Hi there Crusaders.
Happy Tuesday, and a very Happy New Year.
My wish for you for the next 12 months is that you realise all the goals you’ve set for yourself and experience fulfilment and joy in the process.
Many of us have reviewed our 12-month goals leading into the new year, so I thought this would be a good time to talk about the opportunities that are bound to cross our paths in the coming months.
Some entrepreneurs sit around waiting for an opportunity to find them, others go looking for them, and still others go out and create them.
So . . . which approach is the right one?
Is there a right one?
Most of the folks I pose this question to immediately say “you must create your own opportunities”.
Are they right?
Well, Yes . . . and No.
You see, opportunities come to us in one of two ways; effectuation and causation.
And before you react,
the response I most often get to that statement is . . .
“
Huh – – – ‘Effectuation’? ‘Causation’? What the hell are they?”
Huh – – – ‘Effectuation’? ‘Causation’? What the hell are they?”The easiest way for me to explain it is through an example.
– How do you prepare for dinner at home?
If you were to take a causal approach, you would carefully plan out a menu in advance. Then you’d check your kitchen to see what you have, then go to the store to buy any missing items.
So, in business, this would be like setting a pre-determined goal. Then gathering all the resources you need to achieve it, and then following your predefined plan to achieve it.
If you use the effectual approach, you would look in your refrigerator and pantry, see what you have, and plan your menu accordingly.
In this process, you start with the business resources at hand and then assembles them to build the goal. In other words, the goal is not predefined. This is how you identify entrepreneurial opportunity when the future availability of desirable resources is unknown or unpredictable.
So, effectuation is essentially the opposite of causation.
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Causation versus effectuation—which is the “right” method to use when developing an idea into an opportunity?
The answer is both.
When it comes to making dinner on an average weekday night, you probably use effectuation. If you’re planning a dinner party, then causation is probably best.
The moral of the story is that sometimes you find the best opportunities by just looking around at what skills and resources are available to you at that point in time.
So, while you’re busy planning, gathering resources, and working towards your goals, be sure to monitor your surroundings for opportunities that may be sitting around waiting for you to grab them.
On that note, have an awesome week.
Take care out there.
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