For many of us, running a small business is a labour of love. It takes grit and persistence to turn a big idea into a profitable company. Whether you’re operating as a sole trader or have a team helping you, running a small business can feel akin to juggling multiple plates in the air, while standing on one leg, on a tightrope, with your eyes closed, and trying not to drop any of them. With deadlines to meet, invoices to chase and clients to serve, taking a step back and checking in with our mental health can easily fall off our seemingly never-ending to-do lists. But, more and more, we are realising that the long-term success, sustainability and profitability of our businesses depends on us putting the plates down every so often and investing in a range of strategies to keep our mental health on track.
In uncertain times like these, it is normal for a complex array of feelings and emotions to come up, whether you are running a small business or not. Fear, guilt, hope, excitement, trepidation, exhaustion – they are all a normal part of life, and even more so during a global pandemic. With a collective concern about what the next few weeks and months have in store, carrying the burden of anxieties and worries about how our businesses will survive these turbulent times is adding an extra layer of stress for many small business owners. Coupled with the fact that the majority of us are now operating remotely, we need to be taking proactive steps to safeguard our mental health more than we ever have before.
Why we must protect the mental health of small business owners
Supporting small businesses to do what they do best has always been the ‘MO’ at BASic Bookkeepers. As one ourselves, we are fierce advocates for the crucial role that small businesses have to play in the Australian economy. Did you know that companies with between one and four employees account for71.5% of all businesses in Australia (the most common size of any business nationwide)? This is even higher in New South Wales, with the numbers indicating that small business accounts for close to 98% of all actively trading businesses in the state.
Unfortunately, the data also shows that small business and sole traders have the highest exit rate (16.5%) of all Australian business. While the reasons for this are numerous and complicated, there are common themes pointing to these low survival rates including: small businesses being more vulnerable to cyclical market fluctuations; the impacts of economies of scale that make it more difficult (and more expensive) to compete with larger businesses; plus resourcing and cash flow issues. Another common theme that leads to small business owners and sole traders having a high exit rate is: poor mental health. The struggle to balance the responsibility and pressures of running your own business is real and, in order to make meaningful inroads into improving our collective mental health, we must bring this issue out into the open.
The pressures of running a small business
We don’t need to remind you that leading a small business is a uniquely challenging (and rewarding) experience. There’s the long hours of intense work to get your business off the ground, the blurred boundaries between work and life and the feelings of isolation that come with being the person others depend on. Throw in financial stresses such as managing cash flow and the pressure to ensure profitability and sustainability to keep yours and your employees’ livelihoods safe, and it’s no wonder most business owners experience prolonged periods of unmanageable stress and the increased chances of depression and anxiety. In fact, a recent study between MYOB and Beyond Blue revealed that 56% of owners of small-medium enterprises (SMEs) have encountered mental health issues, with 48% pointing to financial and cash flow problems as a key source of anxiety.
Navigating mental health concerns is not necessarily new for small business owners, however, it’s important to remember that issues boil to the surface when these mounting pressures are left unchecked for long periods of time (and who is not experiencing increased pressure right now?). A recent study of Australian small businesses by Everymind revealed that over 85% of owners struggled to separate work from their personal life, often clocking additional hours outside of the ‘office’. The study reinforced that the challenges faced by small businesses owners are unique, leading to an increased prevalence of poor mental health. Without the structural support and resources in place (such as mental health programs and resilience-building workshops), small business owners are more susceptible to mental health issues increasing in severity over time.
The signs that you need to invest in improving your mental health
Rather than being just another ‘thing you have to worry about’, it’s crucial to our businesses that we all recognise the signs that might indicate we need to invest in improving our mental health. Here are a few common warning signs to watch out for:
- Difficulty falling or staying asleep
- Spending more time sleeping than is normal for you
- Changes in appetite (such as eating significantly more or less)
- Unexplained aches and pains
- Increasing reliance on so-called ‘comfort foods’, alcohol or other substances to relieve work-related stress
Whether you’ve noticed any of the above signs or not, checking-in with your mental health and developing strategies to take care of yourself as a small business owner is vital. So, here are some tips to help get you started.
How to take better care of your mental health by setting boundaries
One of the most important steps all small business owners can take to safeguard their mental health is to set boundaries. Although working at break-neck speed and keeping momentum up can feel like our only option (particularly during uncertain times), it’s important to be conscious of when we’re burning the candle at both ends and seek out opportunities to scale back our working hours when we can. Working extra hours is all too common, with the Australian Bureau of Statistics revealing 5 million of Australia’s 7.9 million full-time employees are working beyond the typical 40-hour work week (and for small business owners, it would be safe to assume these rates of overwork would be even higher). So, what do healthy work boundaries look like for small business owners?
- Define ‘core’ business hours and schedule work-related meetings during that time: although we might be working from home and always within reach of our laptop, and leaving the 9-5 behind were why you started your own small business in the first place, it’s still important to protect your personal time. It might be that you start work at midday and work into the evening, or that you do a ‘split shift’ and work in the early morning, early afternoon and again at night. Whatever your hours, define what your ‘core business hours’ are and then use your calendar to block out ‘after-hours’ time. This is setting a boundary for you, for your work, and for your team to ensure that everyone is aware of the boundaries around your availability.
- Take regular breaks: for many small business owners stepping away from our inbox or taking time for ourselves throughout our work day can feel impossible. However, recent studies have shown the power of taking even just a 5 minute break between tasks (with small amounts of activity shown to boost productivity as well as improve mood and overall well being once we return to our desk). Here are some break ideas you could incorporate into your work day (even while physically distancing):
- Take a walk around the block to soak up some sunshine in between meetings
- Visit your local park during your lunch hour
- Do some light stretching or a ‘dance break’ away from your desk between tasks
- Use phone calls as a chance to get outdoors for a quick stroll
- Set realistic deadlines to ensure you can deliver work on time: nothing compounds feelings of stress and worry than feeling overstretched. When scoping our new projects or client work, take your time to consider all the steps involved and any factors that might impact delivery time (and communicate these with all stakeholders from the beginning). Make sure to account for any other priorities or tasks you’re also juggling and look to see who you may be able to lean on to assist with completing these tasks (Outsourcing? Another team member? Virtual assistant?).
- Practice good ‘sleep hygiene’: we know this is easier said than done (particularly if you’ve got small children or are working across time zones) but humans are cyclical creatures and our bodies love regularity and routine. By winding down and going tech-free for at least 30 minutes before bed, our minds and bodies can better do what they need to do while we sleep to make sure we’re on our game, day in and day out.
The pressures on small business owners are plenty, and they’re not going away anytime soon – so we need to look after each other and know that there are plenty of places to turn for further support. If you’d like to learn more strategies about how to improve your mental health and wellbeing, check out Beyond Blue’s Head Up guide for small business owners here and the ‘Further reading and resources’ section of this guide from Heads Up.
As always, if you or anyone you know needs immediate help, you can call these services for free and confidential support:
- Lifeline 13 11 14
- Beyond Blue 1300 22 46 36
- Headspace 1800 850 890
If you’re looking for ways to alleviate stress during these uncertain times, don’t go it alone. BASic Bookkeepers’ team of qualified bookkeepers and BAS agents is here to help. Get in touch with us today by giving us a call on 1300 852 575 or submit an online inquiry here .
