In an increasingly challenging economic landscape, the rising costs of doing business are having an impact across small and start-up SMEs to large corporates. But it’s not just the businesses themselves that are affected; mental health is at risk, too.

The connection between money and mind in business is a complex one. Money worries can seriously affect mental wellbeing, but at the same time, mental health problems can impact your business. Understanding the implications poor mental health can have on your business, and the benefits of good mental wellbeing is key to strengthening both mind and business.

Money matters

When the success of your business comes down to the bottom line, it’s difficult to switch off from money matters.

Rising inflation and supply chain disruptions are affecting many businesses, so understanding your own financial position sets you on a steady path. While the reality may not be what you’d want it to be, knowing the true picture will allow you to make the right choices when budgeting, forecasting and decision-making.

Often the initial signs that a business is struggling, short-term cash flow issues or difficulties paying suppliers can cause stress and anxiety to business leaders. Getting sight of these issues as early as possible affords you more time to react and keep options open. 

Trading issues such as late or non-payments, not receiving goods, and changes in interest/exchange rates are particularly difficult to manage when they are out of your control. External factors such as these can fuel feelings of uncertainty, the knock-on effect of which can be detrimental to mental health.

If external pressures are outside of your control, making changes inside your business can have a positive impact on you and your bottom line. For example, accelerating sustainability within your business can often be an effective cost-saving measure as well as contributing to your business’s Environmental Social and Governance (ESG) agenda. Likewise, growth may need to go on the back burner while you focus on keeping your business afloat. This adaptable approach may prove to be a pragmatic and effective response to tricky times.

Stronger mind

It’s also important to know that you’re not alone. While one in four people in the general population have experienced a mental health problem, this rises to four in five small business owners.

Burnout is a state of physical and emotional exhaustion and is particularly prevalent in the workplace. Often, business leaders respond by working harder, across longer hours and placing themselves under greater pressure. If your mental wellbeing suffers subsequently, then the likelihood is you’re less likely to make good business decisions. But there is action you can take.

Being proactive in both money matters and mental wellbeing is an essential investment in your business. This approach contributes to resilience, defined as the capacity to recover quickly from setbacks. But if you don’t feel like it’s something you currently have, don’t worry, resilience can be developed.

Setbacks are typical in business so understanding your tipping point is a good place to start. What happens to you when things get too much? Could this have been avoided? What are your coping strategies? 

One coping strategy is to practice the 4 Ds – Ditch, Defer, Delegate, and Do (PDF, 581KB). Review your ‘To Do’ list and apply the 4 Ds to it. Be honest with your review until you have a manageable plan of attack, prioritised with both you and your business in mind. Encourage your team to do the same.

The Stress Bucket (PDF, 112KB) is another popular coping strategy to consider. It is a useful metaphor for stress and resilience. The Stress Bucket enables you to visualise the things that cause you stress (add water into your bucket and therefore reduce capacity), alongside the things you can do to manage them (empty water from the bucket to increase capacity and therefore resilience). Completing this exercise with your team can enable everyone to recognise common stressors and provide a space to collaboratively generate strategies to manage them.

Wellbeing in the workplace

As well as coping strategies, a workplace wellbeing plan is another way to consider what you and others need to do to stay well in work, and what kind of support would be needed when you are too stressed or unwell. The plan asks six key questions, the results of which can be shared with colleagues who can look out for when things are getting too much and take action.

Knowing when you can handle things alone and when you might need help with finances or with mental wellbeing is an important distinction. Asking for help doesn’t mean you’ve failed. It’s a sign of strength to seek support, just as you might for any other scenario that you need a helping hand with.

Mental Health UK

In partnership with Mental Health UK 

Many business owners and leaders feel they need help with their mental health but don’t know where to start.

Developed in partnership with Mental Health UK, the content in this hub is designed to provide tips and guidance for improving mental health and building resilience to help set you and your business up for success. 

How to build mental resilience

You may also be interested in:

Managing business costs and uncertainty

Support, guidance and financial options to help you build financial resilience and manage the impact of rising costs and economic factors on doing business.

Inflation, costs and cash flow

Strategies and financial solutions to help you reduce business costs, mitigate risk and manage cash flow.

Financial worries

Businesses are facing huge challenges right now. Many are struggling with rising inflation, especially higher energy and fuel costs, as well as supply issues.

Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.