Pocket Sized Pep Talks

When Optimism And Confidence Create Challenges

Episode Summary

Research shows that although four out of five entrepreneurs believe they have a good — if not certain — chance of success, 74 percent of new start-up businesses fail, most often due to overconfidence and loss aversion. Author and professor Vincent Depilippo sits down with Rob and reminds us that although optimism and confidence are wonderful traits, sometimes they lead to over confidence and a refusal to take our foot off the accelerator… and that can spell trouble.

Episode Notes

In this Pocket Sized Pep Talk, you'll learn:

• How optimism and confidence, two traits to be admired, and two traits found in most entrepreneurs, can create unique challenges. 
• The harder the journey, the harder we fight.  But it can also create an irrational escalation of commitment (EoC).    
• The concept of, Sunken Cost Fallacy: a person who is reluctant to change a strategy or course of action because they have invested heavily in it. 
• How we are hard-wired toward cognitive biases.
• What human decision-making mechanisms lead to EoC (escalation of commitment) behaviors.
• When we are pumping in time and money and experiencing diminishing returns, how do we break out of this spiral?
• Why rational decision-making is often missing in financial decisions.
• Mentors who helped Vincent along the way.

For more information about this guest:

Website: www.vincentdefilippo.com