Running a small business can be really rewarding. Many small-business owners report a sense of autonomy and independence, values-aligned work, flexible working hours, and a greater connection to community contribute to their job satisfaction and wellbeing. These are probably some of the reasons you decided to go it alone in the first place.
It can also be really stressful, particularly as the cost-of-living crisis affects small-business owners both personally and professionally. Rapid rises in the cost of doing business have created a challenging and worrying environment for small-business owners.
Profitability, cashflow issues, long work hours, and poor work-life balance are common stress factors faced by small-business owners on a daily basis. A recent Xero survey of small-business owners found that financial stress and cashflow issues resulted in feelings of stress (57 per cent), anxiety (50 per cent) and troubles in sleeping (48 per cent) over the last 12 months. Left unchecked, this presents a real risk to the long-term mental health of small-business owners.
Beyond Blue research into the link between money and mental health challenges found that people experiencing money troubles are at least twice as likely to experience poor mental health, and small-business owners are increasingly reporting the link between financial stress and mental health challenges.
Our research shows that the link between financial stress and mental health challenges is bi-directional. Each influences the other in a downward spiral where money problems impact mental health, which then makes it harder to be in the headspace to get on top of your financial challenges, which then further impacts your mental health. This downward spiral can happen quickly and can catch small-business owners by surprise.
It’s not surprising that as many as one in three small-business owners have reported experiencing anxiety, depression or chronic stress.
So, what can be done? And done in a way that doesn’t add to the existing pressures?
First and foremost, it’s important to know you’re not alone. Many small-business owners are facing incredible challenges, but you don’t have to face them on your own. There are supports available for your business health, your financial wellbeing and your mental health. It’s important to regularly review your business finances. Your accountant, financial advisor, tax agent or financial institution can be your first port of call and can help you develop a plan to stay or get back on track. If you don’t have a current support in place, consider reaching out to your local chamber of commerce for advice.
If your business is struggling, it’s important not to delay seeking help. It can be natural to want to focus on other things or avoid tackling things head-on, but it’s best to seek help early. Our partners at the Small Business Debt Helpline can give you free, independent, and confidential advice about assessing your financial situation, paying your bills, managing debts, tax and BAS, leases and rent and navigating additional supports that may be available.
While seeking help for your finances is critical, we know small-business owners often prioritise their business health over their own wellbeing. It’s important to have practical strategies to deal with the stressors of work and life. Beyond Blue’s dedicated small-business mental health coaching program is there to help. Don’t delay taking action. Beyond Blue’s mental health coaching program for small-business owners, New Access for Small Business Owners Program (NASBO), the Small Business Debt Helpline on 1800 413 828, and the Small Business Mentoring Service are there to provide support and practical advice.
I know that keeping your business going can feel like everything, but don’t lose yourself in the process. Get help early so you can get back on track sooner.
