Recommended Book (not mandatory): Alexander Osterwald and Yves Pigneur. Business Model Generation. John Wiley & Sons, Inc., 2010.

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1 KOÇ UNIVERSITY College of Administrative Sciences and Economics MGMT Entrepreneurship & New Venture Development Fall 2013 Key Course Information Lecture Hours: WEB4&MNB4 or WEB6&MNB6 Location: To be announced Instructor: Mahmut N. Ozdemir, Ph.D. Instructor s office: CASE 103 Office Hours: Tuesday 10:00-12:00. If this time is not convenient, make an appointment for a different time. In general, if you knock on my door and I am there, I will be happy to talk to you. maozdemir@ku.edu.tr Phone: Course Description Many believe that entrepreneurs are born not made. However, it is a myth. Would-be entrepreneurs need the knowledge of planning, forming, operating, and growing new ventures. Hence, investing in personal development by taking an entrepreneurship course is necessary to become a successful entrepreneur. Currently, there are two school of thoughts in the entrepreneurship education. The old school emphasizes the importance of planning new ventures. By contrast, the new school pioneered by Steve Blank argues that No business plan survives first contact with customers. Hence, the new school focuses on the customer development process instead of the plan itself. From my perspective, the two complement each other in entrepreneurship education. As a result, you will learn not only how to write a business plan for a new venture but also the basics of Steve Blank s customer development process. Furthermore, you will do several in-class exercises, attend the seminars of guest speaker(s), work on real-life business cases and watch an entrepreneurship movie during the course. These activities and exercises will help you understand the practice of entrepreneurship to a greater extent. Course Objectives At the end of this course, each student should be able to: Write the business plan of his/her new venture Realize the importance of the entrepreneurial mind-set Understand the process of new venture development Aware of the managerial and organizational challenges faced by entrepreneurial firms Formulate the marketing and financial strategies of entrepreneurial firms Understand the nature of the relationship among entrepreneurs, customers and investors My Expectations Below is a list of things that I expect from you during the term. 1. Be creative. Use both your right and left brain. Get familiar with critical and creative thinking skills. 2. Be a good team player. You will form teams of 3-4. Form teams no later than the end of the second session. These teams will work together on business plans, in-class exercises, and case write-ups. Contribute to your team. Commit yourself to the future success of your team. Page 1 of 5

2 3. Be a good networker & collaborator. Do not perceive your classmates as your competitors. Think of them as part of your current and future collaboration network. Think about ways these people help you achieve your dream. Create a LinkedIn Account, invite them (and me as well). 4. Be on time. Don t be late and don t leave early. Finish your assignments on time. The deadlines are fixed and non-negotiable. 5. Be present. I want to see all of you in every session. If you will not be present, let me know via before the class meeting. Please turn off your laptops and smartphones during the class as well. 6. Be active. Participate in class discussions. Comment on your classmate s business plans. Tell them the strengths and weaknesses of their plans. 7. Be open. Do not afraid of sharing your ideas. There are hundreds of thousands of ideas, and unfortunately only very few of them are real business opportunities. Furthermore, given that nearly 7 billion people live in the world, it is hardly possible that you will be the originator of any idea. Share your ideas strategically in order to receive feedback from me, your classmates, and external people so that you can improve your ideas. 8. Be clear and concise in your communication. Revise, edit, and proofread your business plans. Prepare professional presentations. Do not forget that time is money and the readers of your reports and audience of your presentations do not pay attention to your ideas if you are not concise. 9. Be optimistic. I believe you will develop outstanding business plans. Maybe, some of you even begin to implement them immediately. Course Material You will use the following textbooks in this course: Steve Blank and Bob Dorf. The Startup s Owner Manual. The Step-by-Step Guide for Building a Great Company, K&S Ranch, Inc. Publishers, William Bygrave, Andrew Zacharakis. Entrepreneurship 2 nd Edition, Hoboken, NJ: John Wiley & Sons, Recommended Book (not mandatory): Alexander Osterwald and Yves Pigneur. Business Model Generation. John Wiley & Sons, Inc., The teaching notes, cases, and slides of the course will be provided. You can find the other material at the copy center. Grading 25%: Business plan (team). Your main responsibility in this class is to write a business plan. You will form teams of 3 or 4. The same team will also be working on in-class exercises during the term. Your business plan should cover all essential segments of a business plan including executive summary, business description and management team, marketing plan, operations plan, financial plan, milestones and critical risks. You will hand out your business plan and present them in the class at the end of the term. Your business plan should be between pages. It should look professional. Your presentation should be professional as well. 15%: In-class business plan exercises (team). Elevator pitch, business model generation, financial statements preparation. Page 2 of 5

3 25% Mid-term (individual). There will be a mid-term exam. The mid-term exam will consist of multiple choice and short-essay questions. It will be based on readings, cases, and lectures. 25%: Final (individual). There will be a final exam at the end of the term. The final exam will consist of multiple choice and short-essay questions. It will be based on readings, cases, and lectures. 10%: Other in-class exercises (team). You will work on several short cases and exercises during the class hours. You have to be present in the class to receive grades from these exercises. Feasibility Check for your Business Opportunity & Some Tips 1. Entrepreneurial entry by introducing a new service or a product to a target market is essential. Franchising, acquisition, and replicating an existing business in the target market are not viable options. 2. When you evaluate alternative business opportunities, assume that you will pursue it in the short or mid-term. Don t forget that this course may be the starting point of your entrepreneurship career. 3. Find a business opportunity that targets a large market so that you can easily make necessary adjustments in the future. 4. Do not come up with a business opportunity that requires substantial up-front investments. Assume your team has at most $50,000 budget at the beginning. 5. Focus on low-tech or no-tech rather than high-tech unless you invented a breakthrough technology or designed a tangible product in recent years. 6. Focus on providing a service or a simple product rather than a complex product because of higher up-front investment requirements of the latter. 7. Addressing a social need is a viable option. 8. Screen entrepreneurial firms on the Internet (websites, online magazines, blogs etc.). They might inspire you. You can use entrepreneurship sites on the Internet such as Inc.com (Inc 500 and Inc 5000 lists), startupnation.com, entrepreneur.com, smallbiztrends.com, etc. Also, don t forget to check entrepreneurship contests! (e.g. Global Student Entrepreneur Award and its branch in Turkey, Global Universiteli Girisimci Yarismasi, Global Social Venture Competition, Global Social Entrepreneurship Competition, etc.) Student rights, Academic Grievance Procedure, and Classroom Code of Conduct KU Home Page Information for Koç Student Student Code of Conduct Student Rights KU Home Page Information for Koç Student Academic Grievance Procedure KU Home Page Information for Koç Student Classroom Code of Conduct Page 3 of 5

4 Core Course Material & Critical Milestones Date Material MODULE 1: IDEA GENERATION, OPPORTUNITY RECOGNITION AND TEAM FORMATION Sep 16 Introduction Who is an entrepreneur? What is a startup? What are the main domains of the entrepreneurship ecosystem? Chapter 1 (Bygrave & Zacharakis) Sep 18 Introduction What is business planning? Chapter 7 (Bygrave & Zacharakis) Sep 23 Movie Session Sep 25 Movie Session (cont d) Sep 30 Oct 2 Oct 7 Oct 9 Oct 14 Oct 16 Oct 21 Oct 23 Oct 28 Oct 30 Introduction to Blank s customer development model Chapter 1-3 (Blank & Dorf) Idea generation Entrepreneurship process How to identify and evaluate opportunities? Timmon s Model Chapter 2&3 (Bygrave & Zacharakis) How to make effective elevator pitches? Elevator Pitch Exercise (5 pts) Form your teams and pitch your ideas in front of the class in 1-minute. Holiday Holiday MODULE 2: BUSINESS MODELS AND STRATEGY Entrepreneurial strategy Chapter 4 (Bygrave & Zacharakis) Business model canvas Value proposition Customer segments Channels Blank & Dorf pgs Business model canvas (cont d) Customer relationships Blank & Dorf pgs Business model canvas (cont d) Revenue Streams Page 4 of 5

5 Partners Resources, activities and costs Performance metrics Blank & Dorf pgs Nov 4 Business model canvas exercise (5 points) Nov 6 Business model canvas exercise (cont d ) (5points) Nov 11 What are the different types of business models? -Unbundling, the Long Tail, Multi-Sided platforms, FREE, Open Business Models Nov 13 Customer Development Process in a Nutshell -Customer discovery phase II -Customer validation -Customer creation -Company building Business model tests on potential customers Nov 18 Midterm exam (25 pts.) Nov 20 P kolino Case (5 pts). Bygrave & Zacharakis (pgs ) MODULE 3: ENTREPRENEURIAL FINANCE Nov 25 Legal forms of firms. Financing the business: Bootstrapping, cash management Financial statements analysis Bygrave & Zacharakis Chapters 8&9 Nov 27 Financing the business: Bootstrapping, cash Management (cont d) Bygrave & Zacharakis Chapters 8&9 Dec 2 Financing sources (Angel Investors, VCs, IPOs etc), Sustainable growth rate and valuation Chapter 10 (Bygrave & Zacharakis) MODULE 4: GROWTH & EXIT STRATEGIES Dec 4 Entrepreneur VC relationships Dec 9 Submission and presentation of financial plans and budgets (5 points) Dec 11 Dec 16 Dec 18 Dec 23 Dec 25 Jan 5-12 Presentation of financial plans and budgets cont d (5 points) Growth Different growth modes Growth challenges Business plan submissions presentations (25 points) Submit your business plans and business plan presentations pgs. (including Appendices, 1.5 Spaces, 12 Times New Roman & Max-15- slide presentations.(25 points) Business plan presentations (cont d) Business plan presentations (cont d) Final exam (25 points) Page 5 of 5