Moving Forward After Financial Difficulty (What Business Owners Need to Know)
Financial difficulty can feel overwhelming, but it’s important to recognise that it doesn’t define you. For many business owners, the fear of what comes next can feel just as difficult as the situation itself.
As part of Mental Health Awareness Week (Monday 11 to Sunday 17 May), we spoke to Rishi Karia and Lisa Thomas about the human side of financial difficulty and what moving forward really looks like.
The human side of financial difficulty
Behind every business is a person, and when things don’t go to plan, the impact goes far beyond the numbers. For many directors, their business represents years of effort, personal investment and identity.
What do you wish more people understood about the human side of financial difficulty?
Rishi Karia: “We understand that the businesses being operated are their ‘babies’, and they have put their heart and soul into making them work. We don’t want them to fail if it can be avoided.”
The impact beyond the business
Financial pressure rarely stays contained within the business itself.
It can affect health, relationships and overall wellbeing, often spilling into everyday life. What starts as a business concern can gradually become something that impacts sleep, focus and personal relationships.
How does financial pressure affect people beyond the business itself?
Rishi Karia: “Stress, worries, sleepless nights. These can impact personal relationships and be a cause for matrimonial breakdowns.”
Lisa Thomas: “Stress. I’ve met people whose hair was falling out from the stress, and others whose doctors believed the pressure of their company’s situation had negatively impacted their health.”
Why it feels so personal
It’s common for directors to take financial difficulty personally, particularly when they have invested so much into building their business.
For many, the business is more than just a company. It reflects their time, effort and identity, so when it struggles, it can feel like a personal setback.
Do people tend to take it personally?
Rishi Karia: “Yes, because of the hard work they put into the business.”
Lisa Thomas: “Yes. The company is often ‘their baby’. They have put in blood, sweat, tears, and often personal funds, so to see it fail can be heartbreaking.”
Perspective over time
In the moment, it can feel like everything that’s been built has been lost.
But with time, that perspective often begins to shift, as people start to see that the experience itself still holds value and can help shape what comes next.
What do you notice about the emotional side when speaking to directors?
Rishi Karia: “The amount of effort put into the business that directors feel is now wasted. But it’s not always the case. Everything you go through helps you in the future and makes you who you are.”
Taking back control
One of the biggest challenges is knowing when to act, particularly when uncertainty and emotion are involved.
It’s natural to hesitate when the outcome isn’t clear, but that uncertainty can make situations feel harder to manage. Taking early advice can help bring clarity and a greater sense of control.
What would you say to someone struggling but not yet ready to reach out?
Rishi Karia: “Seeking advice, knowing your options and the potential paths available is far better than being forced down a route you wouldn’t have chosen. If you don’t act, others, such as creditors, will make decisions for you.”
“People think of Insolvency Practitioners as corporate undertakers. I would much rather be a corporate doctor than an undertaker.”
Lisa Thomas: “Our initial chat is free, confidential and without obligation. People can even speak anonymously. It gives them a chance to understand their options and take time to make an informed decision.”
If you’re lying awake worrying
For many directors, financial pressure doesn’t stop at the end of the working day.
It often follows them home, sitting in the background of everyday life and making it harder to fully switch off.
If someone is lying awake worrying about their business, what would you say to them?
Rishi Karia: “Worrying is natural, but it doesn’t resolve the issue. The longer it goes on, the worse it becomes in your own mind. If you’re worried, speak to someone who can help, whether that’s an accountant, solicitor, insolvency practitioner, or someone you trust.”
Lisa Thomas: “The problem won’t go away on its own. You need a plan to be able to move forward and have a fresh start.”
A final thought
What comes through clearly is that financial difficulty is not always a reflection of personal failure. It is something many business owners experience at some point, often influenced by a combination of factors, some within their control and some outside of it.
Many directors:
- Take the situation personally
- Carry a strong sense of responsibility
- Feel the emotional weight beyond the business itself
But just as importantly:
- It doesn’t define your future
- There are always options available
- And with the right support, it is possible to move forward
Take the first step
If you’re facing financial pressure, you don’t have to go through it alone. Understanding your options is often the first step towards regaining control. Start with our free Business Health Check or speak to our team in confidence: www.parkerandrews.co.uk
