Building Cohort Models that Work- Lessons Learned from Two Years of Practice

Overview

Entrepreneurship is already challenging. But when there's limited access to practical business education to help entrepreneurs develop necessary skill sets to get their idea off the ground, starting a business is even more difficult. 

Cohort based models, where entrepreneurs learn key fundamentals by doing and challenge other participants to think of their businesses in a new way, are one way to break down these barriers and reduce trial and error associated with starting a business.

But cohorts don't just work. They have to be designed intentionally and need to evolve based on lessons learned. And when they do work, they can have long lasting ripple effects within communities. 

We've spent the past two years refining our cohort models, supported by a grant from the Minnesota Department of Employment and Economic Development (MN DEED) and other community partners. From this work, we learned six key tactics to build an environment where cohorts can thrive.

We hope this model can foster innovation and sustainable business development in additional ecosystems.

Key Lessons Learned

One of the most valuable lessons learned from this project were reproducible methods to run successful multi-session education cohorts. From hosting proven CO.STARTERS cohorts to launching a self-built incubator, the following key tactics have led to 75%+ graduation rates and continued meaningful engagement with our organization post cohort:

• Creating an environment where participants felt part of something bigger than themselves.

• Providing honest and empathic feedback on a business idea.

• Building a robust admissions process.

• Providing mini incentives to encourage progression towards completion of a final project.

• Additional pipeline of programs to offer support at different business stages.

• A curriculum and process that evolved based on lessons learned and participant feedback.

Creating a strong sense of belonging has been key to cohort engagement. Participants often express how motivating it is to be part of a group that pushes them to grow and helps them identify as entrepreneurs. This collective identity encourages them to see our organization as a central hub where they are not alone in their journey. The result is a natural sense of accountability—participants show up not just for themselves but also to support their peers. Even when they don’t need direct help, they engage actively in group dynamics, strengthening peer learning and shared responsibility. This culture of encouragement directly enhances program outcomes and long-term commitment.

Feedback is structured to be honest yet empathetic, encouraging participants to refine ideas without labeling them as successes or failures. From the cohort start, expectations are set that ideas will be openly questioned to uncover assumptions and generate new perspectives. This process creates a safe but challenging environment where entrepreneurs build confidence in articulating their business concepts. Peer-to-peer input allows founders to see blind spots and opportunities they might otherwise miss. Over time, participants highlight this approach as one of the most valuable aspects of their cohort. By normalizing open dialogue, these programs equip entrepreneurs with resilience and adaptability for real-world challenges.

How participants are selected for the cohort greatly affects their engagement. When cohorts are limited or require a small fee, participants value the program more and treat it as a privilege. Even modest costs establish a sense of commitment, signaling that the program is a meaningful opportunity and one worthy of dedicated engagement.. Compared to free programs, those with a small investment lead to higher attendance, stronger preparation, and deeper engagement. Participants also take pride in being specially selected, which fuels their motivation. This process raises the quality of the cohort and strengthens the perceived impact of the incubator.

Completion of a major project additionally helps with cohort retention and provides something tangible at the end of the program that helps move participants’ businesses to the next, more advanced stage of development. This project could be a business canvas, a more complex business plan, or any other completed work that provides evidence of the weeks and months of focus during the cohort. Personalized milestones, breaking down the project into small bites, have been especially effective, allowing participants to feel a sense of accomplishment through completion of small tasks throughout the multi-week cohort process.

A pipeline of programs to facilitate support in addition to the primary education cohort has been critical to continue to engage graduates with our organization years after their cohort ends. This allows for service opportunities along multiple points of the graduate’s business journey, building upon the trust created during the original cohort. This decreases barriers for the entrepreneur, allowing them to access information and assistance through one resource or network of resources, removing the need to build new relationships, and the associated trust, as their business grows. We’ve found that an alumni network is one of the most valuable additions to our programming, allowing graduates to continue to develop peer-to-peer relationships in a semi-faciliated manner after the consistency of their program is complete.

And lastly, curriculum that evolves and adapts based on learning and participant feedback has proven key to consistently providing high value to participants. This work involves a bottom up approach, taking time to understand the journey of those served through the programs and what is most useful for their development. It flips the honest feedback around, demanding us, as the organization, to listen to the experiences of our participants and modify topics of focus, adjust cohort length and delivery, and make other adjustments as needed. This listening has allowed us to understand that our participants value most learning from shared perspectives of their peers and more experienced entrepreneurs, not necessarily from an overly academic approach.

Case Study

Participant Background

Bereket arrived in the United States as a refugee from Ethiopia shortly before joining Collider’s second Business Incubator cohort in winter 2024. A mechanical engineer by training with years of experience building food processing machines, he brought with him the vision of designing a machine capable of producing Injera Bread, a traditional fermented flatbread made from teff. With a growing Ethiopian community in Minnesota and Illinois and increasing demand from restaurants serving traditional food, Bereket saw an opportunity to scale production efficiently. However, starting over in a new country presented major barriers—unfamiliarity with American business systems, lack of a credit history, limited local connections, and no prior business training despite his academic and professional background.

Engagement with Collider Program

After 1:1 advising through Collider’s Startup Support program, Bereket applied to the Business Incubator with the goal of refining his idea and developing a detailed business plan. Throughout the 12-week program, he participated in workshops, received mentorship from Collider’s Entrepreneur in Residence, and accessed guidance from the SBA and SBDC on funding and financial planning. He gained critical skills in areas such as web design, legal structures, and financial planning, and practiced pitching his idea to an audience. Through the program, he became connected to Rochester’s entrepreneurial ecosystem and gained confidence navigating his new community.

Progress Made

Just three months after graduation, Bereket filed an LLC alongside three business partners. Together, they launched ENAT, an Ethiopian restaurant in Rochester, beginning with a weekly pop-up at the summer festival “Thursdays on First.” The restaurant is scheduled to open officially in fall 2025, and Bereket has successfully built his Injera-making machine, which is currently awaiting inspection. Through investment from friends and family, the venture secured about $200,000 in startup funding. Today the business has three equity partners, two operation partners, and employs additional staff, contributing to local job creation and cultural diversity in the Rochester food scene.

Challenges and Outcomes

One of Bereket’s early setbacks was the inability to access traditional bank financing due to his immigration status. Partnering with others proved critical, allowing him to pool resources and broaden the venture from a machine-focused business to a full restaurant that will also serve as a distribution point for Injera. The Incubator program provided tools and knowledge that helped him adapt to Rochester’s business culture, overcome barriers, and move his vision forward. Bereket’s journey highlights the importance of access to education, networks, and capital for underrepresented founders, and demonstrates how entrepreneurship can build resilience and inclusion in Southeast Minnesota’s economy.

Future Outlook

Next steps for Bereket include passing the inspection of his Injera machine, securing first commercial buyers, and launching the official opening of ENAT. Continued access to financial and technical resources will be key as the business scales. Reflecting on his experience, Bereket expressed deep gratitude for the guidance and encouragement he received at Collider, noting that the incubator gave him the confidence and tools to start again in a new country and bring his entrepreneurial vision to life.

Future Direction

As we move forward with this work, lessons learned and participant feedback has helped to refine and narrow the programming for community incubator participants and the role of expert mentors has been more clearly defined. We additionally are looking to further our pipeline of support by launching a microloan fund, offering loans of up to $5,000, to entrepreneurs participating in these programs who are most often excluded from traditional funding mechanisms. In addition, we look forward to investing in partnerships to support program capacity and expand our mentor network, adding more diverse perspectives to our alumni network of graduates, and tracking longer term business survival rates, revenue growth, and job creation from program graduates.

Research by: Amanda Leightner (Executive Director) and Juliana Silva (Director of Startup Support)

This work was additionally supported by: Mayo Clinic, the Southern Minnesota Initiative Foundation, Knutson Construction, First Alliance Credit Union, Altra Federal Credit Union, Fredrikson & Byron, MInnwest Bank, the Small Business Development Center, and Think Bank.