Don’t let start ups run out of puff

“I had to make a decision. I realised that if my voice went completely, I would be no good to anyone so instead of trying to do everything myself I took a step back and started hiring good people, and trusting them to do the work.”

It was just what she needed. Ultimately, the business grew to become the No 1 performing franchise per capita of about 70 Allen Carr territories worldwide.

“When I look back now, I wonder how I ever managed to do what I did, but I think when you start a business you just have such passion that it drives you on,” she said.

Passion is invaluable to any start-up business. The problem is that, if left unchecked, it can result in the burnout of the founder.

“Entrepreneurs tend to work very long hours, certainly in the early days of getting the business off the ground,” said Paula Fitzsimons, the producer of the Irish data for the Global Entrepreneurship Monitor.

“Hard work is a necessary part of setting up a new business and a potential entrepreneur has to recognise this fact. After all, you are creating something from nothing.”

But all this necessary activity can also cause people to lose sight of the bigger picture. It’s a lesson Bridget Breen learnt when she set up a direct sales company in Australia, working with 45 independent contractors and selling on behalf of banks and big businesses.

“I started out working 14-hour days, six days a week. Five years later, I was still doing the same thing, so when it comes to entrepreneurial burnout, I know precisely what not to do,” said Breen.

“When I tried to sell it to return to Ireland, I couldn’t, because it turned out I was the business. It was completely dependent on me.” Today Breen, who returned to Ireland in 2006, is a business coach.

“Any start-up entrepreneur should be aware that you do have to put in those long hours in the beginning, absolutely,” said Breen. “But they should also be aware that such input should not continue. Once you are up and running, you need to move swiftly to a point where you can take people on and delegate.”

Unfortunately, many entrepreneurs, by their nature, are likely to resist this. “Too many smallbusiness start-ups are run by control freaks who will not hand over any part of the care of their baby,” said Breen. “They feel they have to be in control of everything, without realising that a point comes where that is precisely what will hold their business back.”

Burnout doesn’t happen at the start-up phase, she points out. “It happens only when that degree of long hours and non-stop work continues and becomes the norm.”

The easiest way to learn to delegate is to systematise the work involved in running the business, and then hand over “the low skill, low enjoyment part of the work, leaving the founder free to go out do what they do best, which is most often selling”, she said. “But anyone who expects to be able to have a good work-life balance at start-up phase is crazy.”

For Yanky Fachler, a communications consultant and author of Fire in the Belly, a motivational book for entrepreneurs, managing passion is crucial. “Starting a business is something people tend to do on their own,” he said. “They don’t have the colleagues or the workmates they had as employees. They literally have nobody to talk to. Survey after survey shows loneliness as the No 1 problem entrepreneurs face.”

To fix this, says Fachler, “network and mix with other entrepreneurs — these are people who understand why you do what you do, and won’t ask why you gave up such a good job to do it”. While networking “isn’t a panacea for every issue, it is still the best thing I know when you are giving something your all and it is not turning out like you expected”.

If you are becoming disillusioned with your business, adds Fachler, put some thought into why. “Either you are in the wrong business or you are going about the right business in the wrong way,” he said. “If you are starting to wake feeling the same doom and gloom you used to feel as an employee, that isn’t healthy.”

Developing a more positive outlook can help. “So much of how the entrepreneur is feeling is down to perception and you can teach yourself to develop a positive mindset which is, in itself, a very good way of avoiding stress. Do not allow yourself to be swamped by negativity. Remember, whether the glass is half full or half empty, the glass doesn’t change; you do.”

Dermot Flynn set up Reflectocollars in Athlone last year, after he was made redundant following two decades in the logistics sector. His business specialises in reflective dog collars. He came across the product on the web, realised there was nothing like it available in Ireland, and got to work.

“I imported collars, got 30 display stands made up and started driving round vet clinics and pet shops around the country,” said Flynn.

Though he is only at the earliest start-up stage — turnover has not yet hit €10,000 — he is already aware that the pace he is working at cannot be sustained.

“I’m working six days a week at the moment and, when I get home at the end of the day, I’m back on the computer and doing paperwork,” said Flynn. “It’s exciting as much as it is exhausting, but I’m realising I need to take a step back from all the activity and start focusing on strategy, possibly taking on a distributor to help.

“There’s no point giving a start-up any less than 110% but, at the same time, I know I need to use my time more strategically.”

Healthy tips for leaders

Don’t focus on the business to the detriment of your health. You need as much intensive care as your business does so don’t feel guilty about looking after your own needs too.

Expect long hours in the early days, but if it still requires your total attention to function effectively after the first few years, something is wrong.

Hire or outsource as soon as you can afford to and then delegate effectively.

Find other entrepreneurs to talk to. Pool your experiences and you’ll learn loads.

Don’t be negative — it will leave you feeling overwhelmed. Train yourself to think more positively as a way of relieving stress.

Take a break. When you get time off, don’t keep checking back with the office. Instead, leave strict instructions about whether and when you are to be contacted while you are away — and stick to it.