lean startup one page business plan

Deconstruct Your Big Idea on 1-Page

Business plans take too long to write, are seldom updated, and almost never read by others. You need dynamic models, not static plans, when going fast and under extreme uncertainty. The Lean Canvas replaces long and boring business plans with a 1-page business model that takes 20 minutes to create and gets read.

Lean Canvas is used by over a million people that span startups, universities, and large enterprises.

What is a Lean Canvas?

Lean Canvas is a 1-page business plan template created by Ash Maurya that helps you deconstruct your idea using twelve business modeling building blocks.

A Lean Canvas can describe a business model, a product release, or even a single feature, making it a highly popular business model innovation and product management tool used by millions worldwide.

If you have ever written a business plan or created a slide deck for investors, you’ll immediately recognize most of the building blocks on the canvas.

Lean Canvas helps you communicate your idea clearly and concisely to key stakeholders.

You can outline multiple business models on a Lean Canvas in one afternoon instead of writing a business plan, which can take several weeks or months. More importantly, a single-page business model is much easier to share with others, so it will be read by more people and updated more frequently.

Lean Canvas helps you systematically build and launch successful products.

When taking on a complex project, like, say, building a house, you wouldn’t start by putting up walls. You’d probably start with an architectural plan or blueprint — even if it’s just a sketch.

Building and launching an idea is no different.

Most entrepreneurs start with a strong initial vision and a Plan A to realize that vision. Unfortunately, most Plan As don’t work.

It has statistically been shown that two-thirds of successful startups report drastically changing (or pivoting) their plans along the way.

So, what separates successful startups then isn’t necessarily starting with a better initial plan (or Plan A) but finding a plan that works before running out of resources .

Until now, finding this better Plan B or C or Z has been based largely on gut, intuition, and luck. There has been no systematic process for rigorously stress testing a Plan A.

The first step to iterating your Plan A is gaining clarity on your Plan A.

This is what the Lean Canvas helps you do.  

What is the difference between Lean Canvas and Business Model Canvas?

Lean Canvas was adapted from Alex Osterwalder's Business Model Canvas and optimized for the Lean Startup methodology.

The motivation behind Lean Canvas was creating a more founder-focused business modeling tool better suited for early-stage products.

It replaces these boxes on the Business Model Canvas: key partners, key resources, key activities, and customer relationships with these boxes: problem, solution, key metrics (KPIs), and unfair advantage (a defensible competitive advantage).

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• Foundations

Lean Startup Business Plan Guide

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Business planning isn’t typically the part of entrepreneurship people look forward to. Fortunately for startup entrepreneurs, there is another option: lean startup business plans. These templates are less in-depth than their traditional counterparts while still allowing you to go through the necessary steps to set the groundwork for your business. If an alternative method of business planning appeals to you, you’ve come to the right place to get started with our lean business plan guide .

Writing a Lean Business Plan for a Startup

One benefit of launching a startup is that entrepreneurs can go outside the box to plan their business. Lean business plans are a less intensive option for startup entrepreneurs to establish their business goals and determine how they can make them happen in a fluid, simple format.

What Is a Lean Startup Business Plan?

A lean startup business plan is a short roadmap that outlines the startup’s goals and the steps to reach them. Concise in nature, sometimes only as long as one page, a lean startup plan starts by identifying a problem and solution. As beneficial as it is to have a business plan to secure investors, a lean startup business plan is also a template for entrepreneurs to think out and document their business strategy.

Lean Startup Plan Pros

• Traditional business plans are time-consuming, and lean startup plans offer entrepreneurs a way to document important business information and goals without going through the process of writing a traditional business plan.
• Lean startup plans are concise enough to pitch to an investor or grab a customer’s attention in a matter of seconds.

Lean Startup Plan Cons

• Some investors may want a more in-depth business plan provided prior to funding your startup.
• Lean startup plans offer less foundational business planning than their traditional counterparts.

Lean Plan vs. Traditional Business Plan

A traditional business plan is an in-depth, detailed blueprint of your startup’s first three to five years in business. In contrast, a lean startup plan is more of a diet-business plan, meaning it includes fewer details, less in-depth analysis, and is much shorter than a traditional business plan. While the two business plans are different in length and detail, they typically include the same nine sections at varying lengths.

Lean Canvas vs. Business Model Canvas

Lean Canvas is an adaptation by Ash Maurya of Alexander Osterwalder’s widely-used business model canvas. Both are templates for the strategic management of a business’s important information. Business model canvas is for all new and existing businesses, while Lean Canvas is created specifically for lean startup entrepreneur’s use. In their approach, they differ as well; business model canvases focus on the infrastructure of a business, while Lean Canvases start with a problem and work toward a solution using an actionable template.

Lean Business Plan Sections Explained

A lean business plan includes valuable information about a startup for both the founder and relevant business partners. Unlike traditional business plans which are a more detailed business plan, lean business plans are concise, typically only one page, and include only the most pertinent information such as target market, marketing strategy, and pain point being solved. 

These are the sections you should include in your lean business plan template.

A lean startup plan starts the same way many successful startups do — by identifying a problem. In this case, it’s a good idea to start by identifying one to three problems and listing them in your Lean Canvas. The intention of starting your business plan with a list of problems is to ensure there is a market for your product. Think about it this way, if you create a solution to a problem that doesn’t exist or isn’t widespread, who will buy it?

Your startup’s task is to create a solution to the problem(s) you’ve identified. This section of your Lean Canvas outlines the solution for each problem you posted in the first section. Include a minimum viable product (MVP) that coincides with your proposed solution. Keep your solutions concise and easily digestible.

Key Metrics

Key metrics, the numbers that tell you how your business is performing, vary depending on your startup model and product. For example, some startups may include an ideal subscription percentage, while others may include an ideal amount of downloads in the first week. These goals will be used as a point of reference for you and your investors to assess your startup’s viability and success.

Unique Value Proposition

Describe in a single sentence why your startup is unique and valuable. Ideally, your unique value proposition will demonstrate to customers the promise that your startup solves their problem in an easily marketable way.

Unfair Advantage

What gives your startup a competitive advantage? Describe the edge your startup has that cannot be bought or copied by others — setting you apart from your competition.

Marketing Strategy

List the marketing strategy you’re planning to use to attract customers. This can be inbound or outbound channels to reach customers. Your strategy should be supported by market research and market analysis, as all these factors can impact the success of campaigns.

Customer Segments

Establishing your target market is absolutely essential to effectively marketing your product and keeping your startup afloat. Include your target customers as well as early adopters (otherwise known as the ideal customers) that your startup will initially appeal to. Be sure to include information about the marketing strategy that will be or is used to attract these users. 

Cost Structure

What your startup will be paying continuously without change (fixed costs) as well as costs that can change over time (variable costs) should be listed here. Essentially, any expense your startup will incur doing business should be considered in the cost structure to budget accurately and secure the necessary funding.

Revenue Streams

You know your costs. Now, you need to make a list of the revenue streams you have to cash roll your startup. These are your revenue streams, and they can be anything from business loans to venture capital.

Steps After Creating a Lean Startup Plan

Now that you have created the plan for your startup, it’s time to put it to the test. As much as startup plans can help entrepreneurs prepare for the road ahead, there is always room for improvement as the startup grows and adapts.

The ultimate test of your startup plan is to get to work. In lean startup methodology , entrepreneurs are encouraged to place their product on the market in order to rapidly improve upon their product and business as a whole. Therefore, in order to get an idea of what needs to be adjusted, you’ll need to put your business plan to the test.

Get a clear understanding of customer reception and feedback you receive about your startup’s products and services. You don’t need to take every suggestion; however, this feedback should help inform the adaption of your product to make it more consumer-friendly. Be open to criticism and ask questions. Listening to the response to your initial products can help you develop new strategies to improve.

Implement your findings from reviewing feedback by revising your business plan and rethinking product elements. Don’t be afraid to go back to the drawing board when you need to reimagine a business plan. The benefit of using a lean startup business plan is that there is a great deal of flexibility available to business owners to reassess their vision.

Further Reading

• What Is a Startup? July 2, 2024
• Startup Ideas July 3, 2024
• How to Start a Startup in 10 Steps (2024 Guide) July 18, 2024
• The 8 Best LLC Services of 2024 August 5, 2024

Topics to Explore

• Startup Ideas
• Startup Basics
• Startup Leadership
• Startup Marketing
• Startup Funding

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Lean Business Plan Template & How-To Guide

Written by Dave Lavinsky

Historically, business owners have devoted months to constructing a detailed plan to establish strategy, executive, and financial numbers for their business. Although a strategic plan is often created, these entrepreneurs often miss a big piece: gathering feedback from potential customers.

Without collecting data and insight from target customers, the detailed business plan becomes a document of assumptions and guesses rather than a proven success blueprint.

Download our Ultimate Business Plan Template here

Lean business planning allows you to more quickly and accurately develop your business plan based on actual customer feedback and interactions.

On this page:

Key benefits of lean startup business planning, can you use a lean plan to raise funding, key elements of a lean business plan.

• Lean Planning Process
• Putting The Lean Plan Into Action

Review Your Results & Revise Your Plan

Lean business plan faqs, other helpful business plan articles & templates.

The lean startup business model is supported by a one-page business plan that does not require extensive financial forecasting or long-term market research and development plans. While the traditional business plan details every aspect of your company’s operations, the lean business plan focuses on key factors that present immediate opportunities for new companies to gain a competitive advantage over their competitors. This approach allows you to maintain company focus on your core mission and avoid adding unnecessary information that can weigh down your final document.

The lean startup movement has encouraged entrepreneurs to shorten their plans down from hundreds of pages to a one-page business plan or less – essentially eliminating the need for small businesses to create traditional plans at all. Rather than spending time creating lengthy reports, owners can simply list their core values, mission statement, market analysis, marketing strategies, and projected financial statements – all on one page.

Some companies even document their entire value proposition on a single sheet of paper which serves as both the foundation for further market research and development to improve its product or service offering. By having this type of information readily available to share with investors or clients, your company will appear more professional and prepared without taking up too much time creating unnecessary documentation.

Developing a lean business plan is a critical step in launching or growing your business. However, it’s important to note that if you’re seeking VC funding , bank funding, or angel investors , a traditional business plan is required. Such a plan includes additional research, strategy, and financial forecasts to give investors and lenders the information they need to determine whether they will receive an adequate ROI (return on investment) if they provide funding to you.

Below are nine key elements of a lean business plan example:

Business overview

Describe what the business does.

Value propositions

Detail the value your business brings to the market and the industry.

Key partnerships

List the key partners, including suppliers, manufacturers, distributors, vendors, or software firms, with whom your business will work.

Key activities

List the key activities your business will perform to gain a competitive advantage, grow market share, and fuel profits.

Key resources

List the resources that your business has at its disposal to create maximum value. This could include human capital (your own experience or that of your core team), intellectual property, patents, funding, etc.

Customer relationships

Describe how your customers will interact with your business. Will you have personal or automated channels of communication available? Chart out the end-to-end customer experience journey and how you intend on building customer relationships.

Customer segments and channels

Specify your target audience, what requirements of theirs you cater to, how you reach out to them, and, most importantly, the steps you are taking to generate a customer experience that will result in long-term loyalty.

Cost structure

Define your key costs and variable costs, and how they represent a competitive advantage if applicable. A lean startup business plan (versus a lean business plan for an existing company), needs to also include key startup costs you anticipate in launching your company.

Revenue streams

Describe how your business generates money. What are your revenue streams or sources, for example, selling advertising space on your app or publication, membership fees, direct sales, etc? List all your revenue sources in this section, starting with the source that delivers the largest revenue.

Download Your Free Lean Business Plan Template

Lean Business Planning Process

To create your lean business plan, follow these 4 steps:

Create the Plan

Your lean business plan will start with you, your business idea, and one sheet of paper. Yes, one sheet is all you will need.

Business Strategy

You will first begin by explaining your business strategy. This is simply a summary of what you are planning to do, who your customers are, and who your competitors are.

Identify the problem you are trying to solve along with your solution and potential alternative solutions. Then, describe your target customers. Focus on defining and describing the audience you expect to serve, who they are, where they live, etc. Lastly, explain who your competitors are. Describe what they’re doing and how they’re doing it.

Easy enough, that is all you need for your plan. With lean business planning, you simply create a business strategy that focuses on the essence and function of your business: what you’re doing and who it’s for.

Course of Action

The next piece of your lean business plan is laying out an outline of your course of action. This section will illustrate how you’re going to make your strategy happen. Here, you will focus on sales, marketing, your team members, and any potential key partners or future relationships in the business world.

Sales Strategy

It is important to first begin creating your course of action by establishing just what your sales strategy is. Will you be selling in a physical store or online? Or both? Consider whether or not your product will be sold in stores owned by other companies, and who these companies would be.

Marketing Strategy

Next up is creating your marketing strategy. Think about how you will effectively and attractively reach your potential customers. Here, consider the following:

• Target market
• Online presence
• Advertising
• Public relations
• Special promotions

Team Members

The success of your course of action will be dependent on the team members who execute it. If you need to build a team, think about who the key people are that you will need to hire. What are their qualifications and characteristics? If you already have an existing business, highlight the key members that help run your company and accomplish strategy and success.

Partners and Business Resources

Begin to think of the other businesses that you might want to work with. Most likely there are other companies that you will have to work with to make your strategy work. Brainstorm all key resources, business partners, distributors, and key suppliers that you will need to have relationships with.

After constructing your Course of Action, it’s time to create your schedule. Since lean business planning is centered around efficiency, designing an organized schedule is key.

For startups:

If you’re starting a new business, you should begin with getting to know your customers. For you to grow a viable business, you must understand your customers’ views, wants, and needs. Your goal here will be to ensure that you’ve developed a strategic, organized strategy. A startup’s schedule will often include sending out surveys, interviewing customers, and researching locations.

For established businesses:

For most businesses that have been around, your schedule should be focused on achieving the business goals you have identified. Your schedule should have specific actions with names, dates, and even times. The schedule you create should hold your business and its employees accountable for their work and progress.

The final part of scheduling is to make time to regularly review your Lean Business Plan. As your business progresses, so will your Lean Business Plan. Setting a regular review time is critical to get your business moving in the right direction and your team members on board.

Forecast and Budget

Even if you have the best business idea in the world, if the numbers aren’t there, it won’t work out. The final section of your Lean Business Plan should depict a business model that forecasts and budgets for the future.

Here, all you have to do is create basic bottom-up sales forecasts and a basic budget for expenses. Do not try to sugarcoat here, these numbers should be as practical as possible. With this, you will be able to identify just what will and won’t work for your business.

By taking on this pragmatic sense, you may begin to feel like your business will not be able to succeed unless you are flooding with customers or getting daily news coverage. You may need to alter your business model here and adjust your pricing and expenses to ensure that you can turn a profit. Also, keep in mind any funding options for large-scale marketing and PR campaigns. Keep a realistic view, but also be sure to acknowledge offers that may be available to help you out.

Putting The Lean Business Plan Into Action

After you have completed your lean business plan, it’s time to put it into action. Your main goal here should be to get a deeper understanding of your customers. Is your product solving their problem? Are they willing to pay for it? Do they want something else?

Reaching out to your customers early on will help you get a grasp on their wants and needs to make the necessary alterations to your Lean Business Plan for ultimate success. It will also provide you with some insight as to what products you may want to produce in the future.

As earlier mentioned, your lean plan should be reviewed regularly to discern just what is working and what isn’t. Compare your results with your lean plan. Are sales growing according to plan? Does the plan need to be changed?

For startups who have little to no metrics to track, review your customer interviews, surveys, or any other information that you have gathered about the industry. Here, you can begin to continually refine your plan and strategy if necessary.

If you are an established business, review your recent results with those from the past. Take note of your key metrics as well as foot traffic in stores, website visits, and any other critical units of measure for your business success.

After analyzing your results, it’s time to revise your plan. Remember that your Lean Business Plan is a process rather than a finalized document, and it is made for continuous improvements. Don’t be afraid to make any necessary changes to aid in your business’s success.

Lean business planning might just be the key to your company’s ultimate success. This simple method of business planning has helped many startups and existing businesses advance and flourish such as Google, Facebook, YouTube, and Amazon. By focusing on reviewing, revising, and business management, lean planning allows you to test out different strategies to find the best one to create a successful business.

How to Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

What is a lean business plan?

A lean business plan is a compact, single-page document typically for internal use. Lean planning is a short-term business plan strategy for making small changes and measuring the results to improve the efficiency of the business. This compares to the formal business plan which is typically very detailed, includes 10 key components , and can be up to 15-25 pages in length.

What is the purpose of a lean business plan?

The lean business plan is primarily for internal use, so it doesn’t have to be a fancy document. The purpose of this plan is for you to document the changes you’ve made to your business so that you can analyze their effectiveness in improving business operations, marketing, and/or sales over a short period.

How long is a lean business plan?

The lean business plan is typically a one-page document to describe your business strategy including your goals, targeted audience, your business model, and how your sales and marketing strategies work to support your business goals. 

How do you create a lean business plan?

Refer to our article on ‘ Lean Business Plan: How-To Guide & Template ’ for the 4 steps in creating a lean business plan or a lean startup business plan template . You can also download our free lean plan template to help you get started. 

How to make a lean business model canvas

Imagine that you have an idea for a new product or business. Yet, as enthusiastic as you are about the potential for this nugget of inspiration, you’re also plagued by this question: Will it work? Is it actually a viable idea?

A lean business model canvas is a one-page business plan that helps you break down your product or business model, question and test your assumptions, and determine if your idea actually has legs.

• Lean business model canvas explained: What is a lean canvas?

You might also hear a lean business model canvas referred to as a variety of other, similar terms like a lean business canvas, lean business plan, or even simply a lean canvas.

This tool was created by Ash Maurya and is an adaptation of the original business model canvas by Alex Osterwalder .

You can think of a lean business model canvas as a straightforward business plan that skips the fluff and gets to the most important elements you need to identify or evaluate (primarily, the problem you’re solving).

When you have an idea for a product or business, you’ll use a lean business model canvas template to fill in the various sections (more on those in a minute) and validate your idea.

The lean canvas is most frequently used by lean startups, which use a lean startup methodology to deliver products to customers faster and determine whether or not the business model itself is viable. In short, lean startups and lean canvases are all about moving fast, testing, and iterating.

Lean canvas example

One of the best ways to understand a lean business model canvas is to see one. So, let’s set up a lean canvas as an example.

Perhaps you have an idea for a business: You want to create an app or a website that’s essentially a database of parks and playgrounds, which parents can search and filter using location, features (splash pad, baby swings, etc.), and more.

You want to dig into your idea even further using a lean business model canvas. Here’s a simple peek at what that could look like after jotting your initial notes down:

Lean canvas vs. business model canvas

There’s a lean business model canvas and then simply a business model canvas . The two terms are often confused, as they have a lot in common — and the lean canvas is an adaptation of the business model canvas.

However, the biggest difference is that a business model canvas is focused on a specific product while a lean canvas focuses on a specific problem.

This means that the business model canvas has a few blocks that you won’t see on a lean canvas. These are:

• Key partners (lean canvas replaced with problem)
• Key activities (lean canvas replaced with solution)
• Key resources (lean canvas replaced with key metrics)
• Customer relationships (lean canvas replaced with unfair advantage)

That’s the gist, but here’s a chart that digs even more into the difference between a business model canvas and a lean canvas:

• What is included in a lean canvas?

Now that you have a better grip on what exactly a lean canvas is let’s break it down even further. The typical lean business model canvas has nine elements or quadrants. These are:

• Problem: A brief description of the top three problems you’re addressing.
• Solution: The proposed fix for the problem you’ve identified.
• Unique value proposition: Why your solution is different and what will make people buy.
• Unfair advantage: Something you have that can’t be easily copied or bought.
• Customer segments: Who your target customers or users are and if they can be further segmented.
• Key metrics: The important numbers that will indicate how your business is doing.
• Channels: The free and paid channels you’ll use to reach your customers.
• Cost structure: All of your fixed and variable costs.
• Revenue streams: How your business model will earn income.

However, our lean canvas template here at Miro dives even deeper with the addition of a few more elements, including:

• Existing alternatives: How these problems are currently solved today.
• High-level concept: A simple X for Y analogy (e.g., “Zillow for playgrounds”).
• Early adopters: Characteristics of your ideal customers who will jump right on the bandwagon.
• How to make a lean canvas in Miro

A lean canvas can provide a lot of clarity about a business model or a product idea. Ready to create one with your own team? Getting started is easy.

• Grab our lean business model canvas template and create a new Miro board . You can put as many canvases on one board as you need.
• Define the product or business idea you’re working on, and then fill in the blocks with different types of content. You don’t just have to use text — you can also use pictures, videos, and more.
• Invite your team and/or advisors to the board so you can brainstorm , collect feedback, and collaborate in real-time.
• Come back to the board regularly to make necessary changes, add new information, and discuss progress.

And that’s it! Once you’ve created your own lean business model canvas, you can move forward with a product or business idea with more strategy — and a lot more confidence too.

Get started on your own lean business model canvas with Miro

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Lean Startup Business Plan Guide: Innovate and Grow Your Way to Success

Starting your own business? It’s an exciting journey, but let’s be honest, it can also be a bit overwhelming. You’ve probably heard about the lean startup approach, a method that emphasizes efficiency and agility. Well, you’re in the right place to dive deeper.

A lean startup business plan isn’t your traditional, lengthy business plan. It’s more like a roadmap, constantly evolving as you learn more about your market and customers. It’s about starting small, testing your assumptions, and adapting quickly. This guide will walk you through creating a lean, mean business plan that keeps you focused and flexible.

So, grab your favorite notebook or open a new digital doc, because we’re about to embark on a journey to streamline your startup process. Let’s make your business dream a reality with a plan that’s as dynamic and innovative as you are.

What is a Lean Startup?

Imagine this: You’re on the starting line, heart pounding, ready to sprint into the world of entrepreneurship. But instead of carrying weights of hefty business plans, you’ve got the lean startup approach —your ticket to running a more flexible, adaptive race. It’s not just a strategy; it’s a mindset shift from traditional, plan-heavy methods to a dynamic, learn-as-you-go process.

At its core, the lean startup methodology is about testing assumptions and iterating quickly . You start with a basic version of your product – folks in the biz call it a Minimum Viable Product (MVP) . This MVP isn’t your final offer to the world but a test balloon. It helps you gather valuable customer feedback without spending all your resources upfront.

• Build : Create a minimum viable product, or MVP, something that’s good enough to start gathering data.
• Measure : Collect data on how customers use your MVP. This step is all about understanding what your customers actually want, not what you think they want.
• Learn : Take what you’ve learned from the data, refine your product, and maybe, your business model too. It’s a cycle of learning and adapting that’s much faster than the traditional way of doing things.

Simply put, the lean startup method is your way of validating business ideas with real-world testing , ensuring you’re building a product people actually want. It encourages constant adaptation, learning from failures , and pivoting when necessary. So, if you’re passionate about the hustle and love iterating on your ideas, leaning into the lean startup philosophy might just be your game-changer.

Benefits of a Lean Startup Business Plan

Diving into the entrepreneurial journey, you’ve probably heard the buzz around lean startup business plans . Drawing from my own adventures in the online business world and the rich tapestry of side hustles I’ve woven, let me walk you through why this approach isn’t just hype—it’s a game changer.

First off, the cost savings are undeniable. Traditional business plans often lead you down a path of heavy initial investment, where you’re shelling out for products or services without concrete evidence of customer interest. A lean startup business plan flips this narrative, urging you to create a minimum viable product (MVP) . This way, you’re not diving into your savings or seeking substantial funding right off the bat.

Let’s talk about speed and flexibility . In the fast-paced digital market, agility is your best friend. Adopting a lean approach means you’re constantly iterating, quickly adapting to customer feedback and market changes. This is paramount, especially when you’re testing out fresh side hustles or trying to carve a niche in the crowded online business arena.

Real-World Learning

When you embrace the lean startup methodology, your playground becomes the real world. Instead of hypothesizing in a vacuum, you’re out there, seeing how your MVP resonates with actual users. This direct feedback loop not only fine-tunes your product but also deepens your understanding of your target audience. You learn what truly matters to your customers, information that’s gold dust in tailoring your offerings and marketing strategies.

Risk Reduction

A significant edge of the lean startup plan is its capacity to mitigate risk . By testing your ideas in incremental steps, you significantly lower the stakes of failure. It’s about smart, calculated risks where each iteration brings valuable insights, minimizing the chances of a high-stakes flop.

Embracing this mindset opens up an exhilarating path of exploration and growth. You’re not just launching a business; you’re embarking on a continuous learning journey. From my personal journey of juggling online ventures and various side hustles, adopting a lean startup approach has been instrumental in navigating the ebbs and flows of the entrepreneurial world.

Setting Clear Goals and Objectives

When you’re navigating the sea of entrepreneurship, setting clear goals and objectives for your lean startup plan is like charting a course for your ship. Without a destination in mind, you’re just drifting. But with goals, you’ve got your north star.

First off, understand the difference between goals and objectives: goals are your broad, long-term targets, while objectives are specific, measurable steps you’ll take to hit those targets. Think of your goals as your endgame and your objectives as the milestones along the way.

Here’s how to do it right:

• Start with Vision : Your goal setting should stem from the very vision you have for your business. What problem are you solving? Who are you solving it for? This shouldn’t just be about making money – it’s about the impact you want to have.
• Be S.M.A.R.T. : Ensure your objectives are Specific, Measurable, Achievable, Relevant, and Time-bound. This framework keeps your startup agile, allowing you to iterate or pivot based on customer feedback and market demand.
• Prioritize : Not all goals are created equal. Identify which ones are critical for your MVP’s success and focus your energy there. This prioritization ensures you’re not spreading yourself too thin and losing sight of what’s truly important.
• Flexibility Is Key : One of the biggest strengths of a lean startup is its ability to adapt quickly. Set regular intervals to review and adjust your goals and objectives based on what you’ve learned from real-world testing. This continuous loop of feedback and improvement is crucial for staying relevant and competitive.

Remember, the journey of a thousand miles begins with a single step. By setting clear, actionable goals and objectives, you’re not just dreaming of success; you’re plotting a course towards it.

Identifying Your Target Market

After nailing down your goals and objectives, it’s time to zoom in on who your lean startup will serve. Knowing your target market is not just beneficial; it’s crucial . You might believe your product or service is for everyone, but in reality, a focused approach will lead to more effective marketing strategies and, ultimately, a stronger business model.

First, start by defining the demographics of your potential customers. Consider age, location, gender, income level, education, and even marital status. But don’t stop there. Understanding the psychographics—personality traits, values, attitudes, interests, and lifestyles—of your market can make your targeting even more effective. This dual approach ensures you’re not just understanding who your customers are but also why they might be interested in what you have to offer.

Here’s a tip: use your personal experiences and networks to get initial insights. Since you’ve ventured into businesses and side-hustles, tap into those communities. What do they crave? What’s lacking in the current offerings? As both an entrepreneur and a customer in various niches, you’ve got a unique perspective that can help identify untapped market opportunities.

Gathering data can be as simple as conducting online surveys, hanging out in online forums where your potential customers spend their time, or even direct interviews. The goal is to collect enough information to create a buyer persona , a semi-fictional character that embodies the characteristics of your ideal customer.

Leverage social media analytics and Google Analytics to start. These platforms offer insights into who is interacting with your content and how. Patterns in these interactions can be golden, guiding you towards understanding who really needs your product or service.

Remember, identifying your target market isn’t a one-and-done task. Markets evolve, trends shift, and new competitors emerge. Keep your finger on the pulse by continually gathering feedback and staying engaged with your audience. This way, you ensure your lean startup remains relevant and ahead of the curve.

Validating Your Business Idea

Validating your business idea is a crucial step that cannot be overlooked. It’s the bridge between a concept and a viable product. Imagine you’re gearing up for a journey. Validation is your map, ensuring you’re headed in the right direction.

Start with the Lean Canvas Model – a one-page business plan that lets you flesh out your idea quickly without diving too deep into the minutiae. This model forces you to focus on the main components: problem, solution, key metrics, and unique value proposition. It’s like sketching the outline of your masterpiece before painting the details.

Next, dive into customer validation . This isn’t just about confirming that people want what you’re offering; it’s about understanding why they want it. Engage with potential customers through surveys, interviews, or even a simple landing page test. Here’s where it gets real. You’re not just asking if they like your idea; you’re seeing if they’re willing to open their wallets for it. Data speaks louder than words, so keep an eye on those metrics. How many clicked through? Who signed up for more information? These are the signals that your idea has legs.

Don’t forget the power of a Minimum Viable Product (MVP) . It’s your idea stripped down to its essentials, ready for the real world’s scrutiny. Launching an MVP provides invaluable insights into how your product fits the market. It’s immediate, raw feedback that can pivot your idea from nice-to-have to must-have.

Remember, validation is about learning, not just confirmation. It’s possible that your idea might not hit the mark on the first try. That’s okay. Every piece of feedback is a goldmine. It helps you tweak, adjust, and sometimes even overhaul your approach to better meet your customers’ needs. Keep iterating until the market response is undeniable. You’re not just building a product; you’re crafting a solution that fits like a key in a lock.

Testing Assumptions and Hypotheses

When you’re knee-deep in the hustle of launching your lean startup, testing assumptions and hypotheses about your business model becomes critical. You’re probably buzzing with excitement and ideas, which is fantastic! But now’s the time to put those ideas to the test and see if they hold water in the real world.

First off, break down your business idea into its core assumptions. These are the foundation stones of your venture, covering everything from who your customers are, what problem you’re solving, and how your solution fits into the market. Once you’ve got your assumptions lined up, it’s testing time!

A great place to start is by employing a validated learning approach. This means launching small, controlled experiments that aim to validate your hypotheses about the business. Think of it like mini science experiments where your product or service is the hypothesis, and the market is your laboratory.

For instance, if you believe that your eco-friendly packaging will be a hit with environmentally conscious consumers, run a targeted marketing campaign to test the waters. Use metrics like engagement rates, conversion rates, and direct feedback to assess the market’s response. This data is gold and will guide your next steps.

Remember, the goal here isn’t to prove you’re right. It’s to find out what’s true. Sometimes, you’ll discover that an assumption was off-mark. That’s not a failure; it’s a vital learning experience. It’s about embracing the pivot . If an assumption doesn’t pan out, pivot your approach based on what you’ve learned. Iterate on your product, tweak your marketing strategy, or even redefine your target audience if need be.

The beauty of testing assumptions in a lean startup is that it’s cost-effective and time-efficient. You won’t waste months or resources barking up the wrong tree. Each test brings you closer to a product-market fit, fine-tuning your business model until it resonates with your intended audience. So dive in, test rigorously, and let the market guide your journey to success.

Adapting and Iterating

In the ever-evolving landscape of startups, Adapting and Iterating is not just a strategy; it’s your lifeline. Imagine your lean startup as a living, breathing entity. It’s continually growing, learning from its environment, and needs to adapt to thrive. Given my journey, where I’ve juggled numerous side-hustles and steered my online business to success, this phase is where the magic happens.

Start with understanding that no plan is set in stone . You’ve already laid a strong foundation with your MVP, but now it’s time to listen, learn, and pivot if necessary. This doesn’t mean overhauling your entire business at the slightest hiccup. Instead, focus on small, incremental changes based on user feedback and market demand. These iterations empower your startup to remain relevant and competitive.

Here’s how you can make it work:

• Gather Data Relentlessly : Use every tool at your disposal to collect feedback. Online surveys, social media engagement, and direct customer interviews are gold mines of insights.
• Analyze and Act : Don’t just collect data for the sake of it. Dive deep into what your customers are telling you. What features do they love? Where do they struggle? Use these insights to guide your next steps.
• Fail Fast, Learn Fast : Don’t be afraid of ideas that don’t pan out. Each failed experiment is a stepping stone to a better version of your product. Remember, in the world of startups, speed is key. The quicker you can iterate, the faster you’ll find what works.

Embrace the mindset that your business plan is a living document . It grows and evolves with your startup. This approach ensures you’re always ready to seize new opportunities or tackle unforeseen challenges. After all, in the thrilling ride that is entrepreneurship, being adaptable is your greatest asset.

Building a Minimum Viable Product (MVP)

Embarking on the journey to bring your innovative ideas to life, it’s critical to start with building a Minimum Viable Product, or MVP . This essential step in the lean startup approach allows you to test, learn, and iterate your way to success without fully committing all your resources upfront. Think of your MVP as the most basic version of your product that can still solve your customers’ problem or fulfill their need.

Why start with an MVP? It’s simple, really. Your MVP enables you to:

• Launch quickly
• Gather valuable customer feedback
• Make necessary adjustments
• Minimize initial development costs

By focusing on the core features that address the main problem you’re solving, you skip the bells and whistles that can slow down your launch and eat up your budget. The key here is to get your product into the hands of early adopters as soon as possible.

Next, collecting and acting on customer feedback is crucial. Use online surveys, social media, and direct interactions to find out what works, what doesn’t, and what features your users truly desire. This feedback loop will guide your development process in a customer-centric direction , ensuring that each iteration of your product is a step closer to market fit.

Lastly, remember, your MVP is not your final product. It’s a starting point for a cycle of continuous improvement. As you iterate, keep your business goals and customer needs in focus. Every change, addition, or removal from your product should be a strategic decision aimed at better serving your customers and growing your business.

Embracing the MVP approach can significantly increase your chances of success by ensuring that your product truly meets market demands before you’ve exhausted your resources. Dive in, test, learn, and iterate. Your dream business is a work in progress, and every step forward is a step towards success .

Measuring and Learning

In your journey molding a lean startup, measuring progress and learning from the results is your compass. You’ve already embraced the fluidity of your business plan; now, it’s time to quantify your steps and adapt based on what the numbers show. This is where the real magic happens. It’s not just about launching and seeing what sticks. It’s about intentional iteration and growth.

First off, set clear, measurable objectives. These aren’t lofty, vague goals but rather specific milestones you can track. Think in terms of website traffic, conversion rates, or customer retention percentages. Specific targets will give you clear success indicators and help direct your efforts where they’re most needed.

Once your goals are in place, it’s time to dive into the learning process. Utilize tools and platforms that can provide actionable data. Google Analytics for website traffic, social media insights for engagement rates, and customer feedback tools like surveys or direct interviews can offer invaluable information. What’s crucial is not just collecting this data, but analyzing it to understand the why behind the numbers.

Your lean startup is a laboratory, and every piece of customer feedback is a clue towards the next great breakthrough. Keep testing hypotheses, from pricing models to marketing channels, always with an eye on what the data tells you. This doesn’t mean chasing every shiny trend but making informed decisions that align with your strategic directions and customer needs.

Remember, the landscape of online businesses is ever-evolving. Staying static is not an option if you want to stay relevant. Adaptability, grounded in measurable outcomes and continuous learning, is what will set you apart. Keep iterating, keep measuring, and most importantly, keep learning. The path to success is paved with insights gained from each step forward, no matter how small.

Creating a Business Model Canvas

When diving into the lean startup journey, one of your first steps is crafting a Business Model Canvas . This tool simplifies the process of sketching out how your business creates, delivers, and captures value. Think of it as your blueprint; something that evolves as your understanding and the market’s needs shift.

First up, you’ve got to understand the nine essential building blocks that form the canvas. These include key partners, key activities, key resources, value propositions, customer relationships, channels, customer segments, cost structure, and revenue streams. Laying these out visually helps you see the big picture and make connections you might miss in a traditional business plan.

Key Partners : Who’ll help you succeed? These could be suppliers, allies, or even mentors.

Value Propositions : What problems are you solving? This is the heart of why customers will choose you.

Channels : How will you reach your customers? Whether it’s online ads, social media, or physical storefronts, you need a strategy.

Customer Segments : Who are you serving? Knowing your audience is crucial to tailoring your offer.

Key Activities : What actions will you take to deliver your value proposition?

Key Resources : What do you need to execute your activities? Think about physical, intellectual, human, and financial resources.

Customer Relationships : How will you interact with customers? This fosters loyalty and retention.

Cost Structure : Understanding your costs is vital for pricing and profitability.

Revenue Streams : Finally, how will you make money? This could be through direct sales, subscriptions, ads, etc.

As you flesh out these components, you’ll start to see how they interlink and support each other. This exercise isn’t just about filling in boxes; it’s about questioning each assumption and continuously iterating based on feedback and insights. Remember, your business model canvas is a living document. It’ll grow and change as you learn more about your market and refine your approach. So, don’t be afraid to make adjustments or pivot entirely if that’s what the data suggests. After all, flexibility and responsiveness are at the core of a lean startup’s ethos.

Embracing the lean startup approach is a journey of continuous improvement and adaptation. By setting clear goals and leveraging the right tools, you’re well on your way to building a business that not only survives but thrives in today’s dynamic market. Remember, the key is to learn from every outcome—every piece of data and feedback is a stepping stone towards your success. The Business Model Canvas is your map, guiding you through the complexities of creating value. Stay curious, be ready to iterate, and always keep your customers at the heart of everything you do. Here’s to your lean startup journey—may it be filled with insightful learnings and remarkable growth.

Frequently Asked Questions

What is the importance of adapting and iterating in a lean startup.

Adapting and iterating are crucial in a lean startup because they allow businesses to learn from their actions, measure progress, and make necessary adjustments. This cycle of learning and adapting helps startups grow and succeed in the dynamic market environment.

How should a startup measure progress?

A startup should measure progress by setting clear, measurable objectives and utilizing tools and platforms to gather actionable data. This enables startups to track their performance and assess whether they are moving towards their goals.

Why is analyzing collected data important?

Analyzing collected data is important because it helps understand the reasons behind the numbers. It offers insights into what is working and what isn’t, enabling startups to make informed decisions and adjust their strategies accordingly.

What role does customer feedback play in a lean startup?

Customer feedback is vital in a lean startup as it provides direct insights into the customer’s needs and experiences. It helps in testing hypotheses and making decisions that align with customer expectations, ultimately leading to better product or service improvements.

Can you explain the purpose of the Business Model Canvas in a startup?

The Business Model Canvas is a tool designed to help startups sketch out how they create, deliver, and capture value. It utilizes nine essential building blocks to provide a comprehensive overview of the business model, encouraging questioning of assumptions and enabling easy adjustments or pivots based on feedback and insights.

Why is flexibility important in online businesses?

Flexibility is crucial in online businesses due to the fast-paced and ever-evolving nature of the internet landscape. Being flexible and responsive allows businesses to adapt to changes, exploit new opportunities, and stay competitive.

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How To Successfully Write a One Page Business Plan (With 3 Templates)

• by IdeaBuddy Team
• March 13, 2023
• 48 shares 4 0 44
• 6 minute read

Table of Contents Hide

What is a one page business plan, advantage #1 condense your thoughts.

• Advantage #2 See the big picture
• Advantage #3 Build a business model

One Page Plan Template: Idea Plan

One page plan template: business model canvas, one page plan template: lean canvas, 1. market needs, 2. business solution, 3. competition, 4. target market, 5. sales and marketing, 6. budget and sales goals, 7. milestones/roadmap, 8. team summary, 9. key partners, 10. funding needs, start writing your one page business plan.

Writing an old-school business plan can be painful, so we’ve put together a quick guide where we’ll teach you how to make its simplified version, a one page business plan.

So, in the next five minutes of reading, you will learn the following things:

• Why it can be better than a traditional business plan
• What templates to use
• What information should you include in each of the sections

Now, without further ado, let’s dive right into it!

It’s a great tool for the earliest stages of your business because it helps you structure your thoughts and brainstorm your business ideas with partners, friends, and fellow entrepreneurs.

Also, you can explain on a single page what your product portfolio will be, how you will handle distribution and sales, how to prepare a market analysis,  and how to select the right brand strategy .

In a nutshell, your one page business plan should explain:

• Who your customers are?
• What their problems are?
• How you can solve them?
• Who are your competitors?
• How can you set yourself apart?
• Who is on your team?
• How will you make money?
• What are the costs you anticipate?

Basically, it should cover all the same points as a full-length business plan, but in a condensed format.

The advantages of a one page business plan

It’s possible to boil everything down to a single page if you’re economical with words.

It will help you to map out your idea in under an hour, and explain your business model to the potential investors. If they like what they see, it will make them want to read the full-length version.

As we’ve just covered, a one page business plan makes it more likely that investors or banks will give you the time of day. One page is a quicker read than a pamphlet – although you will need a comprehensive business plan!

In the meantime, there are other advantages to a one page business plan that will come in handy. So read on, if you’re still not convinced that you can work magic with a single page.

It’s easy to get carried away when you are dreaming about your future business. A one page business plan will force you to condense your thoughts and formulate them as clearly as possible.

Advantage #2  See the big picture

You’ll cut out all the fluff when you’re limited to one page. That automatically makes you look at the big picture. And that will also help guide your decisions when you put your plan into action.

Advantage #3  Build a business model

It will help you to identify all the internal and external factors that form the building blocks for the business model that can tell everything about the business, like the product, target customers, competition, or any other element of your business.

Popular one page business plan templates 

You know why it’s a good idea to write a one page business plan, and you could now open a blank Word document to get started. But why do that when there are ready-made templates?

Let’s have a look at some of the popular one page business plan templates below.

Idea Plan is created by the IdeaBuddy team, and it is inspired by more popular business model templates, like Business Model Canvas and Lean Canvas.

What makes it unique, and why it’s more practical than the other one page plans?

It is very well organized, easy to understand, and it can be used by people who are not experts in business planning. Also, it has templates for the most popular business ideas.

The story starts from the inner, core blocks.

There you are defining the problem/solution and product/market fit that together represent your value proposition, or what makes you stand out from the rest.

Then you are moving on to the remaining blocks, in order to build your business model, and also to understand the external business elements, like competitors and market conditions.

Get started IdeaBuddy for free and create your one page plan in no time!

Strategyzer is the team behind Business Model Canvas (BMC), which is a strategic tool for sketching, visualizing, analyzing, and pivoting business models.

This is the most popular one page business plan template and is has nine building blocks. These blocks allow you to map existing business models, design new ones, and manage a portfolio of models.

Lean Canvas was created by Ash Maurya, and it represents an adaptation from the original Business Model Canvas, inspired by the book Lean Startup by Eric Ries. This one page business plan can help you deconstruct your idea into its key assumptions.

What’s so special about this template is that it follows the problem-solution approach, and it’s more suitable for startups and entrepreneurs.

Sections Of Your One Page Business Plan

Hopefully, you’ve picked a template that looks visually appealing and suits your specific needs. Now it’s time to fill it in with all the information we mentioned at the beginning of this blog post.

You should describe the market needs right at the beginning of your business plan. Your entire business idea relies on solving a specific problem, so make sure you describe it clearly.

Once you’ve described the problem, it’s time to explain how your business is going to solve it. Whether you want to design a product or provide a service, this is where you sell it to the world.

Chances are that you’re not the only one who wants to solve that particular problem. Make sure you analyze your direct and indirect competition so you know what you’re up against.

Who has the problem your business wants to solve? Where are they in the world, what do they do, and what are their greatest hopes and worst fears? Describe your ideal customer in detail.

It’s not enough to know who’s interested in what you sell. You also have to sell it to them. Make a plan for how you want to promote your product or service and convert people into customers.

For example, are you going to use email newsletter software to create appealing newsletters and communicate over email? Or do you want to take the social media route and build an audience there? You can also create a combination of channels that works for you.

You need some money to get this baby off the ground. So what’s your startup budget and how do you plan to spend it? More importantly, how much do you plan to sell and over how long?

Your business will (hopefully!) evolve over time as you build a reputation. What does the future look like? Create a roadmap with milestones to mark significant progress along the way.

No matter how awesome you are, you’re only one person. It’s good to have a team to help you out. Who are they and what do they bring to the table in terms of skills and experiences?

Are you selling a product? Then who manufactures it, who distributes it, and who promotes it? You should list your key partners, without which your business can not exist.

Finally, we’re at the bottom line… literally. Make a list of people or resources you need but don’t have the capital to afford without the help of outside investment. Specify how much you need.

Congratulations! Now you know why you should write a one page plan, where to find some great templates, and what you should include in it.

But knowing is only half the battle.

Now it’s time to put your knowledge into action and actually write the damn thing! Fortunately, you don’t need to go back to Google for a solution to that problem – you’ve already found it.

IdeaBuddy is an excellent platform you can use to go from zero to a fully-fledged business. And the best part? You can write your one page plan completely for free!

So what are you waiting for? Start writing your one page business plan today, it’s much easier than you think!

IdeaBuddy Team

Ideabuddy is now mobile friendly, how to start a home business (6 steps guide), you may also like.

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Why Do You Need a Business Plan To Start A Business?

• by IdeaBuddy
• May 10, 2023

• Sample Business Plans

One Page Business Plan

Many entrepreneurs find it challenging to put their business ideas on paper. So don’t worry if you’re feeling the same anxiety.

The solution? Try starting with a one-page business plan!

This simple yet powerful tool helps you and your audience gain a clear understanding of your business.

But how do you write one—this guide will walk you through the process of creating a one-page business plan, including its types, essential components, and business plan templates.

Thus, let’s get started on crafting an effective plan. But before that let’s go through what it is.

Free One Page Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

What is a one-page business plan?

A one-page business plan is a simple and shorter version of a traditional business plan. It outlines the necessary elements of your business, such as the problem, solution, target customers, financial analysis, and other important things on a single page.

It’s specifically made to provide a quick idea of the business’s concept for easy communication and updates when needed.

Traditional vs. one-page business plan

A traditional business plan is a detailed document of around 15 to 30 pages. It covers everything from business overviews to financial forecasts in different sections. Whereas the one-page business plan is a single-page plan that’s a condensed version of the whole plan.

Traditional business plans are perfect if you need to secure significant funding or map out long-term strategies for your business.

On the other hand, a one-page business plan is ideal for quickly sharing your business idea and internal use for strategic planning. It’s concise and easy to update, making it perfect for startups and small businesses that need to stay updated and focused.

Now that we know the difference, let’s move forward to the components of the one page business plan.

What to include in your one-page business plan

A one-page business plan is particularly designed to provide a brief overview of your business, including your business idea, goals, strategies, and key metrics.

Here are the sections you need to include:

Note and mention the problems of the target customers that your product or service will solve. This is the part where you should create a convincing statement that’s relatable for your readers.

2. Customers

Identify who your target customers are, including their behaviors and demographics. Explain how your business will meet this specific target market’s needs.

Here, include information on market size, growth potential, and key trends. Highlight the demand for your product or service within this market.

4. Competitors

Highlight your main competitors along with their strengths and weaknesses. Explain how your business will stand out in the competitive landscape. Discuss any gaps in the market that your business will fill.

5. Solution

Explain your solution here about how your product or services will solve the problem. Also, highlight why your solution is the best fit for your audience.

Detail what exactly you offer to your audience and what’s the unique value proposition of the product or service. Also, mention how your product stands out along with your competitive advantage.

Introduce key members of your business, highlighting their roles and responsibilities. Also, add up their relevant experience and expertise in the industry.

8. Promotion

Outline your strategies—including a marketing plan, social media strategies, and advertising plans. Explain how these strategies will attract and retain customers.

9. Distribution

Describe the distribution channels you will use, such as online or retail stores, or direct delivery. Mention any partnerships with distributors that reach your target market.

10. Partners

Identify key business partners or collaborators who will play a crucial role in your business’s success. This could include suppliers or strategic alliances. Explain how these partnerships will support your business operations and growth.

11. Financing

Summarize your financial projections, including expected revenue, expenses, and profitability. Outline your funding requirements, specifying how much money you need to start or grow your business and what it will be used for.

12. Startup costs

Provide the list and estimation of the initial costs required to start your business. It includes costs for equipment, inventory, marketing, and any other significant startup expenses.

13. Running costs

Detail the ongoing operational costs necessary to run your business. This could include salaries, rent, utilities, supplies, and maintenance expenses.

14. Revenue streams

Clearly outline each revenue stream and how it contributes to your overall financial goals. List the different revenue streams, for example: product sales, subscription fees, licensing, or other sources of income.

Now that you know all the sections that need to be included in the one-page plan, let’s see which templates are used commonly.

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Most common one-page business plan templates

There are various types of one-page business plans with different components, let’s see them one by one:

1. One-page business plan canvas

The one-page business plan canvas helps businesses maintain the strategic overview of their company. By including all the necessary elements, it ensures everyone is in sync with the company’s mission and goals.

This is the one-page business plan canvas by Upmetrics:

2. One-page business plan: lean canvas

The lean canvas is ideal for startups and early-stage businesses to test their business concept. It helps the team focus on solutions and validate their business model through continuous feedback and learning.

3. One-page business plan: startup canvas

This canvas is for entrepreneurs to communicate their business ideas. It helps new entrepreneurs rapidly capture their business concepts, ensuring everyone understands the key elements and direction.

4. One-page business model canvas

The business model canvas is to help businesses visualize their entire business model on one page. It showcases how the business creates and delivers value.

How to use the one-page business plan template

You see it’s quite easy to use any of our one-page canvas templates. All you need to do is—download the template (we support PPTX and PDF format) and start filling in the details.

To begin with, gather the relevant business information; details on your target market, market research, and other essential points. Read the tips under each section to understand what to write, and begin filling out all sections.

Since you’re doing it all on your own, it may take a while to get things done. However, if you choose to use Upmetrics’ strategic planning tool , things can be sped up. Simply enter some related business information, and the Upmetrics AI assistant will do the rest.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Prepare your one-page business plan using AI

While traditional planning methods still exist and work, I’d be hard-pressed to believe they’re as efficient as AI-powered tools.

Ideating a one-page plan is more about brainstorming, guess working, and critical thinking, than writing.

Considering the importance of a one-page plan for your business, your stretched-out schedules, and other critical tasks on your to-do, using an AI-powered tool like Upmetrics for planning seems your best bet.

A strategic planning tool for one-page plans, a plan builder for detailed plan creation, a pitch deck creator for compelling investor decks, and an AI-powered financial forecasting tool for accurate forecasts, Upmetrics has all you need once you finish your plan.

So, what’s the wait? Try Upmetrics and start preparing your one-page plan.

Related Posts

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Lean Business Plan Template

Best Sample Business Plan Templates

Necessary Business Plan Components

Frequently asked questions, how detailed should my one-page business plan be.

As it’s a one-page business plan, the details included in it should be brief and to the point. Things to include are business overview, problems, solutions, market opportunity, business model, marketing strategy, business strategy, and key metrics.

Can a one-page business plan be used to secure funding?

A one-page business plan can give a quick and clear overview of your business idea and needs, but it might not be enough to secure funding on its own. Investors usually want more detailed information to understand your business fully. So, while it’s a good starting point, you’ll likely need a more detailed plan to get funding.

Is a one-page business plan suitable for all types of businesses?

No, a one-page business plan works well for startups or small businesses that want to portray and validate their business concept. For large enterprises and complex businesses, a detailed business plan is preferable.

However, even if your business has a one-page business plan, it’s advisable to have a traditional plan for detailed information on your business.

Can I convert my traditional business plan into a one-page format?

Yes, you can convert the detailed business plan into a one-page plan by summarizing all the sections in two to three sentences. But it’s not advisable.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Lean Canvas: How To Create a Business Plan that People Will Actually Read

Everybody has a plan until they get punched in the mouth… – Mike Tyson

Which, let’s face it, happens to most start-ups and entrepreneurs. Around 75% in fact.

You have the best idea. You spend days, weeks, and months perfecting a 40-page business plan filled with five-year forecasts, 18-month roadmaps, and in-depth marketing strategies. You confidently pitch it to stakeholders and investors.

Then you get punched in the mouth.

Potential investors go quiet or “ haven’t had time to read it ” and you’re left with an expensive, wasted deliverable and a chunk of time that you’ll never get back. Worse still, your product isn’t any nearer launching and you haven’t secured any buy-in or investment.

What. A. Waste. Of. Time.

Traditional business plans are of little use to start-ups, and of no real interest to investors.

But what’s the alternative?

A one-page business plan inspired by Eric Ries ’s Lean Start-Up methodology and specifically designed for emerging entrepreneurs: The Lean Canvas.

The Lean Canvas is a living framework that allows you to quickly capture your idea or concept, thoroughly validate it, and then continuously share, improve, and most importantly move on it.

Ok, I know what you’re thinking:

How can a one-page Lean Canvas possibly replace a 40-page business plan?

How can i tell the entire story of my business on one-page, is a lean canvas really enough to help me secure investment or buy-in.

I have the answers to all these questions and more in this Process Street post.

Ready to dodge some punches?

Creating a detailed business plan (complete with comprehensive forecasts, roadmaps, and strategies) and pitching it to investors has always been the first step new businesses and entrepreneurs take to secure buy-in or investment, right?

Why business plans don’t work for start-ups

During the early stages of an idea or a business, all you really have is a strong belief, a clear vision, and a lot of untested assumptions: You believe there’s a market for it. You think your pricing will generate $X in revenue, and you hope your product roadmap will look a certain way.

But you don’t really know. How can you? You haven’t tested the concept.

Of course, your business model might be based on similar businesses, products, or concepts, which allow you to hypothesize the future. But you can’t provide any concrete proof or evidence that your idea is going to work.

Which is surely the sole purpose of a business plan?

Plus, a business plan typically takes ages to write as it requires lots of detailed, accurate information. And, it becomes obsolete incredibly quickly, as and when you encounter the various operational and marketing challenges that inevitably arise.

So, instead of being a clear, factually accurate, representative proposition, a start-up’s business plan tends to be a wishy-washy, out-of-date, speculative document.

And, what do investors, Angels, and stakeholders hate more than anything…? Exactly.

The alternative to speculative, inaccurate, & obsolete business plans

Start-ups face a vicious circle: You can’t prove your concept without investment, but you can’t get investment without proof.

The original concept of a business plan was to break this circle and give investors the information they needed to justify a decision on whether to fund the idea or not.

But as we’ve already established, not only is a start-up’s business plan incredibly time-consuming to create, it’s difficult to digest and full of guesses rather than reassuring facts. As a result, all that hard work can often get bypassed by investors.

The answer to this dilemma is the Lean Canvas. The Lean Canvas is an actionable, entrepreneur-focused, one-page business plan.

Inspired by Alex Osterwalder ’s Business Model Canvas and the principles behind the Lean Start-Up movement and eradication of waste , Ash Maurya developed the Lean Canvas framework specifically for start-ups.

He felt that spending time creating a business plan that was often inaccurate, obsolete, and ignored was unproductive and a wasteful.

“ Waste is any human activity which absorbs resources but creates no value. ” – James Womack , Leanstack , Bootstrapping + Lean Startup = Low-burn Startup

So, he developed the Lean Canvas; a one-page, easy-to-digest document that:

As you can see, the Lean Canvas is a set of nine blocks:

• Value proposition
• Unfair advantage
• Key metrics

Each block presents clear, concise, and accurate information in a digestible format. It takes less time to complete, it’s easy to keep up-to-date, it gives investors the information they need, and it paints a clear picture of the business or idea on one page (instead of 40).

What’s not to like?

OK, you get it: It’s a waste of time creating a semi-fictional business plan that won’t get read. But, seriously ? How can you convey how fantastic your idea is on one, single page?

To answer this, we’ll need to look at each of the nine components that make up the one-page Lean Canvas framework.

Lean Canvas component #1: Customers ‍ ‍

The first block to fill out is all about your customers. As you might do with a business plan, you need to determine who your user base is and understand what makes them tick.

Go deep and build up a customer profile for each group of customers you’re targeting. Get under their skin and get to know them as people:

• Who is your intended audience?
• What type of person are they?
• What are their likes, dislikes, and pain points?
• What’s their average day like?
• What makes them happy?
• What frustrates them?

One thing you must do during this exercise is define who the early adopters of your product are likely to be.

Identifying this group of people is essential because you can use them to validate your ideas.

Ask them questions, send them feedback surveys, and get them to trial your product. Collect these valuable insights and use them to iterate your Lean Canvas, determine the direction you take your product in, and justify your ideas.

Real customer opinions and feedback are valuable proof points that investors will trust.

Lean Canvas component #2: Problem

The next step you need to take should be in the shoes of your customer. Walk a mile in your customer’s shoes so you can identify the problems they might face with (and also without) your product.

Conduct interviews, carry out tests, or send out surveys to help you uncover the real issues they’re likely to face or are already facing.

Interact with your product yourself, or ask an unrelated third party to give it a try. Consider the experience from your customer’s point of view and objectively identify what works and what doesn’t.

Take this back to your Lean Canvas and tweak your idea accordingly. Use it as evidence to prove the concept you’re pitching.

Lean Canvas component #3: Solution ❗

Next, you need to describe what your product is going to do. What will it solve? What’s the ultimate vision?

You might feel that your product solves several problems and is the answer to everything. But, remember, this needs to be clear and concise.

So, play around with each solution to see what sticks. Assess your features and capabilities, carry out research, collect feedback, and brainstorm with your team so you can narrow it down to one or two solid solutions that are grounded in evidence.

Lean Canvas component #4: Channels

How will your customers find your product? How will they come into contact with you or your product?

List every single channel or touchpoint that you could use to get your product in front of your audience.

You might want to use a mixture of paid channels, like Facebook ads or trade fairs, and free channels like SEO or blog posts. Create a content strategy to help you decide where best to center your efforts and show investors that you’re able to provide the best experience to your customers at every step of their journey.

Lean Canvas component #5: Value proposition ⚡

Write out a punchy statement that explains the core value of your product.

Think: Why would your target customer care about it? What will it do for them? What problem does it solve? Why is it a better option than the competition?

Sell the end-benefit not the solution, and keep it short, catchy, and powerfully persuasive (eg. the film ‘Alien’ isn’t a film about aliens, it’s “ Jaws in Space ”).

Three words of warning though:

• Don’t confuse a value proposition with a tacky slogan. For instance, M&M’s “Melts in your mouth, not in your hand…” is a slogan, not a value proposition.
• Don’t write a sentence that’s all hype and no substance. For example, “The best product EVER made” is pure hype. There’s nothing to back it up and investors will see straight through it.
• Don’t use meaningless buzzwords or jargon. You might think that phrases like “value-added interactions” make you sound like a prestigious expert, but they don’t. They make you sound like a pretentious airhead.

This block is one of the most important ones to get right. Your value proposition is how investors will see you and your product, and how they will describe you to other partners and investors.

Lean Canvas component #6: Unfair advantage

Whether you know it or not, you have an unfair advantage over your competitors. All you have to do is find out what it is!

What makes you stand out? What puts you streets ahead of your competitors? What do you have that others can’t replicate or acquire?

It might be your internal team; it might be in-depth knowledge or inside information; or it could be your unique position within a community.

It’s there somewhere. Dig it out and put it on display.

Lean Canvas component #7: Revenue

This is where you’ll need to identify the sources of income that will keep you and your business afloat.

Create a simple pricing model and test it out on your early adopters. Does it work for them and for you?

You might charge a subscription fee; you might generate income through advertising on your platform; or maybe you’ll get customers to pay for their usage. Maybe it’s a combination of all three!

Just remember to keep it as simple as possible, test it out, and keep iterating until it’s perfect.

Again, testing it out on early adopters backs up your concept.

Lean Canvas component #8: Costs

I probably don’t need to tell you that over 90% of start-ups fail because they don’t consider the proper costs of launching and running their business.

So, list all of your expenses.

Consider everything, from customer acquisition and retention costs, to distribution and office overheads. And to make sure you don’t miss any key costs, work through each of the nine blocks in your Lean Canvas and consider the costs that each might bring.

Lean Canvas component #9: Key metrics

To be able to prove the success of your product, you’ll need to set clear, easy to measure metrics.

Outline what you plan to track and why.

Identify the indicators that will demonstrate how well your company is doing. For instance, you may choose to measure the number of users, downloads, or social followers you get; or you may focus on retention figures, brand interactions, or costs, etc.

Fill in this section of your Lean Canvas with the metrics that are most critical to the problem you’re trying to solve with your product.

Now you’ve seen what goes into a Lean Canvas, can you see how it’s possible to tell the whole story of your business on one page?

Key things to remember when creating your Lean Canvas

The trick to creating an effective Lean Canvas that fits onto one page is to:

• Fill in all 9 blocks in the above order and work your way through each one logically.
• Fill each block with concise notes and link-out to images, documents, and other related information.
• Remember it’s a fluid, working document that’s not set in stone.

To test the Lean Canvas out before you share it with investors, go through each step and relay the story to yourself:

We will help [customers] solve [problem] by providing them with our [solution] . They will know about us through [channels] and they will be convinced to join us because [value proposition] and because we [unfair advantage] . We will charge them by [revenue] which will cover our [costs] . We will measure our performance by tracking [key metrics] .

It should all flow nicely, like a story where everything is linked. If it doesn’t, it needs more work before you show it to investors.

But wait a minute. Don’t investors expect to see a business plan? Will they take a one-page Lean Canvas seriously?

Why the Lean Canvas works for start-ups

The Lean Canvas is centered around validation and justification. It’s about working the idea out, asking for feedback, and using that feedback to iterate your plan until your idea becomes a valid one.

Your Lean Canvas then becomes living proof that your concept will work. Investors will value proof of concept 10X more than 40 pages of empty promises and unfounded statements.

Not only that, but it’ll take you hours, not months to put together. So, if you get punched in the mouth again, it’s no biggie. Just go back and rework it based on investor feedback.

And it’s quick and easy to update; it moves as you move, allows you to pivot, and it means that you can get your product out to market quickly. These are all reliable indicators for VCs, Angels, and investors that a start-up can take off.

“ It lets you focus on building your business faster, by capturing your idea, collecting feedback, and iterating on it dynamically. ” – Infolio , How to Create a Lean Canvas

To prove the Lean Canvas concept even further, let’s take a look at it in action.

The Lean Canvas in action

Below are two hypothetical Lean Canvas examples from a couple of familiar companies who, although it’s difficult to believe, were start-ups themselves once…!

In summary, Google’s Lean Canvas story (if the Lean Canvas existed back in 1998!) might have gone a little like this:

We will help all web users to find what they’re searching for easily by providing them with technology that allows them to search and find relevant content . They will know about us through other users and they will be convinced to join us because they’ll be able to find what they’re looking for quickly (unlike with competitors) and because we have an innovative combined citation-ranking system . We will make money through investment and advertising revenue which will cover our hosting and development costs . We will measure our performance by tracking the number of search requests and the percentage of users who end their search on the first page .

And, Facebook’s Lean Canvas might have gone like this back in 2004:

We will help all college students to communciate with their peers online by creating an online communication platform that will allow them to connect with their friends, share photos, and chat . They will know about us through referrals from other students and they will be convinced to join us because it’s a student orientated communication platform and because we have invented a new type of website: A social network with social features! We will make money through investment and advertising revenue which will cover our hosting, development, and payroll costs . We will measure our performance by tracking the number of daily, weekly, and monthly active users .

To conclude…

Despite the obvious benefits of the Lean Canvas, it has to be said that:

“A one-page document of this kind may not satisfy every potential investor at every financing stage. But many investors will consider a document like this to be more than adequate. ” – BSchools , Can a Lean Canvas Replace a Traditional Business Plan?

I think we can all agree that the moral of this story is: don’t waste months agonizing over a hefty business plan that no one is likely to read.

Instead, create a Lean Canvas. Tell the story of your business with key information that’s up-to-date and backed by research, testing, and customer proof. Get the ball rolling in one afternoon, with one page.

Think of it this way, which would you rather do:

“ Spend 6 months pitching investors so you can refine a story based on an untested product? Or, spend time pitching customers so you can tell a credible story based on a tested product? ” – Ash Maurya , Leanstack , Bootstrapping + Lean Startup = Low-burn Startup

I’d rather roll with the punches with a Lean Canvas. You?

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Amanda Greenwood

Amanda is a content writer for Process Street. Her main mission in life is to write content that makes business processes fun, interesting, and easy to understand. Her background is in marketing and project management, so she has a wealth of experience to draw from, which adds a touch of reality and a whole heap of depth to the content she writes.

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Free One-Page Business Plan Template Download

Download our free one-page business plan template.

Writing a business plan doesn’t have to be complicated. That’s why we created this template for a one-page business plan—a business plan that you can write on a single page.

Building a one-page business plan has a lot of benefits:

• It’s fast: Documenting your business strategy shouldn’t take hours or days. Use our one page] plan format to develop an initial business plan in less than 30 minutes.
• It’s easy: Unlike a traditional business, there’s not a lot to write or any complex formatting. Anyone can document their business strategy using the one-page business plan.
• It’s shareable: Getting feedback on a detailed business plan can be a challenge. On the other hand, sharing a one-page plan is easy and you’ll get immediate feedback from business partners and advisors.
• It’s impressive: Getting potential investors to read a detailed business plan can be a challenge. But, a one-page plan is something that every investor has time to read.

How to complete the one-page  business plan template

You’ll start with your business strategy – this is what you’re going to do and what your goals are. You’ll document the following:

• Identity: This is a short summary of what you do.
• Problem: Describe the problem that your business solves.
• Solution: Describe how your business solves the problem.
• Target Market: Who are your customers? Try to be as specific as possible.
• Competition: How do customers solve their problem today? Are there alternatives?

Next, you’ll go on to describe your business tactics. While strategy describes “what” you’re going to do, tactics describe “how” you’re going to do it.

• Sales: How will you sell your solution to your customers?
• Marketing: Describe your key marketing activities.
• Team: Potentially the most important part of the plan is who is going to help you implement the plan.
• Partners & Resources: What else do you need to turn your plan into a business?

Your business model is how your business will make money. The first time you work on a business plan, you can just describe how you make money and what your key expenses are. Eventually, you’ll want to develop a complete financial plan.

• Revenue: Describe the key ways that you’ll make money.
• Expenses: List your primary expenses. You don’t need to go into a lot of detail with a one-page plan.

Finally, you’ll want to develop a list of your key achievements.

• Milestones: These are the key achievements that you hope to accomplish. Be specific.

This is just a quick summary of how to build your one-page business plan. You can get additional detail in our guide to growth planning.

Download a free digital version of the one-page business plan template:

• Skip to primary navigation
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• Try Tactyqal

The Ultimate Guide to Creating a Lean Startup Business Plan

Starting a business can be both thrilling and terrifying. On one hand, you have this brilliant idea and can’t wait to bring it into the world. But there’s also the nagging fear that your amazing concept might fall flat or fail to gain traction.

So how do you make sure your startup succeeds? The answer is charting out a solid business plan.

I know, I know. Just hearing the phrase “business plan” brings back bad memories of dry, long-winded documents from business school. But for startups, there’s a better way to plan out your venture – something called the lean startup business plan.

The lean startup approach focuses on streamlining the business planning process so you can start testing your idea faster, without getting bogged down with lengthy sections and financial projections you can’t possibly predict accurately at such an early stage.

In this beginner’s guide, I’ll walk you through exactly how to create a lean startup business plan template that helps you quickly validate your business idea with real-life customers.

What is a Lean Startup Business Plan?

First things first – let’s define what exactly the lean methodology means when applied to an entrepreneur’s business plan.

Put simply, a lean startup business plan is a streamlined, no-fluff version of a traditional business plan. It’s designed for speed and adaptability rather than comprehensiveness.

The lean startup movement first became popular around 2008. It emphasizes testing a product or service idea quickly, using a minimum viable product (MVP), and getting real user feedback before committing to long development and release cycles.

The key principles of lean startup are:

• Rapid build-test-learn loops
• Scientific testing with real customers from day one
• Iterating based on validated learning

Most new companies that take the lean approach never reach an official launch stage. Instead, they continuously test with and adapt to real customers – refining their MVP and pivoting directions based on evidence of what does or doesn’t get market traction.

So how does that tie in with writing a business plan?

Well, the traditional business plan model doesn’t fit the lean paradigm shift.

Lengthy, complex, intricate business plans take too much time to write. Attempting to project multiple years of expenses, sales, hiring, growth rates etc…..it’s all just guesswork when you haven’t started selling anything yet.

The lean startup business plan tosses unnecessary details out the window and instead focuses only on critical hypotheses and assumptions that must be tested as quickly as possible.

Investors like this approach because it shows you:

• Know what assumptions make or break your business
• Can test them quickly at low cost
• Will adapt based on real data

So if you’re an early stage startup looking for funding or entering an accelerator program like Y Combinator, a lean business plan is likely your best bet to showcase your entrepreneurial abilities.

Now the big question….

What Does a Lean Startup Business Plan Include?

The lean startup template pares down the typical business plan format to just the essential elements early-stage investors care about:

• Problem  – What pain points will your product address? Why are those needs not being met?
• Solution  – How will your product alleviate that pain better than alternatives? Why will customers buy from you over other options?
• Target market  — Who has that specific problem and will buy your solution? ( Note: Be specific!  “Everyone” is never the right answer.)
• Competition  — Who else is tackling that customer problem? How is your solution fundamentally better or different?
• Key features  – What’s the minimum feature set to address target customers’ needs on day one and provide value?
• Marketing & sales  – What tactics will you use to reach early adopters? ( Note: For most startups, digital sales & marketing channels rule supreme. )
• Operations  – Outline your core business processes. Don’t go into granular detail, just highlight how you’ll deliver value to customers.
• Milestones  – What big assumptions will you test? Include timelines + costs to conduct experiments so you can demonstrate a logical thought process.
• Financials  –  Optional  Breakdown high-level estimates only if useful. For the lean startup plan, elaborate projections are unnecessary and speculative. Focus everything on testing key assumptions.

You may have noticed one conspicuously absent item – the Executive Summary. We’re skipping it because unlike traditional business plans sent to various stakeholders, your lean startup plan has just one audience – startup investors.

And remember, the lean methodology is all about using real-life data instead of guesses and best-case scenarios. So even if some assumptions in your original lean business plan don’t pan out, that’s actually great news! It gives you hard evidence to adapt intelligently while developing your MVP.

Now that you know what the lean startup template includes at a high-level, let’s go through each of the core sections in more detail.

First and foremost, you need to spell out exactly what customer problem your startup aims to solve. (And yes, it needs to be an actual must-solve problem, not a nice-to-have).

Start by broadly describing the pain points your target customers face. Get tactical by including stats, data or quotes that showcase why this issue is so urgent for them.

Then explain how the problem ties into a larger trend in your target industry. Paint a big picture view of why common solutions up until now have failed to address this pain sufficiently.

Essentially, convincingly convey that there’s a pressing customer need ready for innovation.

You need to display beyond any doubt that you:

• Deeply understand your target customers’ challenges
• Can explain why those problems exist in the first place
• Will provide a compelling solution tailored to fix them

This sets the stage for why launching a startup to address this issue makes so much sense.

2. Solution

Now that you’ve framed the problem, shift gears into explaining your startup’s solution. Start by providing an overview of your product and how it alleviates target customer pains better than alternatives already on the market.

Then embellish with details on:

Product Benefits

How specifically will your product make customers’ lives easier? Don’t just describe product features or functionality. Speak directly to how you’ll empower them to achieve something that’s currently difficult, inconvenient or even impossible for them to accomplish on their own.

Competitive Advantage

What specifically sets your solution apart from potential competitor offerings and substitutes? Is it higher quality, better convenience, lower cost, less hassle, faster performance – or perhaps an innovative model that’s never been seen before in the market?

Highlight your startup’s special sauce that no one else can easily replicate. Explain barriers to entry that will hinder copycats.

Customer Incentive

Why will target users’ purchase from your brand over chasing other options? It usually comes down to believing you can deliver significantly MORE value than alternatives or solve an urgent pain nothing else currently satisfies. Make your case for why you fit one or both scenarios.

Scalability

Particularly if you are pursuing venture capital investors, explain how your business can rapidly scale up to tap a very large global market with your solution. Outline a blueprint for how you realistically grow from thousands to millions of customers in the coming years.

Remember, don’t drown potential investors in intricate details about every single product feature and technical specification. They care most about how your solution nails the value proposition trifecta:

• Targets an urgent customer problem
• Provides 10x+ better value over existing options
• Can scale to a very large market long term

If you can compellingly check all three boxes, you’ll spark investor interest even with limited hard evidence at such an early phase.

Of course, that doesn’t mean you won’t eventually need to back up your claims. However, the lean startup plan is more about framing hypotheses than definitive proof. We’ll cover how to demonstrate enough evidence to warrant launching experiments soon.

For now, stick to crafting an intriguing startup story that sets you up to start testing fundamental assumptions very soon after funding. There will be plenty of time to figure out minor product details once you validate solving a pressing problem for real paying customers.

3. Target Market

Up until now, I’ve used the term “target customer” quite loosely. But it’s time to get very specific on who those real-world people actually are for your startup.

Venture capital investors want to quantify the population size and traits of target buyer personas in precise detail. So you need to describe exact psychographic and demographic qualities of your beachhead market – the subset of overall customers you tackle first to gain a foothold quickly.

Start by explaining your total addressable market (TAM) – the entire population who could plausibly need and want your solution for the core problem it tackles. Depending on the ubiquity of that issue for consumers and/or businesses, the TAM could be very narrow or encompass hundreds of millions globally.

Then segment down from that full market to identify your specific beachhead target customer population. The ideal beachhead often has these characteristics:

• Suffers from the problem much more painfully than casual groups
• Has already tried existing solutions without sufficient success
• Has disposable income to purchase a premium solution for relief
• Is easy to access and serve operationally in early phases
• Isn’t incredibly price sensitive
• Can provide extensive feedback on the product
• Has influencer qualities to attract wider market segments

Nail down quantifiable population size estimates for this core beachhead subset. Combine publicly accessible data from existing market research reports with reasonable inferences or assumptions from adjacent industries.

But resist the founder’s tendency towards magical thinking – “If we nailed even just 1% of the market…!” Generic hypotheticals don’t sway experienced investors focused on tangible traction signals.

Paint a detailed demographic picture of exactly who fits the mold of a hot prospect customer for you in the beginning.

For B2C startups , call out relevant attributes like:

• Marital/family status
• Home ownership

For B2B startups , highlight qualities like:

• Industry vertical
• Company size
• Title seniority
• Annual revenue
• Tech adoption habits

Then outline statistical commonalities across your core beachhead buyers – what key similarities unite this subgroup vs. the entire population facing the problem?

Finally, convey TAM expansion opportunities once you solidify solutions tailored for that first niche. But defer outlining detailed ways to extend your reach right now since nailing product/market fit with just one segment is the critical prerequisite to win over adjacent groups.

Position your solution as optimized for an underserved niche ripe for disruption based on competitors failing to deliver adequate solutions. Then segue into how your distribution plan concentrated on this “low-hanging fruit” beachhead will purposefully evolve later to expand TAM reach long term.

4. Competition

What the competition section lacks by traditional business plan standards in length, it more than makes up for in strategic rigor.

The core question competitive analysis must answer:

Why are current solutions in the market failing to adequately alleviate your target customers’ pain?

Start by inventorying existing competitor products/services currently used by prospects experiencing this problem. List out the main options your target persona has for solving their struggles today, even if those solutions don’t perfectly fix the issue or fully satisfy them.

Then contrast point-by-point specifics on why your solution beats competitors, especially on the metrics most important to your target niche. Show how you will “disrupt the disruptors” because even pioneering products have limitations needing innovation.

Criteria to call out where you claim competitive advantage:

• Convenience
• Scale potential
• Business model innovation

Back up any bold claims of superiority with limited initial evidence beyond conjecture — data from beta user testing prototype versions, customer quotes from initial beachhead outreach, or precedents from analogs in adjacent markets.

Take care to focus specifically on competitors targeting the same early adopter beachhead market segment though. Details contrasting solutions for other peripherical segments are unnecessary right now.

Round out competitor analysis by itemizing macro trends almost certain to diminish prospects for legacy products over the next 5-10 years. These should make the rationale behind your startup now abundantly clear even to skeptics.

5. Key Features

Thus far you’ve made a case for:

• A pressing customer problem inadequately solved
• Your startup’s superior solution
• Quantified target beachhead market

Now it’s time to shift to specifics on the crucial product and feature details enabling your entire value proposition.

Remember – only include what’s absolutely necessary for launch based on addressing revealed target customer needs!

Err on the side of a minimal feature set early on. Describe additional functionality prospects request once you start serving initial customers.

Outline the critical set of features required to deploy a minimum viable product (MVP) with just enough core attributes to satisfy early adopters on day one.

Organize by:

Must-Have Features

What feature absolute “must-haves” must be ready for early adopters to provide enough value converting from current solutions?

Nice-To-Have Features

What would enhance perceived value but aren’t imperative to activate paying users? Defer these to later product milestones.

Future Features

Briefly mention functionality on the long-term roadmap to showcase platform potential.

Think of must-have features as the “walking version” of your product – unscalable manual processes providing baseline value perfect for testing with friendly early adopters.

Then nice-to-haves represent the “jogging version” – automating more of the workflow via technology – while future functionality serves as the “running version” enhanced for steep vertical scaling.

In conjunction with digital tools, brainstorm creative ways to manually deliver MVP experiences centered around must-haves. This showcases your determination to activate solutions for that first tiny niche even sans a fully built production-grade product.

Emphasize with investors that you respect their money enough to not waste it on premature optimizations. Your plan ensures you build and roadmap additional functionality responsibly IF AND ONLY IF initial feature experimentation proves substantial product/market fit warranting doubling down.

6. Marketing & Sales

Thus far you’ve covered the key value proposition and functionality your startup will offer. Now shift to tactical specifics on how you’ll connect your novel solution with that clearly defined target beachhead.

Start by breaking down your blended omni-channel market blueprint to cut through the noise and achieve conversion lift.

Here is an ideal framework pairing both scalable and targeted elements for seed-stage ventures:

Paid Digital Marketing

• Targeted Facebook/Instagram/TikTok Ads
• Search/Display Retargeting
• Streaming Radio Spots
• Industry Forum Sponsorships
• Highly-Targeted Content Marketing

Grassroots Outreach

• Beachhead Email Outreach
• Beachhead Calls/Texts
• Industry Event Networking
• Local University Campus Reps
• Early Adopter Referral Programs

Earned Media

• Contributed Articles
• Podcast Interviews
• Reviews / Testimonials
• Referral Partnerships
• PR Launches & Press Releases

The glaring omission? Sales team headcount.

Early on, founders must handle sales themselves to economize cash burn. Hiring reps too early risks overextending finances before ensuring product viability.

So spotlight your personal founder sales fit first. Play up hands-on selling experience within the specific market context you’re pursuing with this venture.

Then convey a scaling plan centered on refining and automating conversion funnel elements that empirically guide qualified leads to become delighted long-term customers.

The core funnel methodology goes:

• Broad-based brand awareness marketing → Baits wide audience
• Lead capturing mechanisms → Filters for buyers
• Consultative selling touchpoints → Focuses high-potential targets
• Frictionless conversion → Delivers ROI proof

If your business model doesn’t fit this framework, adapt concepts accordingly while sticking to the seed stage constraints of capital efficiency and lean experimentation.

7. Operations

By this point you’ve described WHAT your startup does and WHO it serves. Now it’s time to explain HOW you’ll deliver on ambitious promises to customers.

Start by simply framing core business processes required to get your product or service from raw inputs all the way through to solving target user pain points.

For physical products, that could involve flows like:

• Design concepts → Engineering specifications → Prototyping → Manufacturing → Quality assurance → Packaging → Distributing → Support

For software platforms:

• Product requisites → Cloud infrastructure → Coding → Version control → Usage analytics → Onboarding → Technical support

For services:

• Prospecting → Onboarding → Account Management → Delivery capacity → Quality control → Supplemental services → Support

You get the idea. Just define macro processes without diving into granular details. Those come through experimentation!

Primarily, concentrate operational details on two crucial pillars:

• Proprietary unfair advantages that supercharge efficiency to delight customers while maintaining profit margins despite tight costs. Common examples include algorithms, datasets, novel business model frameworks, or embedded industry experts.
• Partnerships or platforms enabling you to deliver baseline functionality matching incumbent competitors on day one. Don’t attempt to build everything end-to-end or innovate across every dimension from the start! Leverage existing commoditized solutions while you test differentiated value propositions focused on solving target customer problems 10x better.

Essentially, convey you grasp the key 20% inputs that drive 80% of customer value. If the processes seem complex, find ingenious ways to simplify. Position enhanced intricacies as optional add-ons once baseline product/market fit is proven vs. overbuilding the wrong advanced solution.

8. Milestones

The milestones section represents the culmination of everything you’ve documented thus far. Here, outline the step-by-step process for methodically testing the riskiest assumptions underlying your startup.

In conjunction with the experiment design, detail concrete metrics or signals indicating whether hypotheses prove true or false. Then estimate costs, durations, and resource requirements for rapid experiments.

Frame assumptions through statements structured like:

We believe [this capability] will result in [this customer reaction]

Then design tests around the ability to measure:

• behavioral changes
• sentiment improvements
• usage increases
• revenue lift

Common milestone tests to consider:

• Solution Viability – Manual then automated demonstrations quantifying interest
• Demand Validation – Willingness to prepay as a signal
• Market Sizing Accuracy – Applying proxies from analogous use cases
• Business Model Fit – Contrasting pricing sensitivity across customer segments
• Feature Prioritization – Gauging reactions to mockups or limited functionality
• Operational Scalability – Maximizing utilization before adding overhead

Combine testing both internally-facing operations and externally-visible customer experiences. But concentrate on product/solution related hypotheses first.

Beating competitors takes precedence over backend experimentation. Optimize business operations AFTER establishing winning customer value propositions.

The key is conveying to investors an empirical, metrics-driven approach centered on turning critical assumptions into facts or disproving them faster than incumbents hampered by legacies and red tape.

Cement belief you’ll double down on evidence proving repeatable formulas to acquire and monetize target niche segments. And quickly cut losses spending minimal capital if data suggests limited viability.

9. Financials

We’ve made it clear that traditional multi-year financial projections typical of standard business plans are counterproductive guesses for early stage startups.

However, seed investors still want to see back-of-napkin math you’ve done to quantify potential venture scale. So mock up top level metrics more as directional guidelines than definitive targets.

Take utmost care however NOT to pull imaginary hockey stick numbers from thin air. Founders claiming $100 million valuations on basic eCommerce stores face extreme investor skepticism…and deserve to!

Baseline financial model components should include:

• Estimated Customer Acquisition Costs Per Beachhead Channel
• Willingness-To-Pay Price Range For Target Personas
• Logical Volume Estimates Based On Analog Use Cases
• Assumed Conversion Rates Each Funnel Stage
• Operational Unit Economics At Various Scale Points

Use inherently bottom-up thinking grounded in realities of what combination of inputs would need to scale to hit specific 8-figure outcomes. Top-down abstract number picking lacks validity.

And remember, early-stage startup financial models serve more as instruments of learning than definitive targets. Adapt projections based on empirical evidence once live.

Concentrate everything on validating customer demand first. Defer advanced modeling of operational minutiae or elaborating hockey stick projections.

Getting REAL buyers is all that matters initially.

Bringing It All Together

Despite extending 3k+ words at this point, the lean startup methodology boils down to an elementary formula:

• Start by deeply understanding a pressing customer problem
• Design an innovative solution specifically addressing root causes
• Concentrate on dominating an underserved niche beachhead market segment
• Validate demand empirically through rapid testing
• Scale up deliberately only once achieving initial product/market fit

In that sense, think of the lean business plan format as more of an exercise in startup soul searching than a stuffy document.

It pushes founders to pressure test their value proposition, business model, and operational viability through the lens of target customers rather than theoretical academic assumptions.

You can’t survive let alone thrive in the brutally competitive startup game without getting inside the hearts and minds of actual buyers needing your solutions.

So escape the temptation to overly complicate initial planning with intricate spreadsheets and 40-page reports professional managers expect.

Instead, concentrate efforts on distilling explanations of the crucial assumptions requiring testing above all else before launch.

Then close your lean startup business plan with next step calls-to-action so readers clearly understand how you’ll leverage funding to start rapidly experimenting using the scientific method.

Now…go show the world what your brilliance is made of!

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Partha Chakraborty

Partha Chakraborty is a venture capitalist turned entrepreneur with 17 years of experience. He has worked across India, China & Singapore. He is the founder of Tactyqal.com, a startup that guides other startup founders to find success. He loves to brainstorm new business ideas, and talk about growth hacking, and venture capital. In his spare time, he mentors young entrepreneurs to build successful startups.

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Fundamentals of Lean Planning Explained

Noah Parsons

11 min. read

Updated April 15, 2024

Let’s face facts: Writing a traditional business plan is a hassle. 

• A traditional business plan takes too long to write.
• Most people won’t even read it from cover-to-cover.
• It’s often outdated by the time you finish writing it.
• It doesn’t lend itself to frequent and easy updating—and that’s the core of the problem.

Historically, entrepreneurs have taken months to craft detailed plans without even gathering feedback from potential customers. They’ve viewed business planning as a single hurdle to get their business up and running or a thick wad of paper to shove across a banker’s desk in order to get the funding they need.

These business plans end up as just a collection of guesses and assumptions, instead of a proven roadmap for growth. 

But planning is still critical, even if the business plan might be broken. Studies have shown that businesses that set goals and track their progress grow 30 percent faster than those who “just wing it.” Furthermore, even established businesses grow faster when they have a plan . 

So what if I told you there was a better way to do business planning? One that lets you adjust and refine your plan as you gather more information about your business and customers.

A method known as Lean Planning.

• Welcome to the Lean Planning method

Lean Planning is a 4-step process that helps you discover a business model that works and manage your company successfully.

Here’s the Lean Planning process:

• Create a one-page plan
• Test the plan
• Review your results
• Revise your plan

These 4-steps replace the traditionally lengthy business plan with a 20-minute planning process. This ensures that you are taking small steps, reviewing your results, and creating incremental improvements—all while reducing your risk of failure.

It’s also simpler and faster than writing a traditional business plan. And, possibly, the greatest benefit is that this method can benefit both startups and established businesses. 

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If you’re a startup

Lean Planning helps you quickly figure out if your idea is any good and what you need to change to build a viable business.

If you’re an established business

Lean Planning works even if you’re already up and running. It helps you continually refine and tweak your strategy while measuring your progress toward your goals. After all, planning is about making better management decisions, not about producing a thick document that sits in a drawer.

Read on to learn how to make the lean model work by creating your own one-page business plan .

• Step 1: Create a one-page plan

The Lean Planning methodology starts with a one-page plan you can create in 20 minutes .

That’s right—one page. Lean Planning is a simple methodology and your one-page plan should be simple, too. You can download a lean planning template and fill it in as you follow the steps below.

What to include in your one-page plan

• Strategy: What you’re going to do
• Tactics: How you’re going to do it
• Business model: How you’re going to make money
• Schedule: Who is doing what and when

Let’s dive into each section.

Your business strategy

Your business strategy is simply an overview of what you want to do and who your customers and competitors are. Start by identifying the problem you are solving for people and follow up by explaining your solution to this problem.

The problem you’re solving

Businesses exist to solve problems for customers. Their products and services fill a need or satiate a desire. If all you have is a solution that is in search of a problem, you’re going to have a hard time building a successful business. So, start with the other side of the equation and focus on how you can help your customers solve a problem.

Start small with just one or two sentences or a few bullet points to identify the problem you are solving. Do the same thing to describe your solution.

Your ideal customer

Now, quickly describe your target market. Who is your ideal customer? If you know how many potential customers are out there, great. If you’re in the early stages of fleshing out your business idea, don’t worry too much about detailed market research . Instead, focus on defining your ideal customer —who are they, and what are their key attributes?

Your competition

Finally, create a shortlist of your competition . How do your potential customers solve their problems today?

That’s it. A business strategy doesn’t have to be complicated with Lean Planning. It’s just a few bullets points that describe the essence of your business: what you’re doing and who you’re doing it for.

The next section of your one-page plan is a short outline of your business tactics. This is just an outline of how you will make your strategy happen. You’ll be thinking about sales, marketing, the team you might need , and any partners or outside resources you’ll need to leverage.

Your sales strategy

Start by thinking through your sales strategy. Are you selling online or building a physical store? Maybe both? Or, perhaps your product will be sold in stores owned by other companies.

Your marketing strategy

Next comes your marketing strategy. How are you going to reach your customers? How do they find out that you exist and that you solve their problem?

If you need to build a team to grow your business, who are the key people that you’ll need to hire? If you’re an existing business, who are the critical employees that run the company and execute your strategy?

Key partners and resources

Finally, think about other businesses that you might need to work with to make your strategy happen. Are their key suppliers or distributors that you’ll need to have relationships with?

Remember, this is on a single page, so each of these sections should just be three to five bullet points each.

Now it’s time to build a schedule. Lean Planning is all about getting things done, so you need a timeline to follow.

Your next step is to get out from behind your desk and go talk to your potential customers (I’ll go into more detail on this in a moment). Your goal will be to verify that you’ve defined a solid strategy . To that end, a startup’s schedule should include things like conducting customer interviews, sending out surveys, researching physical locations, interviewing potential suppliers, and so on.

Your schedule will probably be focused on specific business milestones that are related to executing your strategy and implementing your tactics.

It’s critical to have accountability here. Your schedule should have dates and people responsible for completing each task.

Finally, make sure to include a time to regularly review your plan. You’ll want to review and revise this plan frequently, so having a regular review point is critical. I recommend a monthly review cycle, but reviewing more frequently is fine, too.

Business model

Even if you have a problem that’s worth solving, a solid solution to the problem, and a target market that needs your solution, you don’t have a business unless the numbers work out. You need a business model that works. The last component of your one-page plan is a basic forecast and budget to ensure that a great idea can actually lead to a great business.

Yes, forecasting and budgeting do mean looking into the future, and no one knows the future (at least I don’t!). But, it doesn’t have to be as difficult as it sounds.

Putting together some basic, bottom-up sales forecasts and a basic budget for expenses will quickly tell you if you have a business model that works—one that can create a viable business that will pay the bills.

At this stage, it’s important not to paint an incredibly rosy picture of your financial prospects. Instead, the sales forecasts should be as realistic as possible. Assume that not nearly as many people as you think will show up in your store. Assume that your website won’t get mainstream press coverage.

With this “realistic” forecast, do you still have a viable business? Can you turn a profit ? If you can only be successful with incredibly high volumes of customers, you may need to take a second look at your pricing, expenses, and other aspects of your business model. Or, make sure that you get the kind of funding that’s needed for large marketing and PR campaigns.

You can get started on your one-page plan right away by downloading our free template . You should be able to complete an initial draft in under an hour—that’s much faster than writing a traditional business plan.

• Step 2: Test the plan

Now that you have your one-page plan in hand, you’re ready to start putting the plan into action to see if your ideas will work.

Depending on your business stage, you’ll do this in different ways. If you’re a startup with an unproven idea or an existing business that’s considering a new strategic direction—your next step is to validate them.

Your one-page plan is just a set of assumptions about a business. Ask yourself:

• Do the target customers actually have the problem that you think they have?
• Does the solution you’re proposing actually solve their problem?
• Do your target customers want to pay for your solution? How much?

Reducing risk is your goal in the early stages of starting a business

Starting a business is full of risks . There are just so many unknowns, and it’s incredibly risky to just build your business based on a set of assumptions about your target market, their problems, and how they’ll react to your solution.

Your plan is a really just a set of educated guesses that need to be answered and then revised on a continuous basis until most unknowns are removed. That’s how you reduce risk.

So, you need to take the very simple, but very challenging step of actually talking to your potential customers .

Look at your first version of your plan as a set of assumptions that need to be proven true or false and then go back and revise your assumptions as you go. Refining your plan so that it’s a collection of facts instead of guesses can be the difference between a successful business and a failure.

If your business is up and running, focus on implementation

For more mature businesses that already know a lot about their target customers, the goal of the plan is to help guide implementation. In this situation, use a one-page plan to get everyone on the same page, set goals, and manage the business.

• Step 3: Review your results

Both Silicon Valley startups and Main Street small businesses need to know how they are doing. Which means  Are they growing according to plan? Why or why not? If not, what changes need to be made? Should the plan change?

For new startups

If you’re just getting started and don’t have many (or any) metrics to track yet, you should be reviewing the results of your customer interviews and any other information that you’ve gathered that would change your strategy. Perhaps you’ll be refining your solution or even tweaking the definition of the problem you are solving. Perhaps you’ll refine your marketing and sales strategy.

For established businesses

Beyond tracking key financial metrics such as cash , sales, expenses, accounts receivable, and accounts payable, businesses must track the other key metrics that are critical to their success. These other key metrics might be website visits, foot traffic in the store, tables turned in a restaurant or any other core number that drives business success.

Reviewing your results regularly is key to better management and success. These metrics should be reviewed at least monthly in a regular plan review meeting with key business partners and employees. This is when you refine your plan and your pitch if necessary and track your ongoing action plan.

• Step 4: Revise your plan

Lean Planning is a process, not just a document. It’s is all about continuous improvement. You’re quickly defining a strategy, experimenting to see if that strategy works, reviewing the results, and revising the plan before you start again.

Lean Planning is never finished. It’s simply a process for running your business better, more efficiently, and setting you and your team up for success.

What if you need a more detailed business plan?

There may be a time when you need a more detailed business plan. There’s nothing wrong with that. Some people might want to read it, you may need to submit a full plan for funding and you might even want to document your strategy in more detail. 

Your detailed business plan will be born from your one-page plan. The ideas will transfer from bulleted lists to sentences and paragraphs. You’ll add more detail to your sales and marketing strategy, your pricing strategy, and perhaps your manufacturing plans and distribution strategy.

For a step-by-step guide to creating a detailed business plan, check out our guide .

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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What’s a Lean Business Plan?

Lean business planning starts with a lean business plan. The lean plan contains four essentials every business needs, and nothing else. It’s a streamlined core plan for running the business, not a document or detailed plan, full of descriptions, to be presented to investors or lenders. It’s to optimize management. Here’s what the lean business plan includes.

The principles apply to every business plan. Fight the fallacy of the formal plan. Start lean. Make it formal only when needed . Tweet

1. Strategy

Who you are, what you do, and for whom you do it. Ideally, the smaller your business, the more focused. Maybe you keep it in your head, always — and lots of us do that — but maybe you write it down. Simple bullet points. Just reminders.

• Planning outside of strategy is a waste of time.
• I like this framework : the problem you solve; your solution; who you are; and the market you try to reach.
• But don’t sweat any strategic framework too much. Strategy is focus. It’s as much what you’re not doing, whom you’re not reaching, as what you are doing and whom you reach.

Strategy without tactics is just puffery. Keep your strategy in mind — your focus, what you are and aren’t doing, for whom — as you develop specific action plans filled with tactics that make strategy matter. This is all about execution.

• Marketing tactics : Target market, differentiators, positioning, messaging, pricing, channels, online presence, engagement, content, sales structure, and all the old-fashioned marketing mix stuff like advertising, public relations, special promotions, and so forth.
• Offering (product or service) tactics : launch dates, feature sets, packaging, product lines and options, apps, menu items, Stock Keeping Units (SKUs), services, website, technology, vendors, delivery options, and so forth.
• Financial (and admin and infrastructure) tactics : Funding and financing, hiring and recruiting, training, policy, and so forth.

And don’t think of all this as a document. At least, not yet. Early on, it’s a matter of form following function; you keep it in bullet points, maybe orderly sections, but none of these plans are independent of all the others.

Do think about strategic alignment. What you do with your tactics should flow from your strategy.

And what this means, specifically, is that you think all these factors through, and set down some plans, in writing but not fancy text, just bullets, so you can get back to them at least once a month to see how you’re doing. It might even be a bit like the classic business plan, covering topics like pricing and distribution — except that you do it for yourself. Keep it just big enough to run the business.

3. Forecasts of Sales, Costs, Expenses, and Cash

You can’t optimize management without managing the money. You need to forecast your basic business numbers because without the forecasts, you can’t track results and catch problems or capitalize on pleasant surprises.

Don’t worry too much about forecasting; just do it. If you can run a business, you can do a basic forecast of sales and costs. It’s not about being accurate; it’s about laying out realistic assumptions. Of course you’ll be wrong, but with good assumptions you can track how you were wrong, in what direction, and make regular corrections.

And you can’t plan a business without considering cash flow. Although for some simple businesses, cash flow is a matter of staying profitable, keeping sales above costs and expenses; for most businesses, it’s much more complicated because you don’t get paid exactly when you make the sale, and you have to buy things ahead of time. Being profitable doesn’t guarantee having money in the bank.

4. Execution: Assumptions, Milestones, Metrics, and Schedule

Tactics without concrete specifics are just wasted effort. None of what you have in tactics means anything without dates, deadlines, and specific task assignments. Here are the essentials:

• Review schedule: This is absolutely essential. This is the real world, in which we’re all very busy. If you don’t schedule your monthly review in advance — and then follow up and do it — it’s not likely to happen. I always did it the third Thursday of the month, and you do it whenever — but make sure that “whenever” is a real date.
• List of assumptions : You should always list assumptions because that’s the first thing you look at when it’s time to revise. You set the plan running, then track results, and when results are different from the plan (and they always are), you look at assumptions first to see whether they have changed. If so, then revise the plan. If they haven’t changed, maybe you still revise the plan, but you look first whether you executed correctly.
• Milestones : What’s supposed to happen, when, and who is responsible? It’s a simple list to do, but it’s the core of execution. Tailor it to fit your needs, so it’s either reminders for yourself, in its simplest form; or commitments from the team, plus budgets, start dates, end dates. This is for real management accountability. This is so you can track progress and deal with standstills.
• Metrics : These are performance metrics, the other side of milestones, also for real management accountability. Of course the most important are sales, costs, and expenses, with the details of who is responsible for which lines or revenue or spending. But most businesses have many other useful performance metrics, like web traffic, conversions, foot traffic, sales per square foot, sales per employee, tweets, followers, minutes per call, presentations, leads, lines of code (ugh), contacts made, likes, retweets. Tailor this for your business.

Run, Review, Revise.

If you’re like me and most businesses, you start with a lean plan and then get going. Track the plan results, do your reviews, and revise often. Your first plan is done. Now execute.

You may have heard of the  lean startup  or  lean manufacturing . It’s a set of ideas that started about 70 years ago, revolving around  PDCA :  plan-do-check-adjust . The idea came up first related to the auto manufacturer Toyota, as lean manufacturing; that goes back 70 years. It was also called “the Toyota way.” It was adopted later by by a collection of experts and authors, most notably Eric Ries and Steve Blank with their work on  The Lean Startup . It’s a process of continuing improvement in steps, or cycles, each one involving plan, action, checking results, and revising the plan to start again.

That term “lean,” and the idea of continuous process, applies perfectly to business planning. It’s a shame that so many people think of a business plan as a document, the formal business plan; but good planning is a streamlined simple plan in a process that could be called PDCA, which I prefer to call PRRR:  plan-run-review-revise .

Unless you have a business plan event

If you’re a business facing a business plan event , then your lean business plan is still most of what you need. Just add an executive summary and, if needed, market information, pitch deck, and whatever else is required.

This is important: form follows function. So of course you want a plan, no matter who you are or how big or how new your company is. However, that doesn’t mean everybody needs to have the full formal business plan with all the supporting information.

For example, you might be running or growing or starting your own one-person business. You feel very comfortable about knowing your customers and your market, and you have a strategy. Why are you writing all this down, formalizing it, making a big project that you don’t really need?  No good reason. Planning is about the decisions it causes,  not about showing off your knowledge.

You do what the business needs demand —  no more, no less.

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