How to Overcome Startup Failure Stress and Anxiety
Running a new startup? Brace yourself for the rollercoaster ride. It’s not just about battling tangible challenges like hiring, securing investments, or customer engagement. Often, the most dreadful enemy is unseen – the mounting stress and anxiety that can cripple your well-being.
As a startup founder, you may wonder how long you can battle this invisible foe alone. The short answer is: not too long.
In this blog, we explore the core issues that make running a startup in 2024 stressful and equip you with proven strategies to overcome the stress and anxiety of startup failure. From managing financial uncertainties to dealing with legal challenges, striking work-life balance, and overcoming the fear of failure, we’ve got you covered.
Ready to turn the tide and effectively combat startup stress and anxiety? Let’s get started!
Why Is Running a Startup So Stressful in 2024?
Financial Uncertainties
Financial risk and uncertainty are some of the biggest stressors when creating a startup. From the moment company operations begin, the pressure to hire talent, manage cash flow, and meet financial obligations starts to pile on.
Investors’ money is on the line and downtimes can force companies to take on substantial debts. With most markets facing saturation and AI disrupting almost every industry nowadays, it’s either sink or swim.
Competing in Fierce Markets
Let's face it: most markets - at least the ones worth doing business in – are relatively saturated. Startups already strapped for cash must compete with bigger players which have more experience, marketing muscle, and established brand identities. The only way to stand out is by working twice as hard as everyone else, at the cost of sleepless nights, stress, and anxiety.
Legal Challenges
The legal challenges of setting up and running a startup are significant. That’s because most markets have complex employment and tax laws, industry-specific regulations, and federal and state-level policies that evolve over time. Unintentionally violating one or more of these laws can result in hefty legal and financial fines.
Work-Life Imbalance
Starting a company demands long hours and sacrifice. Most entrepreneurs are aware of this reality, but quite a few underestimate just how big of a toll it takes on their personal lives. Prolonged work-life imbalance is known to cause burnouts, and the negative effect it has on personal relationships adversely affects both mental and physical health.
Fear of Failing
The pressure to succeed, especially in the highly competitive and success-oriented culture of 2024 is stronger than ever. Startup founders have to contend with the fear of failure, which is only made worse by personal and societal expectations. For some, this fear results in poor decision-making and prevents founders from taking necessary risks.
Now, let’s look at a few ways you can overcome and deal with startup stress.
How to Overcome the Stress and Anxiety of Creating and Running a Startup
It’s Okay to Ask For Help
The first and perhaps most underrated advice is that it's okay to ask for help. You're not the first person to walk the entrepreneurial path and definitely not the last; tons of like-minded startup founders have faced situations similar to what you're going through right now.
Learning the ropes from these people opens the door to practical advice, instills confidence, gives you much-needed moral support, and teaches you how to run a company minus the stress and anxiety. But how to access these support systems?
Here are a few actionable steps you can implement:
Join Peer Networks: These include online forums, slack groups, and even physical meets or industry-related events within or near your city.
Sign-up for Mastermind Programs: Every industry has credible people and thought leaders who offer access to exclusive programs. These often come at a cost but the knowledge they share is often well-worth the money.
Team up with a Personal Coach: A mentor usually does more of the ‘talking’ whereas a coach asks questions to help you better understand the situation you’re in. If it’s clarity you're seeking rather than technical know-how, teaming with a coach is ideal.
Learn to Manage Stress Properly
Effective stress management practices do wonders in reducing stress and anxiety. Begin with basic, easy-to-do mindful practices like meditation, deep breathing, and yoga. Making these exercises part of your daily routine can help reduce stress, make you feel less anxious, and improve focus and decision-making.
Other than that, you should exercise daily (if you aren't doing so already). Playing a sport, going to the gym regularly, and even something as simple as a daily walk boosts energy levels and contributes to positive mental health.
Don’t Run Your Startup Alone
"Alone we can do so little; together we can do so much." That's a quote by Helen Keller, and although she wasn't a businesswoman by any stretch of the imagination, the saying holds true. Even modern-day entrepreneurial role models like Steve Jobs, Elon Musk, and Mark Zuckerberg achieved what they did by being surrounded by like-minded, focused, and driven individuals.
The lesson here is this: you must build a team and learn to delegate tasks and responsibilities. Attempting to run a startup alone can be a recipe for disaster, not to mention the mental and physical toll it may take. If you have a team but still feel as though you’re overworked, start delegating duties to other core members.
Use time management tools (there are plenty available online, like Clockify, Evernote, Asana, or a simple Pomodoro app for ex.) and techniques to prioritize tasks. Remember to focus on the most important ones and avoid getting bogged down by less critical tasks.
Foster a Healthy Company Culture
Fostering a healthy and non-toxic company culture requires honest and open communication within the team. By creating a company culture that appreciates honest and transparent feedback, you don’t have to guess why productivity is down. Not knowing why employees are underperforming or handing in their resignations plays a crucial part in reducing work-related stress.
If you don’t know where to start, consider adopting team building and morale boosting activities. Here’s a helpful article that shares a couple of fun team-building exercises for startups.
There’s Life Outside of Work
No matter how important you think you are to the company and how much time you need to spend in the office, taking breaks and disconnecting from work is necessary. Don’t expect things to turn around by working 24/7. In fact, distancing yourself by taking vacations or just relaxing in general, you can recharge and come back with new and fresh perspectives.
Also, set realistic goals. Everyone wants their startup to grow and succeed, but setting small attainable milestones is the way to do that without falling into despair. Completing each milestone will help you track your progress and gather the momentum to move forward.
Know When to Call it Quits
The entrepreneurial journey is often a rollercoaster of highs and lows. It's important to remember that if your startup doesn't evolve as planned, it's not a failure but an opportunity to learn and grow.
Recognizing the right time to close your business is a crucial skill that can pave the way for future success. If you're considering this step, know that it's a normal part of the entrepreneurial process. Services like SimpleClosure are here to help you efficiently navigate this transition.
If you're ready to explore your options, need guidance, or want to move through this phase with confidence and clarity, then reach out - let’s start a conversation!