helps you maintain

focus while strategically creating a sustainable business model. The follow-

ing Appendix, breaks down each section of the LCBM to provide in-depth

analysis and guidance as you look to build your organization’s very own lean

canvas. After you are done, you will be able to spend more time building

versus planning your business.

Below indicates the order we recommend you take as you sit down and

complete a LCBM for your own non-pro�t organization:

1. Problem & Customer Segment

2. Unique Value Proposition

3. Solution

4. Key Advantages

5. Channels

6. Cost Structure & Revenue

7. Key Metrics

LEAN CANVAS BUSINESS MODELPROBLEM SOLUTION UNIQUE VALUE PROPOSITION KEY ADVANTAGES CUSTOMER SEGMENTSPROBLEM

KEY METRICS CHANNELS

COST STRUCTURE DONATIONS/FUNDS

1 123 45

66

7

A P P E N D I X : I N R O D U C T I O N 15

APPENDIX:INTRODUCTION

Keep in mind, that the power of a Lean Canvas Business Model is the fact

that it can be quickly updated and improved so your �rst draft does not

have to be per fect. Also, every organization is unique so it ’s okay if your

LCBM looks quite di�erent.

As we go through the Appendix, we will be using a �ctional start-up

non-pro�t organization, Home for Soldiers, that looks to provide homes

and support for returning veterans su�ering from Post Traumautic Stress

Disorder (PTSD) and other traumatic brain injuries ( TBI) .

BELOW IS AN OUTLINE FOR SKETCHING LEAN CANVAS:

1. Sketch a canvas in one sitting: unlike a business plan, which can take

months to write, your lean canvas could be sketched quickly.

2. I t ’s okay to leave sections blank: instead of debating the “right” answer,

leave it blank and come back to it later. Your canvas is meant to evolve

over time.

3. Think in the present: business plans try too hard to predict the future.

Instead, write your canvas with a “getting things done” attitude.

A P P E N D I X : C U S T O M E R S E G M E N T S 16

APPENDIX:CUSTOMERSEGMENT

In the Customer Segments section of the LCBM, l ist both your

organization’s “users” and “donors” . We use these terms broadly, but the

main takeaway here is to be sure to distinguish between those you are

helping (users) and those you are targeting for funding (donors).

Users: • Medically discharged soldiers su�ering from PTSD and/or TBI - Typically 18-26 years old

Donors:• Corporate sponsors• Compelled Individuals• Grants & other federal funding

CASE STUDY: CUSTOMER SEGMENT

A P P E N D I X : P R O B L E M 17

APPENDIX:PROBLEMS

In the Problem section of the LCBM, your organization needs to visualize

the issues that you look to solve on behalf of their segment ’s needs and

wants.

List the Top 3 problems: for each user/donor segment you are working

with, describe the top 1-3 problems that need to be solved.

Customer Segment: Medically discharged soliders with PTSD or TBI

Problem 1: PTSD and TBI prevent them from workingProblem 2: No place to call home Problem 3: No real support system

CASE STUDY: PROBLEMS

A P P E N D I X : U N I Q U E VA L U E P R O P O S I T I O N 18

APPENDIX:UNIQUEVALUEPROPOSITION

The Unique Value Proposition of the LCBM is one of the most

important sections in the canvas and also one of the most

di�cult to perfect.

The UVP is hard to perfect because you have to distill the essence

of your organization in a few words -- delivering the what, who &

why in a concise message. In addition, your UVP needs to be

di�erent and that di�erence needs to matter.

The good news is your UVP doesn’t have to be perfected right

away. Write from your heart and what �rst comes to mind. Be

sure to highlight the bene�ts your participants will derive after

getting involved with your organization.

CASE STUDY: UNIQUE VALUE PROPOSITION

“ Unique Value Proposition: A single, clearcompelling message that states why you aredifferent and worth buying ”

– Steve Blank, The Four Steps to the Epiphany

As the ONLY organization that is centralized in helping veterans with PTSD or TBI, we provide homes for those who protect ours.

A P P E N D I X : S O L U T I O N S 19

APPENDIX:SOLUTIONS

Under the Solutions section of the LCBM, list the ways in which

your organization will solve the problems that you listed for

each of your user/donor segments.

Write down the “possible” solutions that you believe will solve

these problems, even if you do not currently

possess the resources or capabilities to accomplish them.

Visualizing your solutions will make it easier for you to see the

direction your organization needs to go and have a better

understanding of how you will be helping your user/donor

segments.

• Provide support network to encourage veterans to achieve their goals• Provide adequate living space• Offer ample housing and support time for proper recovery

CASE STUDY: SOLUTIONS

A P P E N D I X : K E Y A D VA N TA G E S 20

APPENDIX:KEY ADVANTAGES

The Key Advantages section can often be quite di�cult. You

may initially keep this box blank, but it ’s purpose is to have

you really think about how you can make your organization

di�erent and make your di�erence matter.

“ A real unfair advantage is something that cannotbe easily copied or bought. ”

– Jason Cohen, A Smart Bear

CASE STUDY: KEY ADVANTAGES• Powerful spokesperon• Educated, professional and well-networked team

A P P E N D I X : C H A N N E L S 21

APPENDIX:CHANNELS

A Channel is the path your organization takes to reach your

user/donor segments. We �nd it bene�cial for organizations to

di�erentiate between “free” and “paid” channels that they are

currently using or planning to use. Note that unlike a paid

channel, which is used up after you pay for it, free channels keep

working for you over time.

Free: • Public relations• Word of mouth• Blog• E-mail marketing

CASE STUDY: CHANNELSPaid:• Fund-raising events• Website

A P P E N D I X : C O S T S T R U C T U R E 22

APPENDIX:COST STRUCTURE

In the Cost Structure section of the LCBM you will break down

your organization’s “�xed” and “variable” costs.

Fixed costs are the costs that are not dependent on the level of

services or goods produced by the business.

Ex : salaries, rent, and insurance.

Variable costs are expenses that vary in direct proportion to

changes in your organization’s activity.

Ex: costs of goods sold, utilities, and travel expenses.

Try to be as accurate and detailed as possible; however,

estimations are �ne as well.

CASE STUDY: COST STRUCTUREFixed:• Veteran Housing Rent/Year ~ $35,000• Insurance/Year ~ $3,500• Salary ~ $0

Variable:• Utilities, Food, Support services

A P P E N D I X : R E V E N U E 23

APPENDIX:REVENUE

While non-pro�ts serve the greater good and are not for-pro�t,

it is still important to create and maintain a sustainable

business model.

Under the Revenue Streams section of the LCBM, list your

organization’s main streams of funding and donor sources. It

is important to quantify and document the actual amounts

your organization are currently receiving and/or planning to

receive in the near future.

Be sure to note whether or not any of your organization’s

current funding are open for use or restricted to speci�ed

purposes.

• Personal Donations ~ $10,000• Corporate Donations ~ $24,000• Fund-raisers ~ $6,000

• Federal funding ~ To be determined

CASE STUDY: REVENUE

A P P E N D I X : K E Y M E T R I C S 24

APPENDIX:KEY METRICS

In the Key Metrics section of the LCBM, list the activities that

should be tracked in order to measure your organization’s suc-

cess. Documenting these key activities will drive usage in your

organization. For instance, tracking the number of veterans

that successfully �nish the program is the ongoing key activity

that will drive usage for “Homes for Soliders”.

“ Find the key number that tells you how yourbusiness is doing in real time, before you getthe [analysis report]. ”

– Norm Brodsky & Bo Burlingham, The Knack

CASE STUDY: KEY METRICS

• # of veterans that graduate the program

• > 85% of donations go to program funding

• > 35% increase in donorship per year

STAY CONNECTED

A P P E N D I X : C O N C L U S I O N 25

APPENDIX:CONCLUSION

Congratulations on completing your �rst Lean Canvas Business

Model! Now whenever there are changes made within your

organization, you will be able to quickly update and revise

your LCBM in a matter of minutes. The LCBM is a powerful tool

to quickly and e�ectively guide your organization through

proper strategic planning.

Since this is a work in progress, we would love to hear from

you on any recommendations and/or suggestions on it ’s value

and how you could see it changing.

Please contact us via email at: [email protected]

@eBoostInterns

facebook.com/eboostinterns

eboostinterns.wordpress.com

youtube.com/eboostconsulting

Lean Canvas Business Model was adapted from http://leancanvas.com and Running Lean by Ash MauryaThe “Lean Canvas” visualization of business models was adapted from The Business Model Canvas and is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License

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