Independent Activity:

Start with Your Means

 Effectuation is a way of thinking, which includes a set of  decision making principles that
expert entrepreneurs employ in situations of uncertainty.

You had identified a business idea in the Idea Evaluation lesson. In this activity, you will apply the
Effectuation principles to that idea and recalibrate it, if necessary. To complete this activity, you may
refer to the Effectuation Cycle illustration provided at the end of this document.

Instructions for completing the activity:

Step 1: Start with an inventory of your means. Apply the Bird-in-Hand principle, and answer the following
in your context. You have 20 minutes to complete this task.

Who I am What I have

I am a Computer Engineer, an MBA aspirant, I have an idea as well as the capability of

creativein
WFNEN 101: Basic Program thinker, persuasive and a budding
Entrepreneurship decision making & sticking to the plan from
entrepreneur. beginning to the end and executing it efficiently.
I also have technical knowledge and also an
insight of share market.

What I know Whom I know

I know how to segment and target my market
and audience and can ensure great returns in
coming future if resources are applied
judiciously. I can do sales and market my
ideas.
High skilled people who are good in their field
and are ready to help and mentor. I will seek
help from them to lead my business.

Entrepreneurial Outlook
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 Independent Activity:
Start with Your Means

Step 2: Based on the above information, chalk out your goals. The goals that you choose to pursue should
be within your Affordable Loss. Goal construction and goal achievement are different sides to the same
coin. You have 15 minutes to complete this task.

What can I do? What is my acceptable limit for loss?

Goal Affordable Loss
I want to sell used books to people where Yet to figure out.
there is no proper access to such resources
especially in rural areas.

WFNEN 101: Basic Program in Entrepreneurship

Step 3: Look at your means and Affordable Loss. Now, recalibrate your business idea. How will it change?
Discuss this in your respective teams and write down your findings here. You have 15 minutes to
complete this task.

Recalibrated Idea

Entrepreneurial Outlook
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 Independent Activity:
Start with Your Means

In India, access to education beyond higher secondary schooling is a mere 10% among the
university-age population in India. This is because most of the children do not have proper
access to resources and cannot afford to pay such heavy amount on books. Selling used books
at an affordable price can prove to be quite a sustainable business.

WFNEN 101: Basic Program in Entrepreneurship

Effectuation Cycle:

Bird-in-Hand Affordable Loss Patchwork Quilt Pilot-in-the-Plane

Begin with an Construct your goals Interact with people to Gather stakeholder
inventory of your based on your means. get them on board your commitments by
means, which should This should include what venture and co-create it getting all partners to
include who I am, I can do. with you. rally round a single
what I know, and Make sure that the goals sellable product.
whom I know. you determine are
within your affordable
loss.

Note: The cycle continues as the effectual entrepreneur grows closer and closer to a defined, sellable
product(s), complete with committed customers and stakeholders comprising the new market.

Entrepreneurial Outlook
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