Avoid the sunk cost fallacy

Just because you have invested time, money and energy in something does not mean you should continue.

Humans are wired to consider the past when making decisions for the future. This leads us to a lot of bad decisions.

This leads us to operate a business way past the point we should have pulled the plug. It leads us to miss the information that is pointing us and telling us to close the doors and cut our losses. We waste more time. We waste more money. We hope for a miracle. We work harder. We work longer hours.

If data and logic and analysis tell you that its time to shift and pivot you should not waste another second. Time is your most valuable asset.

If you spent 3 years and $200k on a law degree but you hate your life and logic is telling you it will never get better then you should shift gears and pivot as soon as possible. Don’t waste another day.

Its hard. Your heart is in it. Your emotions are at play. Try your best to see past that and make the logical decision.

January 4, 2019 6:21 am