Who they are – their traits, tastes and abilities
What they know – their education, training, expertise and experiences
Whom they know – their social and professional network
●Effectual reasoning three principles
1. While causal reasoning focuses on expected return, effectual reasoning emphasizes affordable loss (SLM vs. Iridium)
2. While causal reasoning depends upon competitive analyses, effectual reasoning is built upon strategic partnerships
3. While causal reasoning urges the exploitation of pre-existing knowledge and prediction, effectual reasoning stresses the leveraging contingencies.
●the ideal beginning for a successful startup seemed to be the induction of customers into strategic partners.
●I would initially target, as I said initially, key companies who I would call flagship, do a frontal lobotomy on them … the challenge then is really to pick your partners, and package yourself early on before you have to put a lot of capital out.
●several of the expert entrepreneurs … stated that being in a market that could be predicted was not such a good idea, since there would always be someone smarter and with deeper pockets who would predict it better than they could
●effectual logic is people dependent, unlike causal logic, which is effect dependent. …
●lawyers , VCs or other investors have always agreed with successful entrepreneurs that finding and leading the right people is the key to creating an enduring venture.
●leading the right people need emotional ownership in the goals and objectives of the endevor and can only be incentivezed by the belief that the effects they create will embody their deepest passions and aspirations
●it reduces the costs of failure by enabling the failure to occur earlier and at lower levels of investment.