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Being an Entrepreneur in Turkey (2017) (Caution! It has magic & illusion show)


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Are you graduating soon?
looking for a Job?
Want to get job hunt?
Want to start a business?
Do you have Entrepreneurial spirit?
And finally, are you in Turkey and want to do something?
Do not start anything before reading this presentation!

Live performance of this presentation is in

Being an Entrepreneur in Turkey (2017) (Caution! It has magic & illusion show)

  1. 1. START-UP PITCH DECK International Business Conference Istanbul Aydın University 2017.05.11 Being Entrepreneur in Turkey Onur B. Çağlar ● Serial Entrepreneur ● C Level Professional ● Academician ● Consultant +90 533 6330011 @obcag00
  2. 2. START-UP PITCH DECK International Business Conference Istanbul Aydın University 2017.05.11 Being Entrepreneur in Turkey Onur B. Çağlar ● Serial Entrepreneur ● C Level Professional ● Academician ● Consultant +90 533 6330011 @obcag00
  3. 3. ABOUT ME
  4. 4. My professional history START 1998 - University graduation - 3rd year in career 3 years before having my bachelor degree, I already started my professional career. I started from field, hardware and customer support departments. 2006 - Professional career break - Military obligation completion - Entrepreneurship / 1st Startup My main milestone was at Cukurova Group (YKB, Superonline, Mapco, Turkcell/Shubuo). For military obligation I left the Turkcell, I completed with honour degree. After military, I founded my first startup Pozitim as edge mobile and internet technology company. I traveled Europe, Asia and Africa for selling technology platform and services,
  5. 5. TODAY My professional history 2013 - Finance sector career - 2 more startup After dead-end disputes and vicious circle with my initial partners, I left my startup by selling my shares. Then, my other main industry venture started, finance sector is strong milestone in my life. I worked in Bank, Payment and E-Money companies as C level. Beside I participate in 2 startup (1st is digital agency, 2nd one is financial service) 2015 - Academic career - Consultancy - 1 more startup - 2nd startup has failed Another main milestone in my life is an academy. I started my unfinished academy career by giving lectures here and continue for PhD program. We closed agency because of partners’ disagreement. We founded another finance service, try to find investor, tender and big customer agreements. Moreover, I am advisor in several sector. Planning 2 more vertical startup
  7. 7. Turkey snapshot GDP USD 857 billion (2016-Current Prices) GDP Per Capita USD 10,807 (2016) Exports Value USD 143 billion (2016) Imports Value USD 199 billion (2016) Tourism Revenue USD 22.1 billion (2016) Tourist Number 25.3 million (2016) Foreign Direct Investment USD 12.3 billion (2016) # Co. with Foreign Capital 53,200 (2016) Inflation Rate 8.5% (CPI-2016) Major Exports Markets Germany (9.8%); UK (8.2%); Iraq (5.4%); Italy (5.3%); USA (4.6%); France (4.2%); UAE (3.8%); Spain (3.5%); Iran (3.5%); Netherlands (2.5%) (2016) Major Imports Sources China (12.8%); Germany (10.8%); Russia (7.6%); USA (5.5%); Italy (5.1%); France (3.7%); South Korea (3.2%); India (2.9%); Spain (2.9%); UK (2.7%) (2016) Trade Agreements •Customs Union Agreement with the EU •Free Trade Agreements with Albania, Bosnia Herzegovina, Chile, EFTA member countries (Switzerland, Norway, Iceland and Liechtenstein), Faroe Islands, Ghana, Kosovo, Lebanon, Egypt, Georgia, Israel, Jordan, Singapore, South Korea, Syria, Macedonia, Malaysia, Mauritius, Moldova, Montenegro, Morocco, Palestine, Serbia, Tunisia
  8. 8. Turkey economic outlook ++ Economy performed remarkably well with its steady growth last 14 years. Macroeconomic strategy, prudent fiscal policies, major structural reforms have all contributed to integration of Turkey’s economy into the globalized world. Reforms is allowing the economy to grow at an annual average real GDP growth rate of 5.6% from 2003-2016 Annual Average Real GDP Growth (%) 2003-2016 Source: OECD
  9. 9. Turkey economic outlook + Past 14 years performance has encouraged experts and international institutions to make confident projections about Turkey’s economic future. Turkey is expected to be one of fastest growing economies among OECD members during 2015-2025, with an annual average growth rate of 4.9% Annual Average Real GDP Growth (%) Forecast in OECD Countries 2015-2025 Source: OECD
  10. 10. Turkey economic outlook Significant improvements in short period of time have registered Turkey 17th largest economy in world and 6th largest economy in EU (2016 GDP,IMF) ✓ Institutionalized economy fueled by $180 billion of FDI in past 14 years ✓ Robust economic growth with an annual average real GDP growth of 5.6% during 2003-2016 ✓ GDP reached $857 billion in 2016, up from $236 billion in 2002 ✓ Sound economic policies with prudent fiscal discipline ✓ Strong financial structure that is resilient to global financial crises
  11. 11. 60 billion TL 2016 investment budget 2017 Education investment 2017 investment budget 2017 Transport investment 2017 Governmental budget ✓ Inflation rate target is 5% ✓ Investment allocation would be increase about 30% ✓ R&D and Innovation supports would be 5,8 billion TL ✓ Metropolis & Provincial administrations investment would be 58,4 billion TL ✓ BES (Individual Pension System) budget would be 3,9 billion TL 78 billion TL 13,7 billion TL 2017 Agriculture investment 10,3 billion TL 2017 Health investment 7,1 billion TL 22,1 billion TL
  12. 12. R&D and Innovation is our future ✓ R&D allocation in national revenues is a KPI of that country’s level of development; R&D% in Turkey’s national income is only 0.92% ✓ # of patent applications has quadrupled in 10 years and number of academic publications has similarly increased ✓ To reach Turkey’s targets for 2023, # of projects should increase 22%, while TUBITAK is focused on reaching a goal of a 25% increase every year ✓ USA started to provide such support (develop projects for industrialists and entrepreneurs’ idea) 50 years ago ○ We are 50 years behind them, we need to move faster
  13. 13. FDI inflow to Turkey
  14. 14. Companies with International Capital Source: Ministry of Economy As of end of 2016, 53.200 companies with foreign capital operate in Turkey. .
  15. 15. 10 reasons to invest in Turkey Population Successful Economy Qualified And Competitive Labor Force Liberal and Reformist Investment Climate Centrally Located Infrastructure Energy Corridor and Terminal of Europe Low Taxes and Incentives Large Domestic Market Customs Union with the EU since 1996
  16. 16. TR Investment incentives Effective as of Jan 1, 2012, the new investment incentives system has been comprised of four different schemes. Local and foreign investors are equal: 1. General Investment Incentives ○ Exemption from customs duties ○ VAT exemption 2. Regional Investment Incentives ○ Minimum fixed investment amount is defined separately for each sector and region with lowest amount being 1 million TL for Region 1 and 2, and 500,000 TL for remaining regions 3. Large-Scale Investment Incentives ○ 12 investment subjects, which will potentially foster Turkey’s technology, R&D capacity and competitiveness, are supported by Large-Scale Investment Incentives Scheme instruments 4. Strategic Investment Incentives ○ Domestic production for product to be manufactured with investment shall be less than import of product. ○ Investment shall have a minimum investment amount of 50 million TL ○ Investment shall create a minimum added-value of 40% (this condition is not applicable to refinery and petrochemicals investments) ○ Total import value of product to be manufactured with investment shall be minimum of $50 million as of past one year (excluding products that are not locally produced)
  17. 17. Such as SW, medicine & medical devices, agriculture, food, biotechnology, ICT & high-tech sectors R&D Law TR R&D incentives Technoparks Industrial Thesis TUBITAK TTGV Technology development zones in most university and city’s chamber of trade centers Financial support for new tech. adaptation, process dev.,quality improvement, env. modification projects w/ university Scientific & Technological Research Council compensates/grants R&D expenses & capital loans for R&D projects Long-term interest-free loans for R&D on agriculture tech, health tech, education tech& energy efficiency
  18. 18. Establishing a startup / company 1. Find thawing problem / idea for startup 2. Find a local co-founders (at least 3 - technical, back office, marketing) 3. Design your Business model canvas 4. Write Business plan to convince investor (even your father) 5. Start to develop your solution with Agile & Cool-farming methodology 6. Establish your company w/ following regulation ○ Find a lawyer and a financial advisor ○ Submit memorandum and articles of association at MERSIS (Central Registry Record Sys) ○ Execute and notarize company documents ○ Obtain potential tax identity number ○ Deposit a percentage of capital to account of Competition Authority ○ Deposit at least 25 percent of startup capital in a bank and obtain proof thereof ○ Apply for registration at Trade Registry Office ○ Certify legal books by a notary public ○ Follow up with the tax office on Trade Registry Office’s company establishment notification ○ Issuance of signature circular: After the company has been registered before Trade Registry signatories of company must issue a signature circular. All details at:
  20. 20. Risks of automation of business areas in countries
  21. 21. Highest automation possibility of business areas
  22. 22. What is real entrepreneur? Entrepreneur is spark that makes self-motivated when things are not going on way It is push that you do it over stress and excitement, fear and brevity. Best entrepreneurs have belief & see vision in their mind A successful entrepreneurs are their own cheerleaders, they can handle setbacks, control emotions, get over routine struggles no matter whether things are doing great or not. Moving forward, persistence and determination drive best of best Entrepreneurship is a mindset — without these qualities people are employees
  23. 23. A day in the life of
  24. 24. Entrepreneur’s 9 intangible assets 01 Ingenuity 02 Stubbornness 03 Cool under pressure 04 Network & Peers 05 Perseverance 06 Vision 07 Blind optimism 08 Opportunistic 09 Execution
  25. 25. 10 effortlessly do to rocket your startup Keep the meetings short 01 02 03 04 Stop multitasking - or do not do it way you do it now! Listen to your critics Challenge yourself Network, network, network 05 06 07 08 Become better listener Take care of your health Learn something new every day Do what you love 09 10 Don’t be afraid to take tough decision
  26. 26. Benefits of being entrepreneur?
  27. 27. Reasons why professional leaves the job
  28. 28. Top 10 places for eureka! moment
  30. 30. What is exactly startup? ✓ A startup is not a smaller version of a large company ✓ A startup is a temporary organization in search of a scalable, repeatable, profitable business model ✓ At outset, startup business model is a canvas covered with ideas and guesses, but it has no customers and minimal customer knowledge
  31. 31. To build a startup While building a product or a service or a content or an innovation and getting into real world; ✓ measure customers’ reactions and behaviors, ✓ learn from those returns, ✓ use what you’ve learned to build something better. Repeat those steps, learn from experiences and feedbacks, whether to; ✓ iterate, ✓ pivot or ✓ restart until you have something that customers love.
  32. 32. Not traditional anymore prefer agile methods
  33. 33. If you still use traditional methods!
  34. 34. Scalable startups
  35. 35. Think ahead Think ahead to reach your goals and never look back Devising a winning strategy is always a challenge Strategy includes; ✓ “Strategic Planning”, ✓ “Innovation”, ✓ “Execution”, ✓ “Value Creation” and ✓ “Competitive Advantage” for your startup’s future success depends on it
  36. 36. Turn Your Great Idea Into the Next Big Thing “coolfarming” is methodology tells you how to tame and grow your own buffalo herd in process
  37. 37. Coolfarming process 01 02 03 04 Coolfarming is swarm-based innovation process happens in four steps: 1. The CREATOR comes up with the cool idea 2. The creator recruits additional members to form a Collaborative Innovation Network (COIN) 3. The COIN grows into a Collaborative Learning Network (CLN) by adding friends and family 4. Outsiders join, forming a Collaborative Interest Network (CIN)
  38. 38. Coolhunting Find trends through trendsetters Great coolfarmers are also great coolhunters An in-depth understanding of coolfarming process is key for successful coolhunting, which explains why talented coolfarmers are also good in spotting new trends early on
  39. 39. Coolhunter Finds the cool trends before the crowd discovers them Let’s look at team behind innovative new product is best predictor of future success ✓ This concept is foundation of our coolhunting process ✓ Basic idea of coolhunting is very simple. Find people who create cool trends, and you have also found trends ✓ But finding these people is not so easy. While we have discussed characteristics of creator, these traits are hard to spot from outside Coolhunting combines wisdom of crowds, experts and swarms Exercise Who is your admired Coohunter?
  41. 41. Strategic perspective of investors Venture capital may be defined as a financing method at early stage. Venture capital funds finance dynamic and new established enterprises with a big profitability and growth potential through a partnership with these enterprises. VCs Angel Investors PE Incubators To become an angel investor it is required to obtain an Angel Investor Licence (Treasury). There are two main criteria to assess business angels which are: high income earner and experience. It is is physically locating in one central work space with many startups. Startups in incubators can all be venture funded by the same investor group Private equity must be incorporated, as a registered capital corporation in form of Joint Stock Company and shares must be issued in return for cash. Paid-in or initial capital must be minimum 20.000.000 TL having phrase of "Private Equity Investment Trust" on its commercial title Accelerators It is similar like incubator, but here, space is typically limited to a 3-4 month period, basically intended to jump start startup and then kick you out of the nest
  42. 42. 2017 Q1, $19.4 mil. was invested in 23 investment rounds. $6 mil. raised in seed rounds and $13 mil. raised in iyzico investment. We still need more investments in Serie A & B rounds 2017 Q1 funding activities in Turkey
  43. 43. 2017 Q1, $19.4 mil. was invested in 23 investment rounds. $6 mil. raised in seed rounds and $13 mil. raised in iyzico investment. We still need more investments in Serie A & B rounds 2017 Q1 funding activities in Turkey
  44. 44. 2017 Q1 funding activities in Europe
  45. 45. Since 2010, the investment environment has always been up by one or two investors. More players and more investors are needed to drive the ecosystem up. Funding activities in Turkey since 2010
  46. 46. Illusion break!
  48. 48. Top Biz priorities for 2017 & 2018
  49. 49. Gartner’s hype cycle for emerging technologies
  50. 50. Request for startups from funds
  52. 52. Write your story New and continuous stories base on your SWOT Strengths Weaknesses Opportunities Threaths ● Your country’s culture and superior aspects ● You know Turkey ● Language ● Limited residence and working visa ● We love foreigners ● We adapt easily to newness and tests ● Corporate and governmental funds ● Emotional society
  53. 53. Describe why it is now the best moment to use your solutions Describe your unique selling proposition. Your solution Describe their main gaps. Competitors
  54. 54. 20% 40% 60% Describe a trend that explains why your solution makes sense in the current panorama. AI (Artificial Intelligence) Describe a trend that explains why your solution makes sense in the current panorama. IoT Describe a trend that explains why your solution makes sense in the current panorama. AR & VR (+Reality) Surf on customer trends and emerging areas
  55. 55. MARKET SIZE
  56. 56. Identify your customer segments 01 A+ Affluents 02 A and B urban professionals 03 C1, C2 urban students 04 C3, D blue-collar worker
  57. 57. Base on market research 15.5 M 29 M 12 M 18,8 M Domestic money transfer userDigital payment user Int. money transfer /year 1.6 M Tradesman 7 M 8.5M Expatriate Smartphone owner15-40 age Internet & TV owner
  59. 59. Show similar successful business models 65% Spain 85% U.S. 72% Mexico Describe trends by region U.S. Describe trends by region Spain Describe trends by region Mexico
  60. 60. List competitors and why your solution is better than 01 Describe competitor in a sentence 02 Describe competitor in a sentence 03 Describe competitor in a sentence 04 Describe competitor in a sentence 05 Describe competitor in a sentence
  62. 62. Enjoy reliability, content and services Cloud platform with branded subscription based service and content OFERTA ESPECIAL Free 2-Day Shipping on Orders $35 and Up $20 Off Office with 1TB Cloud: See How CARDHOLDER OFFERS 12-Month Financing 6-Month Financing Get 5% Back in Rewards £99.99 PRICE MATCH GUARANTEE With 2-year contract ON SALE SAVE $200 (Reg. $399.99) Describe your solution BENCHMARK TESTS But I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and… min. max. AVERAGE FPS 31 fps 68 fps
  63. 63. в в в вв Roadmap, describe how your solution will be in 18 months Description of the new features and the main benefit for your customer Alpha release Description of the new features and the main benefit for your customer Beta release Description of the new features and the main benefit for your customer Local launch Description of the new features and the main benefit for your customer Silent launch Description of the new features and the main benefit for your customer International launch
  65. 65. Business model development Organization captures delivers value How an organization creates, delivers, and captures value? creates
  66. 66. The Business model canvas 2. Value Propositions 4. Customer Relationships 1. Customer Segments 3. Distribution Channels 5. Revenue Streams9. Cost Structure 6. Key Resources 8. Key Partners 7. Key Activities
  67. 67. The Business model canvas left brain logic right brain emotion
  68. 68. You need to cover ✓ Target segment ✓ Value proposition ✓ Atomic solution ✓ Sales generation ✓ Pricing ✓ UI / UX / CX ✓ Onboarding ✓ Customer journey ✓ Average ticket per customer ✓ Average life time ✓ Business plan preparation
  70. 70. Well prepared Business plan Financial spreadsheets Environment analysis Implementation roadmap SWOT and uncertainty analysis The Business model
  71. 71. Business need to has traction in the market ✓ Sales ✓ Customer requests ✓ Pre-orders ✓ Pilots / tests ✓ Go to market ✓ Growth hack ✓ Customer LTV
  72. 72. Growth hacking (lean AARRR)
  73. 73. Focus on LTV (Life time value)
  74. 74. THE TEAM
  75. 75. My team is the best for such conferences She worked in Europe for app. 18 years I could also make an analysis and comparison concerning (international) business processes, cultures, ethics etc SUKRAN CABUR He is the president of ISU and MBA student in Istanbul Aydin University. He had management experience in finance and several sectors at Afghanistan KAIHAN BARAKZAI Curious social entrepreneur, hopeless romantic, terrible pianist, reckless sailor, published but failed writer, husband in progress, father of a hyperactive daughter, and idol of a neurotic cat. OSMAN CAKIROGLU Online Marketing and E-commerce managing. Broad experience in regional and country based projects in MEA area. A good technical background. GOKALP HARMAN
  77. 77. How startup funding works?
  78. 78. Select way to progress If your are looking for funds: ✓ How much? ✓ With what purposes? ✓ When these investments will take place? In which phase/rounds? If you look for mentors or/and advisors: ✓ Which profiles? ✓ How will you compensate them? (fee, success fee, shares, options)
  79. 79. As a result We don’t need Chief Executives (CEO) but Chief Creators (CCO) I envision a totally different style of leadership. This new style of leadership is based not on “best practices,” not on cookbook recipes of how to do it one right way, but on creativity—individual creativity and swarm creativity. ✓ Empowering individual people at company, instead of amassing all power in hands of CEO who is also chief executor. ✓ In new type of organization, there won’t be CEO, CMO and CTOs ✓ Stakeholders are employees, customers, suppliers, and also management of company. ✓ The managers are not CEOs anymore, but they are CCO (Creator) and CGO (Growth). ✓ Being highly creative themselves, they stand out by unleashing creativity of their swarm— employees, lead users, customers, anybody they touch through their vision and products.
  80. 80. Ihaveadvised6start-ups,Iamstilladvisorof2ofthemandpartnerinanother2. Ifollowaverystrictselectionprocesstogetinvolved. You can contact me on Onur Baran Caglar, MBA ● Lecturer at Istanbul Aydin University, ● PhD Candidate at Istanbul Kultur University ● Advisor in Telecom, Internet and Finance verticals Stay humble, live minimalist!