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

10 pitfalls

Running Experiments