117A- Invisible peril for the entrepreneur: sunk costs
February 25th, 2010
117A- Sunk Costs- an invisible peril for the entrepreneur- by Jason Cohen [12:07m]: Play Now | Play in Popup | DownloadIn this bonus episode of The Struggling Entrepreneur, we bring you the audio narration of the blog post by Jason Cohen from Smart Bear Software, which is titled Sunk Costs: An invisible, pervasive peril (from the post dated 15 February 2010).
It really is amazing to see how the “human element” can get in the way of rational and logical behavior that is sometimes mandated in business. Ego, legacy, apprehensiveness, fear or laziness can cause projects to deliver “sunk costs.”
In this audio narration of the blogpost from Jason Cohen, we see some examples of how startups, as well as enterprises, are prone to make these irreversible mistakes.
But with the emotional stress that an entrepreneur faces every day, rational behavior in evaluating when to call it quits is sometimes the cause of such sunk costs.
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