Sunk Cost
This is a preview of a concept contained in The Personal MBA by Josh Kaufman, a book that will help you master the fundamentals of business, hone your business instincts, and save a fortune in tuition. The Personal MBA distills the most powerful principles of business and delivers them quickly and concisely. Order your copy now…
What is “Sunk Cost”?
“If at first you don’t succeed, try, try again. Then quit. There’s no point in being a damn fool about it.” — W. C. Fields, comedian
Key Points:
- Sunk Costs are investments of time, energy and resources that can’t be recovered once they’re made. Continuing to invest there is a waste.
- The concept of Sunk Costs is very hard to put into practice. People have hard time walking away something that they’ve invested a lot in. In reality, there’s nothing you can do.
- Making mistakes is inevitable. What’s important is to learn from those mistakes. Sometimes quitting, changing directions, is the smart move.
Questions for Consideration:
- Are you throwing good money after bad?
- Is the additional investment worth the reward, or are you trying to salvage an investment gone wrong?
Share this concept: http://book.personalmba.com/sunk-cost/
True leaders aren’t made by business schools – they make themselves, seeking out the knowledge, skills, and experiences they need to succeed. Read this book and you will learn in one week the principles it takes most business professionals a lifetime to master. Buy The Personal MBA by Josh Kaufman now.
