Lean Canvas Best Practices
Do you have an idea 💡 - a solution to an existing problem? Let’s validate your innovation! How do we do this though? A Lean Canvas is a one-page template that deconstructs your idea into its important characteristics required for a successful proposal 🔆.
Entrepreneurs heavily look upon the Lean Canvas template for its improved usability compared to a multi-page business plan. Additionally, the Lean Canvas is considered a brilliant tool 🔧 by a Learnmetrics founder!
What is the purpose of creating a Lean Canvas? Before diving deep 🏊 into the process of drafting a business plan for your innovation, you want to make sure you touch all the bases from targeting a problem and market to creating a unique solution. You don’t want to be dinged in the Innovation Stage by the judges for just creating a knock-off of the Apple Watch ⌚! Additionally, the Lean Canvas is supposed to be short, direct answers in order to brainstorm several ideas. Rather than a 30 page business plan, the Lean Canvas is far more lean as a single page document that can be completed in an afternoon if you know the basics of your business. In the end, the Lean Canvas is a tool to help YOU frame your innovation and find your best solution!
Let’s take a look at 2021 Conrad Finalists, Yuri Lee & Emily Xing's innovation, ToPADcco. The ToPADcco pad is a biodegradable, aloe-and-menthol-infused, tobacco-based menstrual pad. This product aims to combat the misuses of tobacco/nicotine in the tobacco industry and the discomfort of feminine hygiene products by building these feminine hygiene products as eco-friendly and comfortable.
Taking a closer look at the Lean Canvas, you may have a few questions that are easy to get hung up on. Here are the top three things that we see Conraders get confused about when filling out the Lean Canvas.
What counts as an existing alternative? For many innovations this is straightforward; Team ToPADcco identified other biodegradable pads as their customers’ clear alternative. However, consider the alternatives that may not be directly in your category. For example, if you create an ultra low water, portable solar-powered washing machine for rural Latin America, your competition might not be other washing machines, it may be hand washing or even waiting to wash clothes!
What is the difference between a “unique value proposition” and “unfair advantage?” The difference is who you are writing to! The UVP is framed around the needs of your customers. Your UVP should answer the questions: Why are we better than existing solutions? Why choose us? On the other hand, an unfair advantage is positioned to your business ecosystem--think investors and employees. The unfair advantage should explain what is an inherent organizational advantage that can’t easily be copied by your competition that will keep your business ahead in the long run. Common answers we see include first mover advantage, intellectual property protection, relevant youth and student experience in the founding team, and exclusive partnerships or distribution channels. Team ToPADcco converged on their UVP to be that they had a biodegradable pad with the same absorbency as a synthetic one. They identified their unfair advantage as a first mover advantage.
What is a channel? That’s business speak for where you present your offering to your customers for adoption. A lot of Conraders make the mistake of listing too many; the point of this section is to push you to prioritize the most important marketing, sales, or distribution channels for your business! Team ToPADcco emphasized selling through their website and marketing through social media and influencers. Deciding not to prioritize selling through general brick and mortar retailers or advertising through print media or TV greatly changed their venture design.
What is the difference between customer segments and are early adopters? You’ll want to answer your target customer segment first, who are the key customer groups you aim to target when your business is operating at scale. Push to be as specific as you can be - the more focused you are here the easier it will be to design your innovation and communicate your UVP. Your early adopters are your very first customers within one of your customer segments that will be the easiest for you to approach first because you have an existing relationship, such as a geographic relationship or a social connection. Here you should be extremely specific - you may go as far as naming certain companies or individuals. Team ToPADcco listed environmentally conscious customers within their broader market--they could have considered going farther and listed young environmentally conscious women at their high school as their early adopters.
Now that you can create a Lean Canvas, the Conrad Challenge recommends fleshing out at least 3 of your ideas in this form! Once you’ve prepared 3 Canvases, you’ll want to study them carefully and pick out your strongest idea 💪 to proceed with in the competition. How do you pick the best idea? For example, if you found it challenging to articulate in one of your Lean Canvases who your target customer was, what was unique about your solution, or what the revenue model might be, you may want to pick one of the other ideas to proceed with. Rethink your idea if you struggle when coming across these questions, as these are vital to nurture a unique proposition!
You should put enough thought and care into the Lean Canvas that you feel good about your answers at this point in time, but don't worry about getting locked in 🔒 - we expect your answers to change significantly as you learn more during the Innovation and Power Pitch stages.