I think in situations where being optimistic stops you from rational thinking. This is where it should be limited.

eLdavis said:

I think in situations where being optimistic stops you from rational thinking. This is where it should be limited.

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True. When you start behaving irrationally in your approach to business, it is better to face reality for the sake of that business.

That's a very good reflection, and one that many entrepreneurs overlook. Being positive is essential to staying motivated, especially when things get tough. But excessive optimism without a realistic foundation can become self-deception. The limit is reached when faith in the business begins to clash with data, numbers, and market reality.
An entrepreneur must maintain a balance between hope and analysis. For example, if sales have been falling for months, costs are rising, and there are no signs of improvement, continuing to persist without rethinking the strategy is no longer optimism; it's denial.
The best mindset is "realistic optimism": believing in the project, but being willing to make difficult decisions, adapt, or even close down to start something new. Dreaming is fine, but measuring, analyzing, and acting with a cool head is what separates the dreamer from the true entrepreneur.

Min George said:

It is always believed that a business person must always be positive as they run their business. But where is the limit of just being optimistic about your business. At which point should you just pursue your business with realistic point of view rather than optimism?

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In business, having a positive attitude is essential for overcoming challenges and moving forward. However, there are times when optimism alone is not enough, especially when faced with realities such as losses, fierce competition or market changes. It is important to learn to look at business with a realistic eye, making decisions based on statistics, research and the current situation instead of dreams or unfounded expectations. The balance between optimism and reality builds a solid foundation for sustainable business growth.

For some people, optimism in business means that they should just neglect the warning signs and that won't help the business to grow.