How to implement the Lean Plan?

“An an ounce of practice is generally worth more than a tone of theory.”

R. D. Blackmore, 1825-1900, English Author

Useful tips:

There are some useful tips that potential entrepreneurs can follow in order to create a lean business plan so that can add value to their planning process and eliminate any kind or risks from the very beginning:

  • Align activities with the achievement of specific goals
  • Focus on the essential and the necessary
  • Remain brief and simple
  • Maintain the plan on a monthly basis
  • Identify useful sources and other references that will help you to outline your plan
  • Ensure that all-important details are included in the plan

The Lean Plan in 4 easy steps:

1.    Focus on Strategy:

the problem you solve, your unique solution to that problem, your choice of the target market, and your unique business identity

 2.    Match tactics to strategy:

the product or service, the marketing, pricing, distribution, personnel, financing must be in alignment with your strategy

 3.    The Six “W’s” and Two “H’s”:

 Why?                      - Describe the goal of the project.

Why not?                - Describe the risks.

What?                      - Describe the scope of the tests, including what we will not test.

Where?                   - Specify the test environment and other relevant data.

When?                    - When will you conduct the testing?

Who?                       - The testers, significant interfaces.

How?                        - Specify the testing methods and process that can make it easier to accomplish the strategy target with minimum cost   and effort

How much?            - Is there any particular cost as a prerequisite?

 4.    The forecast of essential numbers: future sales, costs, expenses, and cash flow

 Lean Plan Outline:

1.     Executive Summary that summarizes the problem.

2.     The opportunity that you have to meet the customers’ specific needs.

3.     Market analysis of the target audience and their needs.

4.     Competition and its identification.

5.     Execution that analyses the sales plan, the marketing plan, the logistics plan and the management plan

6.     The road map that outlines the standards that ought to be tracked in order to ensure that you are in the right direction

7.      Financial Plan that will include the sales forecast, the balance sheet, the break-even analysis and a brief description of all the financial forecasts.


The example of Cynthia Ndubuisi and her company EverGlow (source Micro-mentor Organization):

1.     Executive Summary: 80% of Nigeria’s population uses bar soap to hand wash their dishes each day—despite the economical and hygienic advantages of liquid soap.

 Opportunity: an enormous potential to fill an unmet need in Nigeria by creating superior liquid dish soap that is non-toxic, plant-derived, and biodegradable.

2.     Market analysis: there is a regular and significant demand across households due to the extended use of washing machines

3.     Competition: liquid soaps were mostly imported from multinational companies, large indigenous corporates, and major importers. In addition, the soap industry was highly dependent on imported raw materials and machinery for production

4.     Execution: Cynthia came up with the idea of using the cassava plant – important plant for Nigeria’s economy- in the production of liquid soap. While current processing methods only allow farmers to utilize 60% of their cassava crops for mainly the production of food, Cynthia’s idea enabled them to turn a profit by utilizing 100% of each plant. Cynthia’s execution plan was based on the unique use of the cassava plant in the marketing process (ecology), in the management process (cooperation with local farmers), in the sales process (presenting an innovative and sustainable product) and in the logistics process (lowering the costs of imported raw materials and providing an effective flow from the point of origin to the point of consumption).

5.     Road map: By focusing on productivity standards and lowering the production costs, Cynthia achieved to track the effectiveness of her business idea. In fewer than six months, Cynthia gained a competitive advantage in Nigeria and began exporting to Zambia. She experienced a 40 percent growth rate, which far exceeded her initial goals, and was able to hire six new employees

 6.     Financial Plan: By presenting her idea to a global forum, taking part to international entrepreneurial competitions and making financial forecasts about the feasibility of her idea, Cynthia achieved to take grants and expand her initial business idea.


References

1.     https://kanbanize.com/lean-management/implementing-lean/

 2.     https://www.processexcellencenetwork.com/lean-six-sigma-business-performance/articles/13-ideas-for-successful-implementation-of-lean-ma

 3.     https://www.lean.org/WhatsLean/GettingStarted.cfm

 4.     https://www.sixsigmadaily.com/how-to-deploy-lean-in-10-steps/

 5.     https://www.examples.com/business/lean-business-plan-template-examples.html

 6.     https://www.examples.com/business/business-plan-outline-with-example.html

 7.     https://www.micromentor.org/#why-mentoring

 8.     https://www.ministryoftesting.com/dojo/lessons/from-strategy-to-execution-in-a-lean-and-effective-way

 9.     https://www.sba.gov/blog/how-do-practical-lean-business-plan-four-easy-steps/