Running Lean: Iterate from Plan A to a Plan That Works

Imagine the spark of an idea lighting up in your mind—a vision that could change the world or at least create something meaningful. But how do you capture that spark before it flickers away? Documenting your initial business model hypotheses is the first crucial step in transforming a fleeting idea into a viable startup. Instead of getting lost in lengthy business plans that take weeks or months to write, there's a more agile and effective approach: the Lean Canvas. This one-page diagram captures your core assumptions about who your customers are, what problems they face, how your product solves those problems, and how you plan to reach and monetize them.

By sketching your Lean Canvas quickly—often in less than 15 minutes—you create a snapshot of your vision that is easy to share and update. This portability fosters conversation and collaboration, which are vital for refining your ideas and avoiding the trap of building in isolation. An entrepreneur who once launched a file-sharing product realized that their initial passion for the solution overshadowed the broader business model. They discovered that customers don’t care about the product itself as much as they care about the problems it solves. This realization shifted their focus from features to the entire business ecosystem, including customer segments, channels, and revenue streams.

Documenting your Plan A also helps you confront the uncomfortable truth that most initial plans will not work as expected. By writing down your hypotheses, you expose them to validation and iterative learning, rather than relying on gut feelings or wishful thinking. This practice aligns your vision with reality and prepares you to pivot or persevere based on evidence.

As you move forward, keep in mind that the product is just one piece of the puzzle. The business model encompasses the value proposition, the customers, the channels to reach them, the revenue streams, and the cost structure. Owning the entire business model empowers you to apply product development techniques to your startup as a whole.

With your Lean Canvas in hand, you’re ready to identify which parts of your plan are riskiest and deserve your immediate attention. This leads us naturally into understanding risk prioritization, which is the focus of the next chapter.