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 Opportunityb. Understanding the Market

3. First Deliverable: The Executive Summary

SOCIAL ENTREPRENEURSHIP

What Is NotWhat Really Is

1

The ASHOKA View

SE Really Works!

PLANNING YOUR PROJECT

2

IDENTIFYING THE OPPORTUNITYThe « spark »Two schools of thought:

Opportunities are discovered and rationalizedOpportunities are created, exploited, reidentified,

iterative

Rational/Economic Process

Effectuation Process

2.a.

SE = A Collective Process!

UNDERSTANDING THE MARKETResearch is critical to developing a plan and to an

understanding of the market in which your product/service competes.

Secondary data-Primary dataPrimary data sources include both qualitative and

quantitative sources.Market potential is the maximum amount of sales

obtainable in a category

2.b.

UNDERSTANDING THE MARKETMarket 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 MARKETPotential market: The User GapThorough understanding of the

“consumer”Macro: Driving forces (social,

technological, political, economic)Micro: Understanding of individual

motivations

2.b.

UNDERSTANDING THE MARKETMotivations

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 MARKETUnmet 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 marketDistribution systems

Core competency: A skill that leads to a sustainable competitive advantage

2.b.

FIRST DELIVERABLE:Executive SummaryDeadline 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 FRAMEI. Business DescriptionII. The ProblemIII. The SolutionIV. The MarketV. Why Should I Invest in You?VI. The PeopleVII. Financial and Social Impact

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

THE PROBLEMII. 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 SOLUTIONIII. 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 BUYIV: 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.)

PEOPLEV. 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 CRITERIAVI. 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 LENGTHIdeally 2 – Maximum 3 pages

Q & A

Koç University GSB, Partner for Turkey