Effectuation Theory

A way of thinking used by expert entrepreneurs to make decisions in highly uncertain environments (Saras Sarasvathy).

• Principles:
  • Bird in Hand: Start with your means (who you are, what you know, who you know).
  • Affordable Loss: Focus on the downside risk.
  • Crazy Quilt: Build partnerships.
  • Lemonade: Leverage contingencies/surprises.