Are you over invested?
I was recently reminded of the concept of “Sunk Cost Bias” and how this state of mind is so relevant to how we sometimes function as retailers.
Sunk Cost Bias is when our decisions are tainted by the emotional time, effort and in many cases money we have put into a task or project. The investment makes us more reluctant to abandon the project even though we may be just sinking further away from the rightful goal for our business.
The successful strategy of fail fast has an emphasis on “fast”! Never be afraid to try something different to push your business forward but at the same time know when it is time to pull the plug. A simple rule of thumb … Ask yourself when your starting to feel over invested… If I had not invested this much into this project and I was just starting now, would I do it?
A moment of clarity will often save you from throwing important time, money and effort into a project or even a product that could be used way more productively and profitably elsewhere…
The success of independent retailers has become a lifelong passion for Scott. From his beginnings almost 30 years ago working on the sales floor in a small outdoor store, to today where he is a friend, partner, mentor and coach to so many incredible retailers around the world. Empowering retailers to truly take control of their businesses creates a ripple effect of positivity and happiness with employees, family and community. Retailers are so often the unsung heroes of our communities. It takes great courage and skill to survive in today’s retail business landscape. Scott has found true happiness serving retailers and assisting them in that path to ongoing success.