3 ms·

sad, but true. that's the sunken cost fallacy. and it's rooted deeply in human brains, and is tremendously hard to overcome. trying to consciously practice empa

sad, but true. that's the sunken cost fallacy. and it's rooted deeply in human brains, and is tremendously hard to overcome. trying to consciously practice empathy with those effected, especially with loved ones, and telling them that they are loved goes a long way. a therapist can also help them to get over these deep rooted emotional responses. on the other hand, mindfully making prudent decisions and not surrounding oneself with yes men is something that a business owner can do. having a 'third person' set of eyes is super important, but that's a role that consultants rarely play

blueblisters 5y ago
> having a 'third person' set of eyes is super important, but that's a role that consultants rarely play I think there's a tendency of not trusting outsiders, especially when it comes to small/medium family-owned businesses. The prevailing wisdom being: you don't understand how this business works, I have been nurturing it, I know my customers and market. Why change things if it has been working for years? It must be the creditors and competitors who are screwing me up. Perhaps the best piece of advice for business owners is not to tie success or failure with your self-worth, and to always have an emergency exit plan for yourself even if you feel your business can endure for ages.
- shreyshnaccount 5y ago
  that's some very sound, practical, and reasonable advice
AussieWog93 5y ago
>that's the sunken cost fallacy It's so much deeper than just sunk cost. The business represents your pride, your purpose and your identity. A closer analogy would be a pet owner who spends thousands of dollars on surgery for a dying dog, just so it can live on in pain, rather than accepting the loss and putting it down.
- shreyshnaccount 5y ago
  I think it's related, and I say so because I read in one of the Yuval Harari books about war vets who had lost their limbs being more likely to support said war, and he attributed it to sunken cost fallacy. seems similar to the situation to me, but I think this is a case of different opinions and I respect yours and thank you for sharing it in a constructive way.
- matwood 5y ago
  As a pet owner who has spent thousands on treatments, the number one thing always on my mind is what is best for the pet. What you are describing normally happens when people don't want to or can't spend the money and leave the pet crippled and in pain.
  - AussieWog93 5y ago
    Apologies for the implication. I'm not a pet owner myself and chose the analogy based on what I've heard other people say (possibly as a justification for putting down their pets).
    - matwood 5y ago
      No problem. It’s frustrating to see people get certain pet breeds with no thought to how much they cost to take care of. I’m friends with quite a few vets, and one of the hardest parts of their jobs is dealing with owners who didn’t think ahead about cost. It’s sad to see pets that with the right treatments would likely heal 100%, but the owner can’t afford it and instead tries to do the cheap treatment.

blueblisters 5y ago

> having a 'third person' set of eyes is super important, but that's a role that consultants rarely play I think there's a tendency of not trusting outsiders, especially when it comes to small/medium family-owned businesses. The prevailing wisdom being: you don't understand how this business works, I have been nurturing it, I know my customers and market. Why change things if it has been working for years? It must be the creditors and competitors who are screwing me up. Perhaps the best piece of advice for business owners is not to tie success or failure with your self-worth, and to always have an emergency exit plan for yourself even if you feel your business can endure for ages.

shreyshnaccount 5y ago
that's some very sound, practical, and reasonable advice

AussieWog93 5y ago

>that's the sunken cost fallacy It's so much deeper than just sunk cost. The business represents your pride, your purpose and your identity. A closer analogy would be a pet owner who spends thousands of dollars on surgery for a dying dog, just so it can live on in pain, rather than accepting the loss and putting it down.

shreyshnaccount 5y ago
I think it's related, and I say so because I read in one of the Yuval Harari books about war vets who had lost their limbs being more likely to support said war, and he attributed it to sunken cost fallacy. seems similar to the situation to me, but I think this is a case of different opinions and I respect yours and thank you for sharing it in a constructive way.
matwood 5y ago
As a pet owner who has spent thousands on treatments, the number one thing always on my mind is what is best for the pet. What you are describing normally happens when people don't want to or can't spend the money and leave the pet crippled and in pain.
- AussieWog93 5y ago
  Apologies for the implication. I'm not a pet owner myself and chose the analogy based on what I've heard other people say (possibly as a justification for putting down their pets).
  - matwood 5y ago
    No problem. It’s frustrating to see people get certain pet breeds with no thought to how much they cost to take care of. I’m friends with quite a few vets, and one of the hardest parts of their jobs is dealing with owners who didn’t think ahead about cost. It’s sad to see pets that with the right treatments would likely heal 100%, but the owner can’t afford it and instead tries to do the cheap treatment.