By Sabina Nagpal, Founder of Radiate Mind
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Dr. Sabina Nagpal is a Canadian-trained Psychiatrist (Medical Doctor) who transitioned from treating serious mental health conditions to now helping startup teams in high-growth mode. She combines psychiatric expertise with performance oriented holistic practices to support rapidly-expanding business teams prevent burnout.
Imagine running a marathon where the finish line keeps moving. That’s the reality for many entrepreneurs in the search phase of their journey. As one searcher recently shared with me, “It’s incredibly exciting at first, but after months of hearing ‘no,’ despite all of the sacrifices and efforts you’ve made, it’s hard to not let it get to you”. In these moments, when you are knocked down and have to find your way back up, are when some of our less helpful patterns come out.
Earlier this year, I spoke with Ibrahim Abdel Rahim, Managing Partner at Moonbase Capital, which has been investing in search funds for the past three years. Ibrahim also happens to be a person I respect for his interest in wellness and mental health. We spoke at length about the Searchers’ journey, reflecting on his own experiences in entrepreneurship and in the community of searchers he supports.
The mental strain that searchers are up against is real. It looks different during different stages of their journey, with the search phase being one of the most grueling. Together, we identified four key reasons why a searchers mental health can be more fragile during the search phase and what one can do to preserve it.
1. The Rejection Treadmill
Ibrahim described that for many searchers it can feel like they are running on a treadmill of emotions, chasing a goal that always seems just out of reach. Even worse, they often face a constant barrage of rejections before landing the right company to acquire. While many searchers have built resilience and an acceptance of “failure” in their careers to date, this relentless cycle of building hope only to have it dashed can erode even the strongest resolve. This prolonged period of rejection can serve as fertile ground for the resurgence of deep-seated doubt, fear, and existential questioning.
2. Walking a Financial Tightrope
Most searchers are MBAs who could easily secure six-figure salaries at reputable firms. Yet, they opt to trade financial security for entrepreneurial opportunity, adding significant stress to an already demanding journey. It’s like walking a tightrope, trying to juggle personal savings, investor expectations, and future dreams, all while quieting the voice inside that is questioning your choices and insisting that you do not fall.
3. The Loneliness Factor
Unlike traditional corporate environments, searchers often work alone or in small teams, missing out on the camaraderie and support networks many of us take for granted. This can make the search process feel isolating at times, and without a strong support system in the workplace, searchers have to compensate for missing out on this high yield strategy for building resilience.
While many of us in the modern world face loneliness, the searcher’s journey can be even more isolating as there are few that understand the journey and there is a feeling of being against a clock that promotes endless hours working that other high achievers may use for connecting with others. While searcher duos can support each other and share responsibilities, they face their own challenges in managing emotions and evenly distributing the workload.
4. The Uncertainty Trap
Perhaps the most exhilarating and daunting aspect of the search phase is the ever-present uncertainty. With no guaranteed outcome in sight, it is completely normal for anxiety and self-doubt arise, testing even the most confident entrepreneurs. This uncertainty can drive some searchers to work themselves to the bone and it can become an exhausting companion, which over time can lead to suboptimal negotiation capacity and decision making.
The hidden cost of overdrive
As a coach for entrepreneurs, I’ve spoken to dozens of searchers, and have noticed they share several highly commendable characteristics: they are exceptionally driven, methodical, and have a long-term vision – “eyes on the prize” as we might say.
While having these characteristics makes you successful in your search, they can, ironically, increase your mental fragility.
As one search fund investor shared, a searcher they had worked with, and who was extremely capable, hard working and motivated, surprised them when they appeared to go from full throttle to burned to a crisp, needing a two month recovery, after a hard-fought deal fell through. The unforeseen disappointment, piled on top of the marathon they had just run, exhausted their capacity to cope and bouncing back became impossible.
The risk for many searchers is that they can slip into a state of overdrive – appearing successful on the outside but feeling empty or on the cusp of burning out on the inside. This overdrive is dangerous because it becomes an entrenched pattern that depletes energy reserves, leaving you more vulnerable in the face of adversity. When a set back hits, you may have nothing left to bounce back as gracefully as needed.
Most high-performing entrepreneurs are either blind to their fragility, or work hard to ignore it. Only after they’ve escaped this state – whether by choice or circumstance – do they pause and see how unconsciously they’ve been operating all along. Once out of it, most searchers see that their health, wellbeing AND performance were all suboptimal in this state.
What can searchers do?
Based on my medical practice and experience with high performers in high-stress environments, I’ve seen firsthand how crucial mental resilience is to sustaining success and avoiding burnout. For search fund entrepreneurs, maintaining emotional and mental well-being is essential, especially during the demanding search phase.
Here are some strategies that can help searchers stay resilient, manage stress, and protect their mental health while navigating the ups and downs of the search phase.
Become aware of your state
Step 1 is to learn to sense and then anticipate your overdrive state. I teach and encourage searchers to do Radiate’s signature 2-min check in on their body, thoughts, relationships and performance at least once per day. Knowing where you stand empowers you to take action towards moving out of chronic overdrive.
Master emotional detachment
Passion is crucial, but maintaining some emotional distance from deals can help soften the blow of setbacks. It also makes you way more effective when negotiating. Think of it as wearing emotional armor – stay committed, but don’t let every failed negotiation hit you where it hurts most. This state of passionate detachment takes practice but it will not only protect your wellbeing it will become your superpower.
Build your Support Network
Support is not a numbers game. It’s quality over quantity and it takes a real investment to create authentic connection with mentors, fellow searchers, or even investors. Mental health professionals can offer valuable perspective and emotional support and can serve to keep you accountable to your health needs. Even the most independent entrepreneurs thrive with a solid support system. Remember, lone wolves are strongest when they have a pack.
Prioritize high yield self-care
Nobody has time to do all the self-care activities that are being touted by the wellness industry. Learning which activities you can count on to bolster you when the adrenaline is flowing and you need to recharge is essential. As an academic physician, I only focus on evidence-based self care activities and then we tailor them to your best results. If you aren’t sure where to start, use the acronym NESTS: Nutrition, Exercise, Supports, Time for Stillness and Sleep. Find the one that yields the highest impact for you and then begin to drill down to find your own unique prescription.
Just like you wouldn’t let your phone battery die, don’t let your mental reserves run dry and don’t use a slow charge when you are at 3%.
A Secret Weapon for Investors?
The mental fitness of a searcher is directly tied to the success of their search. An optimally balanced entrepreneur is more likely to close the right deals and persevere through rejection. Prioritizing mental well-being, then, isn’t just good for the individual-it’s good for business.
Interestingly, one female searcher highlighted an opportunity for investors: “If an investor offered a program or special support focused on mental health, they’d have a competitive edge over those who don’t.” Forward-thinking investors who recognize and address the mental strain on searchers could not only attract top talent but also be an insurance for success.
Conclusion
The search phase of search fund entrepreneurship is a true test of mental endurance. It challenges not only your business skills but also your emotional resilience, sense of self, and ability to thrive in the face of uncertainty. By recognizing these challenges and implementing strategies to safeguard and strengthen your mental health, you can transform this unseen struggle into an opportunity for personal and professional growth.
As you embark on or continue your search fund journey, remember this: your mental well-being is your most valuable asset. Nurture it, protect it, and watch as it becomes your secret weapon in conquering the entrepreneurial marathon.
