business-plan, leanMy understanding is that these frameworks for modeling business models, per their creators, have always been intended to customized as need to the circumstance presented.
As an example, I recently ran across someone using Ash Maurya’s online version of the Lean Canvas and they were using it to model a hobby project; meaning revenue and cost were at best minor concerns.
What is the difference between the most common models and is there a framework for creating custom models based on the circumstance that are presented?
TL;DR: IMO the Lean Canvas is better for new startups, whereas the Business Model Canvas is better at a later stage. Both frameworks are made to be ‘customized’.
To my knowledge, the two most popular business model frameworks are the Business Model Canvas (Osterwalder) and the Lean Canvas (Maurya). The main difference is that the Lean canvas substitutes ‘Key Partners’, ‘Key Resources’, and ‘Key Activities’ with ‘Problem’, ‘Solution’, and ‘Key Metrics’. That substitution becomes highly relevant for a brand new startup - or even merely a supposedly identified business opportunity - because it focuses on the highly proclaimed problem/solution fit as a part of the Customer Development philosophy advocated by Steve Blank and many other scholars and entrepreneurs. Because the business model of a new startup is most often based around assumptions, it can make more sense to ‘guess’ the problem and the solution to that problem - and then validate/iterate/falsify your guess in the field, talking to real customers. Since a problem/solution fit is essential to building a startup in the first place, it makes less sense to hypothesise the key partnerships and activities, because these most likely only become relevant if the startup is solving a problem in the first place.
However, for larger businesses, or startups that have successfully found a scalable and repeatable business model, may benefit more from the Business Model Canvas, since the partnerships, activities, and resources suddenly becomes much more relevant.
Both frameworks are flexible in the sense that you can add elements that might have a special significance for your type of startup. My personal opinion is that the Lean Canvas is the best place to begin (watch this video, and you’ll have your canvas done in 20 mins http://spark59.com/leancanvas/20-minute-challenge) and if you want Maurya’s own words on his motivation to alter Osterwalder’s canvas in the first place, look here: http://practicetrumpstheory.com/why-lean-canvas/
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