Learn everything you can from your competition and then create something even more valuable. - Josh Kaufman

Sunk Costs are investments of time, energy, and money that can’t be recovered once they’ve been made. No matter what you do, you can’t get those resources back. Continuing to invest in a project to recover lost resources doesn’t make sense — all that matters is how much more investment is required versus the reward you expect to obtain.

Perceived Value determines how much your customers will be willing to pay for what you’re offering. The higher the perceived value of your offering, the more you’ll be able to charge for it, which significantly improves your chances of succeeding.

This mental simulation also gives me a shopping list: I’d need to invest in a flotation vest, helmet, and other safety gear. Now, instead of (1) raft river (2) have fun (3) don’t die, I have a concrete list of subskills to practice and actions to take to ensure I actually have fun, keep my gear, and survive the trip. Inversion works.