The document describes the Lean Business Model Canvas, a one-page tool for visually organizing and managing responses to 25 investor questions about business model profitability. The Lean Business Model Canvas combines the Lean Canvas and Business Model Canvas frameworks. It allows documenting key topics like problems, solutions, metrics, costs, revenues, customer segments, and competitive advantages to holistically represent organizational success or failure in business and life.

1. 6
GATES
TO
BUSINESS
MODEL
PROFITABILITY
Visually
Organize,
Manage,
and
Test
Ideas
for
Improving
Business
Model
Profitability
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
1
2
3
4
5
6
Problem-­‐SoluQon
Fitness
Value
ProposiQon
Fitness
Product-­‐Market
Feasibility
Revenue
Model
Feasibility
Resource-­‐Based
Feasibility
BUSINESS
MODEL
ADVANTAGE

2. 25
INVESTOR
QUESTIONS
(IQs)
for
BUSINESS
MODEL
PROFITABILITY
Visually
Organize,
Manage,
and
Test
Ideas
for
Improving
Business
Model
Profitability
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
1.
Problem-­‐SoluQon
Fitness
1.1
What
is
the
main
physical/intellectual/emo=onal/spiritual
task
or
Job
To
Get
Done
for
the
customer
segment
(archetype)?
1.2
What
are
the
top
3
problems,
challenges,
constraints,
barriers,
or
trade-­‐offs
before/during/aKer
the
Job
To
Get
Done?
1.3
What
are
features
of
the
product/service/business
model
that
resolve
the
top
3
problems
or
trade-­‐offs
of
the
targeted
customer
segment
(archetype)?
2.
Value
ProposiQon
Fitness
2.1
What
is
the
Value
Proposi=on
for
the
customer
segment
(archetype)?
2.2
How
likely,
on
a
scale
from
0
(not
likely)
to
10
(highly
likely),
would
customers
purchase
product/service
based
on
the
Value
Proposi=on?
2.3
How
is
the
Value
Proposi=on
similar
to
that
of
compe=tors?
2.4
How
is
the
Value
Proposi=on
different
from
that
of
compe=tors?
2.5
How
does
the
(minimum
viable)
ad/product/service/business
model
embody
or
reflect
the
Value
Proposi=on?
2.6
To
what
extent
does
the
Value
Proposi=on
help
engage,
acquire,
and
retain
targeted
customers?
3.
Product-­‐Market
Feasibility
3.1
What
hierarchy
of
jobs
or
tasks
does
the
product/service
help
the
targeted
customers
to
do?
3.2
What
is
the
minimum
viable
market
size,
value,
share,
and
growth
rate
for
the
product/service?
3.3
What
is
the
minimum
viable
product/service
for
delivering
the
primary
func=onality,
benefit,
or
delight
to
the
targeted
customers?
3.4
What
is
the
level
of
compa=bility
between
main
func=onality
of
the
product/service
and
the
customer’s
core
jobs
to
get
done?
3.5
Through
what
channels
and
rela=onships
would
the
product/service
be
delivered
to
the
targeted
customers?
3.6
What
are
customer
experiences
as
well
as
level
of
loyalty
(Net
Promoter
Score)
for
the
product/service?
4.
Revenue
Model
Feasibility
4.1
How
does
the
business
make
money:
What
are
minimum
revenue
streams
and
volume
of
revenue
for
the
business?
4.2
How
does
the
business
increase
revenue
as
well
as
customer
value
(experience)
and
loyalty?
4.3
What
are
alterna=ve
means
such
as
profit,
revenue,
and
business
model
paerns
by
which
the
business
can
increase
(recurring)
revenue?
5.
Resource-­‐Based
Feasibility
5.1
What
physical/intellectual/emo=onal/spiritual
resources
and
competences
of
the
business
model
are
valuable,
rare,
inimitable,
and
non-­‐subs=tutable?
5.2
What
is
the
cost
structure
as
well
as
cost
of
resources
for
(a
minimum
viable)
business
model?
6.
Business
Model
Advantage
6.1
What
is
the
profit
margin
(Return
On
Investment)
for
the
business
model?
6.2
What
are
the
compe==ve
strategy
and
tac=cs
(including
switching
costs
and
network
effects)
for
the
business
model?
6.3
What
is
the
trade-­‐off
of
the
compe==ve
strategy
or
business
model?
6.4
How
disrup=ve
and
scalable
is
the
business
model?
6.5
How
does
the
business
con=nuously
discover
and
solve
Big
Urgent
Market
Problems
(BUMPs)
especially
in
an
environment
of
great
uncertainty?

3. Lean
Business
Model
Canvas
A
One-­‐page
Tool
for
Visually
Organizing
and
Managing
Responses
to
The
25
Investor
QuesEons
for
Business
Model
Profitability

4. TOPICS
FOR
STORY
OF
LEAN
BUSINESS
MODEL
CANVAS
HolisEcally
Document,
Present,
and
Manage
OrganizaEonal
Success
(Failure)
in
Business
and
Life
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
Lean
Business
Model
Canvas
=
Lean
Canvas
+
Business
Model
Canvas
Lean
Canvas
Business
Model
Canvas
q Problem
q SoluQon
q Key
Metrics
q Profit
(Value)
q Cost
Structure
q Revenue
Streams
q Value
ProposiQons
q Channels
q Customer
Segments
q Unfair
Advantage
q Key
Partners
q Key
Resources
q Key
AcQviQes
q Customer
RelaQonships
Problem
Finding
&
Solving/Performance
Management
Business
Model
VisualizaEon,
Resources,
and
Viability

5.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluQon
Gain:
(Un)Known
Business
Model
Business
Model
Before
AWer
Key
Metrics
Lean
Business
Model
Canvas
Source:
Based
on
Business
Model
Canvas
-­‐
hXp://en.wikipedia.org/wiki/Business_Model_Canvas
&
Lean
Canvas
-­‐
hXp://pracEcetrumpstheory.com/2012/02/why-­‐lean-­‐canvas/
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu=on)
Lean
Business
Model
Canvas

6.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluQon
Gain:
(Un)Known
Business
Model
Business
Model
Before
AWer
Business
Model
(System)
Key
Metrics
Lean
Business
Model
Canvas
Source:
Based
on
Business
Model
Canvas
-­‐
hXp://en.wikipedia.org/wiki/Business_Model_Canvas
&
Lean
Canvas
-­‐
hXp://pracEcetrumpstheory.com/2012/02/why-­‐lean-­‐canvas/
VALUE
CREATION
(Enterprise
Engine)
VALUE
DELIVERY
(Customer
Growth
Engine)
VALUE
CAPTURE/SHARING
(Value
Engine)
KP
KA
VP
CR
CS
C$
P$
KR
CH
R$
BUSINESS
MODEL
ENVIRONMENT
(Compe==ve/Unfair
Advantage)
Lean
Business
Model
Canvas
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu=on)

7.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluQon
Gain:
(Un)Known
Business
Model
Business
Model
Before
AWer
Key
Metrics
E:
Engagement;
Experience
A:
Acquisi=on;
Ac=va=on
R:
Reten=on;
Referral;
Revenue
q Big/clunky
music
players
q Complex:
difficult
to
use
q Small
song
storage
q Ultra-­‐portable
digital
music
player
q Simple:
easy
to
use
q Large
song
storage
Listen
to
music
(at
home/work/outdoors)
Apple’s
Lean
Business
Model
Canvas
for
the
Classic
iPod
(2001)
Visually
Organize,
Manage,
and
Test
Ideas
for
Improving
Business
Model
Profitability
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu=on)

8.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluQon
Gain:
(Un)Known
Business
Model
Business
Model
VALUE
CREATION
(Enterprise
Engine)
VALUE
DELIVERY
(Customer
Growth
Engine)
VALUE
CAPTURE/SHARING
(Value
Engine)
KP
KA
VP
CR
CS
C$
P$
KR
CH
R$
BUSINESS
MODEL
ENVIRONMENT
(Compe==ve/Unfair
Advantage)
Digital
Hub/Ecosystem
including
iTunes
Before
AWer
Business
Model
(System)
Key
Metrics
E:
Engagement;
Experience
A:
Acquisi=on;
Ac=va=on
R:
Reten=on;
Referral;
Revenue
q Big/clunky
music
players
q Complex:
difficult
to
use
q Small
song
storage
q Ultra-­‐portable
digital
music
player
q Simple:
easy
to
use
q Large
song
storage
Listen
to
music
(at
home/work/outdoors)
Apple’s
Lean
Business
Model
Canvas
for
the
Classic
iPod
(2001)
Visually
Organize,
Manage,
and
Test
Ideas
for
Improving
Business
Model
Profitability
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu=on)

9.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluQon
Gain:
(Un)Known
Business
Model
Business
Model
VALUE
CREATION
(Enterprise
Engine)
VALUE
DELIVERY
(Customer
Growth
Engine)
VALUE
CAPTURE/SHARING
(Value
Engine)
KP
q Record
companies
q Original
Equipment
Manufactu-­‐
rers
KA
q Hardware/
SoKware
Design
q Marke=ng
&
Sales
VP
“A
Thousand
Songs
in
Your
Pocket”
Seamless
Music
XP
iPod
Hardware
CR
Online/Face-­‐
to-­‐Face;
Lock-­‐in
CS
Luxury
Spoer:
Listen
to
music
everywhere
C$
q Staff/Employees
q Manufacturing/
Infra’
q Marke=ng
&
Sales
P$
q High
Profit
Margin
q Extraordinary
Profit
q Luxury
Spot
Strategy
q Pain:
Low
q Delight:
High
q Value:
High
KR
q Staff/Employees
q Brand/Culture
q IP
q Infrastructure:
IT
CH
Apple.com;
Big
Retailer/
iTunes
Store;
Retail
stores
R$
q iPod
Hardware
q iTunes
q Commissions
BUSINESS
MODEL
ENVIRONMENT
(Compe==ve/Unfair
Advantage)
Digital
Hub/Ecosystem
including
iTunes
Before
AWer
Business
Model
(System)
Key
Metrics
E:
Engagement;
Experience
A:
Acquisi=on;
Ac=va=on
R:
Reten=on;
Referral;
Revenue
q Big/clunky
music
players
q Complex:
difficult
to
use
q Small
song
storage
q Ultra-­‐portable
digital
music
player
q Simple:
easy
to
use
q Large
song
storage
Listen
to
music
(at
home/work/outdoors)
Apple’s
Lean
Business
Model
Canvas
for
the
Classic
iPod
(2001)
Visually
Organize,
Manage,
and
Test
Ideas
for
Improving
Business
Model
Profitability
Job
To
Get
Done/Experience
(Journey:
Strategy/Execu=on)

10. Apple’s
6
GATES
TO
BUSINESS
MODEL
PROFITABILITY
for
the
Classic
iPod
Visually
Organize,
Manage,
and
Test
Ideas
for
Improving
Business
Model
Profitability
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
1
2
3
4
5
6
Problem-­‐SoluQon
Fitness
Value
ProposiQon
Fitness
Product-­‐Market
Feasibility
Revenue
Model
Feasibility
Resource-­‐Based
Feasibility
BUSINESS
MODEL
ADVANTAGE
Digital
Music
Player

11. 51
PaGerns
for
Business
Model
DisrupQon
&
Profitability

12.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
ENTERPRISE
ENGINE
CUSTOMER
GROWTH
ENGINE
VALUE
ENGINE
delivers
requires
drives
requires
Product/Value
ProposiQon
Channels
&
RelaQonships
Customer/Job-­‐To-­‐Get-­‐Done
require(s)
require(s)
Inputs/Partners
Internal
Resources
Processes/AcQviQes
require(s)
affect(s)
require(s)
deliver(s)
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
requires
drive(s)
delights
delight(s)
delight(s)
(Problem-­‐Solu=on
Fit;
Product-­‐Market
Fit)
Job-­‐To-­‐
Get-­‐Done
Create
Value
Deliver
Value
Capture/Share
Value
BUSINESS
MODEL
STORYBOARD
Visualize
the
Building
Blocks
and
NormaEve
Logic
of
a
Business
Model

13.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
ENTERPRISE
ENGINE
Value
CreaEon
(Reduce
Cost)
CUSTOMER
GROWTH
ENG.
Value
Delivery
(Increase
Rev.)
Inputs/Partners
Internal
Resources
Processes/AcQviQes
Product/Value
ProposiQon
Channels
&
RelaQonships
Customer/Job-­‐To-­‐Get-­‐Done
Cost
(Pain)
Revenue
(Delight)
PROFIT
(VALUE)
BUSINESS
MODEL
STORYBOARD
(Building
Blocks)
VALUE
ENGINE
Value
Sharing
(Increase
Profit)

14.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
ENTERPRISE
ENGINE:
Value
CreaEon
(Reduce
Cost)
CUSTOMER
GROWTH
ENGINE:
Value
Delivery
(Increase
Revenue)
Inputs/Partners
q Co-­‐crea=on;
Social
Media
q Open
Source
Collabora=on
q Crowd-­‐funding/sourcing
q Frac=onaliza=on/Co-­‐owner
q Investor/Sponsor/Donor
q Mergers
&
Acquisi=ons
Internal
Resources
(Physical/Intellectual/EmoEonal/
Spiritual
Resources)
q Creator;
Broker;
Landlord
q Peer-­‐to-­‐Peer
Planorm
q Facilitated
Network
q Patents
(“Fences”;
Barriers)
Processes/AcQviQes
q Opera=onal
Excellence;
JIT
q Automa=on
(Self-­‐service/DIY)
q Gamifica=on;
Digitaliza=on
q Ecosystem
Management
q Problem
Solving;
Consul=ng
q Compe==ve
Strategies
Product/Value
ProposiQon
q Asset
Sale/Direct
Sale
q Product
Leadership/Extension
q Used/2nd
Hand
Product;
Bargain
q Customiza=on
(Value
Factors)
q Bundling/Unbundling
q Product/SoKware
as
a
Service
Channels
&
RelaQonships
q Offline/Online;
(In)direct
Sale
q Franchise;
Licensing;
Affiliates
q Distributor;
Disintermediator
q Ad
Network;
Brand
Mul=plier
q Aggrega=on/Disaggrega=on
q Auc=on/Reverse
Auc=on
Customer/Job-­‐To-­‐Get-­‐Done
q Customer
In=macy/Loyalty
q B2B;
B2C
q Long
Tail;
Community
(Hub)
q Two-­‐sided
Market
(Segments)
q Mul=-­‐sided
Market
(Planorm)
q Luxury/Mass
Market/Niche
Cost
(Pain)
q Outsourcing;
Specializa=on
q Group
Deals
q Lending/Ren=ng/Leasing
q Cross-­‐subsidiza=on
q Frac=onaliza=on/Co-­‐owner
Revenue
(Delight)
q Pre-­‐payment;
Amor=za=on
q Discount;
Dynamic
Pricing
q Razor
Blade
(“Bait
&
Switch”)
q Usage
Fee;
Subscrip=on
Fee
q Tiered
Payment;
Freemium
q Dona=on;
Free
PROFIT
(VALUE)
q Shared
Value
(Profit)
q Transient
Compe==ve
Adv.
q Sustainable
Compe==ve
Adv.
q Red
Ocean;
Low
Cost/Margin
q Blue
Ocean;
Luxury
Spot
q Disrup=on/Lean
Spot
VALUE
ENGINE:
Value
Sharing
(Increase
Profit)
51
BUSINESS
PROFIT
PATTERNS
(Strategic
Choices
for
Business
Model
Profitability)

15.
#VPGen.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hGp://businessmodels.ning.com
&
hGp://twiGer.com/RodKuhnKing
Inputs/Partners
q Co-­‐crea=on;
Social
Media
q Open
Source
Collabora=on
q Crowd-­‐funding/sourcing
q Frac=onaliza=on/Co-­‐owner
q Investor/Sponsor/Donor
q Mergers
&
Acquisi=ons
Internal
Resources
(Physical/Intellectual/EmoEonal/
Spiritual
Resources)
q Creator;
Broker;
Landlord
q Peer-­‐to-­‐Peer
Planorm
q Facilitated
Network
ü Patents
(“Fences”;
Barriers)
Processes/AcQviQes
ü Opera=onal
Excellence;
JIT
q Automa=on
(Self-­‐service/DIY)
q Gamifica=on;
Digitaliza=on
ü Ecosystem
Management
q Problem
Solving;
Consul=ng
ü Compe==ve
Strategies
Product/Value
ProposiQon
ü Asset
Sale/Direct
Sale
ü Product
Leadership/Extension
q Used/2nd
Hand
Product;
Bargain
q Customiza=on
(Value
Factors)
q Bundling/Unbundling
q Product/SoKware
as
a
Service
Channels
&
RelaQonships
ü Offline/Online;
(In)direct
Sale
q Franchise;
Licensing;
Affiliates
q Distributor;
Disintermediator
q Ad
Network;
Brand
Mul=plier
q Aggrega=on/Disaggrega=on
q Auc=on/Reverse
Auc=on
Customer/Job-­‐To-­‐Get-­‐Done
ü Customer
In=macy/Loyalty
ü B2B;
B2C
q Long
Tail;
Community
(Hub)
q Two-­‐sided
Market
(Segments)
q Mul=-­‐sided
Market
(Planorm)
ü Luxury/Mass
Market/Niche
Cost
(Pain)
ü Outsourcing;
Specializa=on
q Group
Deals
q Lending/Ren=ng/Leasing
q Cross-­‐subsidiza=on
q Frac=onaliza=on/Co-­‐owner
Revenue
(Delight)
q Pre-­‐payment;
Amor=za=on
q Discount;
Dynamic
Pricing
q Razor
Blade
(“Bait
&
Switch”)
q Usage
Fee;
Subscrip=on
Fee
ü Tiered
Payment;
Freemium
q Dona=on;
Free
PROFIT
(VALUE)
q Shared
Value
(Profit)
q Transient
Compe==ve
Adv.
q Sustainable
Compe==ve
Adv.
q Red
Ocean;
Low
Cost/Margin
ü Blue
Ocean;
Luxury
Spot
ü Disrup=on/Lean
Spot
Apple’s
PROFIT
PATTERNS
for
Classic
iPod
(2001)
ENTERPRISE
ENGINE:
Value
CreaEon
(Reduce
Cost)
CUSTOMER
GROWTH
ENGINE:
Value
Delivery
(Increase
Revenue)
VALUE
ENGINE:
Value
Sharing
(Increase
Profit)