Knowing when to give up is often a challenge for business owners. But there are numerous benefits of quitting when it’s clearly appropriate to do so.
When we talk about quitting, it could be in terms of a staff member leaving, ending a project, or quitting a job. In all of these cases, it’s important to recognize the point at which things just aren’t going to get any better.
Do you ever find yourself in the situation where something is missing? When this happens, quitting is often the best course of action because otherwise you’re just going to continue to hurt your business.
The problem, however, is that we have sunk cost bias. As humans we are biased toward focusing on losses rather than the benefits of quitting something. A great example is that you have a staff member and they’re not doing a great job. By the time you realize it’s a problem, you hesitate because you have all of this money and time invested in that person. In this case, knowing when to give up on that employee is crucial.
When you finally let the person go, it’s usually a relief for everyone. Trying to push things forward due to the fear of loss is not a great strategy.
Quitting is not going to feel good. You’re going to feel like you made a big mistake. But you need to look at it as a learning experience. Listen to that gut feeling. After all, why be wrong for longer?
Knowing when to give up isn’t a skill that comes naturally. But it’s important to recognize the benefits of quitting so that when the time comes, you’re ready to embrace it and move on.