Effectuation – It Was a New Term For Me

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Attentively listening to a speaker in one of our free seminar offerings yesterday, we began discussing the daunting task of the creation of the “business plan.” Much has been published lately on new trends with one page lean canvas plans, using one’s originality to create a meaningful plan, and we all know how many hundreds of thousands of templates are at our fingertips with the use of Google. Dovetailed into the discussion came a concept of effectuation.

Effectuation is described as an idea with a sense of purpose – a desire to improve the state of the world and the lives of individuals by enabling the creation of firms, products, markets, services, and ideas, according to http://www.effectuation.org. In other words, entrepreneurs can be very logical in their thinking. Their minds connect dots to solve evident problems.

Our presenter, Jason Owens mentioned research in the area of effectuation and it seems that most entrepreneurs, generally speaking, are naturally “effectual” in business pursuits. Pursuit of the end result can make it difficult to see opportunities that are nearby.

For instance, if you love cooking and you think opening a restaurant is your ticket to ultimate happiness, you may want to look at how your cooking, on a more simplified level, could be used to provide resources to already thriving entities. Providing a resource for a larger establishment could produce large dividends.

Also, out of effectuation may come ideas for additional cost centers for your business. If your business idea aligns nicely with another service or product, look to see how the dots can connect to create a synergistic relationship for the greater good.

As we move closer to our Entrepreneurial Summit, Learning from Failure to Focus on our Future, I found this appropriate reference to effectuation one worth sharing. It is also from www.effectuation.org, “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.”

Join us for this free Summit on April 14 as we learn to learn more about reducing failure associated with start-ups. #ES2015SCC

For more information about Entrepreneurial Summit 2015, visit https://smallbusinessscc.wordpress.com/.

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