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Effectuation is essentially the opposite of causation. It is a process used to identify entrepreneurial opportunity when the future is unknown or unpredictable. We often think of new ventures as starting with a goal, then gathering the resources needed to achieve that goal. Effectuation, on the other hand, starts with the resources at hand and then assembles them to build the goal.

The difference between causation and effectuation may seem subtle, but it is important. A great example of the difference is your approach to making dinner. If you were to take a causal approach, you would carefully plan out a menu in advance, then check your kitchen to see what you have, then go to the store to buy any missing items. In an effectual approach, you would look in your refrigerator and pantry, see what you have, and plan your menu accordingly.

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 the latter. If you’re planning a dinner party, the former is probably best. The moral of the story is that sometimes the best opportunities are found by just looking around and seeing what skills and resources are available to you.