It is always motivating to hear success stories from some of the most renowned business moguls of all times. From the likes of Mark Zuckerberg (Facebook founder) to Larry Page (one of the founders of Google), the list of brilliant minds that started their multi-billion dollar companies at their backyards is slowly growing.
For aspiring entrepreneurs, the hardest task of all is turning their ideas into big business opportunities. Lean Canvas is a methodology that helps to enlighten startups on a few guidelines that would significantly multiply their chances of succeeding in business. Its main aim is to help startups be successful with the least amount of stumbling blocks within a limited period of time.
We are living in times of extreme uncertainties. The first step for startups is to ensure they have a business model that is viable. Before the rise of the Lean Canvas methodology, entrepreneurs used to come up with a business idea, purchase the necessary tools of trade, get a premise, set up and wait for customers to trickle in inquiring of their products and services.
With Lean Canvas startup methodology, one of the most critical elements of it is that it allows an entrepreneur to first test a prototype of their expected final product. Here, an entrepreneur offers the prototype to potential customers who, in turn, give honest feedback on the efficiency of the prototype in relevance to its intended functionality. The entrepreneur then conducts the necessary amendments or opts for a change of the whole business model altogether.
The above process takes time but its importance is that it ensures there is no loss of money, time and energy in the long-run. A couple of people will disagree with this but look at it this way, it will be both devastating and a complete waste of resources if you skipped the above-stated process and came into the market with something that is irrelevant and unwanted.
The use of visual guides in the Lean Canvas startup methodology is also an easier way of effectively communicating a potential business model to stakeholders.
Apart from allowing entrepreneurs to better understand their customers’ specific needs and wants, the Lean Canvas startup methodology has some other benefits.
- The Lean Canvas startup methodology creates greater chances of success for a business model as it allows entrepreneurs to work on a theoretical environment during the initial building stages of the startup model, frequently testing their products and making amendments until a successful elaborate model is achieved.
- Speed and agility: It is a quicker way for startups to realize what is or what isn’t working for them and taking necessary steps to quickly modify or revise their product or service.
- It is a better version of the archaic business plan. It helps startups easily transform their ideas into viable businesses.
- With the Lean Canvas startup methodology, entrepreneurs can rapidly adapt to changing business models regardless of the uncertainties surrounding it. The swift analysis of the business’ strengths and weaknesses also play a huge role in promoting stakeholder confidence.
In conclusion, I would like to state that we are not discouraging the idea of a traditional business plan. The point is to realize that the Lean Canvas startup methodology is a better suit for startups as it is a quicker way to weigh in on your risks before the actual launch.