7 stages of grief for the loss of a company
Losing anything in life, a person, belongings, even transitioning from one life stage to the next, can evoke feelings of grief, and closing a start-up is no different. With many founders viewing their venture as being like their child, losing it can elicit a whirlwind of emotions and loss.
As you build your start-up, you can expect losses. Whether that be financial (e.g. losing a client), human (e.g. losing team members), or legal (e.g. the company closing down). Founders understand they are working against the odds, working to beat the failure rate, and all the while being prepared for the worst case, base case and best case. But even so, it is hard to prepare for the grief that can accompany the loss of a company.
The 7 Stages of Grief is a well-known psychosocial process said to be experienced by those living with a loss. For a founder, this loss can be significant, it can include financial loss, identity, purpose all rolled into one. Today, we want to explore the 7 stages of grief a founder may experience after the death of their start-up.
Each founder will transition through grief differently, with some experiencing these stages at full-force, others experiencing them mildly. Nonetheless the grieving process is natural, and allowing the self to experience it in whatever way it presents itself is important for founder wellbeing.
Grief is messy. There’s no definitive template, and there’s certainly no guidebook of the perfect way to cope. But, The 7 Stages of Grief is one way the world seeks to understand the thoughts and feelings along the way, and this blog aims to explore the link between the 7 Stages, and those experienced by a founder.
1) Shock and disbelief
The first stage is centralised around the initial surprise. For some founders they may still be in a state of shock, and for some, this may develop into disbelief. The decision may not have fully sunk in, and a founder might not have come to terms with the reality. The closure of a start-up may be sudden, but oftentimes it can feel like a weight the founder has been carrying on their shoulders for a long time, and it comes to fruition after a lengthy period of trying to make it work until the very end. This elongated period can make it more challenging for the founder to accept when the time has come and is right to close.
2) Denial
This stage follows on from disbelief; the denial stage explores the founder not coming to terms with, and finding it challenging to accept the truth. As a founder, they are likely to have dedicated much of their time, energy and resources into their venture, so acceptance of its closure may feel much like ‘defeat’. They might put off telling others (such as family, friends, even colleagues) and shame may be the cause of this. The founder might also believe there is an opportunity for redemption or comeback even if there is not.
3) Guilt
Feeling solely responsible for the downfall and for the closure of the start-up is frequently experienced by founders. Guilt for having to let staff go, feeling guilty for disappointing people (e.g investors). Given a founder's dedication to their venture, they may view their investments (time, energy, finances, relationships) as all-for-nothing; guilt and shame coming hand-in-hand. This is a very prevalent feeling and one that can be hard to manage and tackle.
4) Anger and bargaining
The fourth stage is when strong feelings of frustration add-on to the guilt. Frustration at yourself, at others, at everything. What was an internalised feeling of blame (e.g it was your fault) can transform into an external feeling of blame (criticising other people for the downfall, or even just blaming the world).
5) Depression, loneliness, and reflection
A decline in mental health and wellbeing is not uncommon for a founder after the loss of their company. This is often because some founders may intertwine their personal identity with that of their start-up. This stage will look different for each founder depending on how they typically react to difficult circumstances, but just know that this period of low mood, possible isolation, reflection and contemplation is quite a natural reaction given the loss of a company. During this time, it is important for the founder to familiarise themselves with important resources they can access, make close friends and family aware of their current situation and know who they can reach out to in times of need. It may be helpful for the founder to identify their outlets, these can be people they can turn to, and hobbies or interests that enable them to release these feelings in a healthy way.
6) Reconstruction "working through it"
A founder may be re-building their identity, working through and possibly re-building their routine and life. Founders often find difficulty in distancing themselves from their company- it is part of their identity. Therefore this stage might look like the founder discovering who they are again, without their company. During this process, it may be useful for founders to surround themselves with their entrepreneurial community. Reaching out to those who have been through the loss of a company may aid a founder in their reconstruction stage.
7) Acceptance
The final stage summarises growth beyond. It is categorised by full acceptance of what happened and the loss, understanding the founders involvement, as well as the factors that were beyond their control. The ability to look back and see how they have grown from it. This stage is vital for mental closure of the past, but also bringing forward with your lessons learnt. This process of acceptance can take time, the founder should allow themselves the space to process, reflect and grow.
The death of a start-up can be a very significant part of a founder’s life, and during this time it is important for the founder to recognise that their feelings towards the event are valid and accepted. Everyone reacts differently to tough times, and everyone grieves in different ways. If you yourself are a founder grieving the loss of your company, allow yourself to feel, acknowledge how this is impacting you, and be gentle with yourself. The start-up journey is a rollercoaster, and this is just one of the ebbs and flows along the way.
Written by: Dani Olliffe, Psychological Well-being Associate
7 stages of grief for the loss of a company
Losing anything in life, a person, belongings, even transitioning from one life stage to the next, can evoke feelings of grief, and closing a start-up is no different. With many founders viewing their venture as being like their child, losing it can elicit a whirlwind of emotions and loss.
As you build your start-up, you can expect losses. Whether that be financial (e.g. losing a client), human (e.g. losing team members), or legal (e.g. the company closing down). Founders understand they are working against the odds, working to beat the failure rate, and all the while being prepared for the worst case, base case and best case. But even so, it is hard to prepare for the grief that can accompany the loss of a company.
The 7 Stages of Grief is a well-known psychosocial process said to be experienced by those living with a loss. For a founder, this loss can be significant, it can include financial loss, identity, purpose all rolled into one. Today, we want to explore the 7 stages of grief a founder may experience after the death of their start-up.
Each founder will transition through grief differently, with some experiencing these stages at full-force, others experiencing them mildly. Nonetheless the grieving process is natural, and allowing the self to experience it in whatever way it presents itself is important for founder wellbeing.
Grief is messy. There’s no definitive template, and there’s certainly no guidebook of the perfect way to cope. But, The 7 Stages of Grief is one way the world seeks to understand the thoughts and feelings along the way, and this blog aims to explore the link between the 7 Stages, and those experienced by a founder.
1) Shock and disbelief
The first stage is centralised around the initial surprise. For some founders they may still be in a state of shock, and for some, this may develop into disbelief. The decision may not have fully sunk in, and a founder might not have come to terms with the reality. The closure of a start-up may be sudden, but oftentimes it can feel like a weight the founder has been carrying on their shoulders for a long time, and it comes to fruition after a lengthy period of trying to make it work until the very end. This elongated period can make it more challenging for the founder to accept when the time has come and is right to close.
2) Denial
This stage follows on from disbelief; the denial stage explores the founder not coming to terms with, and finding it challenging to accept the truth. As a founder, they are likely to have dedicated much of their time, energy and resources into their venture, so acceptance of its closure may feel much like ‘defeat’. They might put off telling others (such as family, friends, even colleagues) and shame may be the cause of this. The founder might also believe there is an opportunity for redemption or comeback even if there is not.
3) Guilt
Feeling solely responsible for the downfall and for the closure of the start-up is frequently experienced by founders. Guilt for having to let staff go, feeling guilty for disappointing people (e.g investors). Given a founder's dedication to their venture, they may view their investments (time, energy, finances, relationships) as all-for-nothing; guilt and shame coming hand-in-hand. This is a very prevalent feeling and one that can be hard to manage and tackle.
4) Anger and bargaining
The fourth stage is when strong feelings of frustration add-on to the guilt. Frustration at yourself, at others, at everything. What was an internalised feeling of blame (e.g it was your fault) can transform into an external feeling of blame (criticising other people for the downfall, or even just blaming the world).
5) Depression, loneliness, and reflection
A decline in mental health and wellbeing is not uncommon for a founder after the loss of their company. This is often because some founders may intertwine their personal identity with that of their start-up. This stage will look different for each founder depending on how they typically react to difficult circumstances, but just know that this period of low mood, possible isolation, reflection and contemplation is quite a natural reaction given the loss of a company. During this time, it is important for the founder to familiarise themselves with important resources they can access, make close friends and family aware of their current situation and know who they can reach out to in times of need. It may be helpful for the founder to identify their outlets, these can be people they can turn to, and hobbies or interests that enable them to release these feelings in a healthy way.
6) Reconstruction "working through it"
A founder may be re-building their identity, working through and possibly re-building their routine and life. Founders often find difficulty in distancing themselves from their company- it is part of their identity. Therefore this stage might look like the founder discovering who they are again, without their company. During this process, it may be useful for founders to surround themselves with their entrepreneurial community. Reaching out to those who have been through the loss of a company may aid a founder in their reconstruction stage.
7) Acceptance
The final stage summarises growth beyond. It is categorised by full acceptance of what happened and the loss, understanding the founders involvement, as well as the factors that were beyond their control. The ability to look back and see how they have grown from it. This stage is vital for mental closure of the past, but also bringing forward with your lessons learnt. This process of acceptance can take time, the founder should allow themselves the space to process, reflect and grow.
The death of a start-up can be a very significant part of a founder’s life, and during this time it is important for the founder to recognise that their feelings towards the event are valid and accepted. Everyone reacts differently to tough times, and everyone grieves in different ways. If you yourself are a founder grieving the loss of your company, allow yourself to feel, acknowledge how this is impacting you, and be gentle with yourself. The start-up journey is a rollercoaster, and this is just one of the ebbs and flows along the way.
Written by: Dani Olliffe, Psychological Well-being Associate
7 stages of grief for the loss of a company
Losing anything in life, a person, belongings, even transitioning from one life stage to the next, can evoke feelings of grief, and closing a start-up is no different. With many founders viewing their venture as being like their child, losing it can elicit a whirlwind of emotions and loss.
As you build your start-up, you can expect losses. Whether that be financial (e.g. losing a client), human (e.g. losing team members), or legal (e.g. the company closing down). Founders understand they are working against the odds, working to beat the failure rate, and all the while being prepared for the worst case, base case and best case. But even so, it is hard to prepare for the grief that can accompany the loss of a company.
The 7 Stages of Grief is a well-known psychosocial process said to be experienced by those living with a loss. For a founder, this loss can be significant, it can include financial loss, identity, purpose all rolled into one. Today, we want to explore the 7 stages of grief a founder may experience after the death of their start-up.
Each founder will transition through grief differently, with some experiencing these stages at full-force, others experiencing them mildly. Nonetheless the grieving process is natural, and allowing the self to experience it in whatever way it presents itself is important for founder wellbeing.
Grief is messy. There’s no definitive template, and there’s certainly no guidebook of the perfect way to cope. But, The 7 Stages of Grief is one way the world seeks to understand the thoughts and feelings along the way, and this blog aims to explore the link between the 7 Stages, and those experienced by a founder.
1) Shock and disbelief
The first stage is centralised around the initial surprise. For some founders they may still be in a state of shock, and for some, this may develop into disbelief. The decision may not have fully sunk in, and a founder might not have come to terms with the reality. The closure of a start-up may be sudden, but oftentimes it can feel like a weight the founder has been carrying on their shoulders for a long time, and it comes to fruition after a lengthy period of trying to make it work until the very end. This elongated period can make it more challenging for the founder to accept when the time has come and is right to close.
2) Denial
This stage follows on from disbelief; the denial stage explores the founder not coming to terms with, and finding it challenging to accept the truth. As a founder, they are likely to have dedicated much of their time, energy and resources into their venture, so acceptance of its closure may feel much like ‘defeat’. They might put off telling others (such as family, friends, even colleagues) and shame may be the cause of this. The founder might also believe there is an opportunity for redemption or comeback even if there is not.
3) Guilt
Feeling solely responsible for the downfall and for the closure of the start-up is frequently experienced by founders. Guilt for having to let staff go, feeling guilty for disappointing people (e.g investors). Given a founder's dedication to their venture, they may view their investments (time, energy, finances, relationships) as all-for-nothing; guilt and shame coming hand-in-hand. This is a very prevalent feeling and one that can be hard to manage and tackle.
4) Anger and bargaining
The fourth stage is when strong feelings of frustration add-on to the guilt. Frustration at yourself, at others, at everything. What was an internalised feeling of blame (e.g it was your fault) can transform into an external feeling of blame (criticising other people for the downfall, or even just blaming the world).
5) Depression, loneliness, and reflection
A decline in mental health and wellbeing is not uncommon for a founder after the loss of their company. This is often because some founders may intertwine their personal identity with that of their start-up. This stage will look different for each founder depending on how they typically react to difficult circumstances, but just know that this period of low mood, possible isolation, reflection and contemplation is quite a natural reaction given the loss of a company. During this time, it is important for the founder to familiarise themselves with important resources they can access, make close friends and family aware of their current situation and know who they can reach out to in times of need. It may be helpful for the founder to identify their outlets, these can be people they can turn to, and hobbies or interests that enable them to release these feelings in a healthy way.
6) Reconstruction "working through it"
A founder may be re-building their identity, working through and possibly re-building their routine and life. Founders often find difficulty in distancing themselves from their company- it is part of their identity. Therefore this stage might look like the founder discovering who they are again, without their company. During this process, it may be useful for founders to surround themselves with their entrepreneurial community. Reaching out to those who have been through the loss of a company may aid a founder in their reconstruction stage.
7) Acceptance
The final stage summarises growth beyond. It is categorised by full acceptance of what happened and the loss, understanding the founders involvement, as well as the factors that were beyond their control. The ability to look back and see how they have grown from it. This stage is vital for mental closure of the past, but also bringing forward with your lessons learnt. This process of acceptance can take time, the founder should allow themselves the space to process, reflect and grow.
The death of a start-up can be a very significant part of a founder’s life, and during this time it is important for the founder to recognise that their feelings towards the event are valid and accepted. Everyone reacts differently to tough times, and everyone grieves in different ways. If you yourself are a founder grieving the loss of your company, allow yourself to feel, acknowledge how this is impacting you, and be gentle with yourself. The start-up journey is a rollercoaster, and this is just one of the ebbs and flows along the way.
Written by: Dani Olliffe, Psychological Well-being Associate