Effectuation (new venture creation)

bird in hand principle

"start with what you have" means driven action who am I? (personality, tastes, values...) what do I know? (knowledge and education) whom do I know? (networks)

Effectuation

Prof. Saras D. Sarasvathy thesis based on the question which decisions are comon among succcessful entrepreneurs -> 5 principles effectuation logic as antithesis to causation logic, BUT it is most suitable for the beginning of a start up

affordable loss principle

cause of action based on potential downside "risk little, fail cheap" commit in advance how much you are willing and able to lose

pilot on the plane principle

combines all four "non predictive control" -> concentrate on what you CAN control - use your own means - pick comfortable risk levels - form partnerships - use surprises to your advantage MAKE the future instead of PREDICTING it

crazy quilt principle

form partnerships negotiations with any and all stakeholders (customers, partners, financial backers, acquaintances...) who are willing to make a commitment to the business who comes on board defines the direction of the venture FLEXIBILITY!

lemonade principle

leverage surprises use them as oportunities to change direction/grow overcome the fear of failure