The Lean Canvas. We LOVE it here at Intrapreneur Nation.
Adapted from the Business Model Canvas by Ash Maurya, the Lean Canvas is ideal for early stage start-ups and innovation projects. We really like that it focusses on the most important things that early stage projects care about on their journey to Problem-Solution fit. (And removes some of the things from the Business Model Canvas that typically don’t matter until later in your innovation journey).
What we also love about the Lean Canvas is that everything you need on a day-to-day basis is there on one sheet of paper. You don’t need a second canvas for your value proposition. That’s not to say the Value Proposition Canvas isn’t useful though. It’s just that there are often better ways to formulate your value proposition.
In this article you’ll find loads of examples of Lean Canvas content for various businesses you’re already familiar with. Use these as inspiration as you begin to develop your own Lean Canvas.
Contents
- Uber Lean Canvas
- Casper Lean Canvas
- Nest Learning Thermostat Lean Canvas
- Tide Pods Lean Canvas
- Slack Lean Canvas
- SpaceX Lean Canvas
Before we dive into the examples, let’s take a moment to recap the boxes of the Lean Canvas. The following info is taken from a lovely Lean Canvas PDF summary we found circulating on social media. Unfortunately the author did not identify themselves so we’re unable to credit them. (If it was you – let us know so that we can credit your work!)
Problem & Existing Alternatives
Here you should identify the top 3 problems that your market at large faces. Identify the alternatives currently used to solve or work around these problems – the good, the bad and the ugly.
If there is no makeshift alternative, then this is not a problem worth solving! Start again!
Vet these problems using qualitative surveys of your market.
- “Do you face [ABC] problem?”,
- “What’s the pain level for you?”,
- “What’s your current work around?”
Customer & Channels
Pair the problems identified with what kind of people are mostly going to find them worth solving.
This list should reveal:
- Early adopters (the who)
- Communities (the what)
- Channels (the where)
Solution
Important: Don’t think in terms of features – think in terms of your solution.
The solution should be the most simplified version of itself. The Solution box is smaller than the Problem box on purpose!
Vet your solution qualitatively with early adopters:
- “Does [XYZ] solution solve [ABC] problem?”
- “How well does it solve the problem on a scale of 1-10?”
Unique Value Proposition
What is the one thing that holds the problem, solution and your early adopters together? This tests your MVP.
UVP Formula = End result the customer wants + time period + address the objections.
Key Metrics
Track what’s important split by customer journey. When you are getting started the two most important metrics are
- Activation
Do prospects & customers have a great first experience when they interact with your brand? - Retention
Do prospects & customers come back? Do they come back to your store? Do they come back to your website? Do they use your product repeatedly over time?
Cost Structure & Revenue
Calculate Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC).
LTV = Avg. order value * No. of orders * Retention period * Profit Margin
CAC = Direct cost of acquiring a customer
Rule of Thumb: LTV / CAC = 3:1 ratio.
Unfair Advantage
What’s something that’s not easily copied? Your options are:
- Patents
- Personal Brand
- Community
- Network Effects
- Expert Endorsements
Being the first mover in a market is NOT an unfair advantage.
So there you go, that’s the Lean Canvas in summary, now let’s look at those examples…
Uber Lean Canvas Example
Category: B2C Service
Problem
- Difficulty in finding a clean, reliable and affordable ride in a timely manner.
Existing Alternatives
- Taxi services
- Bus services
- Subway (in some cities)
Solution
- A mobile app that connects riders with nearby drivers, making it easy and convenient to get a ride.
Key Metrics
- Acquisition: People downloading the app
- Activation: People creating an account
- Revenue: People making at least one trip
- Retention: Number of people making at least 5 trips a month
Unique Value Proposition
- A safe, reliable, and convenient way to get a ride in minutes, without having to worry about cash or hailing a taxi.
Customer Segments
- Urban dwellers who need to get around the city quickly and easily
- Business travellers who want a reliable and professional ride service
- People who need a ride when public transportation is not available or convenient
Early Adopters
- Tech-savvy urban residents who are comfortable using mobile apps and are always on the lookout for new and innovative solutions to everyday problems.
- People who regularly use taxis but are dissatisfied with the level of service and cleanliness they receive.
Channels
- Mobile app stores
- Social media and online advertising
- Strategic partnerships with businesses and travel companies
Revenue Streams
- Commission on every ride
- Surge pricing during peak demand times
Cost Structure
- Marketing and advertising
- Driver acquisition and retention
- Development and maintenance of the mobile app and backend technology
Casper Lean Canvas Example
Category: B2C direct-to-customer Product
Problem
- Traditional sprung mattresses are expensive, difficult to purchase and expensive to transport.
Existing Alternatives
- Traditional mattresses
- Other online mattress retailers
Solution
- The Casper mattress is a comfortable, affordable, and convenient mattress that can be easily ordered online, delivered to your door, and easily set up in your home.
Key Metrics
- Acquisition: Visits to the website
- Activation: People signing up for the newsletter to get a discount, people returning to the website
- Retention: People leaving positive reviews, People keeping the mattress after the 100 night trial
- Revenue: People purchasing the mattress
Unique Value Proposition
- A comfortable and risk-free sleep experience without the hassle of mattress shopping.
Customer Segments
- Young adults and families who are looking for a high-quality and affordable mattress that can be easily purchased and delivered
- People who value comfort and good sleep and are willing to invest in a high-quality mattress
Early Adopters
- Tech-savvy young adults who are comfortable purchasing products online
Channels
- Online sales and marketing through the Casper website and other e-commerce platforms
- Direct sales and marketing to customers and influencers
- Social media and influencer marketing to reach wider audiences
Revenue Streams
- Sale of Casper mattresses
- Sale of related sleep products, such as pillows and sheets
- Revenue-sharing agreements with third-party retailers and distributors
Cost Structure
- Research and development of new mattress models and features
- Manufacturing and supply chain management
- Marketing and advertising
Nest Learning Thermostat Lean Canvas Example
Category: B2C Product with Subscription Add-on
Problem
- Traditional thermostats are difficult to program and can waste energy, resulting in higher energy bills and negative environmental impacts
Existing Alternatives
- Traditional thermostats that require manual programming and offer limited functionality and customization
Solution
- A smart thermostat that learns your schedule, preferences, and habits, and automatically adjusts the temperature to optimize comfort and energy efficiency
Key Metrics
- Acquisition: Visits to the website
- Activation: Return visits to website, people watching a video, people creating an account
- Retention: People leaving positive reviews, People setting up the app
- Revenue: Number of units sold
Unique Value Proposition
- Save energy and money with a personalised heating and cooling solution that doesn’t require complex programming
Customer Segments
- Homeowners who want to reduce their energy bills and environmental impact while maintaining a comfortable indoor climate
- Renters who want to improve their living environment without making permanent or costly changes to their home
- Technology enthusiasts who are interested in the latest smart home gadgets and devices
Early Adopters
- Tech-savvy homeowners
- Environmentally conscious homeowners
Channels
- Online and offline retailers, such as Amazon, Best Buy, and Home Depot
- Direct sales and marketing to homeowners and renters
- Partnerships with energy companies and utilities to offer incentives and rebates to customers
Revenue Streams
- Sale of Nest Learning Thermostats
- Revenue-sharing agreements with energy companies and utilities
Cost Structure
- Research and development of new products and features
- Manufacturing and supply chain management
- Marketing and advertising
Tide Pods laundry Detergent Lean Canvas
Category: B2C Product
Problem
- Traditional powder and liquid laundry detergents can be messy, inconvenient, and wasteful.
Existing Alternatives
- Traditional liquid and powder laundry detergents
Solution
- Pre-measured and easy-to-use capsules containing detergent, stain remover, and brightener
Key Metrics
- Acquisition: People seeing TV ad, seeing online ad
- Activation: People ordering a free trial pack
- Retention: People making a repeat purchase
- Revenue: Number of Tide Pods sold
Unique Value Proposition
- Superior cleaning and stain removal without the need for measuring and pouring
Customer Segments
- Busy families and individuals who want a convenient and efficient laundry solution
- People who value high-quality cleaning and stain removal for their laundry
Early Adopters
- Busy families and individuals who value convenience and efficiency in their laundry routine
Channels
- Online and offline retailers, supermarkets etc.
- Direct sales and marketing to households and individuals
Revenue Streams
- Sale of Tide Pods
- Revenue-sharing agreements with retailers and laundry service providers
Cost Structure
- Research and development of new product designs and features
- Manufacturing and supply chain management
- Marketing and advertising
Slack
Category: B2B Service
Problem
- Traditional workplace communication tools, such as email and instant messaging, can be inefficient, distracting, and difficult to manage.
Existing Alternatives
- Email, instant messaging, and web portals such as SharePoint.
Solution
- One centralized and organized space for team communication, file sharing, and project management.
Key Metrics
- Acquisition: People downloading the app
- Activation: People creating an account, People posting at least one message
- Revenue: People subscribing at the end of the trial
- Retention: People returning to the app daily, people posting at least 5 messages
Unique Value Proposition
- All your company messages and knowledge in one place, searchable by all and without the interruptions of email.
X for Y Analogy
- Google Search for all your internal email.
Customer Segments
- Small and large businesses
- Remote and distributed teams
- Professionals and knowledge workers
Early Adopters
- Small tech-savvy businesses
- Remote and distributed teams
Channels
- Online sales and marketing through the Slack website and other e-commerce platforms
- Direct sales and marketing to businesses and professionals
- Partnerships with technology and software providers
Revenue Streams
- Subscription fees for Slack plans
- Revenue-sharing agreements with software providers and e-commerce platforms
- Sale of related services, such as consulting and training
Cost Structure
- Research and development of new product features and applications
- Hosting and maintenance of cloud-based infrastructure
- Marketing and advertising
SpaceX
Category: B2B Service
Problem
- Lack of affordable and reliable access to space, which limits scientific and commercial opportunities
Solution
- Develop and operate reusable rockets and spacecraft that can reduce the cost and increase the frequency of space launches
Key Metrics
- Acquisition: People visiting the website
- Activation: People filling out the enquiry form, people watching the video
- Revenue: People purchasing
- Retention: People returning to the website at least 3x in 30 days
Unique Value Proposition
- Access to space for businesses and military without the cost and risk of traditional launch services.
X for Y Analogy
- Commercial freight airline for space.
Customer Segments
- Government agencies and militaries
- Private companies
- Space enthusiasts and potential space tourists
Channels
- Direct sales and marketing to government agencies, militaries, and private companies
- Strategic partnerships with space industry players and research institutions
- Public relations and media coverage to generate interest and support among the general public
Revenue Streams
- Launch services for commercial and government customers
- Satellite manufacturing and sales
- Space tourism and exploration services
Cost Structure
- Research and development of rocket and spacecraft technology
- Launch site construction and maintenance
- Employee salaries and benefits
Unfair Advantage
- Strong brand recognition and media presence driven by the high profile of its founder, Elon Musk
