In building a new venture management team, do entrepreneurs seek team members to fill specific roles on the team needed to exploit an opportunity? Or do they consider what opportunities they can create, given their current team? Research on new business creation has traditionally favored a “planning” approach in which entrepreneurs recognize business opportunities, identify their goals (possible effects), and then choose the most effective means to achieve their goals by acquiring resources and creating an organization (e.g. Bhave, 1994). But others (e.g. Sarasvathy, 2001) have indicated that some entrepreneurs “effectuate”: that is, they focus primarily on the resources (means) under their control, and then go through a process of finding goals that can be accomplished with those resources. However, relatively little empirical research has addressed the conditions under which an entrepreneur will use planning and/or effectuation processes in the formation of his/her entrepreneurial team. In this study, we ask “what factors determine whether entrepreneurs follow planning or effectuation processes in forming their entrepreneurial teams?"