It’s a pet project. But you have to know when to kill it

NO ONE LAUNCHES AN INITIATIVE assuming it’s going to fail. “We start with truly high hopes for any project,” says Meir Statman, a professor of finance at Santa Clara University and author of Finance for Normal People. “But then things happen.” The market shifts, a rival crowds you out, or some minor-seeming tech hurdle reveals its Gordian-knot nature. But that doesn’t mean it’s easy to just walk away. “It’s very hard psychologically for people to let go of sunk costs,” Statman says. “As long as a project’s

You're reading a preview, sign up to read more.

More from Inc.

Inc.2 min readWellness
Cancer Hunter
Endoscopies rely on a physician’s steady hands operating a long camera as it’s manually fed into, and manipulated within, a patient’s body. Co-founder Fred Moll and his team at Redwood City, California–based Auris Health spent six years building the
Inc.4 min read
Since Alessandro Volta created the first true battery in 1800, improvements have been relatively incremental. When it comes to phones and especially electric vehicles, lithium-ion batteries have resisted a slew of efforts to increase their power and
Inc.3 min readEntrepreneurship
Find the Perfect (Tax) Partner
Troy Hazard, a serial entrepreneur and consultant based in Fort Lauderdale, Florida, figured he needed a new accountant when he realized the advice was flowing the wrong way. “Come tax time, I’d say, ‘We haven’t talked about this sort of planning or