ABSTRACT
Entrepreneurs are people who act on a perceived market opportunity. They develop the opportunity into a business by creating a new product or service for a group of customers not served well by existing alternatives in the market. Many entrepreneurs aim to improve existing products and compete in existing markets. Lack of experience and business knowledge generally does not scare these entrepreneurial minds away. They seek financial support from venture capitalists to help finance their new business. The challenge to sell a radical new product is much greater. Radical innovations require a novel marketing approach that embraces the uncertainty caused by the new technology and focuses on customer discovery and creation. The unpredictability requires talking to and experimenting with innovative customers to identify the required product-market fit. The effectuation approach is closely related to the method of the lean start-up developed by Eric Ries.
