Knowing what to do and doing what you know:

as a form of entrepreneurial expertise

Stuart Read and Saras Sarasvathy

2005

isn’t genetic or personality traits, risk-seeking behavior, money, or unique

vision.
there is a science to entrepreneurship and that great entrepreneurs across industries, geographies, and time use a common logic, or thinking process, to solve entrepreneurial problems.
Effectuation is a logic of entrepreneurial expertise that both novice and experienced entrepreneurs can use in the highly unpredictable start-up phase of a venture to reduce failure costs for the entrepreneur.

through a specific set of given means. Causation invokes search

and select tactics and under-lies most good management theories. Causal thinkers believe that “If I can predict the future, I can control it.”

evolving means to achieve new and different goals. Effectuation evokes

creative and transformative tactics. Effectual logic is the name given to heuristics used by expert entrepreneurs in new venture creation. Effectual thinkers believe that “If I can control the future, I do not need to predict it.”

to know: who you are, what you know, and who

you know.
Affordable Loss Principle – Set affordable loss Evaluate opportunities based on whether the downside is acceptable
Lemonade Principle – Leverage contingencies .Embrace surprises that arise from uncertain situations, remaining flexible rather than tethered to existing goals.
Crazy-Quilt Principle –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.