Explain Sanjeev's Entrepreneurial Journey by Applying the Principles of Effectual Reasoning

Assignment 1: Explain Sanjeev's entrepreneurial journey by applying the principles of effectual reasoning.

Sanjeev’s way of thinking when taking over an opportunity to build a business is a living example of effectual thinking. One day, when his friend approached him with an Idea about trademarks searches, he saw the opportunity and started working on it right away without building a business model or analyzing the market. This was also the case for the salary survey reports idea; he identified a potential opportunity at his work in HMM and took it.

His observations at work led to the development of other ideas in his head. Sanjeev noticed that job hunters used to call the office to offer jobs to people; he also noticed that people are always either looking at or for a job. He realized the opportunity to aggregate the fragmented job market in India and took it right away. While he did not spend the following days analyzing the idea and thinking whether it’s perfect or not represents the Bird in Hand principle.

He didn’t know how to make money from the job portal, but once he saw an opportunity through the Telecom Department, he started working on it immediately. He was not committed to a single market, but bringing new partners –who asked him for the business plan- helped him determine exactly the market he will eventually serve. We can also see this principle (crazy-quilt principle) when he couldn’t pay for the services of people so he found a way to get people to commit to him in exchange for a stake in the company. Building partnerships poses questions which must be answered and thus lay down the foundations.

When the project of the Telecom department was cancelled, he adapted to changes by trying different franchises and couriered floppies. He made decisions based on current situations and resources. This represents the Lemonade principle.

When Sanjeev visited the IT Asia exhibition, he saw that internet has 14,000 users in India and decided right away that he wanted a website. Sanjeev didn’t know whether his business would be successful, rather he decided to set the website and quit his job to follow his dream. This is a clear evidence of not being scared of getting out of his comfort zone. He says it is a loss that I can afford to take since his wife used to work.

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