A lean business plan template

for startups and entrepreneurs

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A lean business plan template

for startups and entrepreneurs

Reading time 8 mins

Key Points

Traditional business plans aren’t always the best starting point for startups

fundamentals and doesn’t require extensive financial forecasting or market

research

The lean approach allows for quick and cost-effective concept validation,

focusing on customer problems and the solutions to them that present

immediate market opportunities, allowing startups to establish their market

presence quickly

However, a lean business plan has its limitations and disadvantages

For established companies looking to scale their business, secure funding and

investors, and attract talented employees, a traditional business plan is

necessary

Managing Director

Last updated May 1, 2023

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Writing a traditional business plan can be overwhelming and time-consuming for startups and

entrepreneurs in the early stages of product or service development. You most likely haven’t had the

Uses customer needs and problems as the foundation to measure success

Allows for quick and cost-effective concept validation

Centred around taking small steps, consistent tracking, and frequent course corrections

Focuses on the key factors that present immediate opportunities for a competitive

advantage

While lenders and investors typically ask for a traditional business plan comprising a dozen or more

pages of a detailed analysis, a lean startup plan is a good place to start if you expect many aspects of

your business to change. In addition, a lean business plan template will help you to create a concise

document that outlines the fundamentals.

In addition, before a business plan can have any clout, some work is required to validate that your

technology works, that a real market for your product exists, and that the price and returns you

expect are reasonable.

On the other hand, if you want to attract investors and top-level talent, a business plan is essential.

The table below outlines the key differences between traditional vs lean startup business plans and

will indicate which is more appropriate in your case.

TRADITIONAL BUSINESS PLAN LEAN BUSINESS PLAN

An extensive and detailed document, on average

20-30 pages

A simple 1-2 page summary that requires less

time to prepare

Outlines the business goals and long-term

Takes an agile and iterative approach to get a

gathering customer feedback and making

adjustments

The goal is to create a comprehensive picture

that will convince funders they will get a return

on their investment

The goal is to validate business assumptions

quickly and minimise the number of resources

spent on unproven ideas

Consists of:

1. Executive summary

2. Company description

3. Market analysis

4. Business organisation

1. Value proposition and a description of the

problem the startup is solving

2. Description of the target market and the

methods for reaching them

3. Description of the key partners, resources and

activities needed to create value for the target

market

4. Characteristics of the target audience for the

product or service

5. Revenue streams

Download our free lean business plan template to lay the foundation for your1.

course of action

Once you have developed your minimum viable product (an early version of your2.

product with only the essential features), put it to the test. Use our product testing

survey template to gain valuable insights regarding what needs to be modified or

improved to ensure the product fits the market it’s designed for

Review your results according to the metrics for success you established3.

Revise your plan accordingly. This may involve making changes to your assumptions,4.

sales channels, marketing techniques, and even your target customers

Your MVP may need several iterations before you’re ready to develop the final version.5.

template

In addition to being straightforward and quick to implement, the lean business planning approach is

flexible and adaptable. This makes it easier to pivot if the original idea isn’t as viable as you thought it

would be – with considerably less lost in terms of resources than if you had gone the traditional

business plan route.

More importantly, by prioritising speed to market, taking the lean business approach will help you to

establish your presence quickly in a highly competitive environment.

On the other hand, this approach has its limitations:

end up being costly

With a detailed business plan, creating a roadmap for the business that you can share

with others is easier. This is essential for attracting investors, partners, or employees

There’s a risk of pivoting too much due to the experimentation and iteration this model

encourages. This can lead to confusion and a lack of direction

Choosing between the traditional business plan model or the lean approach will ultimately depend on

your needs. The traditional route would serve you best if you need a lot of upfront investment and

strategic planning. However, the lean business planning approach is ideal if you want to validate your

concept quickly and cost-effectively.