Thursday, December 6, 2012

Business Canvas and Lean Startup

Recently, I attended a talk on "Business Canvas", in Start-Up Chile program. I found Business Canvas systematic representation of the questions, which we should ask to ourselves before we start any product.

Its a diagram, with following questions in order:
1. What problem your solving?
2. What are alternate solutions available?
3. What is your solution?
4. Unique Value Proposition
5. Unfair-Advantage
6. Customer Segments
7. Early Adoptors
8. Key Metrics
9. Channels
10. Cost Structures
11. Revenue Streams

You should always start with Business Canvas before you start working on any idea and should be prepared in team. It gives detail picture of your product. You can go over iterations of Business Canvas. And each of the section can be validated/invalidated with sets of experiments.

Now, before we proceed further, I want to discuss something on "The Lean Startup".

Lean Startup does not mean being lean in terms not eating food :P but lean in terms of development cycle. Its all about learning fast and keeps iterating fast.

The Lean Startup is a business approach coined by Eric Ries that aims to change the way that companies are built and new products are launched.The Lean Startup relies on validated learning, scientific experimentation, and iterative product releases to shorten product development cycles, measure progress, and gain valuable customer feedback.In this way, companies, especially startups, can design their products or services to meet the demands of their customer base without requiring large amounts of initial funding or expensive product launches.

So, one of the key learning from Lean Startup is to de-risking the most riskiest section of your business canvas. This can be done with making assumptions and run experiments to validate those.

Here is one of the nice example of it here
http://lscstarfish.wordpress.com/2011/07/19/introduction-to-starfish/

You can read other articles from him, he updates every week.


We have prepared first version Business Canvas for Picovico.










You can create your business canvas using
http://www.leanlaunchlab.com/
http://leancanvas.com

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