HOW TO USE THE LEAN BUSINESS MODEL CANVAS

The business model canvas was born from the Lean Startup Methodology. It is like a blueprint of your business before or even after you've started your startup. The Lean Canvas is the perfect format for brainstorming possible business models, prioritizing where to start, and tracking ongoing learning. After identifying the problem you are trying to solve, and whether you have a product or you just have a prototype, you still need a business model. We will be going through the canvas and how you can apply it to your business. These are the key questions you must ask when using the model:

KEY PARTNERS: You need to identify your key partners, who are your key suppliers and what are the key resources or activities for acquiring them.

KEY ACTIVITIES: Identify also the key activities you will be doing to achieve your value proposition. Things like your distribution channel, your revenue streams and even your customer relationships should be taking care of at this stage.

KEY RESOURCES: At this stage you should be able to understand the key resources that your key activities will require. You should be able to identify this things as it will make it easier for you to carry out all these activities.

VALUE PROPOSITION: What value are you giving the customer. Which .of the customers problem are you solving. Things like how your minimum viable product affects them. This is more like the overall value the customer using your product or service will get.

CUSTOMER RELATIONSHIP: Here you will also answer the questions of how to get, keep and grow your customers. Which customer relationship have you established. How are they related to the business model and how costly are they.

CHANNELS: Here you should specify through which channels do you want to reach your customer segment. How do other companies reach them now? Which of these methods works best and which is cost effective.

CUSTOMER SEGMENTS: Who are you creating value for? Who are you most important customers? Where can you find them? How can you reach them?

COST STRUCTURE: This is also an important part of the canvas where you will consider the most important costs in your business. The key resources  that are most expensive as well as your key activities.

REVENUE STREAMS: Finally you should decided for what value are your customers willing to pay? For what value do they currently pay? And what is the overall revenue model and what are the pricing tactics.


If you are having trouble building a business model for your startup, feel free to inbox us.