Say no to fuzzy “I have a startup idea”

Capturing all aspects of your product idea is hard; communicating it to others can be even more challenging. Product Model Canvas is a structure for logical analysis and idea presentation an easy and concise way.

Besides saving lots of time, it can help you with

• Having a clear and complete picture of product
• Better communications with stakeholders – team, superiors, investors
• Controlling product changes / versions

Meet the Product Model Canvas

1) Customer & Problem

In Customer Segment you want to put target audience. Sometimes, it can be more than 1 group. If it’s too broad – narrow it to the most loyal or paying group so that it has a specific personality. Now put yourself into their shoes: which problems you’re trying to solve?
Example: banks + long cash-desk lines, iPhone users + editing photos on the phone.

2) Value proposition & Features

With clear problem statement, how would you describe your offer in a short phrase? It should clearly demonstrate value and form of product (e.g. app, platform). After it’s done – what features allow to do that?
Example: app for easy mobile payments: register, add cards, pay in 1 click when being in shop.

3) Channels & Performance

Channels describe how your client would get your product. Usually, it’s appstores for apps or sales offices for b2b product. Unfair advantage is a booster for your product success or competition differentiator, something that’s impossible or hard to copy.

You need Key Performance Indicators (KPI’s) to understand whether you’re heading in the right direction. There’s a lot of various metrics, but here you need from two to four of the most important to track.
Example: # of subscribers or installs, conversion or retention rate.

4) Cost / Revenue Analysis

Cost structure for most digital products consists of development, sales&marketing, administrating, support etc. It should not be too hard to predict these numbers with some expertise.

Revenue models and volumes are often the along the factors that change the most in the new product development. With that, you still want to note your assumptions, to check whether it can be profitable at all.

Also, do not forget to put a preliminary product title and canvas version. And that’s it! Should not take more then 5-15 minutes on average if we’re not getting too deep into discussions and solid numbers. You can (and totally should) do it afterwards, but your idea draft is already captured.

Download the Canvas Template