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L EANCANVASBUSI NESSMODEL 1

LEAN CANVAS
BUSINESS MODEL
TEST MEASURE MAI NTAI N I NSTI GATE
7125 El Cajon Blvd. #5,
San Diego CA92115
T: 619.618.2545
E: interns@eboostconsulting.com
W: eboostconsulting.com
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TABL EOF CONT ENT S 2
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Problem & Customer Segments
Unique Value Proposition
Solution
Key Advantages
Channels
Cost & Revenue
Key Metrics
I.
II.
III.
IV.
V.
VI.
VII.
TABLE OF CONTENTS
I. Overview
II. How to Create a Lean Canvas Business Model
III. LCBM Example: Homes for Soldiers
IV. Lean Canvas Business Model Template
V. Conclusion
VI. Appendices

Captures the
essence of your
organziation, yet
is still short and
to-the-point

Concise
Easy to share
Read by more people
More frequently
updated than
traditional models
Accessible
Keeps everyone on track
with the bigger vision
Focuses on the big issues
while still honing in on the
details and day-to-day issues
Effective
A business plan can take
several weeks or months
Multiple lean canvases can
be outlined in a single
afternoon
Fast
OVERVI EW 3
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A Lean Canvas Business Model is a portable, one-page diagram that is structured to
brainstorm possible business models, prioritize where to start, and track ongoing learning.
Traditional business plans take too long to write, are seldom
updated, and are almost never read by others.
A single page business model
is much easier to share
Lean Canvas Business Model (LCBM)
WHAT IS A LEAN CANVAS BUSINESS MODEL?
HOW DOES IT DIFFER FROM A BUSINESS PLAN?
WHY DO I WANT TO USE IT?
HOWTOCREAT EYOURL EANCANVASBUSI NESSMODEL 4
How to Create Your
Lean Canvas Business Model
BRAINSTORM
who your possible
audience will be
+
vs.
+
DONOR & USER
distinguish between
sketch your
LEAN CANVAS
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A user is someone who benefts
from your organizations services
A donor is someone who
gives to your organization
and/or contributes monetarily
PROBL EMANDCUSTOMERSEGMENT S 5
List
TOP
3
PROBLEMS
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TRAITS
Customer Segments
& Problems
USERS
DONORS
&
List your various Name different
UNI QUEVAL UEPROPOSI T I ON 6
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Unique Value Proposition
1
Be
DIFFERENT
Make sure your di erence matters
2
Focus on finished
STORY BENEFITS
after contributing to your organization
3
&
Pick keywords
own them
Note: using a few keywords consistently can also help drive your SEO ranking
A single, clear, and compelling message that
states why your organization is di erent
and worth contributing to
HOW TO CRAFT A UNIQUE VALUE PROPOSITION
SOL UT I ON 7
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Solution
TACKLE SOLUTION
POSSIBILITIES
for each problem your organization faces
All your hypotheses have not been tested, so dont
Attach a solution to each problem as late as possible.
KEYADVANTAGES 8
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Key Advantages
LIST THE
KEY ADVANTAGES
your organization possesses
that cannot be easily replicated
by a competitor
CHANNEL S 9
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Channels
LIST THE
PAID FREE
&
CHANNELS
that can be used to reach your donor(s)/user(s)
A channel is a set of activities used to reach your targeted
donor/user (i.e. blogs, workshops, books, social media, etc.)
Start building and testing a path
to donors/users from day 1
COST &REVENUE 10
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Cost & Revenue
STREAMS OF FUNDS
Note which donations are restricted & unrestricted
List out all List out all
VARIABLE FIXED
&
required to run your organization
costs
Fixed costs are costs that
remain the same regardless
of changes in activity (e.g.
rent & insurance)
Variable costs are costs that
vary in direct proportion to
changes in activity (e.g.
direct materials & labor)
The breakdown of costs into & variable components will help with
DONOR &
SOURCES
Restricted donations can
only be used for the purpose
research for leukemia)
Unrestricted donations have
than to support your
organization
that should be tracked
KEYMET RI CS 11
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Key Metrics
LIST THE
activities
SUCCESS
The key numbers that tell you
how your organization is doing
in order to measure
PROBLEM SOLUTION UNIQUE VALUE PROPOSITION KEY ADVANTAGES CUSTOMER SEGMENTS PROBLEM
KEY METRICS
CHANNELS
COST STRUCTURE REVENUE STREAMS
LeanCanvas Business Model was adaptedfromhttp://leancanvas.comandRunningLeanbyAshMaurya
TheLeanCanvasvisualizationof business models was adaptedfromTheBusiness Model Canvas andis licensedunder theCreativeCommonsAttribution-ShareAlike3.0UnportedLicense
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Post Traumatic Stress
Disorder (PTSD) & other
Traumatic Brain
Injuries(TBI) prevent
injured veterans from
working
No place to call home
No real support system
Provide support network
to encourage wounded
soldiers to achieve their
goals
Provide adequate living
space
Offer ample housing and
support time for proper
recovery
# of veterans that
graduate the program
> 85% of donations go to
program funding
> 35% Increase in
donorship per year
As the ONLY organization
that is centralized in
helping veterans with
PTSD or TBI, we provide
homes for those who
protect ours.
Users:
Medically discharged
soldiers with PTSD and/or
TBI
- 18-26 years old
Donors:
Compelled individuals
Corporate Sponsors
Grants & other federal
funding
Free:
Public Relations
Word of mouth
E-mail Marketing
Paid:
Fund-raising events
Website
Fixed:
Veteran Housing Rent/Year ~ $35,000
Insurance/Year ~ $3,500
Salary ~ $0
Variable:
Utilities, Food, Support services
Personal Donations ~ $10,000
Corporate Donations ~ $24,000
Fund-raisers ~ $6,000
Federal funding ~ To be determined
Powerful spokesperson
Educated, professional
and well-networked team
HOMES FOR SOLDIERS
Lean Canvas Business Model
PROBLEM SOLUTION UNIQUE VALUE PROPOSITION KEY ADVANTAGES CUSTOMER SEGMENTS PROBLEM
KEY METRICS CHANNELS
COST STRUCTURE DONATIONS/FUNDS
LeanCanvas Business Model was adaptedfromhttp://leancanvas.comandRunningLeanbyAshMaurya
TheLeanCanvasvisualizationof business models was adaptedfromTheBusiness Model Canvas andis licenseduner theCreativeCommonsAttribution-ShareAlike3.0UnportedLicense
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(List the top difficulties that
your organization faces)
(List what the possible
solutions could be to your
problems)
(List the activities that
should be tracked in order
to measure success)
(A short, clear and
compelling message that
states why your organiza-
tion is different and worth
donating too)
(List the types of people
that you would like to reach
with your efforts. Note the
differences between a
customer and a user, and
brainstorm who would be
your early adopters)
(List the free and paid
channels you can use to
reach your customer)
(List out all your fixed and variables costs to run your organization) (List the current streams of funds or donations used to maintain your organization)
(List the key advantages
your organization
possesses that cannot be
easily copied by a
competitor)
(ENTER YOUR ORGANIZATION)
Lean Canvas Business Model
APPENDI X: INTRODUCTION 14
APPENDIX:
INTRODUCTION
The Lean Canvas Busi ness Model was bui l t on the system descri bed i n the book,
Runni ng Lean, by Ash Maur ya. The l ean canvas hel ps you mai ntai n
focus whi l e strategi cal l y creati ng a sustai nabl e busi ness model. The fol l ow-
i ng Appendi x, breaks down each secti on of the LCBM to provi de i n- depth
anal ysi s and gui dance as you l ook to bui l d your organi zati ons ver y own l ean
canvas. Af ter you are done, you wi l l be abl e to spend more ti me bui l di ng your
business, rather than pl anni ng your busi ness.
The fol l owi ng l i sts the order that we recommend you take when you
com
1. Customer Segment & Problems
2. Uni que Val ue Proposi ti on
3. Sol uti on
4. Key Advantages
5. Channel s
6. Cost Structure & Revenue
7. Key Metri cs


LEAN CANVAS BUSINESS MODEL
PROBLEM SOLUTION UNIQUE VALUE PROPOSITION KEY ADVANTAGES CUSTOMER SEGMENTS PROBLEM
KEY METRICS CHANNELS
COST STRUCTURE DONATIONS/FUNDS
1 1 2 3 4
5
6 6
7
APPENDI X: INTRODUCTION 15
APPENDIX:
INTRODUCTION
Keep i n mi nd, that the power of a Lean Canvas Busi ness Model i s the fact
that i t can be qui ckl y updated
have to be per fect. Al so, ever y organi zati on i s uni que so i t s okay i f your
Home for Sol di ers, that l ooks to provi de homes
Di sorder (PTSD) and other traumati c brai n i nj uri es ( TBI ).
BELOW IS AN OUTLINE FOR SKETCHING A LEAN CANVAS:
1. Sketch a canvas i n one si tti ng: unl i ke a busi ness pl an, whi ch can take
months to wri te, your l ean canvas can be sketched qui te qui ckl y.
2. I t s okay to l eave secti ons bl ank: i nstead of debati ng the ri ght answer,
l eave i t bl ank and come back to i t l ater. Your canvas i s meant to evol ve
over ti me.
3. Thi nk i n the present: busi ness pl ans tr y too hard to predi ct the future.
I nstead, wri te your canvas wi th a getti ng thi ngs done now atti tude.

APPENDI X: CUSTOMER SEGMENT S 16
APPENDIX:
CUSTOMER
SEGMENTS
I n the Customer Segments secti on of the LCBM, l i st both your
organi zati ons users and donors . We use these terms broadl y, but the
mai n takeaway here i s to be sure to di sti ngui sh between those you are
hel pi ng (users) and those you are targeti ng for fundi ng (donors).
Users:

- Typically 18-26 years old
Donors:
Corporate sponsors
Compelled Individuals
Grants & other federal funding
CASE STUDY: CUSTOMER SEGMENTS
APPENDI X: PROBL EM 17
APPENDIX:
PROBLEMS
I n the Probl ems secti on of the LCBM, your organi zati on needs to vi sual i ze
the i ssues that you l ook to sol ve on behal f of your customer segment s
needs and wants.
Li st the Top 3 Probl ems : for each donor/user segment you are worki ng
wi th, descri be the top 1-3 probl ems that need to be sol ved.
Customer Segment: Medically discharged soliders with
PTSD or TBI
Problem 1: PTSD and TBI prevent them from working
Problem 2: No place to call home
Problem 3: No real support system
CASE STUDY: PROBLEMS
APPENDI X: UNI QUE VAL UE PROPOSI T I ON 18
APPENDIX:
UNIQUE
VALUE
PROPOSITION
The Unique Value Proposition of the LCBM is one of the most
important sections in the canvas and also one of the most
difcult to perfect.
The UVP is hard to perfect because you have to distill the essence
of your organization in a few words -- delivering the what, who &
why in a concise message. In addition, your UVP needs to be
diferent and that diference needs to matter.
The good news is your UVP doesnt have to be perfected right
away. Write from your heart and what frst comes to mind. Be
sure to highlight the benefts your participants will derive after
getting involved with your organization.
CASE STUDY: UNIQUE VALUE PROPOSITION

Unique Value Proposition: A single, clear


compelling message that states why you are
different and worth buying

Steve Bl ank, The Four Steps to the Epi phany


As the ONLY organization that is centralized in helping veterans with PTSD or TBI, we
provide homes for those who protect ours.
APPENDI X: SOL UT I ONS 19
APPENDIX:
SOLUTIONS
Under the Solutions section of the LCBM, list the ways in which
your organization will solve the problems that you listed for
each of your user/donor segments.
Write down the possible solutions that you believe will solve
these problems, even if you do not currently
possess the resources or capabilities to accomplish them.
Visualizing your solutions will make it easier for you to see the
direction your organization needs to go and have a better
understanding of how you will be helping your user/donor
segments.
Provide support network to encourage veterans to achieve
their goals
Provide adequate living space
Oer ample housing and support time for proper recovery
CASE STUDY: SOLUTIONS
APPENDI X: KEY ADVANTAGES 20
APPENDIX:
KEY ADVANTAGES
may initially keep this box blank, but its purpose is to have
you really think about how you can make your organization

A real unfair advantage is something that cannot


be easily copied or bought.

Jason Cohen, A Smar t Bear
CASE STUDY: KEY ADVANTAGES
Powerful spokesperon
Educated, professional and well-networked team
APPENDI X: CHANNEL S 21
APPENDIX:
CHANNELS
A Channel is the path your organization takes to reach your
user/donor segments. We fnd it benefcial for organizations to
diferentiate between free and paid channels that they are
currently using or planning to use. Note that unlike a paid
channel, which is used up after you pay for it, free channels keep
working for you over time.
Free:
Public relations
Word of mouth
Blog
E-mail marketing
CASE STUDY: CHANNELS
Paid:
Fund-raising events
Website
APPENDI X: COST ST RUCT URE 22
APPENDIX:
COST STRUCTURE
In the Cost Structure section of the LCBM you will break down
Fixed costs are the costs that are not dependent on the level of
services or goods produced by the business.
Examples: salaries, rent, and insurance.
Variable costs are expenses that vary in direct proportion to
changes in your organizations activity.
Examples: costs of goods sold, utilities, and travel expenses.
Try to be as accurate and detailed as possible; however,
CASE STUDY: COST STRUCTURE
Fixed:
Veteran Housing Rent/Year ~ $35,000
Insurance/Year ~ $3,500
Salary ~ $0
Variable:
Utilities, Food, Support services
APPENDI X: REVENUE 23
APPENDIX:
REVENUE
While non-profts serve the greater good and are not for-proft,
it is still important to create and maintain a sustainable
business model.
Under the Revenue Streams section of the LCBM, list your
organizations main streams of funding and donor sources. I t
is important to quantify and document the actual amounts
your organization are currently receiving and/or planning to
receive in the near future.
Be sure to note whether or not any of your organizations
current funding are open for use or restricted to specifed
purposes.
Personal Donations ~ $10,000
Corporate Donations ~ $24,000
Fund-raisers ~ $6,000
Federal funding ~ To be determined
CASE STUDY: REVENUE
APPENDI X: KEY MET RI CS 24
APPENDIX:
KEY METRICS
In the Key Metrics section of the LCBM, list the activities that
should be tracked in order to measure your organizations suc-
cess. Documenting these key activities will drive usage in your
organization. For instance, tracking the number of veterans
that will drive usage for Homes for Soliders.

Find the key number that tells you how your


business is doing in real time, before you get
the [analysis report].

Norm Brodsky & Bo Burl i ngham, The Knack
CASE STUDY: KEY METRICS
# of veterans that graduate the program
> 85% of donations go to program
funding
> 35% increase in donorship per year
STAY CONNECTED
APPENDI X: CONCL USI ON 25
APPENDIX:
CONCLUSION
Model! Now whenever there are changes made within your
organization, you will be able to quickly update and revise
your LCBM in a matter of minutes. The LCBM is a powerful tool
proper strategic planning.
Since this guide is a work in progress, we would love to hear from
you on any recommendations or suggestions regarding its value
and/or how you can see it changing.
Please contact us via email at: interns@eboostconsulting.com
@eBoostInterns
facebook.com/eboostinterns
eboostinterns.wordpress.com
youtube.com/eboostconsulting
Lean Canvas Business Model was adapted fromhttp://leancanvas.comand Running Lean byAsh Maurya
The Lean Canvasvisualization of business models was adapted fromThe Business Model Canvas and is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License
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