What if I tell you maybe it’s time you actually killed that farm of yours.
Yes. It might be time to sell everything.
The birds. The animals. The houses. Maybe even walk away and start something new.
I know. That sounds crazy coming from me.
For the last 8 months I have been writing this blog, I have shown you my farming journey.
I have shown you how farming can make you money. I have shown you how it can ultimately give you financial freedom.
But today, let’s look at things from a different angle.
Something Strange Was Happening
Many years ago, economists noticed something odd.
New businesses were losing money. A lot of money. More than they should.
You might say — “Carlos, that’s normal. My small business hasn’t made a profit in six months.” And you’re right. Losses happen.
But this was different.
These businesses kept losing money for a long time. Way longer than made sense.
That made the economists ask:
Didn’t they see it happening?
Couldn’t they spot the pattern?
What were they waiting for?
Then they noticed something else. Governments were doing the same thing. Losing money. Money that could have been saved if someone had acted sooner.
That’s when the name Sunk Cost Fallacy was coined.
The Sunk Cost Fallacy
What Is The Sunk Cost Fallacy?
It is simple.
It is when you keep doing something because of what you have already put into it instead of looking at the outcome.
Even when it is clearly not going to work.
Time. Money. Effort.
Here are some good examples..
You keep watching a boring movie. Why? Because you already paid for it.
You stay at a job you hate. Why? Because you have already been there 10 years — even though there is no promotion coming.
You stay in a bad relationship. Why? Because you have already been together for 2 years.
That is the sunk cost fallacy.
The $9 Million Board Meeting
Here is what it looks like in a real business.
A company puts its best people, its money, and two years into a new product. The product flops. Almost no one buys it. The few who do won’t even tell their friends about it.
So they have a board meeting..
Person 1: We should kill this project. It is not working.
Person 2: I agree. The market doesn’t want it.
Person 3: But we have already put in so much time. (The beginning of the sunk cost fallacy)
Person 4: Yes. And so much money. This is one of our biggest projects ever.
Person 5: Think about all those 20-hour days we worked. Remember the commitment we made?
They decide to keep going.
At this point, they have lost $1 million.
13 Months Later…
Person 1: I think we should shut it down. It’s not going to work.
Everyone else: Yeah. Kill it.
Short meeting. But now they have lost $10 million.
Why didn’t they stop at the first meeting?
Sometimes Quitting Is The Right Move
I believe in hard work. I believe in not giving up.
But sometimes, quitting is the smartest thing you can do.
A job. A career. A business. A project.
Codie Sanchez, author of Main Street Millionaire, once said on her X page: “Quitters are winners.”
Controversial? Yes. But think about it.
Winners quit their bad habits. Their bad friends. Their bad environments. Their bad jobs. And then they go on to win with better ones.
That is what she meant.
Farmers Are Not An Exception
Many farmers keep pouring money into a farm that makes zero profit. Whether it’s poultry, livestock or crops. It doesn’t matter.
The scariest part? Most of them don’t even know they are losing money.
If that is you right now — it might be time to put the hoe down and walk away.
So How Do You Know When To Quit?
Here are four things to ask yourself.
1. Do you hate what you are doing?
Pushing through something you hate helps no one. Not you. Not the people around you. Find something you actually like doing.
2. Have you truly tried everything?
Most people quit too early. They try 10 things and say “it didn’t work.” You need to try an unreasonable number of things first. Different methods. Different tactics. Different experts. Then, if nothing works — you have your answer.
This is the most important one.
3. Ask yourself: would I start this again today?
Forget the past. Forget the money and time you already spent. If you were starting fresh today — would you choose this again?
If the answer is no, that tells you something.
4. Set your “kill criteria” before you start.
Before you begin anything — a farm, a business, a project — decide in advance what will make you walk away. Write it down. When you hit that line, you walk. No guilt. No regrets.
(This is one of the topics I’m considering to put in the farming bool I’m writing – Before You Farm. Tell me what you think in the comments)
Quitting Doesn’t Make You A Quitter. It Makes You A Pivoter.
Walking away from something that is not working does not make you weak.
It makes you smart.
For a deeper look at this topic, I recommend the book “Quit: The Power of Knowing When to Walk Away” by Annie Duke.
What are your personal thoughts on quitting? Drop your thoughts in the comments.
If you want to learn how to start and run a layer poultry farm profitably — grab the Free Ebook below👇🏿
See you next Friday!