Effectuation Logic: The Case of 'KumaonKhand'

KumaonKhand began in March 2019, as a college venture pilot project. My paternal roots trace back to the Kumaon region of Uttarakhand, where outmigration has long been a challenge, with many youth uninterested in staying in the mountains due to limited opportunities. This harsh reality became evident through secondary research, but I wasn’t deterred by it; rather, I saw it as the first problem to tackle.

Effectuation logic emphasizes beginning with the resources at hand, allowing goals to emerge based on interactions and opportunities. When I spent three months on the field, I created a hyper-arching problem map from the farmers’ perspective, analyzing the socioeconomic and agricultural challenges they faced. By the end of this pilot, I had developed a basic Business Model Canvas, albeit in a very raw form. At this stage, I wasn’t sure if “KumaonKhand” was the right name or even if this project would turn into my career, but I remained deeply committed to the opportunity and what I could learn from it.

The Pilot Phase: Means-Driven Approach

Effectual reasoning teaches that entrepreneurs should start with their means—skills, knowledge, networks, and resources—and let the goals evolve. My pilot phase reflected this approach perfectly. I engaged with more than 100 farmers across the Kumaon region, building relationships through local gatekeepers like SEWA Bharat and other SHGs and NGOs. The objective was to understand the challenges and opportunities around hemp farming, focusing on hemp fibre and seed processing.

I explored collaborations and met industry leaders such as the founders of SOS Organics, Almora, Health Horizons, Noida, and BOHECO, Mumbai. Discussions on seed quality led me to connect with a Canadian Hemp co., which sent us a sample of low-THC seeds. Furthermore, I sought technical guidance from a professor at IIT-Delhi for textile processing and met with weaving clusters in Almora to explore product development opportunities. This means-driven exploration, without rigid planning, allowed me to uncover multiple pathways to move forward.

Execution Over Planning: From Pilot to Practice

Effectuation theory emphasizes execution over detailed pre-planning, which was the essence of my pilot project. I directly worked with 15 farmers in Dotiyalgaon, Almora, where we processed our first batch of hemp seed oil at Chitai, Almora. I went live on Instamojo, and to my surprise, we received our first order on day one—from Chandigarh! This immediate interaction with the market, without waiting for a perfected plan, taught me the importance of acting fast and refining later. Orders continued to come in, and I began building KumaonKhand’s presence on social media and launched our website.

Around this time, I also initiated my research, "Emerging Entrepreneurship on Bhaanga (Hemp): Insights from 3 Indian Case Studies," interviewing founders from SOS Organics, Health Horizons, and BOHECO to analyze different business models. Simultaneously, I interned at the NSDC, met with Union Ministers, and shared samples of our hemp seed oil, expanding my network.

Affordable Loss and Reaching the Market

Effectuation logic also stresses the importance of focusing on affordable loss rather than traditional market analysis. Entrepreneurs often find ways to reach the market with minimum expenditure of resources, an approach I embraced. I committed to starting KumaonKhand to Anuj Sharma from Alsisar Impact, an early-stage incubator in Mumbai, and began participating in business plan competitions. My venture was recognized in competitions at IRMA, IIT Bombay, and IIM Ahmedabad, validating the concept and gaining visibility without significant financial investment.

In 2020, despite completing my research, I decided not to sit for placements. I was determined to pursue this entrepreneurial venture. With support from Alsisar Impact, I secured a trademark for KumaonKhand and began formalizing the venture. The pandemic, though unexpected, proved to be an opportunity. I moved back to Uttarakhand, where I continued to build KumaonKhand, transitioning from moonlighting in Delhi and Mumbai to becoming a local entrepreneur in Almora.

Turning the Unexpected into Profitable Opportunities

One of the most vital principles of effectual reasoning is the ability to turn unexpected events into profitable opportunities. The COVID-19 pandemic unexpectedly pushed me to move back to Uttarakhand, where I reconnected with my pilot project location and began full-time operations. From a small hostel room to a German cottage in Kasar Devi, I expanded my network, found new vendors and customers, and developed new products.

By 2021, I had leased a garage, which eventually became The Hemp Store by KumaonKhand, our flagship retail and processing unit. I secured grants from the Ministry of Agriculture and Farmers’ Welfare, won a BIRAC SPARSH Fellowship, and received recognition from UNDP India. As a result, in November 2021, KumaonKhand Agro-Innovations and Hospitality Pvt. Ltd. was officially incorporated with the help of Alsisar Impact.

Partnerships and the Future: Building Together

Effectuation reasoning highlights the importance of partnerships over competitive analysis, and this has been fundamental to KumaonKhand’s growth. Collaborations with local farmers, industry leaders, academic institutions, and accelerators like Alsisar Impact and WRI-Land Accelerator have shaped our journey. With over 35+ SKUs ranging from hemp food, sustainable fabric, skincare, and CBD oils, KumaonKhand has grown into a thriving business, supported by a processing facility in Kasar Devi and two retail stores in Almora and Mukteshwar.

Today, we are scaling our micro-hub and spoke model for hemp fabric and seed value chains, with the goal of impacting 10,000 farmers in the next three years. The future for KumaonKhand, much like its past, remains unpredicted but shaped by the partnerships and means we’ve acquired along the way.

Conclusion: An Entrepreneurial Journey Shaped by Effectuation

Effectuation logic teaches entrepreneurs to control the future through their actions, not predictions. For KumaonKhand, this has meant leveraging available means, embracing affordable loss, and turning unexpected events into opportunities. What began as a college project has grown into a thriving social enterprise touching INR 1 crore in revenue, all because of a dynamic journey driven by effectual reasoning.

As entrepreneurs, we believe in a future that is yet to be made. Every step, interaction, and action contributes to shaping that future—just as it has for KumaonKhand. The effectuation process may not always provide clarity at the beginning, but in hindsight, it demonstrates how the law of attraction, adaptability, and action can lead to a sustainable, profitable venture.

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