Mainul Haque Mahi

Have you heard of the term #SunkCostFallacy? Some of you might be familiar, while others might not.

Back in 2020, my friend and I embarked on the journey of starting a Perishable Protein Supply Chain Startup with ambitions to become a big thing in the industry, but it only lasted two years. However, through the challenges and eventual closure of the company, I gained insights that have proven invaluable for both life and career.

The single most valuable lesson I learned is something no one told me when I started my business: It’s not just your business’s health that matters; it’s your personal financial health that defines your success. You are your business, and if you’re not reaping proper financial rewards from the company you’ve built, then you’re not doing enough. And If you keep on trying to float the sinking ship; At that point, You fall into Sunk Cost Fallacy. The more you invest in a business that isn’t financially benefiting you, the more you’re falling into this trap. You gotta get out of that loop.

Let’s put it into perspective with some numbers. Suppose you started a company at some point in your life. In my case, it was right after my graduation. If I had joined a multinational company like Unilever or Marico, I would have earned around 100K with all the benefits included. So, when you start a company, the time and value you invest are equivalent to or even greater than that 100K. In fact, it should be valued at around 150K-180K, considering your comprehensive involvement.

Now, think about this: If, within the first six months of running your business, you can match or exceed the financial package you’d get in a corporate job, it starts to make sense. From the sixth month onward, founders should aim to multiply(1.3x/1.5x/1.8x) that amount every six months. Your business should ideally be your sole source of income. This clarity enables you to focus on growing your business effectively.

Sadly, not many people do this calculation. It’s simple math that doesn’t require complex graphs or charts to assess your business’s growth. All you need is some mental math to track your progress.

Lastly, let me debunk a common myth: Business isn’t always as exciting as the media portrays it to be. It can be as mundane as your math homework. However, just like tackling math problems sharpens your analytical skills, the seemingly boring parts of running a business provide the thrill of making money and achieving your goals.

So, remember, you are the key to your business’s success, and your financial well-being is the compass guiding you toward it. Are you ready to assess your approach and maximize your potential? It’s a question worth pondering.