Sunk-cost bias is a real liability when you are trying to drive revenue or increase profits within a new set of rules. Doing things the way they have always been done because it produces a predictable result makes sense when your market and industry are static.
But you can get caught in panic if you sit on your laurels without considering that things are changing every day. Your competitors are continually looking for ways to innovate and provide higher quality with lower cost. Your customers get bored and look for greener pastures. And let’s not mention monetary policy or interest rates that create temporary bubble effects and lifts.
If you think you have a sure thing, you might want to reevaluate your position. There are simply too many variables in technology and mindsets that threaten your position.
It doesn’t mean that you have to keep looking for greener pastures. But why not hedge? Your greatest asset is your knowledge. You just happen to package it and deliver it in a way that buyers want today.
And instead of waiting for those tastes to shift, how about building in a continual process that repurposes your main business in other ways?
You can experiment and put new ideas into play as derivatives of your current business. You can anticipate what might be a new opportunity and test it in a prototype fashion.
If you can repurpose a few ideas this year based on your experience, knowledge and assets, then those parallel paths may blossom into real opportunities.
It’s a much better strategy to build this into your business approach than simply waiting for the inevitable shoe to drop on your temporary position today.
The only security you really have is your knowledge and abilities. It does mean staying in R&D mode and looking to repurpose what is already working in more novel ways.
