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Erase Your Bad Investments For Unlimited Business Success

Did you have a business relationship that you established early on in your career, and you’re still pumping money into it? It’s worth re-examining your arrangements because they might not still be serving your business growth. In this episode, business coach Dan Sullivan and Shannon Waller talk all about eliminating what Dan calls “sunk costs.”

Here's some of what you'll learn in this episode:

  • The various kinds of investments entrepreneurs make.
  • How sinking your money into something that provides little to no returns diminishes your energy and your ability to think about the future.
  • Why you have to decide if something belongs to your future.
  • The real importance of being discerning about something’s usefulness.
  • What you need to do when you’re not getting the results you need for business success.

Show Notes:

It’s the nature of technology that it becomes obsolete over time.

Since COVID, many people discovered that they don’t need as much space as they thought they did.

It’s very painful to think about investments that are no longer paying off for you.

There’s an enormous amount of freedom and creativity that comes from escaping from bad investments.

As soon as you’re free from something outside of yourself, you’re also free from it within your own thinking.

It has to be taken as a matter of fact that past investments outlive their usefulness.

Generally speaking, 50% of all government costs are non-useful investments.

Entrepreneurs are always getting feedback from the marketplace.

Entrepreneurs get punished more than others for lying to themselves.

When entrepreneurs are unwilling or unable to make tough decisions, it seems easier to sell their company than to reduce certain costs.

All the goals entrepreneurs have for their companies are productivity goals.

Really great companies create their own opportunities.

To a certain extent, entrepreneurs are more immune to economic and political events than anyone else.


Multiplication By Subtraction by Shannon Waller

Who Not How by Dan Sullivan and Dr. Benjamin Hardy

Unique Ability®

Article: How To Expand Your Team’s Unique Ability

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Episode Transcript:
Shannon Waller: Hi, Shannon Waller here, and welcome to Inside Strategic Coach with Dan Sullivan. Dan, recently in 10x, you've been talking about escaping sunk costs, and a very particular one, because it applies to teamwork that I'm super interested in learning more about. So before we jump in, just describe, what exactly do you mean by sunk costs, and why is it so important to escape them?
Dan Sullivan: Well, the best way to understand it is, go back five years, ten years in your business, and think about something that was really important at the time, and you invested a lot of time, a lot of creativity, but most important, money, into this. And it was sensible for you to do it at the time, but then, in the time since you'd made that initial investment, the usefulness of the thing that you invested in has diminished or disappeared, but you're still investing the same amount of time, and still investing the same amount of money, even though you have no reason to do that. You can think about that in terms of people who were very valuable that you hired, and actually over the years, they're actually making more money. And they came in with a flurry of enthusiasm, and they came in with a flurry of great productivity, but then their usefulness and their time has gone down, but you're still investing the same amount of money in them.
And I think people are the toughest on cost because there's so much emotion. But we live in a technological age, Shannon, so I can think of lots of technology that you had to invest an enormous amount of money, but it's the nature of technology that it becomes more obsolete over time, and you're still pumping in the money for something—it might be equipment, it might be software, it could be space. A lot of people discovered that, before COVID, they needed a lot of the space that they had, and they're committed to it, or they're tied to continuing to pay the same amount for their space. But about 50% or even more of what they're doing, can now be done virtually, and they don't need the space, but they're still having to pay for the space.