How can you apply the Effectuation framework to create new ventures?

Effectuation é uma abordagem empreendedora proposta pela professora Saras Sarasvathy, da Universidade de Virginia. Ela argumenta que, ao contrário do que muitas pessoas pensam, os empreendedores bem-sucedidos n?o come?am com um plano de negócios detalhado e, em seguida, trabalham para implementá-lo.

The effectuation framework flips traditional business strategy on its head. Instead of a set goal, it focuses on what you have (resources) and the uncertain future (opportunities). Here's how to apply it> Start with your means> Identify your existing skills, experiences, and resources like time, money, and network. Set boundaries> Define your core values and what you won't compromise on. Leverage partnerships> Build relationships with complementary skills and resources to fill gaps. Embrace surprises> Be open to adapting your idea based on new possibilities and market feedback. By following the above steps, Effectuation fosters creativity, resilience, and a higher chance of success in uncertain environments.

Effectuation provides the framework for approaching business with limited resources and a high degree of uncertainty. Trial and error becomes the engine within this framework, allowing entrepreneurs to test their assumptions, learn from mistakes, and continuously iterate towards a successful business model.

Effectuation serves as a reminder that resources go beyond the financial; networks, skills, and knowledge are equally crucial. By starting small and focusing on what’s immediately available, entrepreneurs minimize risk and can pivot as opportunities or challenges arise, steering the venture development in a co-creative process with customers and partners. This hands-on, emergent approach is inherently practical and grounded in action, reflecting the real-world conditions that startups face.

O framework Effectuation é uma abordagem empreendedora que enfatiza a utiliza??o dos recursos disponíveis e a??es oportunísticas para criar novos empreendimentos. Em contraste com a abordagem causal, que se baseia em previs?es e planejamento detalhado, o Effectuation se concentra na identifica??o de possibilidades e na adapta??o flexível às circunstancias em constante mudan?a. Esse método valoriza a experiência do empreendedor e promove a colabora??o com outras partes interessadas para alcan?ar resultados inovadores e sustentáveis.

The principles of effectuation guide entrepreneurs to use what they are and what they have to create new ventures: 1. Identity: Utilize personal strengths and traits as a foundation. 2. Resources: Leverage existing skills, knowledge, and networks. 3. Affordable Loss: Invest only what you can bear to lose. 4. Partnerships: Collaborate with those aligned with your vision. 5. Adaptability: Embrace uncertainty as a chance for innovation. 6. Agency: Act on controllable factors, shaping the venture actively. In essence, effectuation turns the entrepreneur’s gaze inward and toward their immediate environment to gather tools and allies, treating the unpredictable as a playground for opportunity rather than a hurdle to overcome.

Effectuation + trial & error = agile startup recipe. 1) Start with you: Identify skills & network (resources). 2) Idea spark: Look for problems you can solve (opportunities). 3) Build small: Craft a basic offering (MVP) using your resources. 4) Test & learn: Get feedback from potential customers (trials). 5) Adapt & iterate: Refine your offering based on learnings (feedback loop). This cycle minimizes risk (small experiments) and fuels growth through continuous learning (trial & error).

Applying effectuation to create new ventures involves a four-step iterative process that pivots on self-assessment and experimentation: 1. Self-Inventory: List personal attributes, knowledge, networks, and resources. 2. Idea Generation: Brainstorm potential ventures utilizing these means. 3. Outcome Analysis: Choose a venture that is both desirable and within the means you are willing to invest and possibly lose. 4. Collaboration: Engage with partners drawn to your chosen venture idea and refine the concept based on shared insights and trial outcomes.

Para mí el emprendimiento requiere dos pilares: 1. Capacidad para pivotar 2. Desarrollo de Producto Mínimo Viable. Cuando emprendemos con pocos recursos, debemos desarrollar versiones demo de nuestro producto o servicio con el mínimo coste, máxima velocidad y siempre de la mano del consumidor. Esto es el Producto Mínimo Viable. Si somos capaces de repetir este proceso, con cada intento estaremos más cerca del objetivo final. Este proceso debe ser lo más económico posible, de tal forma que puedas reorientar tu producto-servicio o tu estrategia de negocio. Esto es pivotar. Con estos pilares he ayudado a crear modelos de negocio desde cero. Un ejemplo es SM Entrena, mi actual empresa (de un piloto a 4 centros con mínimos recursos).

1) Limited resources: Approach: Be creative and resourceful. Focus on utilizing existing skills, tools, and connections within your network. 2) Gathering reliable feedback: Approach: Target the right audience for your trials. Partner with potential customers or mentors who can provide valuable insights. 3) Sticking with the iteration loop: Approach: Celebrate small wins and milestones to stay motivated. Remember, adaptation is key. Don't be afraid to pivot based on learnings.

Effectuation seems just the model for bootstrapped ventures. Learnt of this term only now- but this is exactly my business strategy. My business revolves around things I am good at - content/design/ digital marketing, customised home decor and counselling … Starting small gives me the huge advantage of a lower cost, real time iteration also full control plus opportunities to collaborate with others in related fields. While I do have a blueprint for long term scale up, I want to be flexible and selective about which aspect to scale up and invest on. This model allows you to time to ensure your ‘proof of concept’ is undeniably solid. Also many challenges unaccounted for, show up. This prepares you to handle them on a larger scale.

Bird-in-Hand Principle Affordable Loss Principle Crazy-Quilt Principle Lemonade Principle Pilot-in-the-Plane Principle In environments of uncertainty, these principles can be used individually, mixed & matched, or even combined w/ causal approaches. To delve deeper into the role of prediction & control, it may be beneficial to turn to academic articles & further readings on effectuation. This deeper understanding can provide a balance of theory & practice, shed light on successful strategies of other ventures, & offer tools and techniques to better navigate the entrepreneurial journey. Therefore, the effectuation theory provides an essential foundation for budding entrepreneurs to create, establish, & grow their business ventures.

Building something new? Start small, test often, and learn fast. This combo of trying ideas and adapting based on what works is your secret weapon!

The dance between uncertainty and adaptability is the nexus for me. The unsaid here is one's knack for tuning into what lies beyond the horizon. A boldness to navigate in the unchartered unfolding business environment where shifts are a drumbeat. The value you add amidst it all.