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 founders are heavily invested in their businesses – indeed, their identity and self-worth can be wrapped up in their business. 

So when the business is facing cash flow challenges and they lose access to bank credit, the founders’ emotions can be charged. Bankers in particular are often pulled into the undertow of these strong emotional currents. The seasoned banker that can skillfully navigate their prospective client through difficult times can earn the owner’s trust for years to come.  

The five stages of grief: Denial, Anger, Bargaining, Depression, and Acceptance; often mirror the emotional cycle that business owners sometimes experience when facing financial transitions.

Denial.

It often starts with denial—"This can't be happening; it’s just a temporary setback.”  “When I close the next couple of sales, we’ll be fine.”

Anger.

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

Bargaining.

Next is bargaining: "Can you wait just another quarter or two and if things don’t improve, I’ll find another solution”  “Just hang in there a few more months; I’ll send updates weekly if needed.”

Depression.

When that doesn’t work, depression sets in: “What are we going to do now? There is no way I can make it through this.” “Maybe it’s time to shut down.”

Acceptance.

Finally, acceptance: “Alright, it’s time to find a new path forward.” “Can you help me explore alternatives - an interim financing solution while I work to improve results, cut costs, grow sales, and restore profitability?”

How Can We Help Business Owners?

This is where business bankers and advisors can make a real difference. By recognizing these stages and partnering with Foothills Capital Advisory, you can help clients process their emotions, stay grounded, and focus on solutions. Labeling the emotions is not clinical - it’s practical. It helps professionals respond with empathy and provide the right information when owners are ready to hear it.

Many owners find comfort in realizing they are not alone, there are options and there is hope on the other side.

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