When you are planning to start a business, you probably have a plan about what the startup will do, who your customers will be, and what you will sell. Just FYI, you will be wrong about every one of your assumptions, unless of course you’re Steve Jobs. Then all bets are off. But seriously, there is almost no way of knowing what will happen in the future. For example, Microsoft built the Zune, and knew that it would sell just as well as the iPod. How did that go? Even a megabusinesss like Microsoft can’t do it so how can you.
There is a secret though. The old way of building a startup was to draft a business plan of where your business would be in five years, how much you would be selling, etc etc. Of course these were what a professor of mine once said, SWAG’s, or Stupid Wild Assed Guesses. Throught history, only two groups made five year plans, new startups and businesses and Soviet Russia. It did not work for communism particularly well, in case your weak on your history.
So why does this all matter? Well this entrepreneurial genius named Steve Blank created a new system to replace business plans for startups. The business model canvas is a guess and check approach, where assumptions are made, tested, and then improved upon. This allows startups to minimizes risk and failures and iterate to the best possible business.
Next time we will delve further in to canvas, and how it works, how to use it, and what else you must do. For now so long and remember to sign up for the sports app and check out our Facebook and Twitter