Lean Canvas Finances is part of a five part series by Ed Ipser where he explains how to use the Lean Canvas and what it is good for.
In this Lean Canvas – Finance session, Ed Ipser shares how to identify your own revenue and cost structure and how to create a business model. Key take aways are describing your cost structure and revenue streams.
In the video snippet below, Ed shares a financial model.
Watch the full Lean Canvas Finances webinar
SKMurphy Take
Ed Ipser crafted these Lean Canvas workshops to help entrepreneurs clarify their vision, test their plans, and uncover overlooked opportunities. In this installment, his focus is on two frequently overlooked areas of a startup business: the cost structure and potential revenue streams. Cost structure is a fancy way to ask where your highest fixed costs are and your recurring expenses. And potential revenue streams are shorthand for how and where you plan to make money. It’s a useful exercise, especially for bootstrappers, to determine how their expenses will scale with customer acquisition and customer support and what they will charge for to cover those expenses. And to cover the expenses associated with creating your product or service and continuing to differentiate it compared to both existing and new alternatives. Bootstrappers normally work on a cash basis and need to account for the lags from billing to payment, may of the venture planning templates assume an accrual basis and neglect this lag.
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