Also called a 1-page business plan, the Lean Canvas is a concise way to organize and communicate key concepts regarding your venture. (See Running Lean and Scaling Lean by Ash Maurya) The Lean Canvas is more like an executive summary than a total business plan. Mark Twain is quoted as saying “I would have written less, but I ran out of time.” This is especially true with a Lean Canvas. You do all the in-depth thinking in other documents. And then you distill everything into one ultra-concise page. This page can then be used to “walk the Lean Canvas” in different settings/conversations.

You’ll see different numbering schemes for the sections of the canvas in different places, but I’m taking the section numbers from Ash Maurya’s Running Lean figure 3-1. Here is a fillable PDF of the canvas I made:

Here’s what it comes down to. You need to be able to quickly and effectively quantify and communicate the following:

1. There’s a problem.

2. There are a significant number of people who have this problem.

3. You have a concise, unique, value proposition for solving this problem. (see “A concept is more than an idea”)

4. Here is a quick glimpse of your problem-solving method.

5. This is how you will ensure the people who have this problem can take advantage of your unique value proposition.

6. This is the value the people are willing to exchange for having this problem solved.

7. What will it cost to implement this solution?

8. How will you know when people don’t have the problem anymore because you solved it for them? (How are you going to measure success?)

9. What’s your unfair advantage here?

I could write a post about each of these areas of the Lean Canvas, and I probably will, but for now I want to focus on the totality of the canvas here and how it applies to the CROP model. Let me emphasize that each section of the Lean Canvas has bearing and significant influence on each stage of the CROP model. But certain sections will be at the front of the line for emphasis during different stages of business cycle. In this diagram, you can see more clearly how the sections of the canvas are emphasized more during different phases of the cycle:

C: Concept

You might think the key parts of the canvas that apply to the concept stage are sections 3, 4 and 9. And this is true. Sections 1 and 2 are also important in shaping your business idea.

But keep in mind that a robust business concept addresses all nine points of the Lean Canvas because each section influences the other sections. You cannot adequately address 3, 4, and 9 (your solution) without thoroughly and completely evaluating the other sections of the canvas at least once.

In fact, you will most likely iterate through all nine of these areas constantly as you refine your concept. “Lean” methodology is all about observing a situation, formulating a hypothesis, validating the hypothesis, and then revising and iterating. You cannot validate your hypothesis in isolation. Yes, perhaps you do have a great idea, and there’s a market for it. But is it feasible? Can you measure the success to answer whether or not it’s worth it? In evaluating the costs, do you see an alternate solution? If you did things differently, or distributed differently, would your audience and/or revenue channels change? To create a really solid concept, challenge your assumptions about your idea as you walk through each section of the canvas.

R: Runway

Your Runway is your time to get your product to market. Here, sections 6 and 7 will take center stage, driving to launch through section 5. What are the fixed and variable costs of getting this concept into the hands of the people who have the problem, and how will you do it? What are your prototype/validation costs? Production costs? Distribution costs? Leave no detail unscrutinized. Validate your assumptions, and revise accordingly. Here, you might be tempted to keep all your research to yourself in fear of someone else stealing your concept. And this is a valid concern. But keep in mind that the more you can work with experts to answer these important questions, the faster you’ll get to market. Success is as much about execution on the runway as it is about concept.

O: Operations

Sections 5 and 8 drive operational considerations most obviously, but keep in mind that nothing is off the table for adjustment here. During the runway stage you got the first version of your solution into the hands of the people who had the problem. Are you finding that your unfair advantage holds true? Are production costs in alignment with forecasts? How are you measuring success? Is your distribution method going well? These areas are mostly likely to be under constant scrutiny during the Operations stage, but your concept and customer segments may need adjustment as well.

Perhaps the numbers are telling you that the people who you thought had this particular problem are either not as numerous or not where you thought they would be. Perhaps they aren’t as receptive at scale as your test audiences had been. Perhaps the offering needs to be adjusted. During the operations stage you’ll be looking at everything as you head to the final stage of the CROP model.

P: Profit (or Pivot)

Similar to your Runway phase, the Profit stage of the CROP model is where you ask “Is this worth it?” This can be a hard question to ask, especially if the answer is feeling like “No.”

Here’s where sections 6, 7 and 8 take the forefront in a CROP business model. How do you know when it’s worth it, and are your costs in alignment? Consider also if your channels, section 5, are really doing the job. Can they be improved? Changed altogether?

Again, all other sections of the canvas have bearing. But a deep dive into your metrics should tell you whether you’re on the path to profitability, or if you need to pivot. And if you’re pivoting, you’ll find yourself back at C: Concept evaluating all aspects of your Lean Canvas to formulate a new hypothesis for a pivot.

More resources

Here are some additional resources for the Lean Canvas that I highly recommend:

• Running Lean: Iterate from Plan A to a Plan That Works book by Ash Maurya on Amazon (no affiliate links!)
• Miro Lean Canvas template