Creating a business plan is important to provide structure and an outline for success. However, traditional business plans can be time-consuming and complicated to create, but if it is the best fit for your case check out this article.
In this article, we will discuss what the lean business plan is, the benefits of using it, what it includes and how to create one.
but let’s start from the very first beginning What is a Lean Business Plan?
A lean business plan is a shortened version of your full comprehensive business plan and it’s useful when you need to modify your plan for a specific audience. It includes only the most important, need-to-know information.
A lean business plan involves your:
- Business model: How your business will make money
- Schedule: What each person in your business will do and when
- Strategy: What your business will do
- Tactics: How your business will implement your strategy
So How to create a Lean Business Plan?
Follow these steps to create your lean business plan, but what you need to keep in mind while working on it is that; the Lean Plan is less of a specific document type and more of a methodology. It’s faster, so keep your plan concise, and ensure that your plan is always up-to-date.
1- Define Your Business
Start with a brief high-level description of your business. In this part focus on what your business does keeping in mind your value proposition and how unique you are compared to your competitors.
2- Identify the Problem and Solution
Start by describing the problem that you are solving for your customers write it down in organized brief bullet points and what your solution is. This is a description of your product or service.
3- Identify Your Target Market and Competition
After describing your product/ service and how it represents a solution for your potential customers, describe your ideal customer by focusing on their key attributes or qualities. Furthermore, consider what alternative choices they have when looking for a product similar to yours and create a short bulleted list of your main competitors, even if not direct competitors.
4- Marketing and Sales Strategy
This section will illustrate how you plan to reach your target market segments and sell to them, what your pricing plan is, what are your costs, and what types of activities and partnerships you need to make your business a success.
5- Evaluate your Financial Plan
Develop a basic financial forecast and budget to ensure your model and plan are realistic. Create a bulleted list of ways you’ll make money, and create a bulleted list of your top business expenses.
6- Establish milestones and resources for success
Establish milestones for success to use as a schedule for your business plan. Write the basic task description, assign the person responsible for the task and designate a deadline for each task. Alongside the metrics, Determine the resources you need to be successful, such as potential partnerships and who you need on your team.
My advice to you is to have a clear goal and purpose and to invest your time in research because, lean business plans use customer needs and problems as the foundation of your success, and it focuses on the value proposition to differentiate your business from your competitors. And to be able to identify those you need to focus on and do your research.