Assumption. Something you currently think is true but have not proved with enough relevant evidence.
Business model. The logic of how an organization creates value, reaches people, collects revenue, and covers the required costs.
Channel. A path that helps a customer discover, buy, access, or receive a product or service.
Contribution margin. Revenue from one sale minus the variable costs associated with that sale. It helps cover shared fixed expenses.
Cost structure. The major categories of spending necessary to operate and grow the business.
Customer segment. A recognizable group that shares relevant needs, behaviors, or circumstances.
Early adopter. A customer who feels the problem strongly enough to try an unproven or early solution.
Existing alternative. The tool, competitor, process, workaround, or inaction customers currently use instead of your idea.
Experiment. A planned observation or test designed to change your confidence in a specific assumption.
Fixed cost. A cost that does not change immediately with each additional unit sold, such as a regular storage or software fee.
High-level concept. A brief comparison or analogy that helps someone quickly understand a new idea.
Key metric. A consistently defined measure that reveals progress or a problem in the business model.
Minimum viable product (MVP). The smallest practical implementation that allows you to learn something important from real users or customers.
Problem–solution fit. Evidence that a proposed approach addresses a real and meaningful customer problem.
Product–market fit. A state in which an offering satisfies real market demand in a sustainable, repeatable way. It is not established by a completed canvas alone.
Revenue stream. A specific way the organization is paid for its value, such as a fee per transaction or a subscription.
Unique Value Proposition (UVP). A brief statement of the main outcome a particular customer will receive and why it matters.
Unfair advantage. A real strength that is difficult for competitors to buy or imitate.
Validation. Gathering meaningful evidence that supports or challenges an important assumption. It is provisional, not permanent proof.
Variable cost. A cost that generally changes as the number of orders, rentals, or services changes.
For a practical explanation of a term, use the sidebar to open its corresponding chapter. For a printable summary, see Your one-page Lean Canvas.