Lean Canvas vs Business Model Canvas: What is The Difference
What is a Lean Canvas or Business Model Canvas? Is there a difference, and which one do you need? Get all the info here on which one to use.
The Lean Canvas and Business Model Canvas can provide valuable insights into your business operations.
Both enable you to envision your business model and devise strategies when identifying weaknesses to improve.
However, the Business Model and the Lean Canvas differ. The Lean Canvas lets you quickly evaluate and validate a new business idea suitable for startups.
The Business Model Canvas is a comprehensive tool that maps out different components and provides a broader view of your business's operations.
What Is Lean Canvas?
Imagine you have a 100-page book and need the important information inside. You would value a one-page outline that provides the essential information.
This is where the Lean Canvas microtool comes in handy, as it concentrates on the crucial details to help you get your business started. It is a page-long outline of your business plan. It focuses on the problems your new business can face using value propositions.
So, if you are a startup surrounded by anticipations, you need the lean canvas. With it, you can prioritize your problems and risks. It will help you concentrate on surviving and changing your business model as it grows.
Lean Canvas Elements
Here are the essential elements of the Lean Canvas. Although it can differ from a business model, it portrays an image of your ideal customer and value propositions.
Problem: Your main goal is to deliver a service or sell a product; the market wants to know what you provide.
Solution: If you are competing in a market similar to yours, you need a solution that is not the same as what exists.
Key metrics are essential consumer activities, such as new users, generated leads, or market penetration.
Revenue Generation: Solving revenue generation issues is essential to survive as a new business.
Expenditure: In this section, you list the costs you will incur to run your business.
Customer Channels: Here, you must stipulate the means you will use to communicate with customers so that they will notice your service or product.
Advantage: You must know what advantage your company has over your competitors.
Unique Value Proposition: This is the key to the Lean Canvas, as it details the value your business can offer customers.
Customer Base: To run a startup, you must know your customers' backgrounds and personas.
Pros and Cons of Lean Canvas
What is The Business Model Canvas?
The Business Model Canvas is more detailed than the Lean Canvas. It includes a business marketing, strategic, and operation plan and is one page long, providing details.
Furthermore, it differs from traditional business models and is created for diverse businesses. Thus, the models serve as the basis for the actions of new and old companies.
Elements of a Business Model Canvas
The elements below will reflect on the most important facets of a business.
Customer Segments: The section informs you of the people you want to convert as customers.
Customer Relationships: While you have the customer segments, you want to know what relationships you want with them. Here, you document the kind of relationships you want with your customers.
Product and service Value: Your business is not the only one offering customers a solution; you must demonstrate what will make a customer choose you.
Channels: Here is how you communicate with your customers to tell them about the value they can get from your product or service.
Key Activities: You will use the activities stipulated here to demonstrate the value of your product or service.
Revenue Generation: You must show how your business can make money in different ways.
Crucial Resources: These are vital assets that allow your company to function.
Important Partners: These companies would need to perform essential activities, allowing you to provide your customers with value.
Costs: You must provide the amount spent during your business operations as you receive a list of whether your plan works.
Pros and Cons of The Business Model Canvas
Business Model Canvas vs Lean Canvas Differences
While both canvases are similar, there are notable differences, as seen here:
Wrap-Up: Which One is Better?
The choice between the Lean Canvas and the Business Model Canvas depends on your business. The Lean Canvas offers the practicalities needed to survive as a startup.
It is more problem-oriented and straightforward to use. However, the Business Model Canvas will improve if your business is more grounded. It focuses on optimizing your processes to achieve your future goals.
Still, no matter your choice, you must adapt your plan and make occasional changes.
