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StartNowHow
• Open seminar series for active and prospective entrepreneurs
• 10 sessions on monthly basis until summer 2016
• Covers relevant theoretical and practical aspects of entrepreneurship
• Based on lecture „entrepreneurship“ @Bogazici University
• Based on experiences of entrepreneurs, investors, mentors and consultants
• Each session with guest speaker (entrepreneurs, investors, mentors, etc.)
• Language: English / Turkish
• Thursdays 17.15h – 19.30h
• Next session: Thu 10. December 2015
• Topic: Planning, developing and testing a business model
• Certificate provided for participants joining at least 70% of the sessions
• Early registration for each session required (eventbrite), limited capacity!
• Priority for regular participants
Startnowhow – Seminar 2 12.11.2015 2
INTR
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StartNowHow - Seminar Topics (preliminary)
1. Thu 1.10.15: The entrepreneurial ecosystem in Turkey
2. Thu 15.10.15. Entrepreneurship as a profession
3. Thu 12.11.15: Opportunity recognition and evaluation
4. Thu 10.12.15: Planning, developing and testing a business model
5. Thu 7.1.16: Market and competitor research
6. Thu 11.2.16 (tbc): Financial planning for startups
7. Thu 10.3.16 (tbc): Digital Marketing planning and control
8. Thu 14.4.16 (tbc): Funding the startup – stage financing for ventures
9. Thu 12.5.16 (tbc): The investment process – pitching, negotiations and termsheet
10. Thu 9.6.16 (tbc): Success and failure as an entrepreneur
Startnowhow – Seminar 2 12.11.2015 3
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Paths of Idea Generation
• The Alertness Path:
• Discovery by constant alertness, constant scanning of environment for opportunities
• Source of ideas: Environment
• Source of differentiation: Learning
• Process: Spontaneous
• Basis of discovery: Subconscious
• Fit with entrepreneur: Typically poor
• The Search Path:
• Discovery by systematic search for a problem solution
• Source of ideas: Information channel
• Source of differentiation: Knowledge
• Process: Deliberate
• Basis of discovery: Conscious
• Fit with entrepreneur: Typically strong
• Often, idea generation is a mix of both paths
• Ideas are often generated by a combination of play, improvisation, and observation
• (from: Bygrave / Zacharias, The Portable MBA in Entrepreneurship, pp.30-31)
12.11.2015 4 Startnowhow – Seminar 3
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Creativity – The Fear Factor
12.11.2015 5 Startnowhow – Seminar 3
Source: Bygrave / Zacharakis, The Portable MBA in Entrepreneurship, p. 37
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The Seven Sources for Innovative Opportunities
• The Unexpected
• Example: Unexpected success of IBM PC
• The Incongruous
• Examples: Invention of container ships / roll-on-roll-off ships, overnight package delivery
• Process Needs
• Examples: McDonalds, microwave ovens
• Industry and Market Structures
• Examples: Printing industry, ERP software, media industry
• Demographics
• Examples: Health care industry, universities in Turkey
• Changes in Perception
• Examples: Fashion industry, organic food
• New Knowledge
• Examples: Electricity, light bulb, internet, mobile phone, robotics, ...
• Source: Drucker, Innovation and Entrepreneurship, pp.27-117
12.11.2015 6 Startnowhow – Seminar 3
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Characteristics of Superior Business Opportunities
• Added value
• Venture creates or adds significant value to a customer or end user
• Venture solves a significant problem
• Venture adds value by solving a significant problem, removing a serious pain, or meeting a significant want or need
• Someone is willing to pay a premium for solving this problem
• Venture has robust market, margin, and money-making characteristics
• Large enough market (min. 50 Mio $)
• High growth expectation (min. 20% p.a.)
• High gross margins (min. 40%)
• Strong and early cash flow (recurring revenue, low assets, low working capital)
• High profit potential (min. 10% - 15% after tax income)
• Attractive, realizable return for investors (Internal Rate of Return IRR min. 25% - 30%)
• Venture fits to skillset
• Good fit with founder(s) and managment team skills for that time and marketplace
• Attractive risk-reward balance
• Source: Timmons / Spinelli, New Venture Creation, p.150
12.11.2015 7 Startnowhow – Seminar 3
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Sustainable Competitive Advantage
• Necessary: Resource bundle that is valuable, rare and inimitable
• Resources are all inputs to production process – land, raw materials, machinery, other fixed assets, patents, licenses, employee skills, management skills, knowledge, ...
• Resource bundle is valuable when it enables the firm to pursue opportunities, neutralize threats, and offer products and services that are valued by customer
• Resource bundle is rare when it is possessed by few, if any, (potential) competitors
• Resource bundle is inimitable when replication of this combination of resources would be difficult and / or costly for (potential) competitors.
• Core resource: Entrepreneurial knowledge
• In mind of entrepreneur, or in collective mind of employees / management team
• Source: Market knowledge
• Source: Technology knowledge
• Source: Hisrich / Peters / Shepherd, Entrepreneurship, pp.67-70
12.11.2015 8 Startnowhow – Seminar 3
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Opportunity Screening Process Funnel
12.11.2015 9 Startnowhow – Seminar 3
Source: Harper, Extraordinary Entrepreneurship,, p.127
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Classification Guidelines for the VOS Indicator
12.11.2015 10 Startnowhow – Seminar 3
Source: Leach / Melicher, Entrepreneurial Finance, p.55
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• Today‘s materials will be made available to participants for downloading
• Next Seminar: „Planning, testing and developing a business model“
• Guest Speaker: Ömer Erkmen, Angel Investor and Mentor (tbc)
• Thursday, 10.12.2015, 17.15 – 19.30h
• Don‘t forget to register early (eventbrite) - capacity 50 people!
• Priority for participants / registrants from today‘s session
• General rule: Allocation of seats according to participation
• Regular participation = certificate (70% participation)
Startnowhow – Seminar 3 12.11.2015 11
BIC ANGEL INVESTMENTS Dr. Joachim Behrendt
Phone: +90 212 328 1939 Fax: +90 212 328 1933
www.bicangels.com http:/twitter.com/joachimbehrendt http://tr.linkedin.com/pub/joachim-behrendt/18/706/a7a
Email: [email protected]