This document provides an introduction to the StartNowHow seminar series for entrepreneurs. It outlines 10 seminar sessions to be held monthly until summer 2017, each covering relevant theoretical and practical aspects of entrepreneurship. Topics will include opportunity recognition, business model development, funding, and success/failure as an entrepreneur. Sessions will feature guest speakers from industry and be held in English or Turkish on Thursdays evenings. Registration is required through Eventbrite due to limited capacity. Participants can earn a certificate from Bogazici University Entrepreneurship Center for attending at least 70% of sessions.

2. INTRODUCTION
StartNowHow
• Open seminar series for active and prospective entrepreneurs
• 10 sessions on monthly basis until summer 2017
• 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.)
• Certificate provided for participants (from BIC Angels / Bogazici University
Entrepreneurship Center) joining at least 70% of the sessions
• Language: English / Turkish
• Thursdays 17.15h – 19.30h
• Next session: Thu 9. February 2017
• Topic: Market and Competitor Research
• Early registration for each session required (eventbrite), limited capacity!
• Priority for regular participants
Startnowhow – Seminar 212.01.2017 2

3. INTRODUCTION
StartNowHow - Seminar Topics (preliminary)
1. Thu 22.09.16: The entrepreneurial ecosystem in Turkey
2. Thu 20.10.16: Entrepreneurship as a profession
3. Thu 17.11.16: Financial planning for startups
4. Thu 15.12.16: Planning, developing and testing a business model
5. Thu 12.01.17: Opportunity recognition and evaluation
6. Thu 09.02.17: Market and competitor research
7. Thu 09.03.17: Funding the startup – stage financing for ventures
8. Thu 06.04.17: Startup valuation
9. Thu 04.05.17: The investment process – pitching, negotiations and termsheet
10. Thu 01.06.17: Success and failure as an entrepreneur
Startnowhow – Seminar 112.01.2017 3

4. INTRODUCTION
StartNowHow - Literature
• Bowers, Brent, 8 Patterns of Highly Effective Entrepreneurs, Doubleday, New York, NY 2008
• Bygrave, William D. / Zacharaiks, Andrew, The Portable MBA in Entrepreneurship, 4th ed., Wiley,
Hoboken, NJ 2010
• Drucker, Peter F., Innovation and Entrepreneurship, 1st ed. 1985, reprinted 2010, Elsevier, Kiddlington,
2010
• Harper, Stephen C., Extraordinary Entrepreneurship: The Professional’s Guide to Starting an Exceptional
Enterprise, Wiley, Hoboken, NJ 2005
• Hirshberg, Meg Cadoux, For Better or for Work, All Inc., New York, NY 2012
• Hisrich, Robert D. / Peters, Michael P. / Shepherd, Dean A., Entrepreneurship, 9th ed., McGraw-Hill, New
York, NY 2012
• Kuratko, Donald F., Entrepreneurship: Theory, Process, Practice, 8th ed., South-Western, Mason, OH 2009
• Leach, J. Chris / Melicher, Ronald W., Entrepreneurial Finance, International Edition, 4th ed., South-
Western, Hampshire 2012
• Osterwalder, Alexander / Pigneur, Yves, Business Model Generation, Wiley, Hoboken, NJ 2010
• Ries, Eric, The Lean Startup, Crown Business, New York, NY 2011
• Smith, Janet Kiholm / Smith, Richard L. / Bliss, Richard T.,Entrepreneurial Finance – Strategy, Valuation,
and Deal Structure, Standford University Press, Stanford, CA 2011
• Stokes, David / Wilson, Nick, Small Business Management and Entrepreneurship, 6th ed., South-Western,
Hampshire 2010
• Taleb, Nassim Nicholas, The Black Swan – The Impact of the Highly Improbable, revised ed., Penguin,
London 2010
• Timmons, Jeffry A. / Spinelli, Stephen, New Venture Creation – Entrepreneurship for the 21st Century, 9th
ed., McGraw-Hill, New York, NY 2011
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5. OPPORTUNITYRECOGNITION
Entrepreneur Profiles – Motivations
• Pull influences („opportunity-based entrepreneurship“)
• Desire for independence
• Desire to exploit an opportunity
• Turning a hobby / previous work experience into a business
• Financial incentive
• Push influences („necessity-based entrepreneurship“)
• Redundancy
• (Threat of) unemployment
• Disagreement with previous employer
• Desire for independence
• (Source: Stokes / Wilson, Small Business Management, pp.37-38)
• .... But: „Who is the Entrepreneur“?
12.01.2017 5Entrepreneurship
Source: Timmons / Spinelli, New Venture Creation, p. 55

6. OPPORTUNITYRECOGNITION
Entrepreneurship and Innovation
Startnowhow – Seminar 1
Source: Bygrave / Zacharakis, The Portable MBA in Entrepreneurship,, p.32
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7. OPPORTUNITYRECOGNITION
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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8. OPPORTUNITYRECOGNITION
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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9. OPPORTUNITYRECOGNITION
Creativity – The Fear Factor
12.01.2017 9Startnowhow – Seminar 3
Source: Bygrave / Zacharakis, The Portable MBA in Entrepreneurship, p. 37

10. OPPORTUNITYEVALUATION
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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11. 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
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12. OPPORTUNITYEVALUATION
Opportunity Screening Process Funnel
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Source: Harper, Extraordinary Entrepreneurship,, p.127

13. OPPORTUNITYEVALUATION
Classification Guidelines for the VOS Indicator
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Source: Leach / Melicher, Entrepreneurial Finance, p.55

14. 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