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There is cost of failure and the size can be a determining factor whether you get to try again, which I term rebound.
Here is my mental model for it:
There is an Absolute cost and a Relative cost:
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Here is my mental model for it:
There is an Absolute cost and a Relative cost:
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Absolute cost of failure (ACF) is what it costs you materially, read financial loss, inventory, assets. It is very easy to calculate and its size has an effect on rebounding. But not as much as the second.
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Relative Cost of Failure (RCF) is more nuanced cost like relationships, mental and physical health, reputation, scale. The larger the RCF, the more difficult rebounding becomes.
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