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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

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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)

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Creativity – The Fear Factor

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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

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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

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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

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Opportunity Screening Process Funnel

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Source: Harper, Extraordinary Entrepreneurship,, p.127

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Classification Guidelines for the VOS Indicator

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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: j.behrendt@bicangels.com