🚂 If You’re on the Wrong Train, Get Off: The High Cost of Bad Business Decisions—and How to Recover

“If you board the wrong train, it is no use running along the corridor in the other direction. The best thing to do is get off as soon as possible—because the longer you stay on, the more expensive the return ticket will be.” Dietrich Bonhoeffer.

In business, as in life, not every journey takes us where we hoped. Some paths that once looked promising turn out to be dead ends. Whether it’s a bad hire, a misfired product launch, or a strategic partnership that went south, bad decisions happen—even to the best leaders.

The key isn't avoiding mistakes entirely. It's recognizing when you're on the wrong track and knowing what to do next.

The Real Cost of a Bad Decision

Making a bad decision doesn't just cost money. It can also drain time, morale, brand equity, and even customer trust. But what really compounds the damage is sticking with a decision long after it’s clear it was wrong.

There’s a psychological bias at play here: sunk cost fallacy (see relevant blog post here). We often think, “We’ve already invested too much to quit now,” which keeps us on the train—even when it’s heading in the wrong direction.

This resistance to change can be fatal for startups, and painfully expensive for established businesses.

Real-World Examples: When the Train Was the Wrong One

🧪 Startup Case: The Overbuilt MVP

A promising SaaS startup spent over a year perfecting an "MVP" that was anything but minimal. By the time they launched, the market had shifted, competitors had already validated simpler versions, and early customers found the product too complex.

To their credit, the founders recognized the mistake, scrapped 60% of the features, and pivoted to solving a single, high-impact problem with a clean UI. They lost 12 months and €150K—but gained traction once they focused. Had they waited longer, the company likely wouldn’t have survived.

🛒 Corporate Case: The Wrong Expansion Bet

A well-known European retailer expanded into Southern Europe, opening 20+ stores in under 18 months. Despite strong brand equity in the North, they underestimated regional buying behaviors and overestimated demand. Sales lagged, logistics costs spiked, and losses mounted.

Eventually, the leadership made the tough call to exit the region entirely. They negotiated out of leases, restructured local teams, and reinvested in their digital channels—where those markets were more receptive. A costly misstep, yes—but the early exit saved the business from long-term erosion.

Why Admitting a Mistake Is So Hard

Admitting a mistake in business often feels like a failure of leadership. But in reality, it’s the opposite. It takes courage and clarity to say, “This isn’t working—and we need to change course.”

Leaders who are open about their errors build organizational trust and foster psychological safety within their teams. They set a precedent that making mistakes is okay—as long as we learn and act quickly.

Managing the Fallout: 5 Smart Steps

1. Acknowledge Quickly and Clearly

   Don’t sugarcoat. If a strategy, campaign, or product isn’t working, say it plainly. Internally and externally, honesty goes a long way.

2. Assess the Damage

   Take a clear look at what the decision has cost—financially, operationally, reputationally. Use real data and avoid guesswork.

3. Control What You Can

   Identify what aspects of the situation can still be salvaged or redirected. Maybe a product can be repositioned, or a failed channel can be repurposed for another use.

4. Communicate Transparently

   Keep stakeholders in the loop. Your team, partners, and customers will respect the maturity and clarity of your response.

5. Build a Recovery Plan

   Define the steps forward. This might include cutting losses, reallocating resources, or launching a “reset” strategy. Keep the team focused on what comes next.

Learn Forward

Bad decisions hurt. But they’re also invaluable learning opportunities—if you’re willing to treat them that way.

At WizzSense, we help businesses build agility and resilience into their operations and decision-making processes. Because in today’s market, the ability to course-correct fast is more important than being right the first time.

Need a strategic partner to navigate tough decisions?

Let’s talk. Our experts at WizzSense are here to help you make smarter moves, recover faster, and grow stronger.

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