LibraryScenariosWhen business partners have conflicting risk assessments
Scenario

When business partners have conflicting risk assessments

My business partner and I have completely different risk tolerances when it comes to reinvesting profits back into the company versus taking money out, and I think we're both anchored to what happened in our previous businesses instead of looking at what's actually best for this one.

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The coach is replying

More people experience this than they realize.

What we've seen

Your different experiences are creating anchoring biases that prevent you from evaluating current opportunities objectively.

Ideas that help explain it
Worth thinking about

“Where Are You with Behavioral economics — biases in financial decisions?”

If this sounds familiar, the Library can help you find the bigger picture.