Is It Time to Cut Bait?

by C.J. Adams

Should I give up?

Should I start something new?

Should I pivot?

What opportunities am I missing out on?

OPPORTUNITY COST.

Investopedia defines it as “the cost of an alternative that must be forgone in order to pursue a certain action.”

Put even simpler, what could you be doing instead?

Opportunity cost is present in every aspect of our lives. When I decide to drink a coffee, I am foregoing the opportunity to drink a glass of wine at that point in time. When I go to the movies, I am not going to the circus. When I focus 100% of my time and energy on one business, I am choosing to not focus that time and energy on another business.

So, how do you know when it is time to cut bait? When is the opportunity cost so high that you make a change?

I’m not sure that there’s one correct answer.

In 2015, I left two companies that I started. The opportunity cost of staying with those ventures was too high for me. With one, I recognized other opportunities that I thought had more potential. With another, I finally realized that I wasn’t emotionally invested in it and had the opportunity to do something that spoke more to my passion, that fulfilled my emotional side.

All that said, if something is having major negative effects on your personal health, your relationships, your family’s well being, or is driving you into debt, it’s probably time to think about cutting bait. To wash your hands off it.

Sometimes, thought, it’s none of the above. You just know that it’s time. You know that the opportunity cost is too high and it’s time to move on.