Which is worse? Sunk cost, or sinking your whole business?

We see startups and “stay ups” all the time, reaching a point where their costs are escalating as they work to get their product or service to market. Sometimes the issue is insufficient validation at the early stages. Other times, it can be that new information comes to light that wasn’t previously available – and it is a complete game-changer. The trouble arises when there has already been significant investment in taking the current route. Those sunk costs make it incredibly expensive reverse the engines or take a new tack.

At times like that, it’s helpful to think of the current way forward as a metaphorical sinking ship. No matter how much you’ve invested, you’re better to get out with your life (and that of your product or service), than to hang on because of your sunk costs.

If you’ve sunk a lot of time and effort into your business, and evidence is making the way forward less evident, rather than clearer, we’re here to help.

We’re Megann and Steve Willson, and we’re the Founders and Partners of PANOPTIKA. We’ll work with you and your team to help you see everything you need to know to make better business decisions. You can find us on social media, too – on Twitter, Facebook, or LinkedIn. Sign up for our weekly news before the next issue drops on Friday afternoon, using the orange button, and learn what else we’re learning by working with B2B customers around the world.

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