<Ul> <Li> The Bird in Hand Principle . Entrepreneurs start with what they have . They will look at who they are, what they know and who they know . Their education, tastes and experience are examples of factors which are important in this stage . Besides these examples, this is also the stage where entrepreneurs look at their 3Fs, better known as friends, family and fools . From this point, they will look at their abilities . So an entrepreneur does not start with a given goal, but with the tools he or she has . </Li> <Li> The Affordable Loss Principle . An entrepreneur does not focus on possible profits, but on the possible losses and how they can minimize those losses . </Li> <Li> The Crazy Quilt Principle . Entrepreneurs cooperate with parties they can trust . These parties can limit the affordable loss by giving pre-commitment . </Li> <Li> The Lemonade Principle . Entrepreneurs will look at how to leverage contingencies . Surprises are not necessarily seen as something bad, but as opportunities to find new markets . </Li> <Li> The Pilot - in - the - plane . In this stage, all the previous principles are put together . The future cannot be predicted, but entrepreneurs can control some of the factors which determine the future . </Li> </Ul> <Li> The Bird in Hand Principle . Entrepreneurs start with what they have . They will look at who they are, what they know and who they know . Their education, tastes and experience are examples of factors which are important in this stage . Besides these examples, this is also the stage where entrepreneurs look at their 3Fs, better known as friends, family and fools . From this point, they will look at their abilities . So an entrepreneur does not start with a given goal, but with the tools he or she has . </Li> <Li> The Affordable Loss Principle . An entrepreneur does not focus on possible profits, but on the possible losses and how they can minimize those losses . </Li> <Li> The Crazy Quilt Principle . Entrepreneurs cooperate with parties they can trust . These parties can limit the affordable loss by giving pre-commitment . </Li>

Effectuation and causal process in how entrepreneurs think