Think about the last time you stayed up late to finish watching a terrible movie just because you thought, "I've already spent so much time on this, I might as well stick it out."
That's the sunk cost fallacy at work, and it's just as dangerous in business.
I once worked with a client who had invested tens of thousands of dollars on fees, due diligence, and negotiations, only to realize that the deal simply didn’t make any sense. But despite learning that it was a bad deal, he was still determined to close it.
A bad deal will always be a bad deal, no matter how much money or time you've already invested. Walking away was hard, but it was the right decision.
Don't let sunk costs sink your deal! Remember, sunk costs are already spent and can't be recovered. If a deal isn't right, it's better to cut your losses and move on.