Seth Godin recently published a blog post about sunk costs. Read the post here.

Yes, in business school, they teach you that making the right decisions often means ignoring sunk costs and measuring what the cost/benefits are in the future.

There is some truth to that, but boy is it hard to ignore sunk costs! I would even say it is against human behavior to do so! Too often we dwell on decisions we make in the past and its inertia affects our decisions in the future.

For some professions, like venture capitalists, you never ignore sunk costs, for others, like printers, it is hard to do so. Using Seth Godin’s Analogy, the $10,000 property (Digital Press) could bring in more business for you than the $1,000,000 (offset press) one. Which should you invest in?