Startnowhow - Opprtunity Recognition and Evaluation

Startnowhow - Opprtunity Recognition and Evaluation

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  INTRODUCTION StartNowHow • Open seminarseries 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 212.11.2015 2
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  INTRODUCTION StartNowHow - SeminarTopics (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 212.11.2015 3
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  OPPORTUNITYRECOGNITION Paths of IdeaGeneration • 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 4Startnowhow – Seminar 3
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  OPPORTUNITYRECOGNITION Creativity – TheFear Factor 12.11.2015 5Startnowhow – Seminar 3 Source: Bygrave / Zacharakis, The Portable MBA in Entrepreneurship, p. 37
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  OPPORTUNITYRECOGNITION The Seven Sourcesfor 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 6Startnowhow – Seminar 3
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  OPPORTUNITYEVALUATION Characteristics of SuperiorBusiness 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 7Startnowhow – Seminar 3
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  OPPORTUNITYEVALUATION 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 8Startnowhow – Seminar 3
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  OPPORTUNITYEVALUATION Opportunity Screening ProcessFunnel 12.11.2015 9Startnowhow – Seminar 3 Source: Harper, Extraordinary Entrepreneurship,, p.127
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  OPPORTUNITYEVALUATION Classification Guidelines forthe VOS Indicator 12.11.2015 10Startnowhow – Seminar 3 Source: Leach / Melicher, Entrepreneurial Finance, p.55
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  OUTLOOK StartNowHow - Outlook •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 312.11.2015 11
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  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]