Koç University, Outreach Partner inTurkey

WEBINAR JANUARY 5, 2012 Jacques Couvas Prof. Dr. Zeynep Gürhan Canli

AGENDA 1.Social Entrepreneurship: What Is Not, What Really Is 2.Planning your Project: a.Identifying the Opportunity b.Understanding the Market 3.First Deliverable: The Executive Summary

SOCIAL ENTREPRENEURSHIP What Is Not What Really Is 1

The ASHOKA View

SE Really Works!

PLANNING YOUR PROJECT 2

IDENTIFYING THE OPPORTUNITY The « spark » Two schools of thought: Opportunities are discovered and rationalized Opportunities are created, exploited, reidentified, iterative Rational/Economic Process Effectuation Process 2.a.

SE = A Collective Process!

UNDERSTANDING THE MARKET Research is critical to developing a plan and to an understanding of the market in which your product/service competes. Secondary data-Primary data Primary data sources include both qualitative and quantitative sources. Market potential is the maximum amount of sales obtainable in a category 2.b.

UNDERSTANDING THE MARKET Market potential= Maximum Buying/Using Units X Buying Ceiling X Purchase/Usage Rate (re-buy) X Purchase/Usage Quantity X Average Price 2.b.

UNDERSTANDING THE MARKET Potential market: The User Gap Thorough understanding of the “consumer” Macro: Driving forces (social, technological, political, economic) Micro: Understanding of individual motivations 2.b.

UNDERSTANDING THE MARKET Motivations What are the consumers’ objectives? What are they really buying/using? What elements of the product/service do consumers value most? How do segments differ in their motivation priorities? 2.b.

UNDERSTANDING THE MARKET Unmet need Why are some consumers dissatisfied? How are they currently solving their problems? What are the severity and incidence of consumer problems? What are some unmet needs that consumers can identify? Are there some of which consumers are unaware? 2.b.

UNDERSTANDING THE MARKET Cost structure of the market Distribution systems Core competency: A skill that leads to a sustainable competitive advantage 2.b.

FIRST DELIVERABLE: Executive Summary Deadline for Submission of Selected Turkish Executive Summaries to LBS: January 19 Deadline for Submission of Your Executive Summary to GSVC (Koç): January 15 3

EXECUTIVE SUMMARY Structure

GENERAL FRAME I.Business Description II.The Problem III.The Solution IV.The Market V.Why Should I Invest in You? VI.The People VII. Financial and Social Impact

WHAT’S THIS BUSINESS ABOUT I. Business Overview Company description and business model Value proposition- financial Value proposition- social or environmental Vision Current status

THE PROBLEM II. The Market Opportunity (the problem, the pain) Why is this such a great idea? Describe the pain, define the problem Competitive analysis (analysis of the current competition and assessment of why the pain or problem is not being solved by others)

THE SOLUTION III. Market Solution Product(s) or service(s) How you will remove the pain, solve the problem Unfair competitive advantages, Ability to create barriers to entry

WHO WILL BUY IV: The Market Identification of Customer(s) Industry analysis and forecast (Comparative Analysis. Find a company in a similar space or with similar model and compare their growth rate, etc. to yours.)

PEOPLE V. Management Team Founders and key management Industry experience, Education Board of advisors (Critical to the assessment of the overall viability - Can augment team experience if needed) Optional: Board of directors (3 required by law, usually not until first round of institutional funding in place)

PERFORMANCE CRITERIA VI. Financial and Social Impact Summary Narrative overview of financial summary Outline overall financial model with basic projections Discuss assumptions and capital requirements Narrative overview of social / environmental impact summary Framework by which you are assessing your impact (see examples on the GSVC website) Basic projections; Discuss assumptions and outcome measurements

MANAGEMENT DISCUSSION (Optional) How will you use the initial funds (  milestones)? Why do you think you are best suited for this project? Why should anyone invest in your social entreprise? Can your idea and model achieve scalability, i.e. be replicated in order to expand? How do you think this could be accomplished?

EXECUTIVE SUMMARY LENGTH Ideally 2 – Maximum 3 pages

Q & A

Koç University GSB, Partner for Turkey