“The first step in solving a problem is to recognize that it does exist.” — Zig Ziglar
One of the hardest things for me as a coach is watching businesses close down when I know, deep down, they could have been saved.
It’s not always about bad timing, bad products, or lack of funds. Often, it’s something far quieter: a refusal to admit that something isn’t working. I’ve seen it in people I work with, friends I’ve known for years, and even family members running businesses.
And the truth is, refusing to admit a problem can be fatal, not just to a business, but to the energy, relationships, and dreams behind it.
Table of Contents
- Why Admitting a Problem Feels So Hard
- The Cost of Silence
- A Real Example: Mosaic Brands Limited
- I’ve Been There Too
- Admitting Isn’t Weakness, It’s Leadership
- From Admittance to Action
Why Admitting a Problem Feels So Hard
Admitting there’s a problem doesn’t come naturally to most people. It threatens our sense of control. It exposes our vulnerabilities. It forces us to confront the possibility that the path we’ve chosen, the one we’ve invested so much into, might not be the right one.
In business, that feeling is magnified. Founders are told to “believe in themselves,” “never give up,” and “trust their vision.” But perseverance without reflection can easily become stubbornness disguised as strength.
When we become emotionally attached to the way things should be, we stop seeing the way things are.
The Cost of Silence
Every business problem starts small: a dip in sales, a marketing strategy that no longer converts, a partnership that feels strained. But silence compounds. The longer a problem goes unspoken, the harder it becomes to reverse.
I often hear founders say, “We thought it was just a rough quarter.” Six months later, it wasn’t just a rough quarter, it was a closure notice.
Most businesses don’t die because of one big mistake. They fade because of a series of small ones that no one admitted soon enough.
A Real Example: Mosaic Brands Limited
Mosaic Brands Limited captures this truth vividly. It was the parent company behind household fashion labels like Noni B, Katies, Rockmans, and Rivers, operating more than 1,400 stores across Australia at its peak.
For years, sales had been declining as customer preferences shifted. Many of its labels overlapped, targeting a similar demographic. At the same time, Mosaic kept acquiring struggling brands to expand its store network, treating each downturn as “a tough retail season.”
The warning signs were clear: shrinking margins, overlapping brands, and mounting debt. Yet leadership repeatedly framed it as temporary turbulence rather than a structural problem. By 2024, the silence caught up. Mosaic entered voluntary administration under the weight of more than $300 million in debt.
Mosaic’s story isn’t one of bad luck; it’s one of gradual erosion.
“According to FTI Consulting’s initial report to creditors, the company had likely been operating for years while insolvent.”1 Financial troubles dated back to its early years on the ASX, and even its auditor, BDO, had raised concerns about whether the business could continue.
A business can survive tough markets, but not the refusal to face reality. In the end, it wasn’t the market that defeated them – it was silence.
And that’s the uncomfortable truth many founders face. It’s rarely the economy, the competition, or the customer that ends a business. More often, it’s our own unwillingness to confront what’s not working. I’ve seen it happen in boardrooms, small family enterprises, and even in my own journey. Which brings me to this next part …
I’ve Been There Too
I don’t say this as an outsider looking in. I’ve been there myself. Over the years, I’ve made my share of costly mistakes, partnering with toxic people, losing money in the wrong ventures, chasing markets that were never part of my niche.
There was even a time very early in our business journeys when both my business and my wife’s lost a significant amount of money, all happening within the same period. We spent the night crying, wondering how we’d rebuild from there.
Yes, men do cry, people, especially when their wives do (we need to be supportive 😜).
It was one of those nights that strips away pride and leaves only truth. I realised that no matter how much you know or how experienced you become, business will always test your humility.
Each time, I had to humble myself, admit it, and make changes. It’s never easy. But I wouldn’t still be in business today if I hadn’t learned to do that repeatedly.
Every misstep taught me something deeper about self-awareness, courage, and adaptation. The moment I could name the problem, honestly and without ego, the turnaround began.
Admitting Isn’t Weakness, It’s Leadership
True leadership starts with awareness. It takes courage to look at your business honestly and say: “This isn’t working.” “We’ve outgrown this strategy.” “We need help.”
I’ve lost count of how many times I’ve heard founders say, “I didn’t see it coming,” or “I thought it was supposed to be like this.” Those words often come from people who have been doing everything they were told to do, working harder, staying positive, pushing forward, yet wondering why results aren’t following.
It’s easy to blame the market, the economy, or the competition. But sometimes the hardest truth is that the problem began with a decision we made, or an assumption we never challenged.
Maybe we stuck with an idea too long. Maybe we ignored early signs that customers were disengaging. Maybe we convinced ourselves that short-term discomfort was just “part of the grind.”
But here’s the thing:
Admitting a problem doesn’t make you weak, it makes you a leader.
In fact, every successful turnaround I’ve witnessed, whether in startups, family businesses, or corporate teams, began with someone saying out loud what everyone else was thinking but afraid to admit.
Once that sentence is spoken, clarity begins. Solutions surface. New possibilities emerge.
From Admittance to Action
Recognition is the first step, but not the last. The next step is curiosity, asking why. Why are customers disengaging? Why has growth plateaued? Why are we resisting change?
This process doesn’t demand blame; it demands honesty. And once honesty enters the conversation, strategy follows. That’s where coaching, business-model design, and structured reflection come in, not to patch holes, but to rebuild with clarity.
If you’re reading this and you sense something’s not right in your business, don’t rush to fix it, just start by naming it. Give it a voice. Write it down. Share it with someone you trust.
I’ll be honest, even after all these years, it’s still not easy for me. I’m known for being the person who quadruple-checks everything before moving forward. I plan, I verify, I question, and yet, I still get things wrong.
Admitting that something isn’t working never feels natural. But as Alexander Pope said:
“To err is human.”
The part that matters most is what we do next.
Because each time I’ve faced a problem I didn’t want to admit, it eventually became the very thing that helped me grow, not just as a business owner, but as a person.
So if you’re in that moment right now, remember: the discomfort of admitting a problem is temporary, but the clarity it brings can change everything.
Source:
Hogan, L. (2025, June 30). Collapse of Mosaic Brands hurts female factory workers in Bangladesh. ABC News.
