Startup Strain: Understanding the Weight on Founder Shoulders
Bernard Chanliau, Business and Team Coach / VC Scout / MCC
European Business Coaching | EIC Accelerator Partner | Systemic Team and C-Suite Leadership coach (Master Certified Coach & ACTC ICF)
In the startup world, founder burnout is a significant yet often overlooked issue. From my experience as a business coach, it stems from prolonged work stressors, leading to emotional exhaustion, cynicism, and reduced efficacy.
Despite the glorification of successful entrepreneurs, the struggles of those who fail due to factors like team or co-founders misalignment and funding shortages are rarely addressed.
As a professional (ICF) business coach, I’ve observed this chronic exhaustion firsthand. Startup narratives focus on funds raised and entrepreneurial resilience, but seldom highlight lessons from post-burnout founders. This masks the reality of startup stress, creating a need for more open conversations about founder wellbeing.
An emerging noticeable trend this year is more and more founders are sharing their experience of failure and lessons learned on LinkedIn however it's still the exception rather than the norm.
I’m not a therapist or subject matter expert in the mental health field, however with thousands of hours behind me as a professional credentialed coach, working in the startup and F500 ecosystem, I admire the resilience and grit of my startup clients and have also observed this state of chronic emotional exhaustion resulting from prolonged exposure to stressors at work.
I can recall the number of Startup conferences I’ve attended, where the spotlight is on how much funds (i.e. seed/series A...) startups raised and the resilience/grit of serial entrepreneurs, however we seldom see post-burn-out founders on stage with lessons learned. Founders mask their stress, and their ideal role is to make people dream.
A **Startup Snapshot 2023 survey indicated that 44 percent of founders reported very high levels of stress, 37 percent faced anxiety, 36 percent experienced burnout, and 13 percent battled depression with only 23% going to a therapist or a coach. I coach some of the most innovative startups in Europe but in terms of support, founders are stuck in 20th century technology due to the dark side of the ecosystem.
The relentless pace, the weight of decision-making, and the emotional toll of leading a company can lead to exhaustion, impacting not just the individual but the entire organization and personal life. I was struck by Sifted’s latest article on this in the trend in 2024 and founders’ resignation.
For me one of the biggest sources of burnout comes from investors and the shadow side of the entrepreneurial ecosystem — the greediness and tension on the financial side as LPs/VCs need a return leading to startups doing more ‘build big and sell it big’; the ability to fundraise from the CEO/founder constantly selling its technology against the odds whilst tracking their 24-36 months financial runway and the pressure cooker of the struggle for support. Where can I get support if I’m feeling overwhelmed, drained, and unable to cope with daily responsibilities? With whom to trust and share my emotional state without being perceived as weak or a failure?
Startups often face pressure from investors to achieve rapid growth and scale quickly. While this pressure can drive innovation and progress from IPOs and acquisitions, it can also lead to burnout among founders and employees as they work tirelessly to meet investor expectations.
Burnout is a complex condition that stems from chronic workplace stress that hasn’t been successfully managed. It’s characterized by feelings of energy depletion, increased mental distance from one’s job, and reduced professional efficacy.
As a professional coach, I've noticed that the most common issue among clients (and myself) is the loss of perspective, brain fog, and struggle with decision-making. It's crucial to adhere to ethical standards and know when to refer a client to therapy. Self-care is essential in the demanding fields of professional coaching and business management. ??
Apart from founders struggling for support there is also a miss-conception in my profession where burnout coaching is not our domain and only therapy work. As professional leadership coaches we should know when to refer a client and I feel adequate to support a leader in prevention mode.
There is a lot written about strategies for startup founders to tackle burnout in the startup ecosystem. It emphasizes the importance of fostering a culture that values work-life balance, delegating tasks effectively, seeking support from coaches, advisors or peers, and being willing to ask for help when needed.
? What is your flexibility in fostering your whole-being balance?
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As a business coach, addressing burnout involves a customized approach tailored to each founder’s specific circumstances. This may involve evaluating the sources of stress and setting realistic goals through “soft action learning” to facilitate growth. Additionally, addressing conflicting values and priorities is crucial, as many founders’ experience burnout due to compromising their values or neglecting personal life for work.
? How would you rate your current internal compass? What is your body telling you?
Setting boundaries is also emphasized, helping founders define what is acceptable and non-allowable in order to protect their well-being. Boundaries define limits, mark off dividing lines. The purpose of a boundary is to make clear separations between different turf, different territory. . . . and to protect and take care of ourselves. One of the biggest source of burnout outside of the funding cycle I observe, is the founder's identity attachment. This level occurs when you identify yourself with your knowledge from your entrepreneurial endeavours. Detaching becomes a little?more difficult because knowledge and you?are one. Is your life experience only becoming your work purpose?
? What is your concept of boundaries? How thick is this attachment?
Coaching can provide perspective and insight, offering an outside view to identify patterns and provide valuable insights not easily discernible from within the startup’s day-to-day operations.
? What is your pattern recognition? What is it you're not seeing?
Furthermore, stress management techniques and decision-making frameworks are essential tools that coaches can provide to help founders effectively manage stress and navigate critical decisions. Leadership development is another key aspect, with coaches assisting founders in honing delegation skills, conflict resolution, and team motivation strategies for example.
In summary, the role of a business coach in tackling burnout involves a multifaceted approach encompassing resilience evaluation, values work, boundary-setting, perspective, stress management, decision-making, and leadership development to support startup founders in maintaining their well-being and effectively leading their companies.
CEO/founders’ burnout is a serious issue that needs our attention. By acknowledging its existence and implementing these strategies, we can create a healthier, more sustainable startup ecosystem.
Recognizing these signs early can help in taking preventative measures and seeking appropriate support.
*ICF Code of ethics: https://coachingfederation.org/ethics/code-of-ethics
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Leadership Coach, Author 'The Emotional Overdraft' & Non Executive Director in people based businesses
4 个月I love this thought Bernard Chanliau, Business and Team Coach / VC Scout / MCC - and thank you for such an informative article. You might be interested in my thoughts on this? I recently published a book called "The Emotional Overdraft: 10 simple changes for balancing business success and wellbeing". My conclusion - that there are 10 key behaviours that drive an emotional overdraft - came from research that mirrors what you have found. Almost all entrepreneurs and founders subsidise their business at the cost of their own mental or physical wellness. They do this and pay it back - but many don't. And those are the ones who then suffer with stress, burnout or overwhelm. It's so widespread and yet so little discussed. Thanks for raising the issue in your piece.
Director of Viv Chitty Associates | Executive Coach (EMCC Accredited at Master Practitioner level) | Coach Supervisor | Author of “Coaching for Optimal Energy?”
8 个月I agree. Founding a business can be exhausting and people do face burnout. There is the need to self-motivate month after month, a lack of financial security and the palaver of fundraising which may include applying for many grants. Entrepreneurs may not have the experience that enables them to deal with the finance/venture capital world and, as you say, the pressures that come with that. In my book I write about the combination of acute and chronic stressors being one of the major causes of energy depletion – this ticks every box. And people do just have enough and get out, or at least want to - and then find that they don’t know how to depart without financial loss. Coaches can help those who are feeling overwhelmed, enabling further understanding of the impact that their situation is having on them cognitively, emotionally, and how it affects their relationships, energy levels etc.. This needs to happen before the overwhelm gets too much and coaching may be of little use. However, there are costs involved and the individual may not have the budget to pay for this - what then? As you describe, the coach needs to understand the complexity of the work, be able to work with intense emotion and know when to refer on.
Founder/CEO Xenergie | Award Winning Transformation & Systemic Change Consultant | Non-Exec Board Advisor | Social Energy - the S in ESG | Raising Organisational Performance through Human Connection
8 个月Great article Bernard. I agree that the shadow side of entrepreneurship is not adequately addressed on any of the sides, amidst the heroics and glory. As a female founder I represent a 5% minority of females vs males who seek investment to scale their business . One reason women stand back is that the system is very much based on ways of thinking that do not value certain human principles enough. At Xenergie we aim to tirn the tide on this by monitoring and valuing the “social energy” of organisations and their contribution not just to shareholder but to society as a whole .