Business Models

Business Model

Capture Your Vision on a Single Page

Business Plan

Have you ever written a business plan? Did you enjoy the process? Or maybe you’re one of the lucky few who have never had to write one.

Most people hate writing business plans.

They take too long to write. You end up making up most of the answers. And worst of all, the people who make you write these plans (i.e. investors), don’t even take the time to read them – opting instead for shorter versions like the 1-page executive summary, 10-page slide deck, or 30-second elevator pitch.

But a no-plan alternative isn’t the solution either.

It would be akin to building a house without a blueprint. While carrying your core business model assumptions in your head alone might seem like the fastest alternative, you need to beware of the reality distortion fields that plague entrepreneurs.

Reasonably smart people can rationalize anything, but entrepreneurs are especially gifted at this.

Most entrepreneurs start with a strong initial vision and a Plan A for realizing that vision. Unfortunately, most Plan A’s don’t work.

Instead of chasing a mythical perfect plan, what you need is a well documented starting point and a systematic process for going from your Plan A to a plan that works before running out of resources.

This is where the 1-page business model comes in.

The 1-Page Business Model Canvas

While writing a business plan can be a good exercise for the entrepreneur, it takes too long and more importantly, falls short of its true purpose: Facilitating conversations with people other than yourself.

The problem with business plans isn’t the planning but the format.

Additionally, since most Plan As are likely to be proven wrong anyway, you need something less static and rigid than a business plan.

Business Model vs Business Plan

Compared to business plans, creating a 1-page business model is:

Instead of taking weeks or months, you can outline multiple business models in an afternoon.

Because your business model has to fit on a single page, you have to pick your words carefully and get to the point. This is great practice for distilling the essence of your business.

A single-page business model is much easier to share with others, which means it will be read by more people and be more frequently updated.

Lean Canvas

Here is what a 1-page business model looks like:

Lean Canvas

The image above shows the Lean Canvas format which is my adaptation of Alex Osterwalder’s Business Model Canvas.

If you’ve ever written a business plan before, you should immediately recognize most of these boxes.

Check out the resources below to learn more on business models.

Getting Started with Business Models

These 5 articles that will help you get started with creating your first business model:

1. How to Document Your Business Model
2. Your Product is NOT “The Product”
3. Why Lean Canvas vs Business Model Canvas?
4. The Different Worldviews of a Startup
5. Delivering Effective Investor Pitches With Lean Canvas
6. Build Your Startup Through Conversations

Ready to Create Your First Business Model?

Become a Practice Trumps Theory member (it’s free)

You’ll learn how to:

  • Create a business model in under 20 minutes
  • Bullet-proof your business models against common pitfalls
  • Stress test your business model and find a plan that works

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