Inc.

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.1 min read
Not Your Average Summer Holiday
A century ago, arguably the most famous man in America was an innovator and entrepreneur. So was the second-most famous. So when Thomas Edison and Henry Ford embarked on their annual proto-glamping excursions—which, yes, they did, accompanied by less
Inc.5 min readSociety
Gender Equity Isn’t Just A Women’s Issue
The wage gap, “diversity debt,” and unconscious bias are holding your company back from becoming its best self.
Inc.2 min readTech
The Carve-Out
He needed capital for some big plans but didn’t want to cede control. That required a different kind of investor.