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3
2
1 Repeatability
3 ATTRIBUTES OF A SYSTEM
Constraints
Throughput
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How do you achieve right action, right time?
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Problem Solution Unique Value Proposition
Unfair Advantage
Customer Segments
Key Metrics Channels
Cost Structure Revenue Streams
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Everything here is a risk
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Problem Solution Unique Value Proposition
Unfair Advantage
Customer Segments
Key Metrics Channels
Cost Structure Revenue Streams
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Systematically de-risk your vision
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customers
investors
entrepreneur
team
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Prioritize tackling what’s riskiest, not what’s easiest in your business model.
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Systematically test your plan
Identify the riskiest partsof your planDocument your Plan A
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Systematically test your plan
Identify the riskiest partsof your planDocument your Plan A
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01 Use your intuition.
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Incorrect prioritization of risk is the top contributor of waste.
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02 Start with top 3 universal risks.
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Problem Solution Unique Value Proposition
Unfair Advantage Customer Segments
Key Metrics Channels
Cost Structure Revenue Streams
Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
1
3
2
Early AdoptersExisting Alternatives
1
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03 Seek out domain experts.
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Problem Solution Unique Value Proposition
Unfair Advantage
Customer Segments
Key Metrics Channels
Cost Structure Revenue Streams
Help me, help you. - Jerry Maguire
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Advisor Paradox: Hire advisors for advice but don’t follow it, apply it.
-Venture Hacks
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There is a better way that doesn’t require guessing.
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Theory of Constraints:
Every business is a system of interconnected processes with a single constraint.
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StepA
StepB
StepC
StepD
StepE
10 units/day 15 units/day 7 units/day 9 units/day 10 units/day
MARKET DEMAND12 units/day
Production Example
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StepA
StepB
StepC
StepD
StepE
10 units/day 15 units/day 7 units/day 9 units/day 10 units/day
MARKET DEMAND12 units/day
Production Example
1. What is the maximum system output per day?
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StepA
StepB
StepC
StepD
StepE
10 units/day 15 units/day 7 units/day 9 units/day 10 units/day
MARKET DEMAND12 units/day
Production Example
1. What is the maximum system output per day?2. Where is the constraint?
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StepA
StepB
StepC
StepD
StepE
10 units/day 15 units/day 7 units/day 9 units/day 10 units/day
MARKET DEMAND12 units/day
Production Example
Throughput is 7 units/day
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StepA
StepB
StepC
StepD
StepE
10 units/day 15 units/day 12 units/day 9 units/day 10 units/day
MARKET DEMAND12 units/day
Production Example
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StepA
StepB
StepC
StepD
StepE
10 units/day 15 units/day 12 units/day 9 units/day 10 units/day
MARKET DEMAND12 units/day
Production Example
1. What is the maximum system output per day?2. Where is the constraint?
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StepA
StepB
StepC
StepD
StepE
10 units/day 15 units/day 12 units/day 9 units/day 10 units/day
MARKET DEMAND12 units/day
Production Example
New throughput is 9 units/day
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StepA
StepB
StepC
OUTPUT3 customers/day
Customer Factory Example
Acquisition
Activation
Revenue
20 signups/day 6 users/day
POTENTIALMARKET DEMAND
100 visitors/day
Equipment Capacity: 10,000 users/day 1000 users/day 1000 users/day
People Capacity: N/A 20 users/day 20 users/day
Conversion Rate: 20% 30% 50%
Time To Conversion: 5 minutes 7 days 20 days
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Constraints help you identify right action, right time.
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It’s time to act on your big idea.Validate and grow your business idea with advice from top business model coaches and lean experts.
Ash Maurya | Author, Running Lean | Founder, Spark59 | @ashmaurya
Life is too short to build something nobody wants…