There is a great alternative - compressing a large plan onto one sheet, distributing the basic information into several blocks. Such a tool is called Lean Canvas.
One of the main features is the ability to quickly change the compiled template. This helps well in projects at the planning stage, when it is not yet completely clear what will be the result.
Product managers use Lean Canvas to gather basic information in one place and as a cheat sheet to compile new hypotheses that can be tested with the HADI loops we talked about recently .
But it's important to remember that this tool is not the final business plan for the product. It is used as an auxiliary material when you need to find important information, and there is no time to flip through a large business plan.
The story of the appearance of Lean Canvas
The model was not developed from scratch. Ash Mauryei adapted it from the Bussiness Model Canvas, developed by Alexander Osterwald. Ash took a lean approach in adapting.
If you look at the Bussiness Model Canvas, you will see obvious similarities. But this tool is more suitable for investors, and not for the creators of new projects. The main difference between the two is four blocks.
Essence of Lean Canvas
Lean Canvas is a 9-block table. Each has a specific meaning. It can be drawn on paper or in some program (for example, miro.com/templates/lean-canvas ) on a computer.
Here is one example of a table. There are other options, but they differ only in block numbers, but their essence always remains unchanged.
The tool allows you to look at the product from all sides and understand it even better. And when the consumer asks about something, it will not be difficult to find the answer to the question.
How to fill in the table?
Let's take a closer look at each block. This will help you fill out the Lean Canvas for your product. But first, an important clarification: take your time and do not try to fill the blocks in 15-20 minutes. It is better to gather the whole team (if there is one) and arrange a brainstorming session. Then the filling will take several hours, but the result will be the same.
Block number 1. We determine the target audience
First, define your target audience: who will use the product in the future. Describe each segment in detail: gender, age, interests, education, etc. The universal answer “it fits everyone” will not work. Each project has specific segments that will be interested in consumption.
It is also important to determine who buys the product and who uses it. It often happens that the buyer is the company, and the users are its employees. Then consider the product in two planes and fill in all the items for each separate color. This will help you navigate the table in the future.
The second sub-item is the first users: who will be the first to get access to the product. Decide on them in advance, so you will receive valuable feedback for revisions and improvements to the project.
The first users can be friends, relatives, a special test group, etc. The main thing is that they fit the previously defined segments.
Block number 2. Problem and alternative solutions
Novice product managers often make a mistake at the start: they look at the "features" of the product and what functions it is able to perform. But first, you need to consider what problems the target audience has and, based on them, plan to add new features.
A situation may arise that different segments have different problems. Then make several tables, filling in the blocks for each segment separately. As a result, it may turn out that it is better to make several separate products.
Next, consider who is already solving the problems described. Trust me, the problem is not new and someone has already suggested a solution. The task is to identify the main competitors and write them in the second Lean Canvas block. With them, you will fight for market share.
Block number 3. Unique product value
In the second block, you have identified the customer's problems. Based on this, describe the unique features of the product that competitors do not have. In the future, you will build advertising campaigns around these values and attract new users.
The unique selling proposition (USP) will help to fill in this block. The unique value of the product should be described concisely and clearly (up to 140 characters).
Block No. 4. How the product will solve problems
You know the needs of the target audience and its problems. Now think about solutions that you can implement in your project.
Your vision for solutions may be wrong, so reach out to the early adopters test group. Based on their answers, you can make a list of features that you need to add to the product.
Block number 5. Ways to promote
It makes no sense to create a project if no one knows about it. Think in advance about the ways and channels of promoting the product on the market. When filling out this block, use the segmentation compiled earlier. Remember that different generations of people use different communication channels. The data from this block will help in creating a marketing strategy.
Block 6. How the product will bring income
Any project is created to make a profit, so think about the sources of income in advance.
If you plan to introduce a “subscription” system, ask early users if they are willing to pay for using the product or not. If you will be distributing the product for free, consider alternative methods of generating income.
To fill out the block, analyze the main competitors. Check out their revenue streams. Consider whether your users will be willing to pay the same, more or less money to use the product.
Block 7. What do we spend money on
Any project includes basic and additional cost items: technical implementation, marketing, server rental, design development, etc. In this block, put everything into shelves, determine the exact amount of the planned costs.
Block number 8. Key indicators
You must clearly understand by what criteria to evaluate the success of the project. They must be quantitative. This adds profit, market share, traffic, etc.
By the way, we advise, after collecting information on sources of income and expenses and key indicators, to analyze them together. They must correlate with each other. If there are any serious deviations, the collected data should be reviewed.
Block number 9. Hidden advantage
There should always be a trump card in the sleeve that will help win the fight against competitors. It should be a unique feature of the product that sets it apart from the rest. It is desirable that it be hard to copy.
This block is very important because we live in a rapidly changing world. Once it goes to market, your product can be copied quickly. For such cases, and you need to hold the trump card so as not to lose the audience and continue to develop.
As we said at the beginning, Lean Canvas is very flexible - you can make changes to it at any time. And this must be done when it comes to a new product. Processes in startups change very quickly - and this directly affects each block, so constant updating of the document is necessary.