How to Start a Business: The Bird in Hand Principle

Starting a business can be an exhilarating journey filled with challenges and opportunities. One powerful approach to launching a successful venture is the Bird in Hand Principle, a concept rooted in the idea of leveraging what you already have at your disposal.

This principle, central to Dr. Saras Sarasvathy’s theory of effectuation, encourages aspiring entrepreneurs to begin with their existing resources, skills, and networks rather than waiting for the perfect opportunity or substantial capital. By focusing on what you can control and building from there, the Bird in Hand Principle fosters creativity, resilience, and a pragmatic path to entrepreneurship. This method not only mitigates risk but also enables you to adapt and evolve your business idea based on real-time feedback and tangible progress.

What is the Bird in Hand Principle in Starting a Business?

The Bird in Hand principle is about creating solutions with what you have here and now when starting a business. This means you don’t need to wait for a groundbreaking idea or a multi-million dollar opportunity. You also don’t need to chase money, and you don’t have to start your own business. Instead, you can begin by using the resources and skills you already possess.

This principle emphasizes making the most of your current situation. It encourages entrepreneurs to examine their immediate environment and leverage their existing assets. This approach can be especially useful for those who feel stuck or need help determining their next move. By focusing on what you have rather than what you lack, you can unlock new possibilities and pave the way for success.

Applying the Bird in Hand Principle in Starting a Business

To apply this principle, start by asking yourself these questions:

1. Who am I? This refers to your traits, abilities, and attributes. Understanding your strengths and weaknesses can help you identify areas where you can excel and areas that may require improvement.
2. What do I know? This includes your soft skills, such as leadership and negotiation, and hard skills, like drawing, cooking, or software programming. Recognizing your skills can help you identify potential business opportunities that align with your expertise.
3. Who do I know? This pertains to your social network or the people you interact with regularly. Leveraging your connections can provide support, resources, and potential customers for your business.

A Business Example of the Bird in Hand Principle

Let’s look at Teacher Lani’s testimony. She shared how she started her tutorial business by unknowingly applying the Bird in Hand principle.

Who is she? Lani is a teacher who loves kids and is very patient. Her passion for teaching and her patience are valuable traits that she uses to her advantage.

What does she know? She has teaching skills, can create educational materials, and enjoys arts and crafts. These skills are essential for running a successful tutorial business.

Who are the people she knows? She knows many parents and students who need tutoring during the COVID-19 pandemic. Her network provided her with a ready market for her services.

By leveraging her skills and network, Lani started a successful tutorial business. Her story is a great example of starting a business with what you already have.

Finding Your Business Idea

If you’re searching for a business idea, take a look at what you have right now. Whether you have a freezer, an oven, or a motorcycle for deliveries, your musical skills to offer lessons, or a connection to someone who owns a farm whose products you can sell, you can start with what is already within your reach. The possibilities are endless when starting a business with what you have.

Consider your hobbies and interests as well. These can be a rich source of inspiration for your business. For example, if you love baking, you could start a home bakery. If you’re passionate about fitness, you could offer personal training services. By aligning your business with your passions, you’re more likely to enjoy the process and stay motivated.

Biblical Inspiration for Starting a Business

Exodus 4:2 says, “Then the Lord said to him (referring to Moses), ‘What is that in your hand?’ ‘A staff,’ he replied.

Why did God ask Moses what was in his hand? It wasn’t because God didn’t know, but to lead Moses to do something great. An ordinary staff became a tool for wonders and miracles. Similarly, what you have in your hand can become the foundation for something extraordinary.

This biblical lesson teaches us that our current resources, no matter how insignificant they may seem, have the potential to create something amazing. It reminds us to trust in our abilities and use what we have to their fullest potential.

Real-World Example: Carmen’s Best Ice Cream

Carmen’s Best Ice Cream is a perfect example of the Bird in Hand principle. They started with a dairy farm selling fresh milk. By leveraging their existing resources, they created a successful ice cream business known for its high-quality standards.

Initially, they focused on selling fresh milk but later realized they could add value by producing premium ice cream. This pivot allowed them to utilize their dairy farm resources more effectively and tap into a new market. Their success story demonstrates the power of starting with what you have and being open to new opportunities.

The Concept of Effectuation

In 2001, an entrepreneur expert conducted research on what successful businessmen have in common and found a thought process called effectuation. This involves identifying the next best step by assessing the resources available to achieve your goals.

Effectuation is a mindset that encourages entrepreneurs to be flexible and adaptive. Instead of sticking rigidly to a pre-defined plan, it promotes making decisions based on current circumstances and available resources. This approach can lead to more innovative and resilient businesses.

Conclusion

The Bird in Hand principle encourages you to create solutions with the resources you have now. Start with what you have instead of looking for additional resources. By asking yourself who you are, what you know, and who you know, you can begin your entrepreneurial journey with confidence and creativity.

So, review your current resources and start planning your business today. The potential for success is already in your hands. By embracing this principle, you can turn your ideas into reality and build a thriving business from the ground up.

By focusing on your existing resources and skills, you can unlock new opportunities and create a path to success. The Bird in Hand principle is a powerful tool for any aspiring entrepreneur, offering a practical and empowering approach to starting a business. So, don’t wait for the perfect moment or the perfect idea—start now with what you have, and watch your business grow.