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The Psychology of Not Putting All Your Identity Eggs in One Basket

With Byron McCaughey · 7 August 2026

In this episode of In Session with Byron, psychologist Byron McCaughey tackles founder identity - and he's not here to tell you your role shouldn't be tied to who you are. He's been there himself: watching a business fold and feeling it as a hit on his sense of self. The issue isn't having your identity tied to being a founder. It's when that becomes the only thing you measure your self-worth against. Byron unpacks self-complexity theory - the idea that having multiple life domains (founder, psychologist, dad, husband, friend) means a hit to one domain doesn't take down your whole sense of self. When we're aware of those domains, we make decisions with more clarity and less fear. Learn why tying your identity to being a founder isn't the problem, what self-complexity theory says about withstanding setbacks in one area of life, and a simple exercise: write down everything you are besides a founder. Get clear on your domains, and you free yourself to make the right decisions for your business - not just the fear-avoidant ones.

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Transcript

Hi everyone, Byron here, psychologist for entrepreneurs. Today's In Session with Byron is on the topic of identity.

Now, I'm not going to go down the path of saying that your role as a founder shouldn't be tied to your identity, because that's just rubbish. I've been there when a business has folded, and I've been sitting there thinking: this hurts, and this feels like a hit on me and who I am. So there's nothing wrong with having your role as a founder tied to your identity.

The issue comes when it's the only thing that you measure your self-worth, confidence and self-definition on. There's a really interesting theory called self-complexity theory, which says that when we have multiple life domains, we're able to withstand a hit to any one domain. For example, I've got a domain as a founder of a business. I've got a domain as a psychologist, as a loving, caring dad, as a loyal husband, as a friend. I've got all these different domains.

When we're aware of those domains and can articulate them, we stop making decisions in a fearful way - the fear that if this one domain of being a founder collapses, then what does that mean? That fear gets in the way of clarity, and of making decisions in a way that's actually right for us, rather than just fear-avoidant.

So there's nothing wrong with your identity being tied to your role as a founder in some way. Let's just make sure it's not the only thing your identity is tied to. I recommend either saying it out loud or writing it down: what are all the things that you are besides being a founder? Write them down. Become aware of them.

When you do, you'll free yourself up to recognise that you can take a hit in any one of those domains, and it's okay - it doesn't represent you as a whole. That can be really freeing for making the right decisions and moving your business forward in the right way.

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