CAOT 31 Lecture Notes - Lecture 16: Deductive Reasoning, Freemium, Lean Startup
12 Oct 2020
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Chapter 6: start-up developing the business model: bringing your idea to life: Entrepreneurs bring their ideas to life by engaging in effectual reasoning and effectuation (making something happen): effectuation has gained popularity by contrasting itself with what might be called traditional principles of management. It is in contrast to the causal or deductive reasoning used by executives. Five main conclusions about how successful entrepreneurs approach decision-making in an uncertain, rapidly changing environment: conclusion 1: executives set goals and achieve them sequentially. These goals are broad and evolve over time based on personal strengths and resources they have, creatively reacting to contingencies as they occurred. It should be minimalist and easy to use. Set of financial forecasts (revenues, related costs and resulting financial structures of the business. ) One approach to the challenge of launching a business with limited resources is called lean start- up".
