Table of Contents

What is Lean Canvas?
What is the Lean Methodology?
Lean Canvas Examples
Lean Canvas Use Guide

The Lean Canvas is one of the best structures to achieve successful product iterations, but if you don’t know how to use it then it won’t be nearly as effective.

In this guide, we will define a lean canvas and show how to use it, explain the lean methodology, and discuss the advantages of going lean. If you like this guide and are interested in other similar template guides, check out our most recent ones on the MoSCoW analysis and design thinking.

What is Lean Canvas?

The Lean Canvas is defined as an adaptation of the traditional business model canvas that is optimized to consolidate a plan focused on maximizing user value. By deconstructing traditional business plans into their most important assumptions & values, the Lean Canvas takes a direct approach to diagram a business idea.

The Lean Canvas is an adaptation of the business model canvas that is optimized for the “lean startup methodology”, a technique that is crucial in understanding the possibilities of the Lean Canvas.

The Lean Canvas typically consists of nine key elements:

1. Problem: This section outlines the specific problem or pain point that your product or service aims to solve.

2. Solution: Describe how your product or service addresses the identified problem. This is usually a brief description of the value proposition.

3. Key Metrics: Identify the key performance indicators (KPIs) you will use to track your business’s success.

4. Unique Value Proposition (UVP): Clearly states what makes your product or service unique and why it’s better than existing alternatives.

5. Channels: Outline the marketing and distribution channels you plan to use to reach your target customers.

6. Customer Segments: Defines the specific groups or types of customers your business is targeting.

7. Cost Structure: Lists the main costs associated with running your business.

8. Revenue Streams: Describes how your business will make money, including pricing strategies and revenue sources.

9. Unfair Advantage: Identifies any advantages or unique factors that give your business a competitive edge.

What is the Lean Methodology?

Lean methodology and the lean canvas are intertwined, and the lean canvas operates on many key propositions that the lean methodology emphasizes. For this reason, it’s crucial to understand the Lean methodology in order to grasp the applications of the Lean Canvas.

The lean methodology is the idea that drives the unique value of the lean canvas. The lean methodology is defined by a couple of simple guidelines:

Focus on value to the customer
Eliminate things that don’t directly provide value (aka waste)
Iterate with cyclical improvements

These three elements are the building blocks of the Lean methodology and focus on maximizing customer value while also minimizing waste. Within each cycle of improvements, teams should seek to increase the amount of value they can offer to customers without huge amounts of resources being wasted on non-valuable features.

Value is king and is always being maximized.

The lean methodology was created and implemented by Toyota in the middle of the 20th century thanks to Ash Maurya, and since its inception, the lean methodology has been shifted to focus more on software development than its traditional product focus. Software development is a sector that benefits greatly from thinking about customer value and waste and is a natural use case for the lean methodology.

Now that we have a good understanding of the lean methodology and its application through the lean canvas, let’s talk about how to best use the lean canvas.

Learn more: What is a Business Model Canvas?

Lean Canvas Examples

Here are a couple of examples to illustrate how a Lean Canvas can be filled out for different business ideas:

Example 1: A Mobile App for Task Management

Problem: Many people struggle to stay organized and manage their tasks efficiently.

Solution: A mobile app that provides a simple and intuitive task management system.

Key Metrics: User engagement, daily active users, retention rate.

UVP: Offers a unique combination of user-friendly design and intelligent task prioritization.

Channels: App stores, social media advertising, word-of-mouth referrals.

Customer Segments: Busy professionals, students, and freelancers.

Cost Structure: Development and maintenance costs, marketing expenses.

Revenue Streams: Freemium model with a free version and premium subscription options.

Unfair Advantage: Proprietary task prioritization algorithm.

Example 2: A Local Coffee Shop

Problem: Limited options for quality coffee and a cozy atmosphere in the local area.

Solution: A boutique coffee shop with a focus on premium coffee and a welcoming ambiance.

Key Metrics: Daily foot traffic, customer loyalty, average purchase per customer.

UVP: Handcrafted coffee from premium beans in a comfortable and artistic setting.

Channels: Social media, local advertising, community events.

Customer Segments: Coffee enthusiasts, students, and local professionals.

Cost Structure: Rent, coffee bean supply, staffing, utilities.

Revenue Streams: Coffee sales, pastries, merchandise, event hosting.

Unfair Advantage: Strong community ties, and unique coffee blends.

The Lean Canvas serves as a living document that can be continuously updated and refined as a business idea progresses and more information becomes available. It’s a valuable tool for both startups and established businesses looking to pivot or launch new products or services.

Lean Canvas Use Guide

Before you start using Lean Canvas, it’s important to break down all of the important elements that go into creating a productive canvas. Here is an overview of every component that makes up the lean canvas.

1. Problem

The first box defines the problem you’re hoping to solve. Having a shared understanding of the problem is a key step to developing a sustainable solution.