WORKSHOP: LEAN CANVAS

• Intro to Lean Startup• The Lean Canvas– Overview– YOUR Lean Canvas

• Risks and challenges

Agenda

The Problem

The Problem

Many startups begin with an idea for a product that they think people want. They spend months, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer. When they fail to reach broad uptake from customers, it is often because they never spoke to prospective customers and determined whether or not the product was interesting. When customers ultimately communicate, through their indifference, that they don't care about the idea, the startup fails.

Lean Startup

Lean Startup

“If startups invest their time into building products or services step by step to meet

the needs of early customers, they can reduce the market risks and sidestep the need for large amounts of initial project funding and expensive product launches

and failures.”

Lean Startup

Build – measure - learn

Lean Startup

“The Lean Startup provides an […] approach to creating and managing startups and get a desired product to customers' hands faster.”

Lean Startup

Lean Startup

Lean Startup

• “Build- Measure- Learn”• Customer Development• MVP• (Actionable) Metrics• Pivot• Agile Development• Lean Canvas

LEAN CANVAS

Lean Canvas

“A different way to capture your Business Model”

Lean Canvas

• One Page Solution, even for multisided businesses• Easy to understand• Easy to create• Fast to create• Easy to adapt• Easy to communicate• Entrepreneur focus

Lean Canvas

1. Problem and existing alternatives2. Customer Segments and Early Adopters3. Unique Value Proposition4. Solution (Key Features)5. Channels to the customers6. Revenue Model7. Cost structure8. Key Metrics9. Unfair Advantage

Lean Canvas

Lean Canvas

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1. Problem and Existing Alternatives– What are the Top 3 Problems that you are solving?– How are people solving the problems today?

2. Customer Segments and Early Adopters– Who are your target customers?– Out of these group who do you think are your first users (early Adopters)?

Lean Canvas

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3. Unique Value Proposition (UVP)

• Why you are different and worth getting attention• What makes you standing out?• What is the number one problem you are solving

and for whom?

High Level Concept Pitch

• Helps you on your way to your UVP• NOT YOUR UVP!!!

Examples for a High Level Concept Pitch:

“AirBnB for Language Education”

“Salesforce for Project Management”

Lean Canvas

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4. Solution• Top three features of your product

according to the problem you are currently solving?

Example (KSNA)

1. Persian language2. Easy access3. Focus on Beginners Level

Lean Canvas

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5. Channels (Your path to the customer)• How do you reach your customers?

• Possible channels are:– SEO– Blogs/websites– Facebook Ads– Print Ads– Word of mouth– Events (Conferences, Tradeshows)– Partnerships– Friends

Examples

1. Tea talks (Bi- Language)2. Sharing on Hackernews (Taskulu)3. …….

Lean Canvas

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6. Revenue Streams– How are you going to make money? Not in three to five years but in 5 months?– How much money with each revenue stream (What are the models, how much money per

customer)

7. Cost structure– What are your upcoming operational costs? Not in three to five years but in the upcoming

months?• Server, Salaries, software, advertising…….

When would be your break even?

Lean Canvas

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8. Key Metrics• The numbers that tell you how you are performing!

• Dave McClures Pirate Metrics:

Lean Canvas

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9. Unfair Advantage• What do you have that others don’t have and cannot

easily copy or buy?

Examples:• Patent• Endorsement by a well known expert• Insider Information• A team with outstanding experience and knowledge

Lean Canvas

TIME TO SHARE AND DISCUSS !

Lean Canvas

TIME TO GET FEEDBACK!

Feedback

Present your Canvas to one other team and ask them for feedback– Where did they have trouble to understand?– Did they have the feeling you were to general/to

detailed?– Could they think about different key features,

customers, additional channels,……

RISKS

Risks

Product RisksGetting the product right

• Problem• Unique Value Proposition• High Level Concept• Solution• Key Metrics

Risks

Customer RiskBuilding a path to customers

• Customer Segments• Early Adopters• Channels

Risks

Market RiskBuilding a viable business

• Existing Alternatives• Revenue Streams• Cost structure• Unfair Advantage

Lean Canvas

TIME TO GET FEEDBACK AGAIN!

Homework

• Present your canvas to at least one more person and get their feedback

• Discuss the feedback you got and decide what to implement

• Is there more than one customer segment?– If yes, create a canvas for each of them and decide

which one you want to focus on!• Find ways how to validate your risks