Every day online businesses are opening and closing. There are many reasons why companies can’t take the pressure and are forced to close their online doors. It could be a global pandemic or just a change in customer needs. How can businesses avoid falling victim to bankruptcy and closure?
Many argue a traditional business plan is the best, while others claim a business canvas is King.
A business canvas provides a concise overview of the positioning of a company. It explains the customer’s problem, your unique way of providing the solution, and the customer’s journey to receive your products/services to create more value to generate more income. This model is customer-focused, allowing more room to pivot and shift when business calls for a change.
A traditional business plan works great for many, but sometimes it can be too cumbersome. We often find a business plan filled with the same information framed in different ways to answer various entities. For example, when getting a loan, it’s easy to position financials in an unrealistic fashion to secure financing. Although valuable, the traditional business plan tends to be bulkier and harder to pivot during difficult times.
A plan or a canvas could significantly improve the chances of success of an organization. However, it could take hours, days, weeks, and even months to complete a traditional business plan. By the time you complete the plan, you may not even be interested in the idea, or the market has changed. Therefore, many online businesses give it a go and forgo the proper planning; unfortunately, they generally fail. A better solution is to select a canvas model that fits your needs. A Lean Business Model for Digitial Entrepreneurs is geared toward online businesses; it accounts for an online environment’s quick pace.
The article How to Start an Online Business Without Experience introduces the Lean Business Model Canvas for Digital Entrepreneurs. This canvas model allows you to test your idea to see if it is viable without enduring the extended amount of time it takes to create a full traditional business plan. It only takes about an hour. It’s easy to update, and it’s one-page!
The Lean Business Model Canvas for Digital Entrepreneurs is excellent for those of us with little time but big dreams.
So which is best for your business, a traditional business plan, or a Lean Business Model Canvas for Digital Entrepreneurs?