1-Page Business Plan | LEANSTACK

 

business planning canvas

Lean Canvas is a 1-page business plan template created by Ash Maurya that helps you deconstruct your idea into its key assumptions. It is adapted from Alex Osterwalder's Business Model Canvas and optimized for Lean Startups. It replaces elaborate business plans with a single page business model. The Business Model Canvas was proposed by Alexander Osterwalder based on his earlier book: Business Model Ontology. It outlines nine segments which form the building blocks for the business model in a nice one-page canvas. You can find a detailed explanation in his bestselling book "Business Model Generation". See also ‘Workshop-Business Model Canvas‘ What’s the Business Model Canvas? If you’re already familiar, you can skip to the next section, ‘How do I get started?’. The Business Model Canvas (BMC) gives you the structure of a business plan without the overhead and the improvisation of a ‘back of the napkin’ sketch without the fuzziness (and coffee rings).Author: razgmingplan.ga


Strategyzer | Business Model Canvas – Download the Official Template


What I learned later on though is that for some people, business planning canvas, especially those who have a limited business background, business planning canvas, it can be a little intimidating to understand and use, business planning canvas. A simpler, less complex version was needed. If you would like to download a free, editable, business planning canvas, PowerPoint version of the Business Planning Canvas, business planning canvas, click below.

Free Canvas Download. For startups, creating a business plan is often the least exciting part of getting their business up and running. Many startup founders are driven by passion to create interesting solutions to problems and creating a business plan is usually a necessary chore.

The purpose of the business planning canvas is three-fold:. With the business planning canvas, entrepreneurs and startup founders can quickly and easily think through and document their entire business plan on one sheet of paper. The original business model canvas was the first to organize and layout a business plan on one page. In the business planning canvas, the customer segment and problem to be solved are first at the top left.

In the business planning canvas, the organization is clearly listed along with the capabilities, advantages and partners that make up the organization. The third thing is the business model canvas does not have a place for explaining the overall market, industry and technology environment. In the business planning canvas, these are clearly given space so you can think through and know what sort of environment your business will live in.

The fourth and last thing is the business model canvas does not provide a detailed understanding of the economics underpinning the business, business planning canvas. They list two boxes, one for costs and one for revenues. Well when you actually have to put a business plan together, the costs, revenues and profitability of the business are a little more complicated.

In the business planning canvas, costs are clearly listed under the items they support and in the organization column you can model the overhead costs and overall operational profitability of the business idea.

Those are the main reasons I felt the need to create business planning canvas business planning canvas.

The business planning canvas includes each of these items organized in a logical and easy to use format below. Other than being intrigued by their business idea, I have no affiliation with them. For Mirror, after looking through their website they use images of people that are very fit and active and who work out at home, or at least want to work out at home but are currently going to a gym and paying for a gym membership in order to be instructed by trainers.

The job to be done is a way of thinking about a customer segments fundamental needs. The idea is that people buy products and services in order to get a job done.

Anything that allows them to achieve that business planning canvas is a potential competitor to the Mirror product. This includes running shoes, a treadmill, exercise videos, gym memberships, etc. For some people a gym membership may be inconvenient or they may not like the trainings provided by their local gym.

While there is no direct product competitor to the Mirror, meaning that there are no other Mirror-like at-home gym solutions, business planning canvas, the primary competition for Mirror is a gym membership and other home gym equipment.

According to this article on cnn. The market size can be thought of as two markets: 1 the market for gym memberships and 2 the market for gym equipment manufacturing. Note that when you do this for your business idea you may not have all the information for one section at a given time.

In most cases you may not have all this data and will need to think it through or do more research. And what you do simply proves what you believe. This insight is an essential component to creating any new business. Essentially her mission with Mirror is to give everyone access to world-class fitness training from the comfort and convenience of home. Product or Service. Now that we have our north star and purpose for creating the business planning canvas, we need to clearly explain what the product or solution is that is going to solve our target customers problem.

Since Mirror is both, we can add the business planning canvas to further clarify…. An attractive and affordable mirror which doubles as a display for delivering world-class workouts from top trainers. The next section to think through is the variable cost to create the solution.

There may be other costs related to creating new workout training videos but I left those out for simplicity since they could also be covered under general and administrative costs, business planning canvas. Note that this cost represents the cost to the company to create and have ready in inventory for final shipment to customers a single Mirror. It does not assume that Mirror will only make and sell one, it merely assumes the average cost to make one, regardless of how many in total business planning canvas made.

The purpose of this section is to ensure you think through the competitive landscape by listing the existing solutions, providers and technologies available to the target customer as an alternative to buying your solution. This is similar to the competition section where we listed the prices of alternatives to buying your solution.

No business can exist without a reliable path to reaching customers. The purpose of the channel section is to describe the means by business planning canvas the business will consistently reach customers in terms of generating awareness and making the sale as well as delivering the solution and any ongoing support needed to ensure customer satisfaction. The first thing to figure out relative to the go-to-market channel is how will you generate awareness and drive sales for your business?

In other words, Mirror is gaining some awareness with consumers via these channels, business planning canvas. They might get some early adopters who are both interested in startups and in working out from home but more likely they will need to drive awareness via other more expensive means such as Facebook ads, YouTube ads and Google Adwords. From a sale standpoint it appears they are relying solely on their website for explaining the product features and benefits and generating sales.

Now that we have business planning canvas idea of how to drive awareness and sales with our target customer segment, we need a plan for how to handle delivery and support of the solution. The next element of the channel to think through are the costs associated with awareness, sale, business planning canvas, delivery and support.

The best way to think about this cost is to spread it over an assumed volume of sales and determine how much it will cost on a per unit basis.

For example, with Mirror they will be incurring costs each time they generate awareness, make a sale, complete a delivery and install and take a support call. Generating awareness with PR is free but eventually they will likely need to start running ads. From a sales standpoint, since they seem to be relying solely on their website to make and generate sales, and not some sales commission structure with actual sales people being paid, we can assume the costs of hosting and maintaining the site are negligible or can be rolled up under general and administrative overhead costs.

We should also account for the costs business planning canvas running the transaction itself since they take credit card on their website and are likely needing to pay credit card processing fees. For delivery and support we need to make some additional assumptions, business planning canvas.

For support costs we can use business planning canvas approach similar to what we did for advertising since support costs are generally a function of volume. That means for any given month in the short-term around 10 people may call in to ask for support. At those numbers it almost makes more sense to just roll that under general and administrative costs rather than to show it as variable.

The last section under channel to think through are the current channels in use by other solution providers and any important trends or changes with those channels that it will be helpful to be aware of, business planning canvas. Walmart, Costco, etc. The reason to document these shifts business planning canvas to understand where your business idea is relative to broader trends.

In the case of Mirror since it appears they are only selling online and direct to end-customers then we can assume their business model is in harmony with the overall market trend.

The last major piece of the business planning canvas to think through is the organization that supports all of the product, channel and customer activity. This section is a straightforward listing of the business name, the owners of the business and the resources either financial, intellectual or otherwise the business will have at its disposal.

Also listed on Crunchbase were three other team members who handle marketing, product and engineering. This section is designed to help you think through why and how your business will stand out against the competition when it comes to creating the solution, business planning canvas. These include expertise, experience, relationships and partnerships with other people or organizations needed to effectively execute the business plan.

This capability reduces the risk of failure to the business plan. Other notable advantages that could be listed include the business location in NYC which brings along with it access to tech talent and access to her current gyms trainers. From a business planning canvas standpoint the most important is likely their manufacturing supplier for business planning canvas Mirror.

To do this we just need to create a simple list of ongoing fixed costs that the business will incur over a given year. These types of fixed costs generally include payroll, rent, utilities, office supplies, etc. In the case of Mirror, I made several assumptions regarding their first year in business and came up with the following.

With the price data from the Customer section along with the variable costs listed under Channel and Solution, we can now calculate the contribution margin per unit sold. The equation is as follows:. This is a debatable choice since there will likely be costs associated with selling people subscriptions after the first year expires. This can be a very handy number as it helps keep the business focused to help it stand on its own. The formula for calculating this is very simple.

All you do is take the total fixed costs general and administrative and divide them by the total contribution margin per sale. With this as our starting point, we can now manipulate the equation to estimate total profit for a given level of sales volume using the following:.

For example, business planning canvas, now that we know Mirror must sell at least units in order to breakeven, we know if they sold fewer than that they will lose money and will need to find some way to cover those losses — either through more money from investors or using debt and if they sell more than that they will make money. What if they end up selling 3,? Which brings me to an important point…just because you can estimate these numbers now does not mean they will be accurate later.

Inevitably you will want to always revisit and revise these assumptions as you learn more and gain a track record. So think of these as your first stake in the ground for what you think the business model is and update it from there. Where this framework comes especially in handy is in talking to investors.

When you are able to show a clear path to profitability — such as Mirror achieving 3, in sales — you will be taken seriously so long business planning canvas your other assumptions seem reasonable. Investors need to know one thing: when will they get their money back. The industry dynamics section is intended to document anything noteworthy that is changing in the industry. This can include things like consolidation, vertical or horizontal integration, business planning canvas. This is an interesting fact especially for Mirror since, as mentioned earlier, their founder Brynn Putnam happens to own and operates a specialty fitness center as well.

Another trend mentioned in the article is the proliferation of fitness content online that is low-cost and easy to access via computer, smartphone or smart TV. These trends are important to consider when creating a business plan. The key to look for is whether or not your business plan is in line with current trends or not. The last section of the Business Planning Canvas to think through is the regulatory environment your business will live in.

This business planning canvas where you would document noteworthy regulations that do or may affect your businesses chances of success.

 

Business model canvas and lean canvas: how to use in business planning

 

business planning canvas

 

Get Your Free PowerPoint Template!Business Planning Canvas Quickly create a complete business plan from start to finish in under an hour. The Business Planning Canvas will walk you step-by-step through your business idea, including: Customer Segment Solution Channel Organization Plus you'll have all the information you need to create your initial financial model. Business Model Canvas is a strategic management template for developing new business models or documenting and improving the existing ones. It’s a visual chart that helps companies align their activities by illustrating the potential trade offs. Use the Business Model canvas to describe, design, challenge, and pivot your business model. It works in conjunction with the Value Proposition Canvas and .