Wednesday 9 August 2023

BeTheBusiness LEAN canvas and my derivative the 8p for pitches



LEAN CANVAS

Here is a quick explainer of each Lean Canvas block (and in the order to go through them):

1. Problem

Each customer segment you are thinking to work with will have a set of problems that they need solving. In this box try listing the one to three high priority problems that your customers have. Without a problem to solve, you don’t have a product/service to offer.

2. Customer Segments

The problem and customers can be viewed as intrinsically connected — without a customer in mind you can’t think of their problems, and visa versa.

3. Unique Value Proposition

A value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you. A way to get your head around this is to think about why are you different and why should your customer(s) buy/invest time in you.

4. Solution

Go and meet customers, identify their issues and discuss possible solutions. I recently advised someone as follows.

Before spending hours developing a product + building system and hiring staff, check with the client(s)
1. What do they need (Product)
2. How much (Volume/Demand)
3. What price (Revenue)
So the No1 thing is meet with clients and find out. Then when you are confident start the work to develop solutions to meet their needs.

5. Channels

Channels are ways for you to reach your customers. And remember that in the initial stages it’s important not to think about scale but to focus on learning. These may include social media and physical media, networking groups, websites, and any other physical or virtual meeting or communication space. However chose relevant spaces, advertising a premium product in a glossy magazine makes sense. promoting a luxury service in a cheap free-sheet does not. Which channels contain the right audience for you offer. LinkedIn, Facebook and Snapchat all appeal to different groups.

6. Revenue Streams

How you price your business will depend on the type of model it is, however, it’s quite common for startups to lower their cost, even offer it for free to gain traction, however, this can pose a few problems. The key being it actually delays/avoids validation. Getting people to sign up for something for free is a lot different than asking them to pay. There is also the idea of perceived value.

7. Cost Structure

Here you should list all the operational costs for taking this business to market. How much will it cost to build / landing page? What is your burn rate — your total monthly running costs? How much will it cost to interview your customer segment? How much do market research papers cost? etc. You can then use these costs and potential revenue streams to calculate a rough break-even point.

8. Key Metrics

Every business, no matter what industry or size, will have some key metrics that are used to monitor performance. The best way to help with this is to visualise a funnel top down that flows from the large open top, through multiple stages to the narrow end. Think perhaps  in terms of a sales funnel, what are the things you need to measure on the path to success (and path to profit). The list below is not correct, but a prompt for what matters and is relevant to your offering.

How many people noticed my product or post
How many people liked my product or post
How many people engaged with product or post
How many people attended a demo
How many people bought or singed-up
How many people bought again
What are fixed costs
What are marginal costs
What is price
What is profit


9. Unfair Advantage

Unfair advantage can be insider information, a dream team, getting expert endorsements, existing customers etc. So rather than think about adding something like “commitment and passion” as an unfair advantage (because it is not), think about what you have that no one else can buy.

MY DERIVATIVE THE 8P FOR PITCHES



PROBLEM
What is the problem, need, issue, situation?

PROGNOSIS
Why does this need address? What happens in default mode? What positive or negative issues arise?

POSSIBILITIES
What are the options: 1. Do nothing 2. Wait 3. Do X 4. Do Y

PROPOSAL
What is the recommended approach: People, Process, Tasks

PLAN
How can this be done: Roles, Goals, Controls, Deliverables and Dates

PERSON
Who are the people who can do this: Skills, qualifications, experience

PRICE
What are the funding options and cost v benefit considerations

PRACTICAL ACTION
What do you need to do now, to get started?


If you are interested the BeTheBusiness Mentor programme get in touch
Choose the right programme for you
 
12-month
Focus on the long-term growth and development
Aim to meet every 4-6 weeks
Develop your aims, goals, purpose or strategy and build your skills working with an experienced mentor over an extended period
Work together to adopt your plans and meet new challenges across 12 months
 

12-week
Focus on shorter-term goals and challenges
Aim to meet once a week
Use your mentor as a sounding board for key decisions and immediate priorities
Make the most of a rapid intervention to help you quickly benefit from advice and an external perspective

Tim HJ Rogers
BeTheBusiness Mentor
http://www.timhjrogers.com/bethebusiness/

MBA Management Consultant + Change Practitioner
PRINCE2 Agile-Scrum Projects, Programmes and PMO
ICF Trained Coach, IoD Business Mentor, Mediator
Tim@AdaptConsultingCompany.com
Mob 447797762051
 
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