The Five Stages of Grief in Business

“It’s Not Personal, It’s Strictly Business”

That classic line spoken by Michael Corleone in The Godfather belies an underlying truth.  Business is personal! 

Any business banker or advisor to entrepreneurs knows that business owner/founders are heavily invested in their business – indeed, their identity and self-worth can be wrapped up in its success. 

So when the business is facing cash flow challenges and they no longer have access to a line of credit or they are turned down for additional credit to support them through challenging times, the founders’ emotions can be charged.   Bankers are witnesses or they may find themselves as being the recipient of some of those negative emotions.  The seasoned banker that can skillfully navigate a client/prospective client through these difficult times can earn the trust of owners for years to come.  

I find it useful to discussing this process in terms of the five stages of grief:

Denial, Anger, Bargaining, Depression and Acceptance

Denial.

It starts with denial—"This can't be happening; we are just going to a very temporary setback.”  “When I close the next one or two sales, all will be fine.”

Anger.

Then they move to anger: "How could the bank do this to us after all these years?"  “Sure, the bank is quick to offer access to credit when we don’t need it, but when we really need it, they pull the rug out from us!”

Bargaining.

Next comes bargaining: "Can you wait just another quarter or two and I promise, if I don’t turn it around, then I will find another solution”  “Hang in there for another 3-6 months- I will keep you updated, even weekly - whatever you need.”

Depression.

When that doesn’t work, depression sets in: "What are we going to do now?" There is no way I can survive” We are doomed - I might as well fold the business.”

Acceptance.

Finally, there’s acceptance: "Alright, it’s time to find a new path forward." Let’s find an interim finance solution, cut costs, improve sales, find a way to return to profitability so I can return to traditional bank financing.

How Can We Help Business Owners?

This is where you, the business banker/advisor can shine. By recognizing these stages and partnering with Foothills Capital Advisory, you can help guide your client through each stage – not take it personally, and just recognize that it is normal.   The key is to guide them through to the other side so they are ready to consider solutions.  Being able to put a “label” on the emotions with your colleagues or external partner can help professionals provide the empathy and information they need when they are ready to hear it.

I have found that many owners find comfort in realizing they are not alone, there are options for them and there is hope on the other side.

Let’s partner and help business owners find the right path forward for them.