In this video, we're going to take everything we have learned, especially the five principles of effectuation, and put them in motion into a process that can happen again, and again on a daily, weekly, monthly basis in your life and in your venture. You begin with who you are, what you know, and whom you know, your bird-in-hand. Based on your bird-in-hand, you start thinking about what can I do with who I am, what I know, and whom I know? Especially you start thinking about what can I do for affordable loss? My Nigerian student, you might come up with 20 different things you could do. Maybe you come up with only one thing. It doesn't matter. This whole thing happens just on Day 1. Bird-in-hand, affordable loss assessment, and you come up with something that you can do that you think other people would be interested in. Day 2, you wake up in the morning and you start interacting with people. You start talking to people, you get calling them up. You talk to people you know, but you also talk to people you don't know, whatever you're doing that day, talk to anybody and everybody. What are you doing when you are talking to them? Sure, you're going to get some advice, you're going to get some feedback, and you can always start that way. But the whole point of every conversation, even with strangers, is to close the deal, get them to actually commit to something, put some real skin-in-the-game in the venture. Now pause for a moment, and think about first what are some of the kinds of reactions you will get? Most of the time, most people are not going to just simply say yes or no, and you don't want to be talking to them in such a way that you are asking for a yes or no. Most people are going to give you some advice. They're going to give you some suggestions. Do this this way, don't do it that way, here's how I would do it. The issue you have in front of you is to move them to a commitment. How do you do that? When people give you some advice or suggestions, there is some reason inside them why they want to do this and you want to be able to open up that box. Hence the 'what would it take' question. When somebody says do this or don't do this, or I would make it this way or I would do something very different with what you are doing, you can react in one of four ways that we saw in the prediction control space. You can have a visionary reaction and you can just persist in your idea. You can say this is my baby, this is how I'm going to build it. You can also have an adaptive response by saying, ''Oh, you want that?'' You may be my customer or you may be my investor, so let me do what you want. That is the adaptive response. The causal response is good to talk to many, many different people, write down everything that they want and then do some calculations and analysis and come up with a plan of what do you think will be the best possible product with the best possible features or the best possible business model that you will implement. The effectual entrepreneur suggest, don't do any of that in the early stage. Literally, ask them, what would it take for you to come, make it whatever you want it to be? That is the art of effectuation that you want to learn, but there is also a science to it. For those of you who hesitate to interact, I would say courage is like a muscle. Just by practicing, you can build up that muscle. You can just start by asking for advice, but try different ways to get people to actually want to do things with you. One of the wonderful ways you can get people to do things with you is for you to offer to do something with them. Giving, interestingly enough, is a very good way of asking for commitment. Along the way, based on what you've heard from the entrepreneurs and the other educators, you have a bunch of techniques of how you can get people to want to work with you. Every time somebody gives you a real commitment, even if it's only like an introduction to someone else, every time somebody comes in with a commitment, you get new means. The new means set in motion this cycle of increasing resources. It becomes who we are, and what we know, and whom we know in the next round. But usually, good people will commit to only their own vision of what you want to do. That means you will have to change your goals a little bit because you're shaping the future together, so even your goals will change. There will be some constraints on things you can do and you cannot do. This also sets in motion a converging cycle of constraints. Along the way come the lemons, things completely outside your control that get thrown at you, that will impact both your bird-in-hand and your affordable loss. Eventually, so long as this process keeps happening, the process itself leads you to something new here. That means the process itself gives you a higher probability of something innovative and new and novelty happening as part of the process, even if nobody in the process actually imagined it. To the extent that the process succeeds, the probability that you will get to something new increases. If for some reason something goes wrong and failure happens and the process ends, nobody in the process is losing anything more than they can afford to lose. That is the most important nuance that you want to understand about the role of success and failure in effectuation. It is a process that you learn and implement, and successes and failures are just grist to the mill on the way.
