Braintree Business Development Center Mansfield, Ohio

www.braintreepartners.org201 E 5 th Street

Mansfield, OH 44902419-525-1614

Entrepreneurial Paradigm Shift

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

Lean Startup Process

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 OhioWe 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

The Braintree Team

Bob Cohen, CEOTechnology commercializationAgribusiness and cooperativesInternational tradeCrowdfundingPresentation skills

Bob Leach, Director of OperationsInformation technologyEnergy technologiesSocial mediaFacility design and managementMicroSoft BizSpark TM

Barrett Thomas, Learning & LendingBusiness modelingCustomer discoveryBusiness AnalysisAppleseed MicrofinanceTech Sprout

Terrie Bonfiglio, Executive–in–ResidenceBusiness DevelopmentProduct DevelopmentMarket DevelopmentBusiness 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 modelBusiness Model Canvas: The tool to document your businessSearching for the business model = customer discovery = hypothesis testingWhat 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 testingMVP: The version of your product that gets you through the build, measure, learn cycle the fastest.

What are we doing again?

Starring:Lindsay Simsof

Lean Startup meets Business Model Canvas

Iterative development

Iterative development

Iterative development

Iterative development

How to find your business model

…but why are there two canvases?

The business model canvas is great for existing businessesThe lean canvas is specifically for startups

Business Model Canvas vs Lean Canvas

Prioritizing Risk

Running Experiments