Entrepreneurial wellness
Discussing the state of mental health in the US and unpacking the personal struggles of a searcher #WorldMentalHealthDay
This week’s post comes one day early, as today is World Mental Health Day. The topic of mental health hits home for me – I’ve witnessed countless friends and family members take destructive actions to get through each day and cope with the pain. After overcoming my own struggles in my mid-twenties and living with a new perspective today, I want to share with you how they’ve impacted my approach to mental wellness as an entrepreneur.
As a former athlete, I grew accustomed to the classic method for dealing with painful things in life: “toughening up”. In fact, many who achieve great success in sports seem to attribute it to enduring pain and suffering longer than others. In the basketball world, stories of Kobe Bryant’s work ethic have been the gold standard for those looking to be great. In my early days as a searcher, I don’t think it feels much different in entrepreneurship than in sports. People take pride in not taking time off, being aggressive, working long hours, and having a win-at-all-costs mentality. Rest is for the weak, right? No.
Unfortunately, our society is slow to react and change until something terrible happens. My intention today is to shout from the rooftops to help build awareness BEFORE things get even worse. That’s not to discount that suicide is already the #2 leading cause of death for people between the ages of 10 and 34, but we can all play our part in encouraging more to speak out and offer a helping hand to those who need it most.
I’ll refresh you on some stats on the mental health crisis in the US and then dive into how this relates to entrepreneurship and actions I’ve taken throughout my search to keep my mind healthy and active. While I am no medical expert and not saying these are a substitute for seeing professional help, I am strictly sharing what I view to be some of the main stressors of entrepreneurs and how I have managed them thus far.
Mental illness statistics
Looking at the US population more broadly, we are experiencing a silent crisis that impacts us daily, directly or indirectly. Consider the following stats below from the National Alliance on Mental Illness (NAMI):
1 in 5 US adults experiences mental illness each year (~53 million people!)
1 in 3 US young adults (ages 18-25) experiences mental illness each year
50% of all mental illness begins by the age of 14, and 75% by the age of 24
Suicide is the 2nd leading cause of death among people ages 10-34
But what about entrepreneurs specifically? There has been some work on this topic as well, and, unfortunately, the data I’ve seen highlights an even more concerning story. Consider this survey of 300 entrepreneurs conducted by The Hustle:
63% of entrepreneurs surveyed have dealt with burnout, and 59% with anxiety.
1 in 3 entrepreneurs felt there is a stigma around mental health issues in the business community or that it is getting worse
Only about 1 in 4 entrepreneurs said they felt there were adequate mental health resources
Similar resources on entrepreneurship and mental health show similar findings:
72% of entrepreneurs are directly or indirectly affected by mental health issues compared to just 48% of non-entrepreneurs. (NIMH)
49% of entrepreneurs deal with mental health issues, while only 32% of their counterparts experience them. (NIMH)
45% of entrepreneurs report being stressed compared to 42% of “other workers.” (Gallup Wellbeing Index)
34% of entrepreneurs report being more likely to have “worried a lot” compared to 30% of “other workers”. (Gallup Wellbeing Index)
We love to hype up entrepreneurship in American society without adequately acknowledging the personal costs associated with the career path. I’m sensing it is becoming the same way with the traditional search fund path. People are quick to reference the recent Stanford Search Fund Study and think they’ll be the next entrepreneur with a multimillion-dollar payout by simply launching a search fund without fully understanding what stresses to expect as an entrepreneur and how to manage those regularly.
While these stats aren’t surprising to see with entrepreneurs, that doesn’t mean they need to be the case in the future. With more awareness of the stresses you’ll face as an entrepreneur, you’ll be in a better position to manage the inevitable challenges with more grace.
Stresses of entrepreneurship
Whether you’re considering ETA in business school or in the early stages of your search, I’ve identified the everyday stressors in my experience that impact any entrepreneurial endeavor. While they may not capture every single area of stress that you’ll experience, I can almost guarantee every entrepreneur has and will feel these frequently.
Rejection
Each stage of the entrepreneurial journey has its elements of rejection. In a traditional search fund context, rejection begins when one fundraises for their fund. As investors may decide they cannot fund your search, you will face similar rejection from business owners when you pitch to them week in and week out, either by ignoring you completely or telling you face-to-face. During the search phase, the rejection is not only for you – you are also rejecting owners that you determine are not the right fit, which is equally as frustrating. Don’t worry, things do not get any better once you acquire the business. Potential customers will reject you, and even certain employees will decide to leave the company. The fact is that entrepreneurship symbolizes the hardships of life but sometimes in an amplified way. Rejection is inevitable but a significant source of stress for us nonetheless.
Loneliness
To make matters worse, entrepreneurs must manage the constant rejection in relatively isolated environments, especially in a post-COVID world where Zoom appears to be the new norm from now on. The traditionally funded path can seem even more lonely for MBA graduates whose peers are working for big firms with incoming classes that provide a great social network. Working alone as a searcher each day (even in a coworking space such as WeWork) is daunting for those who are used to working in team environments or a traditional corporate office. While successful searchers will lead an organization as CEO, that role can be equally as isolating but in different ways. And, it’s not easy for partnered searchers either, who may feel some element of collective isolation or general conflict by spending too much time together as a pair. Without the right support systems, it may feel like entrepreneurs have few places to go to feel properly heard and understood.
Uncertainty
There is significant uncertainty in launching a search fund. While we ‘risk-averse’ folks believe the risk-adjusted returns make entrepreneurial acquisitions more attractive than alternative career paths, that does not eliminate the uncertainty it brings. Maybe pursuing ETA over launching a new venture narrows the distribution of outcomes, but there’s still considerable uncertainty to the path. First, we have about a two-thirds chance of acquiring a business and then about a three-fourths chance of having a non-negative return, making it about a 50/50 coin toss as to whether we’ll generate a positive return at the time of a searcher’s first day of beginning. Outside of financial outcomes, we have the uncertainty of where we might run the business, what the company is, how our family and friendships will evolve, how the economy will change, and much more. While there can be much excitement about what the future holds for us, there’s no doubting the anxiety it can bring to searchers and operators.
Imposter Syndrome
Based on my own experiences, one that I can undoubtedly confirm is imposter syndrome. Defined as “an internal experience of believing that you are not as competent as others perceive you to be as if you are a fraud,” searchers experience this every day as owners question our ability to operate their businesses. Many of us are also going through an acquisition and CEO role for the first time in our careers. The rejection and uncertainty add to the feeling that we are frauds, which can be a trap that discourages us from taking action. For aspirational types who look to raise the bar on themselves, imposter syndrome can significantly inhibit further growth, and the higher you raise that bar on yourself, the worse it can feel. When contemplating whether to launch Maverick, my mind constantly tried to convince myself that I had no business writing about my experiences. Who am I to write about search funds, having never acquired a company? Who will believe someone without a background in entrepreneurship or private equity?
Fear of Missing Out (FOMO)
FOMO is a source of stress that can intoxicate searchers, especially those who pursue the path right out of business school. With many peers working at prestigious companies where they receive generous compensation packages, it can be easy to let alternative careers creep into the back of your mind despite knowing that entrepreneurship is the right path for you. It is not just the fear that you aren’t pursuing the right career opportunity in the event things don’t work how you originally planned, but also the fear that you might be missing out on the next customer or business you could acquire by not working more. In my early days, I experienced that FOMO can cause stress, especially when we feel like we are simply not working enough. As life events outside of work have come up since my search launched, they’ve naturally taken some time away from opportunities to work, causing me to believe I am not working hard enough to succeed despite my best efforts. For others, it might be the reverse – you are working so hard that you are worried most about sacrificing time with loved ones and friends. Whatever the FOMO might be, it adds the stresses of the searcher in ways that can distract us from the important work we need to do.
Practicing good mental hygiene
Before I was too young to understand stress or feel its effects, I learned about an analogy that perfectly describes stress management. Let’s say that each of us has our own bucket, and the size of that bucket may vary in size and strength based on various factors. Now, we’ll think about the stresses mentioned previously as water that gets added to the bucket. The amount of water added to the bucket is equal to the duration and intensity of one of those sources of stress. Over time, we get stressed, and the bucket fills up slowly but surely, and we don’t do anything about it. However, remember that the bucket is finite, and eventually, one additional drop of water will overflow from the bucket. Without any way to cope with stress, we cannot release the bucket full of water, and that causes many problems. We become more sensitive to the water inside the bucket, feeling weighed down and quick to respond to new water added to the already full bucket.
While many of you may have heard of this analogy and understand what to do when stressed or feeling down, sometimes it is helpful to remind yourself of those things, especially when we go through many of our daily activities on autopilot. As a searcher six months in, I’ve found some entrepreneurship-specific tactics to help me drain some of the water in my own bucket.
Exercise and rest
We all recognize that consistent physical activity can help us reduce stress and anxiety in our own lives, especially cardio and high-intensity workouts. For me, there is not much to it – I aim to have at least three high-intensity endurance workouts each week of around 30 to 45 minutes. It keeps me sharp without a significant time commitment that will impact the day-to-day responsibilities of a searcher. While these certainly require more effort to do consistently, I find that going on walks can be one of the best ways to break up your work day and reset your mind, especially when you can do that around nature in a park, beach, woods, river, or whatever else your environment provides. Walking meetings or listening to a podcast can help you multitask as well, but then you lose some of the benefits of being one with nature. None of that matters, though, if we do not put structure in place to ensure we rest consistently throughout the week. Sleep is an equally important part of the equation. We know it is tempting to work long hours and late into the night (guilty), but we must remember to avoid those times that disrupt our sleeping habits when we can. With this combination of consistent physical activity and rest, we can be our best selves when meeting with business owners, investors, and our respective teams as entrepreneurs.
Meditation
Our mind constantly bounces back and forth from the past (i.e., reflecting on an awkward owner conversation) to the future (i.e., dreading your search deadline date). I have found meditation to be one of the most impactful and practical skills in my life to manage the ups and downs. Meditation helps you become present and one with yourself so you can focus on what matters now while gaining a sense of equanimity. Beginning and sticking to a meditation routine can be daunting, especially when you’re just starting. But don’t just take my word for it. What if I were to tell you that it’d also make you a better investor and entrepreneur? Business leaders such as Ray Dalio, Jeff Weiner, Bill Ford, Russell Simmons, Marc Benioff, and Steve Jobs have all been outspoken about the benefits of a consistent meditation practice and how it has positively influenced their capabilities. With time, more practice makes people feel more creative, experience improved focus and mental clarity, have more meaningful relationships, have greater emotional control, and more.
Social Interaction
One of the most important factors we need to remember as entrepreneurs, especially solo searchers, is that social interactions can help rejuvenate us. Yes, that can come from your traditional circle of friends and family. And if you are anything like me, many of my closest friends are spread across the country, so staying connected with them can be a challenge as we each focus on our respective careers and relationships. Putting in the extra effort to stay close to them can be difficult, but you don’t have to let those important people in your life drift away from you just because you are an entrepreneur. But there are other sources as well. Another one I’ve thoroughly enjoyed has been meeting with fellow searchers to share best practices, provide updates, and, most importantly, vent on the ups and downs of the search. I’ve learned so much from these conversations and feel more connected with the community as a result. That translates into all stages and types of entrepreneurship, whether by joining social clubs or organizations such as YPO or meeting fellow entrepreneurs at industry conferences and other networking events. Outside of connecting with fellow entrepreneurs and spending quality time with friends and family, I feel energized when I can help my interns or other searchers that I am just getting to know by sharing more about my own experiences. We are all connected in one way or another, and we must remember that whenever we feel a bit down or isolated.
Growth Mindset
Bringing a growth mindset to entrepreneurship and the search phase, in particular, is crucial. Let’s face it: entrepreneurship requires you to roll up your sleeves to complete the task at hand, no matter how tedious it can be at times, especially in the beginning when resources are tight and you cannot delegate many things. A positive attitude or “growth mindset” changes how we fundamentally view the work we must complete daily. When one has a “fixed” mindset, one dreads the smaller tasks and broadly views learning as something set in stone, that they cannot learn, and minor setbacks equate to failure. Unfortunately, I’ve witnessed this in the search community as well – in conversations with searchers over the past two years, there has been an alarming number who have openly dreaded the search phase, hate sourcing opportunities and meeting with business owners, and view it strictly as a means to an end. To be fair, they could have been having a bad day, which does not reflect their fundamental mindset (I have had my days). But there is something powerful about taking a different approach to viewing the non-glamorous parts of entrepreneurship.
Here’s how I define my growth mindset in the context of search funds:
Striving for perfection is different from being perfect – Acknowledge your mistakes by forgiving yourself and focus only on the things that you can control
Embrace setbacks – They do not make you a failure but instead provide an opportunity for you to learn and grow
Make the traditionally dreadful tasks fun – Amp yourself up beforehand and then reward yourself for doing the dirty work
Develop a sense of intellectual curiosity and open-mindedness in everything you do – Try to understand why people think and act differently than you do and see how you can incorporate that into your own daily life
Entrepreneurship is an enriching career path that I couldn’t recommend enough to those who have pondered what it might be like to go off on their own. However, I must be honest in acknowledging that it is not for everyone, especially those unwilling to accept some of the risks associated with the path.
I discussed the broader mental health crisis in the US and how it may be more severe for those pursuing entrepreneurship. We then talked about some of the most common sources of that stress for those of us going through entrepreneurial endeavors. But most importantly, I shared what I view to be my core principles of what true entrepreneurial wellness looks like. While I’m no expert, nor do I have all of the answers, I hope you can find some value in reading this, even if it’s just the reassurance that someone else can relate to what it’s like to experience the stress of being a searcher.
Really appreciate this piece.