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Braintree Business Development Center
Mansfield, Ohio
www.braintreepartners.org
201 E 5 th Street
Mansfield, OH 44902
419-525-1614
Drawing out a business model is easy, validating
assumptions through customer discovery is hard.
Mass marketStreaming music
based on user
defined genre
Continually
increasing library
None
• Pandora platform
• Music access for
all styles
• Internet services
• Music genome
project
• Sales
• Programming • Music labels
• Webhosting
/internet
• Ad networks
• Content acquisition
• GSA – (employees)
Advertisers
Ad revenue
Annual or
monthly
subscription
• Pandora.com
• Apps
• Desktop player
Ads consumers
are likely
listening to
Ad-free
Streaming music
But…how do I know my canvas is right?
Hypothesis
HypothesisHypothesis
HypothesisGuess
Guess
Guess
Guess
Hypothesis
This is how you will test your
hypotheses…
Favored testing process
• Build specifically to measure
customer feedback
• Measure customer interaction in
reference to what your hypotheses
• Sift through all your data to find
the real answers (maybe
unspoken)
• Let your learning guide what you
build next
New technology based ideas in Northeast Ohio
We provide:
Grant funding without equity position
• Up to $25,000 for Braintree tenants
• Acceptable funds uses include: design, prototypes, patents,
initial inventory, etc.
Business model design
Funding pitch development
Competitive process experience
Startup businesses in Northeast OhioWe provide:
• Term loans of $1,000-$50,000
• Current interest rate of 7.25%, other terms vary based on specific
needs
• Loan uses include: equipment, inventory, business debt restructuring,
and project based working capital
Basic requirements:
• Collateral
• Personal guarantees
• Demonstrated revenue sufficient for loan payments
Kick around some ideasWe provide a venue for
• Brainstorming, collaboration, and idea vetting
• Crowdsourced feedback from other people like you
4th Thursday of each month – in this same room
Basic requirements:
• Participation
• Confidentiality
Microsoft BizSpark is a global program designed to help
accelerate the success of early stage startups, providing:
Software
• Development tools and technologies to build
applications
• Production licenses of server products (including
Windows Azure Platform)
Support
• Community support from Network Partners
• Professional technical support from Microsoft
Visibility
• Profile and promotion on BizSpark Connect
Support
Visibility
Software
Bob Cohen, CEO
Technology commercialization
Agribusiness and cooperatives
International trade
Crowdfunding
Presentation skills
Bob Leach, Director of Operations
Information technology
Energy technologies
Social media
Facility design and management
MicroSoft BizSpark TM
Barrett Thomas,
Learning & Lending
Business modeling
Customer discovery
Business Analysis
Appleseed Microfinance
Tech Sprout
Terrie Bonfiglio,
Executive–in–Residence
Business Development
Product Development
Market Development
Business Analysis
Mass marketStreaming music
based on user
defined genre
Continually
increasing library
None
• Pandora platform
• Music access for
all styles
• Internet services
• Music genome
project
• Sales
• Programming • Music labels
• Webhosting
/internet
• Ad networks
• Content acquisition
• GSA – (employees)
Advertisers
Ad revenue
Annual or
monthly
subscription
• Pandora.com
• Apps
• Desktop player
Ads consumers
are likely
listening to
Ad-free
Streaming music
Example business model innovation
Minimum Viable Product
Minimum Viable Product – Lean Startup p.93
“A minimum viable product (MVP) helps entrepreneurs start
the process of learning as quickly as possible. It is not
necessarily the smallest product imaginable; it is simply the
fastest way to get through the Build-Measure-Learn feedback
loop with the minimum amount of effort… It’s goal is to test
fundamental business hypotheses”
• The Video MVP – Dropbox
• The Concierge MVP – Food on the Table
• The Wizard of Oz MVP – Aardvark (acquired by Google)
Search mode: A startup is searching for a repeatable and scalable business model
Business Model Canvas: The tool to document your business
Searching for the
business model = customer discovery = hypothesis testing
What are you testing? All the nice, neat assumptions in the business model canvas
• First, you test basic assumptions – problem testing
(learning about the customer, need/problem/want)
• Then, you test the solution – minimum viable product (MVP)
Build, Measure, Learn: the methodology for testing
MVP: The version of your product that gets you through the build, measure, learn
cycle the fastest.
Starring:
Lindsay Sims
of
Lean Startup meets Business Model Canvas
Iterative development
Iterative development
Iterative development
Iterative development
The business model canvas is great for existing businesses
The lean canvas is specifically for startups
Prioritizing Risk
Running Experiments