Class notes
Summary Lectures Business Development
- Course
- Institution
Summary of all the lectures of business development
[Show more]
Seller
Follow
dominiqueverp
Reviews received
Content preview
Lectures Business DevelopmentLecture 1 – 03-09-2020
Nanne Migchels
Effectuation and causation
Frank Knight (1885-1972)
Risky situation: relatively measurable
uncertain situation/a certain level of
predictability.
Uncertain situation: situation with
Knightian uncertainty. Non measurable
uncertainty, future cannot be
predicted.
,Effectuation: five principles
1. Start with your means
2. Focus on the downside risk
3. Form partnerships
4. Leverage contingencies
5. Control instead of predict
These 5 principles will be discussed below:
o Start with your means:
Three categories of means:
o Who you are: your own traits and tastes
o What you know: your knowledge and capabilities
o Whom you know: your social network
E.g. because I know person A, I can achieve X, and therefore I will undertake Y.
Quote expert entrepreneur on what to do in situation X: ‘I think that what I would do is go to some
people that I know today, people that are in this business, and talk to them’’.
,o Focus on the downside risk (affordable loss)
Embrace failure: it is part of the process
o Pursue interesting opportunities without investing more resources than you can reasonably
afford to lose
o Set a limit on the downside potential
Focus on creating options that can create more options in the future over those that maximize returns
(large all-or-nothing opportunities)
Representative quote: ‘I’ll start cheap, make sure I will cover my costs and don’t have any to take huge
risks. One thing I am sure about based on my experience: never take any risk if you can help it. It is just
the opposite of what most people think about entrepreneurs.
1. Form partnerships (patchwork quilt principle)
Easiest way to gain knowledge,
resources, etc. Most
entrepreneurs are very hesitant
about reaching out to the market
or other ventures, but you have to
talk to people and learn from
them.
, 2. Leverage contingencies (lemonade principle)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller dominiqueverp. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.70. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75759 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now