While owning your own business can be immeasurably rewarding and fulfilling, entrepreneurship comes with its fair share of challenges. Apart from the technical proficiency, grit and agility that may be required to get a business off the ground, running a successful venture can also be mentally draining and emotionally taxing. And this can have a detrimental impact on a business owner’s mental health if not managed correctly.
This has been particularly true over the pandemic years, which saw many entrepreneurs suffer unprecedented setbacks and face what may have seemed like insurmountable obstacles. The businesses that managed to survive, did so against all odds.
According to the most recent State of Small Business report published by Xero, as much as 96% of business owners reported that stress has impacted them negatively over the past year.
What kind of stress are we talking about? And what can business owners do to keep their stress levels in check and mental health in a good state?
With mental health being a key focus for entrepreneurs, below are three of the most common causes of stress for small business owners and a few accompanying techniques that can lessen their impact on your mental health.
Stress and the issue of ‘rands and cents’
Financial insecurity is arguably the most prominent source of stress experienced by small business owners across most industries. Given that effective financial management is one of the key factors that set businesses that thrive apart from those who don’t survive the first few years, financial stress simply comes with the territory. But while feeling financial pressure is normal, buckling under the weight of this kind of stress doesn’t need to be an inevitability.
Coping with the financial stress of running your own business relies on your ability to take a proactive stance on financial management and literacy, as well as your ability to react appropriately when that stress arises.
The first proactive step you could take is to explore ways to diversify your income streams. Relying on a single source of revenue can increase your vulnerability to economic fluctuations. This may mean adding new products or services to your offering, collaborating with other small businesses on promotional deals or making investments that will reap positive returns in the long term.
You could also consult a financial adviser or business development specialist – someone who you can use as a sounding board to double check your business’s financial strategy or growth strategy.
Finally, remember to acknowledge and celebrate small achievements. Recognising progress, no matter how incremental, can boost morale and help shift your perspective during tough financial periods.
The power of human connection
Another common mental health challenge that small business owners experience is loneliness or feelings of isolation. While at first glance, feeling lonely as an entrepreneur may not appear to be overly detrimental, but research has found that feeling lonely over long periods can have the same impact on your health as smoking 15 cigarettes a day.
Entrepreneurship can be a lonely road, particularly in the first few years of operation when the job calls for you to keep your head down and put in the long hours to make the business work. In this regard, the power of social connection can make the world of difference.
The key is to start by reaching out to like-minded individuals, industry peers, family members and friends in whichever way feels most comfortable. Online platforms and forums can be excellent places to connect, engage in discussions, share your experiences and seek advice from the community. You could also consider participating in industry-related networking events and conferences. The occasions provide opportunities to meet new people, expand your network, and possibly form partnerships or collaborations.
Another option would be to work in a co-working space, which can foster a sense of community even when you’re working on your own. Surrounding yourself with other professionals can help alleviate feelings of isolation.
Make your customer interactions fruitful
Another major stressor faced by entrepreneurs relates to how to deal with customers. Although entrepreneurship is often glamourised as an opportunity to be your own boss, when you own a small business, every customer becomes your boss – in a sense. This is especially true, given the vital role that customer retention can play in building a business’s longevity.
Learning how to deal with customers – even the difficult ones – relies heavily on good communication skills. The first step in coping with this kind of stress is to balance your perspective by focusing on positive interactions.
Celebrate satisfied customers and positive feedback to counterbalance the stress from challenging situations. You could also foster a healthy mindset by treating each challenging customer interaction as a learning opportunity.
Work to understand the root causes of the stress and consider how your business processes or communication strategies can be enhanced. As a longer term strategy and a way to keep your finger on the pulse of what’s happening inside and outside of your business, you should establish systems for gathering customer feedback. Regularly soliciting input allows you to identify trends, address recurring issues, and make improvements to prevent future problems.
Ben Bierman is the managing director of Business Partners.
BUSINESS REPORT