Business In Crisis

The Emotional Impact

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Running a small business during a crisis involves an emotional component.

When COVID-19 hit, many small business owners faced both economic uncertainty and personal turmoil. Business closures, even temporary ones, stirred up powerful emotions, similar to grief.

Researchers have applied Elisabeth Kübler-Ross’s Five Stage Model of Grief to business closures. The model, originally designed to explain how people handle loss, can also help us understand what business owners go through during crises.

Here’s a brief overview of the five stages business owners may experience:

1. Denial Initially, owners might struggle to believe what's happening. The rapid changes and closures can feel surreal, leading to a focus on immediate needs rather than long-term implications.
2. Anger As reality sets in, anger follows. Owners feel frustrated with the situation, the restrictions, and the lack of clear information. It's an intense period but often temporary as they shift focus to new possibilities.
3. Bargaining During this stage, owners start negotiating with reality. They explore ways to save their business, reach out to others for help, and find comfort in action. This bargaining offers some hope and a distraction from the crisis.
4. Depression When attempts to mitigate the crisis don't work as expected, a wave of sadness can follow. Owners may feel helpless, as they realize their previous business model might not work anymore. This stage can linger until they see signs of recovery.
5. Acceptance Eventually, many owners come to terms with the new normal. They've adapted or rebuilt, and while the road ahead might still be challenging, they've accepted the changes and begun moving forward.

This model doesn’t follow a strict order. Business owners may move back and forth between stages. Every experience is unique.

Support systems are crucial during these times. Business owners need both emotional and practical support to navigate these challenges. Resilience is often highlighted, but so is the need for tailored assistance at different stages of the crisis.

Understanding the emotional side of running a small business, especially during a crisis, is vital for advisors, policymakers, and the owners themselves. The journey is about much more than merely survival—but about coping with profound emotional shifts too.

Speaking of shifts...

Exiting The Business

Exiting a business will also stir up a range of powerful emotions. For many owners, the business is deeply intertwined with their identity, purpose, and relationships. Letting go can feel like losing a piece of themselves. This emotional connection often leads to feelings of uncertainty, loss, and even grief.

Owners might experience sadness as they realize they won’t be part of the daily operations, interacting with long-time employees and customers, or guiding the business through future challenges.

Beyond sadness, there can also be frustration and anxiety. The process of selling a business is often complex, and owners may feel overwhelmed by the legal, financial, and emotional hurdles. They might question if they’re making the right decision, or worry about what life will look like post-exit.

Even if the exit is planned, the emotions tied to closing a significant chapter of their lives are inevitable. These emotional challenges need to be addressed just as much as the logistical aspects of the exit to ensure a smoother transition into whatever comes next.

What Should You Do?

1. Develop a Personal Strategic Plan Before a crisis or business exit occurs, create a personal strategic plan. This plan should outline your purpose, vision, and goals for life beyond the business. By having a clear roadmap for what’s next, you can reduce uncertainty and maintain a sense of direction during emotionally challenging times.
2. Build a Support Network Surrounding yourself with trusted advisors, mentors, and peers can provide emotional support during a business crisis or exit. Having people to talk to, who understand the challenges, can help alleviate feelings of isolation and stress. A strong support network offers you perspective, guidance, and encouragement when emotions run high.
3. Prioritize Self-Care and Emotional Awareness Regularly practicing self-care and staying in tune with emotional well-being are critical. This includes activities like mindfulness, physical activity, or simply taking time away from work to recharge. Recognizing emotional triggers and responding to them proactively will help you navigate the emotional ups and downs of a crisis or exit with greater resilience.

If you want to have a chat about all this and how I might be able to help, let's grab some time to talk. Be assured that I use no pressure sales tactics or gimmicks. What you see is what you get. You decide if the time is right for you to enter a formal coaching arrangement.

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