When Founders Run Out of Energy
Most Founders Will Face This Dilemma at Some Point in Their Careers. Here is How to Prepare and Be Ready.
I'm Manuel Saez, I write to help founders master emotional intelligence to make decisions with clarity and confidence 🌻 EQ coach, 2X-founder & award-winning designer ➜ I love fixing old motorcycles 🛵 🏍
Reading time: 9 min.
Contents:
1. Why Do Founders Run Out of Energy
2. How to Know if This is Happening to You
3. The Impact of Losing Your Energy as a Founder
4. What Can You Do to Get Your Energy Back
5. Face the Truth
6. What Can You Do When You Know You Need to Move On
The first time I read this quote from Naval Ravikant, it hit like a punch in the face:
"Startups don't die when they run out of cash; they die when the founders run out of energy."
- @naval (Navik Ravikant)
I’ve experienced and seen it in the journeys of other entrepreneurs.
Many founders I coach face this challenge. They've worked on their businesses for years, experiencing some success, but the initial momentum has faded.
Often, the original vision gets traded for practical strategies along the way, diluting the dream and draining the founder’s enthusiasm.
This loss of energy is a critical issue, impacting not just the individual but the entire company.
Recognizing and addressing this can make all the difference in sustaining personal well-being and business success.
In most cases (not always), the answer is that the founder needs a change. Sometimes, that change means stepping aside, moving on, or even closing the business.
Each of these options presents a major emotional challenge that requires high emotional intelligence to handle in a healthy and productive way.
In this essay, I explore why founders run out of energy and what to do about it.
Why Do Founders Run Out of Energy?
Having built two businesses, I know firsthand that a founder's energy eventually diminishes.
I have also seen founder friends and people I coach go through the same energy decline.
To me, this is normal in many ways, but I wanted to know why. Here are the top four reasons:
Monotony of Day-to-Day Operations
As startups mature, the initial excitement of launching a new business and solving novel problems starts to fade.
Founders often deal with repetitive tasks and ongoing operational issues, which can become monotonous and draining.
This lack of novelty and routine can sap a founder's enthusiasm and energy over time.
Relentless Pressure to Grow
The pressure to continually grow and scale a startup is immense. Founders face constant demands to secure funding, expand their market, and outperform competitors.
This relentless pressure can lead to chronic stress and eventually burnout, diminishing their energy levels.
Emotional Toll of Repeated Challenges
The entrepreneurial journey is filled with highs and lows. The emotional toll of dealing with repeated setbacks, rejections, failures, and the ongoing uncertainty of running a startup can be exhausting.
Decision fatigue is a common issue when the mental energy required to make numerous decisions wears a founder out.
Lack of Work-Life Balance
Many founders sacrifice their personal lives for their businesses, working long hours and neglecting self-care.
Over time, this imbalance can lead to burnout and a significant decline in energy. Maintaining a healthy work-life balance is crucial for sustaining long-term energy and motivation.
These factors contribute to the energy decline that many founders experience. Recognizing these challenges and proactively managing them can help sustain a founder's energy and passion for the long term.
How to Know if This is Happening to You
Recognizing that you're running out of energy as a founder can be challenging, especially when you're deeply immersed in your work.
However, understanding the symptoms and differentiating them from temporary energy slumps is crucial for taking timely action.
In my experience, when I felt my energy waning, it started with a lack of enthusiasm for tasks I once enjoyed. I found myself procrastinating more and feeling a constant sense of overwhelm.
This shift wasn't immediate but rather a gradual decline that became more apparent over time.
Here are some signs to watch for:
Persistent Fatigue: Even after a good night's sleep, you feel tired. This kind of fatigue isn't just physical but also mental and emotional. It feels like you never fully recharge, no matter how much rest you get.
Lack of Enthusiasm or Passion: Tasks that once excited you now feel like burdens. The spark that drove you to start your Business dims, and you struggle to find joy in your work.
Increased Procrastination: You start putting off important tasks more frequently. Deadlines feel daunting, and you find it difficult to motivate yourself to tackle even simple tasks.
Feeling Overwhelmed: Everyday tasks that were once manageable now seem impossible. The to-do list grows longer, and each item feels more stressful than before.
Sense of Detachment: You feel disconnected from your team, your mission, and your Business. There's a noticeable decline in your engagement and interaction with your colleagues and stakeholders.
Consider the duration and consistency of these symptoms to differentiate between a temporary slump and a more significant problem.
A bad week or month is normal and can often be attributed to external stressors or personal issues. However, when these feelings persist for several months, and there are no external factors causing them, it may indicate a deeper issue.
Reflect on your overall satisfaction and motivation levels over time. If you notice a sustained decline, it's essential to address it proactively.
Regular self-check-ins can help you stay aware of your mental and emotional state. Pay attention to your feelings about your work and whether your energy levels fluctuate significantly.
The Impact of Losing Your Energy as a Founder
Losing energy as a founder affects more than just you; it impacts everyone around you. Your energy sets the tone for your entire organization.
When you're feeling drained, everyone notices. This can create a ripple effect throughout your company. The team's morale can take a hit because they often look to you for motivation and inspiration.
If they sense you're lacking enthusiasm and drive, their productivity and engagement might drop.
Co-founders and investors will likely notice, too. They might see a lack of direction or drive, leading to tensions and strained relationships. They may start worrying about the future of the Business.
This can diminish their confidence in your leadership, affecting their commitment and willingness to support the company. You might also feel this loss of trust, which creates self-doubt and resentment.
On a personal level, losing energy impacts your health and relationships with your family and friends. Chronic stress and fatigue can lead to physical health issues like insomnia, headaches, and a weakened immune system.
Mentally, it can cause anxiety, depression, and a feeling of being overwhelmed, further draining your energy and creating another vicious cycle.
In my experience, the days I felt drained and disengaged were the days my team's productivity dipped. They picked up on my energy levels, and it affected the entire company.
I noticed that my lack of enthusiasm was mirrored in my team's attitude towards their work. It was a stark reminder of how closely tied a founder's energy is to the health of the organization.
Recognizing the impact of losing energy is crucial for taking proactive steps to address it. Prioritize self-care, set boundaries, and seek support to maintain your energy and ensure the long-term success of both your personal and professional life.
What Can You Do to Get Your Energy Back?
So, how do you get your energy back? For me, it starts with deep self-inquiry to understand how I truly feel.
I use an exercise I call "Feel the Vibe.” It is like putting your fingers on your thoughts and feelings to feel the vibe they bring.
Here's how it works:
Think About the Future: Visualize continuing your current path and how your Business might evolve. Picture where you see your company in the next few years. Does this vision excite you, or does it feel heavy, like a burden?
Consider Alternatives: Imagine what you would do if you weren't running the Business. Think about other projects or interests you might pursue. How do these ideas make you feel? Do they spark more joy and excitement compared to your current work?
Gauge Your Energy: Pay attention to how your energy levels shift with each scenario. When you think about the future of your Business, do you feel a surge of motivation or a sense of dread?
If you feel energized about continuing with your Business, it's a sign to keep pushing forward.
If the thought of doing something else excites you more, it might be time to consider a change.
This exercise has helped me many times with big and small decisions. By tuning into my gut feelings, I can better understand what path to take. It's a way to check in with myself and make sure I'm on the right track.
Here are Some Additional Practical Steps to Regain Your Energy:
Take Regular Breaks: Sometimes, a short break from the daily grind can do wonders. Whether it's a weekend getaway or just a day off, stepping away can help you recharge.
Set Boundaries: Avoid working around the clock. Establish clear boundaries between work and personal time to ensure you get enough rest and relaxation.
Seek Support: Talk to mentors, friends, or a coach. Sharing your feelings and getting advice can provide new perspectives and solutions you might not have considered.
Focus on Self-Care: Exercise regularly, eat healthily, and get enough sleep. Your physical health greatly impacts your mental and emotional well-being.
Reevaluate Your Goals: Sometimes, revisiting your business goals and aligning them with your personal values can reignite your passion. Make sure your work is still meaningful to you.
Remember, it's normal to feel drained at times. The key is to recognize it and take proactive steps to restore your energy.
Face the Truth
If you can't regain your energy, it might be time to face the situation and make a plan to move on.
The worst thing you can do is keep pushing yourself to make it work when, deep inside, you know there's no point in continuing with the business.
Here are three signs that it might be time to consider a change:
① The Business Isn't Growing: If your business isn't reaching the growth you initially aimed for, despite your best efforts, it might be time to reevaluate.
Sometimes, market conditions change, and what worked before doesn't work anymore. It's essential to be realistic about the potential for future growth and don’t feel guilty for wanting something else.
② The Business Isn't Fun Anymore: When you started, your business was exciting and fulfilling; now, every task is a heavy lift.
If that excitement has faded and it feels more like a chore than a passion, it's a significant indicator that something needs to change.
Running a business should be challenging, but it should also be enjoyable and rewarding.
③ External Circumstances Have Changed: Sometimes, factors outside your control can impact your Business's potential.
Economic downturns, shifts in market demand, or new regulations can all contribute. If these external factors are making it impossible to achieve your goals, it might be time to pivot or move on.
Recognizing these signs isn't about admitting defeat; it's about making a smart, informed decision for your future.
Like in personal relationships, your relationship to your business runs deep. There is no point in holding on to a business you don't love.
Trying to keep going when the magic is gone can drain your emotional energy, leaving you feeling stuck and unfulfilled.
When I reached this point with one of my businesses, it was a tough decision to step back.
However, it opened up new opportunities and allowed me to focus on what truly mattered to me.
By facing the truth, I was able to redirect my energy towards more promising ventures.
Sometimes, the best way to achieve success is by knowing when to let go and embrace new opportunities.
What Can You Do When You Know You Need to Move On
Running out of energy as a founder doesn't necessarily mean the end of your business.
Depending on your company's stage, there are several paths you can take to ensure the continuity and health of the business while prioritizing your well-being.
Here are a few options:
➜ One option is to pass the baton to someone else on your team. Identify a team member with the passion and capability to lead the company forward.
This transition can infuse the business with fresh energy and new ideas. It allows you to step back and refocus on what truly matters to you, ultimately benefiting you and the company.
➜ Another approach is to hire a new CEO. Bringing in an experienced leader who understands your vision and can contribute their expertise can be a game-changer.
A new CEO can take over the daily operations and strategic planning, giving you the space to recharge and focus on other aspects of the business or entirely new ventures.
➜ In some cases, pivoting your business model might be best. If your current approach isn't working, consider adapting.
This might involve changing your product or service, targeting a different market, or finding new revenue streams. A pivot can reinvigorate the business and align it more closely with current market demands.
➜ Sometimes, the most viable option is to sunset the business if it has no future and circumstances do not allow for another path forward.
This decision is never easy, but it's important to recognize when it's time to let go.
Closing down the business allows you to close a chapter in your life.
To some founders, this may be comparable to losing someone they love, so a mourning process needs to follow to ensure they can recover and get back to doing what they love.
Whatever your path, the key is ensuring that your decisions align with your well-being and long-term goals.
Prioritizing your health and happiness is essential. Taking care of yourself ensures that you can continue being effective and passionate in whatever you choose.
If you are in this situation, consider all your options carefully. Seek advice from mentors, peers, or a coach who can provide perspective and guidance.
Moving on doesn't signify failure; it's about making smart choices that benefit you and your business in the long run.
Embracing change positively can open up new opportunities and lead to even greater success.
Conclusion
Running a business is a marathon, not a sprint, and it's normal to run out of energy along the way.
Recognizing this early and taking steps to address it can make all the difference.
Here are the key takeaways to keep in mind:
Recognize Symptoms Early: Look for signs of fatigue, lack of enthusiasm, procrastination, and feeling overwhelmed. Early detection allows you to take action.
Understand the Impact: Your energy levels affect your entire team. When you’re drained, productivity and morale can drop.
Self-Reflection: Regularly check in with yourself. Determine if you’re still passionate about the business or if it’s time for a change.
Be Honest About Viability: Assess whether your business can grow as expected. Be realistic about its future.
Consider Changes: If necessary, pass leadership to someone else, pivot your business model, or consider a strategic exit.
Prioritize Well-Being: Your health is crucial. Set boundaries, seek support, and ensure rest and relaxation.
By being self-aware and proactive, you can navigate challenges and make decisions that align with your well-being and the future of your business.
Thanks for reading. Please bookmark this article and share it with friends who may benefit.
Sending you good vibes 🌻
Manuel Saez