Introduction
Creating a business plan is a vital step in starting a business.
It is a document that will outline your business goals, strategies, and tactics.
The process of creating a business plan can be daunting, especially for first-time entrepreneurs.
However, there is no need to worry – this guide will walk you through everything you need to know about creating a lean startup business plan. So, let’s get started!
What is a lean startup business plan?
Credits: Image by medbadrc from unsplash
A lean startup business plan is a condensed version of a traditional business plan.
It is a shorter and more concise document that focuses on the essentials of your business.
A lean startup business plan will typically include the following sections:
- Executive summary
- Problem
- Solution
- Business model
- Key metrics
- Competitive landscape
- Sales and marketing strategy
- Team
- milestones and KPIs
- Financial projections
Why you need a lean startup business plan
There are several reasons why you might choose to create a lean startup business plan, as opposed to a traditional business plan.
Some of the benefits of a lean startup business plan include the following:
• It is less time-consuming to create – a lean startup business plan can be created in a matter of days, whereas a traditional business plan can take weeks or even months to put together.
• It is less expensive to create – you will not need to hire a professional consultant to help you create a lean startup business plan. This is a document that you can easily put together so long as you understand your business case in and out.
• It is easier to adjust – because a lean startup business plan is shorter and simpler, it is easier to make changes and adjustments as you go along.
How to create a lean startup business plan
Now that we’ve covered the basics of what a lean startup business plan is and why you need one, let’s take a look at how to actually create one.
Here is a step-by-step guide to creating your own lean startup business plan:
1. Start with a brief executive summary
An executive summary is a brief, yet comprehensive summary of the main points of a document or report.
It is typically used to give readers a quick overview of the main points before they read the full document.
The executive summary should be concise and clear, and it should be able to stand on its own without the reader having to read the entire document.
2. Outline the problem that your business will solve
Here, you will be required to explicitly state what problem your business intends to solve in the market. It should be clear and easy to understand.
3. Describe your solution
In this section, you will explain how you intend to solve the problem that you previously explained.
You need to show what tools or methods will be incorporated into your solution.
4. Create a business model
The business model canvas is strategic management and entrepreneurial tool that describes the business model of a company.
This will give an idea of how you plan to make your business profitable.
5. Identify your key metrics
What is the key measure for your business? How will you know that you are succeeding? In this section, you need to answer these questions.
These are the metrics that will keep you on your toes once you start your execution.
6. Conduct a competitive analysis
A competitive analysis is a review of the strengths and weaknesses of your competitors.
It is essential to understand the competitive landscape in which your business operates in order to create a successful marketing strategy.
There are several methods you can use to conduct a competitive analysis. You can start by looking at your competitor’s website, social media, and other marketing materials. You can also talk to customers and ask them about their experience with your competitor’s products or services.
Once you have gathered information about your competitor’s strengths and weaknesses, you can start to develop a plan to beat them.
7. Develop a sales and marketing strategy
Sales and marketing strategy is the set of decisions and actions taken by a company in order to achieve its sales and marketing objectives.
The main objective of a sales and marketing strategy section is to show how you intend to increase sales and revenue for the business.
However, a company may also have other objectives, such as increasing market share, building brand awareness, or entering new markets.
8. Introduce your team
You will also have to mention the team behind the business.
Showcase why the team members are the right people to execute the business. Also, you can use this section to show what the individual team members have achieved.
9. Set milestones and KPIs
Milestones are measurable goals that a company sets in order to track its progress.
KPIs, or key performance indicators, are a type of milestone that specifically measures progress towards a goal.
Both milestones and KPIs can be used to measure progress in any area of business, from product development to sales and marketing.
10. Make financial projections
Financial projections are estimates of future revenue and expenses.
They are used to assess the financial health of a company and to create budgeting and forecasting plans.
Financial projections can be created for different time frames, such as monthly, quarterly, or yearly. Typically, financial projections are created for a company’s upcoming fiscal year.
Financial projections can be created using various methods, such as trend analysis or regression analysis.
Once the projections are created, they can be used to assess the financial health of a company and to create budgeting and forecasting plans.
Steps to Take While Creating a Startup Business Plan
1. The first step is to validate your startup idea. This can be done by conducting market research, talking to potential customers, and studying your competition.
2. Once you have a validated idea, you need to develop a business model. This will help you determine how your startup will make money and what type of customers you will serve.
3. The next step is to create a lean startup business plan. This type of plan is focused on the essentials of your business and is much shorter and simpler than a traditional business plan.
4. The last step is to put your plan into action. This means setting up your business, building your team, and marketing your product or service.
The benefits of a lean startup business plan
By now, you should have a good understanding of what a lean business plan is and how to create one.
But what are the actual benefits of having a lean startup business plan?
Some of the benefits of a lean startup business plan include:
- Helps you save time and money
- Facilitates faster decision making
- Assists you focus on the essentials
- Makes it easier to adapt and pivot
- Helps you track your progress
Implementing your startup business plan
Once you have created your lean startup business plan, it’s time to start implementing it.
But how do you actually go about doing that?
Here are a few tips to help you get started:
1. Don’t try to do everything at once – focus on one thing at a time and then move on to the next.
2. Don’t be afraid to make changes – as you implement your plan, you may find that you need to make some changes. That’s okay! Just be sure to document the changes so that you can keep track of them.
3. Get feedback from your team – as you implement your plan, be sure to get feedback from your team members. This will help you make sure that everyone is on the same page and that they understand the plan.
4. Track your progress – make sure to track your progress as you implement your plan. This will help you see what is working and what is not.
What to do if your startup business plan isn’t working
Credits: Image by giancarlor_photo from unsplash
Even the best-laid plans sometimes don’t go as expected.
If you find that your lean business plan is not working, don’t panic!
Here are a few things you can do to troubleshoot the situation:
1. Take a step back and assess the situation – the first thing you should do is take a step back and assess the situation. What is not working? What can you change?
2. Talk to your team – talk to your team members and see if they have any ideas on how to improve the situation.
3. Get feedback from your customers – if you’re not sure what the problem is, reach out to your customers and see if they have any feedback.
4. Make a change – if something is not working, don’t be afraid to make a change. Sometimes, all it takes is a small change to make a big difference.
Conclusion:
A lean startup business plan is a vital tool for any entrepreneur.
It is a shorter and more concise document that focuses on the essentials of your business.
A lean business plan will typically include the following sections:
executive summary, problem, solution, business model, key metrics, competitive landscape, sales and marketing strategy, team, milestones and KPIs, and financial projections.
There are several benefits of a lean startup business plan, including that it is less time-consuming and less expensive to create, and that it is easier to adjust.
If you’re planning on starting a business, be sure to create a lean startup business plan.
And if you run into any problems along the way, don’t forget to refer back to this guide!
What did I miss? Let me know your thoughts in the comments section below.
Other interesting reads:
