Ask Have you heard of sunk cost fallacy in business?

[Btaliat]

Most times, it is possible for us to love a particular business to the extent that if even it is taking up our money, we will still refuse to let go of such a business. This may happen when there is a loss in a business and the business owner refuses to accept the loss, but rather keep pumping money into such a business with the aim of reviving it.

Has this really happened to you before? How do you handle it? Share it in the comment section for others to know.

 

[MasterSamurai]

To be very honest with you I have never had about it before. But I believe it do happens in the business because sometimes we make profit and sometime we make gain. But one thing I can say is that it is very important for a business owner to engage in adequate research before launching the business.

 

[Brajet]

It's that we've come this far, we can't stop now feeling. The problem is, the past money is already gone, and throwing more at a bad idea usually just makes things worse. Smarter companies try to focus on what makes sense from here on out, not what they've already spent. Walking away feels bad, but knowing when to cut your losses can actually save money and open the door to better ideas.

 

[Newman]

Yes. That's how it is. Most business owners always refuse to let go, especially if they have gone too far with the business. They don't always want to let go of the business no matter the amount they are losing in such a business. They are always of the opinions that the business will be revived.