What Is Your Business Model Hypothesis?

After assessing your startup idea, it’s time to translate it into a business model hypothesis, which will help you on better:

  1. Visualizing the idea: the business model hypothesis will consolidate the problem and the solution in the business model component called “value proposition” which—with other 8 components—will bring you a clearer picture of what you’re aiming to build.
  2. Communicating the idea: once it is easier to visualize it, it will be easier to communicate your idea to other stakeholders as: employees, co-founders and investors.
  3. Iterating the idea: With a structured framework, it will also be easier to analyze and define which assumptions should be tested first and how could you iterate your business model hypothesis in order to achieve success.

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Are You Founding a Startup Or A Small Company?

Your first step in building a successful startup is… to be sure you should really found a startup (instead of a small company). Seriously, think about that.

In the last years, the word “startup” became so popular that it’s commonly used as a synonym for ‘a small company’ or ‘a company recently founded’.

And, believe me, the difference is huge.

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Think Exponentially When Building Your Startup

With the first version of your business model canvas, you are ready to check if your assumptions will succeed or fail.

However, I ask you to think BIG.

Salim Ismail, Michael Malone and Yuri Geest identified 10 attributes of what they call the Exponential Organizations (check their book here):

An Exponential Organization is one whose impact (or output) is disproportionally large—at least 10x larger—compared to its peers because of the use of new organizational techniques that leverage accelerating technologies.

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Business Model Generation by Alexander Osterwalder and Yves Pigneur

A great business model is the basis of any successful startup.

In this book, you’ll learn about The Business Model Canvas (BMC)—which is a very objective framework that will help you on designing, analyzing and iterating your business model.

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Exponential Organizations by Salim Ismail, Michael Malone and Yuri Van Geest


Are you designing your startup to be an exponential organization?

Don’t know what it is? Let’s hear the authors:

“An Exponential Organization is one whose impact (or output) is disproportionally large—at least 10x larger—compared to its peers because of the use of new organizational techniques that leverage accelerating technologies.”

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Assessing Your Startup Idea: The Problem, The Solution And The Business Model

Once you are completely sure about founding a startup (and not a small company) it’s time to assess the current strength of your startup idea.

Of course, this very first assessment is not a prediction of your startup success. Instead, the intention is to help you on thinking about the components of a great startup idea and which of these components you still need to further investigate and validate in your own idea.

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