Capture your business model in a portable, one-page diagram.
The Lean Canvas is the perfect format for brainstorming possible business models, prioritizing where to start, and tracking ongoing learning.
The best way to illustrate the use of the canvas is through an example. I’ll describe the thought process that went into building my first product, CloudFire, using this methodology.
When you first start out, all you have is an inkling of a problem, a solution, and maybe a customer segment. Just as rushing to build a solution can lead to waste, so can prematurely picking a customer segment or business model. The danger here is that this “selection bias” is untested and may result in a suboptimal business model or local maxima.