The value of a one-page plan

A leap is required whenever you start any new project, initiative, or business; you can’t possibly know everything before diving in. However, there are some simple ways to “look before you leap” to spot potential hazards with a small amount of upfront planning.

In 2010, I first discovered the concept and value of planning on a single page through the book “Business Model Generation” by Alex Osterwalder and Yves Pigneur. It was in this book that the authors introduced the now well-known Business Model Canvas. 

Unlike typical text-heavy and overly tedious business plans, the Business Model Canvas represents a quick, thoughtful, and visual way to get the entire vision of a business on a single page. These features make the creation of a canvas a lot of fun. Whereas the same can seldom be said about the creation of a typical business plan.

The canvas consists of nine elements that allow you to quickly get an overview of what a business or initiative requires to succeed.

Like all good planning models, these elements ask questions that guide you toward a clearer vision of what you are attempting to build.

Customer Segments: The one or several customers that you plan to serve

• For whom are you creating value?
• Who are your MOST important customers?
  
  

Value Propositions: How you will solve customer needs and pain points

• What value do you deliver to the customer?
• What bundles of products and services are you offering your different segments?
  
  

Channels: The communications, distribution, and sales channels used to deliver your Value Proposition

• How do your various segments want to be reached?
• How are you integrating your channels with your customer’s routines?
  
  

Customer Relationships: To be established and maintained with each Customer Segment

• What type of relationship does each segment want to have with you?
• How costly will starting and then keeping up these relationships be?
  
  

Revenue Streams: The revenue received for successfully delivering your Value Proposition

• What value are your customers REALLY willing to pay for?
• How much does each stream contribute to overall revenue?
  
  

Key Resources: The assets required to offer and deliver on the previous elements

• What do you need to BEST deliver on the promise you make to your customer?
• What physical, intellectual, human, and financial assets are required?
  
  

Key Activities: The things you will DO to aid in offer and delivery

• How will you create your products or services?
• How will they get to your customers?
• How will you find and hold on to your customers?
  
  

Key Partnerships: The strategic outsourcing of select activities and resources

• What Key Resources will you have to source externally?
• What Key Activities will not be done in-house?
  
  

Cost Structure: All elements ultimately result in a cost structure that determines profit

• What are the MOST critical costs in your model?
• Which of your Key Resources and Activities will be the most expensive?
  
  

The Business Model Canvas is quite popular, especially in the entrepreneurial community. I have used the canvas many times over the years, both in my enterprises and with clients. 

Whether you are using it for the launch of a new product, service, or division of an existing enterprise, or for an entirely new venture, this single-page planning methodology will get you off on the right foot.