W3: Effectuation

Principle 5 - Pilot in the Plane Principle

Control the controllable - The four specific principles above represent different ways entrepreneurs interact with the environment to shape the environment. Of course not everything can be shaped or controlled, but effectuation encourages you, as the pilot of your venture, to focus on those aspects of the environment which are, at least to a certain degree, within your control.

Principle 4 - Crazy-Quilt Principle

Form partnerships - Form partnerships with people and organizations willing to make a real commitment to jointly creating the future—product, firm, market—with you. Don't worry so much about competitive analyses and strategic planning.

Principle 3 - Lemonade Principle

Leverage contingencies - Embrace surprises that arise from uncertain situations, remaining flexible rather than tethered to existing goals.

Principle 2 - Affordable Loss Principle

Set Affordable Loss - Evaluate opportunities based on whether the downside is acceptable, rather than on the attractiveness of the predicted upside.

Principle 1 - Bird in Hand

Start with your means - Don't wait for the perfect opportunity. Start taking action, based on what you have readily available: who you are, what you know, and who you know.