The Startup Canvas Technique: A Comprehensive Approach for New Product Development

So far, we've explored techniques suitable for typical-sized efforts like adding a new feature, and medium to large-sized projects like a redesign. These methods cover most of what product teams work on. However, there's another challenging scenario that requires a more comprehensive approach: creating an entirely new product for a new business or tackling an all-new business opportunity within an enterprise.

The Challenge of Inventing a New Product

In this situation, you face a broad set of risks, including:

• Validating your value proposition

• Determining how you intend to make money

• Figuring out how to reach and sell to your customers

• Estimating production and selling costs

• Identifying metrics to track progress

• Assessing whether the market is large enough to sustain the business

Traditionally, people used thick business plans to address these topics. However, these plans often proved more harmful than helpful. The startup canvas, along with its close cousins the business model canvas and the lean canvas, are designed to be lightweight tools to highlight these risks early and encourage the team to tackle them upfront.

Why the Startup Canvas?

I much prefer the startup canvas to old-style business plans for several reasons:

Lightweight and Agile: Unlike detailed business plans, the startup canvas is concise and flexible. It allows for quick adjustments based on new information and insights.

Focus on Risks: The canvas helps identify and address key risks early in the process, promoting a proactive approach.

Encourages Experimentation: By highlighting assumptions and potential challenges, the canvas encourages teams to test their ideas and validate their hypotheses early.

However, it’s essential to note that many startup teams still spend too much time on the canvas itself, delaying the crucial step of discovering a solution that people want to buy.

The Canvas in Established Products

You can use a canvas for any product change, regardless of size. However, with an existing product and business, much of the canvas remains unchanged and duplicated. You already have:

• A sales or distribution model

• A monetization strategy

• A well-defined cost structure

In these cases, it's more about creating additional value in your solution. Here, earlier framing techniques like the Opportunity Assessment or Customer Letter Technique might be more suitable.

The Startup Canvas for New Product Managers

Despite its primary use for new product development, the startup canvas can also be beneficial for simpler tasks, especially for new product managers. It provides a holistic understanding of the product and key areas of the business, helping new managers grasp the big picture.

Conclusion

The Startup Canvas Technique is a powerful tool for framing new product development, especially when inventing a product for a new business or tackling a significant new business opportunity. By focusing on key risks and encouraging early validation, the canvas helps teams navigate the complexities of new product development efficiently. While it's not always the best tool for changes to existing products, it can be invaluable for new product managers seeking to understand their product and the broader business landscape.