How to Avoid Sunk Costs in Business

April 16, 20200 Comments
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How to Avoid Sunk Costs in Business

Sunk costs are everywhere, especially when it comes to running a business. To help you identify and navigate these sunk costs, Coupon Chief created an infographic with strategies for entrepreneurs and small business owners to use.

No one likes to admit to their mistakes. However, mistakes of any size can be costly for a small business. That’s why it’s important to know when you’re heading down the path of a sunk cost and how to get out of it before you fall for its trap.

When small business owners realize they’ve made a mistake, they usually do one of two things. They either choose the “stick to your guns” approach and hope things turn around on their own, or they take proactive steps to change strategies. While the latter is usually the better choice, many entrepreneurs are too often tempted to ride out their losses and wait for things to improve.

This temptation is caused by the sunk cost fallacy, a cognitive bias that can sneak up on you very easily. It fools you into putting too much value on a past decision simply because you’ve already invested time, money, or energy into it.

Check out the infographic below to learn how to spot and avoid sunk costs when it comes to running your business.

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About the Author ()

Marielle Stroud is a Content Marketing Specialist at Siege Media, a Content Marketing Agency specializing in SEO.

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