The Lean Canvas vs Business Model Canvas can provide valuable insights into your business operations.
Both enable you to envision your business model and devise strategies to address weaknesses and 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.
Lean Canvas vs Business Model Canvas Comparison
What Is Lean Canvas?
Imagine you have a 100-page book and need the critical information inside. You would value a one-page outline that provides the essential information.
This is where the Lean Canvas microtool comes in handy. 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 different from what exists.
Key metrics are essential consumer activities, such as new users, generated leads, or market penetration.
Revenue Generation: Resolving revenue generation issues is crucial for a new business to survive.
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 successfully, you must understand the backgrounds and personas of your customers.
Pros and Cons of Lean Canvas
|
PROS |
CONS |
|
Prioritizes problems you can face |
Restricts some business information |
|
Easy to understand format and share |
Prioritizes the immediate value and not future goals |
|
You can easily update the contents |
What is The Business Model Canvas?
The Business Model Canvas is more detailed than the Lean Canvas. It includes a business marketing, strategic, and operational plan, and is one page long, providing detailed information.
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 essential facets of a business.
Customer Segments: The section informs you of the people you want to convert into customers.
Customer Relationships: Having identified the customer segments, you now need to determine the desired relationships with each of 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 must perform essential activities, enabling you to deliver value to your customers.
Costs: You must provide the amount spent during your business operations, as you will receive a list indicating whether your plan is effective.
Pros and Cons of The Business Model Canvas
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PROS |
CONS |
Targets your customer’s needs |
It does not focus on customer value |
|
Provides access to operational demands |
Not suitable for start-ups to use |
|
A brief and straightforward template to understand |
Business Model Canvas vs Lean Canvas Differences
While both canvases are similar, there are notable differences, as seen here:
| Lean Canvas | Business Model Canvas |
| Focuses on entrepreneurs | Emphasizes customers, advisors, consultants, and entrepreneurs |
| Targets startups | Targets new and existing businesses |
| Encourages you as a startup to focus on problems you can face | Examines revenue streams and business assets |
| You compete differently using this canvas by using your product’s unfair advantage over the competitors | With this canvas, you focus on the value of your service or product to remain relevant in the market |
| For startups, customer is a luxury using this canvas and does not emphasize customers, and a helpful product is key | Customers are everything with this model, as you are already popular as a business in the market |
Wrap-Up: Which One is Better?
The choice between the Lean Canvas and the Business Model Canvas depends on your business. The Lean Canvas provides the practical tools needed to thrive 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, regardless of your choice, you must adapt your plan and make occasional adjustments.
