Running a small business can be a mental marathon — you’re the strategist, problem-solver, and cheerleader all in one. It’s no surprise that many small business owners feel stretched thin.
But prioritising mental health doesn’t have to be overwhelming. With a few small, intentional steps, you can improve your wellbeing and build resilience to tackle whatever comes your way.
According to MYOB’s Business Monitor (2024), 56% of Australian small business owners experience heightened levels of depression and anxiety due to work pressures.
The constant juggling can make it easy to overlook mental wellbeing, leading to burnout and exhaustion. Recognising the signs early and taking proactive steps can help prevent long-term mental health issues.
Understanding the exhaustion funnel
Professor Marie Asberg’s ‘Exhaustion Funnel’ explains how burnout can creep up unnoticed. At the top of the funnel, life feels balanced. We make time for both essential tasks and enjoyable activities. However, as stress increases, we gradually eliminate the things that bring us joy, narrowing our world and increasing the risk of exhaustion and overwhelm.
Download Smiling Mind’s Fact Sheet for helpful tips on prioritising mental health as a small business owner.
If left unaddressed, prolonged stress can lead to mental health challenges such as burnout, anxiety, and depression. In Australia, poor mental health costs businesses up to $12 billion annually in lost productivity, sick leave, and reduced performance.
Take a moment to assess your work-life balance: When was the last time you had a proper break? Do you regularly make time for activities that recharge you? Awareness is the first step to improvement.
Practical strategies for managing mental health
Self-care doesn’t have to be complicated. Small, consistent actions can help keep you at the top of the exhaustion funnel. Think of mental health as fitness—regular practice builds resilience and helps manage stress effectively.
1. Live mindfully – stay present
When you feel overwhelmed by “what ifs,” pause and ground yourself in the present. Practicing mindfulness can:
- Reduce stress and anxiety
- Improve focus and decision-making
- Lower blood pressure and enhance overall wellbeing
Movement is also a powerful mindfulness tool. Whether it’s a short walk, stretching, or dancing, regular movement helps reset the mind and improves mood. Even 10 minutes of mindful activity can make a difference.
Try going screen-free during this time to focus on your senses. What can you hear? How do you feel? These small moments of awareness help shift your nervous system from stress mode to a more relaxed state.
2. Strengthen connections – celebrate wins
Stress can sometimes make us withdraw from others, leading to feelings of isolation. Maintaining strong relationships helps buffer against stress and improves overall wellbeing.
A simple way to foster positivity is by celebrating small wins, both personally and within your team.
Consider implementing “shout-outs” in your workplace:
- Recognise a colleague’s efforts
- Celebrate milestones, big or small
- Acknowledge personal achievements outside of work
These moments of appreciation strengthen team morale and reinforce a positive work culture, reducing stress and enhancing connection.
3. Find purpose – reconnect with your passion
When running a business, it’s easy to get caught in the daily grind and lose sight of why you started. Feeling disconnected from your purpose can lead to decreased motivation and job satisfaction.
To reignite your passion, take time to reflect on your core values:
- What aspects of your business excite you?
- How does your work positively impact others?
- Are there ways to align your strengths with your daily tasks?
Giving back can also be a powerful motivator. Acts of kindness—whether mentoring someone, supporting a local initiative, or simply offering help—foster a sense of purpose and improve mental wellbeing. Small gestures, like buying a colleague coffee or lending a listening ear, contribute to a culture of support and appreciation.
4. Cultivate gratitude – shift your perspective
Practicing gratitude has been linked to lower stress, improved sleep, and increased resilience. By focusing on what’s going well, you can reframe challenges and build a more positive outlook.
Incorporate gratitude into your routine with these simple exercises:
- 5-minute reflection: List three things you’re grateful for each day.
- Gratitude sharing: At team meetings or family dinners, take turns sharing something positive from the day.
- Express appreciation: A handwritten note or verbal acknowledgment can strengthen relationships and boost morale.
These small acts can shift your mindset, making daily challenges feel more manageable.
5. Take breaks – prioritise rest and recovery
Pushing through exhaustion often leads to diminished productivity and increased stress. Taking regular breaks is essential for sustaining long-term performance and wellbeing.
Try incorporating these simple habits into your routine:
- Scheduled lunch breaks: Block out time in your calendar for a proper meal away from your desk.
- Tech-free moments: Step away from screens and focus on deep breathing or stretching.
- Short walks: A quick walk outside can boost mood and creativity.
Mindful breaks help prevent burnout by allowing you to reset and return to work with renewed energy.
Supporting your mental health as a business owner
Your mental wellbeing is just as important as your business’s success. By implementing small, intentional changes, you can build resilience, improve focus, and sustain long-term performance.
Want more practical strategies? Download Smiling Mind’s Fact Sheet for helpful tips on prioritising mental health as a small business owner.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
