For many small business owners, burnout doesn’t arrive as a sudden collapse. It shows up slowly, shrinking the parts of life that used to feel full. Hobbies fall away. Sleep suffers. The to-do list becomes the entire focus. As psychologist and leadership coach Michael Hilgers, who works extensively with entrepreneurs, puts it: “Your world just gets smaller and smaller. And that’s when burnout sneaks in.”

As the year winds down, the goal isn’t just to “rest more,” Hilgers said. Hilgers said it’s about rebuilding capacity, reconnecting with purpose and stepping into the new year feeling grounded rather than depleted. He shares why burnout happens, the earliest signs to watch for and how owners can realistically protect their energy without losing momentum.

Why Burnout Hits Small Business Owners Hard

Burnout among entrepreneurs is common and often misunderstood. Hilgers said it can begin with two major forces: isolation and the pressure to appear fine.

“It’s lonely at the top,” Hilgers said. “Most people, especially small business owners or folks just starting out, they’re wearing all the hats. They usually don’t have the resources to bring in other folks, and so they’re trying to do it all.”

As responsibilities pile up, leisure and connection are often the first things to disappear. “Typically, the world kind of shrinks,” he said. “They’re not keeping up with relationships as [well] as they should be. They’re saying: ‘I’m not going to go for that bike ride, because I really should be working on this.’ Life becomes only the business.”

A second driver is the pressure to keep everything looking polished. “There’s both external and internal pressure to look like everything is great. Whether you’re dealing with investors or customers or business partners, there’s a lot of pressure to make it seem like everything’s going smoothly,” Hilgers explained.

Switching between reality and performance wears people down. “That disconnect creates a lot of dissonance,” Hilgers added. “Our brains don’t like being in opposing places. … They may not realize it, but that leads to a lot of stress.”

How To Spot Burnout Early

Before burnout becomes overwhelming, most owners show subtle but consistent signs that something is off. A feeling of resentment is an early red flag. “People start resenting the very business they once loved,” Hilgers explained. “Something that used to bring joy becomes the enemy.”

Other indicators include:

• low energy or a flat mood
• avoidance behaviors, like skipping calls or delaying decisions
• a shorter fuse with friends, customers or staff
• small mistakes or things slipping through the cracks

Owners sometimes think they just need to work harder to snap out of it — but that only accelerates the cycle.

Why Rest Matters and What To Do First When Burnout Starts

Hilgers said the biggest myth hurting small business owners is that of “the grind.”

“Grinding literally means wearing something down,” he said. “It’s not a strategy, it’s destruction.” Rest, he maintained, is essential maintenance. Owners tend to run at one speed for so long that slowing down feels wrong. “Your brain will tell you: ‘You should be doing something,’ even when you’re at the end of the list,” Hilgers noted.

The key is doing something completely different from the workday tasks. “I talk to people for a living,” he said. “So, on weekends I mountain bike or do metalwork. Something physical, tactile and totally different.” Fast, tangible wins — finishing a pottery piece, a woodworking project, a short hike — help reset the mind.

When asked what owners should do first when they notice signs of burnout, Hilgers’ instinctive answer is: “Take a day off.” But he acknowledges that isn’t always possible. In that case, the real first step is naming it. “There’s power in saying out loud, ‘I’m feeling burned out,’” he said. The act of stating it creates clarity — and interrupts the autopilot that keeps burnout escalating.

Daily Habits That Make a Difference

Hilgers emphasized that the most effective prevention tools are foundational:

1. Sleep
“Sleep impacts everything,” he said. Mental clarity, mood and emotional regulation start here.

2. Reduce alcohol and other substances
Many clients see improvements when they take extended breaks from consuming substances. “They sleep better, they think more clearly.”

3. Move your body
“The what doesn’t matter,” Hilgers said. “Movement increases capacity. It stabilizes mood.”

Bonus: Connect with others. “Isolation is one of the biggest risk factors,” of burnout he added. Talking to other small business owners who are building things reminds you you’re not alone.

How To Build Rest Into Your Schedule When You’re Busy

Hilgers is realistic in acknowledging that some seasons are demanding and rest won’t always be balanced. But one strategy works even in crunch times: Schedule it and trust the schedule.

Put the workout, nap, coffee with a friend or hobby time in the calendar like a meeting — and don’t override it. “It won’t feel natural,” he said. “But the truth is, things will survive if you step away.”

The Core Mindset Shift: You Are Your Business’s Most Important Asset

Hilgers noted that the mindset shift is simple: You are the most important asset in your business. “If the asset fails, everything fails,” he explained. “So, the question becomes: What protects the asset?”

Sleep, movement, connection, hobbies and boundaries aren’t luxuries, he said. They’re the conditions that allow small business owners to enter the new year with resilience and clarity.