I’m The Real Jason Duncan, back with your Beyond the Grind blog–helping entrepreneurs like you build thriving businesses without sacrificing your freedom. 🚀

We’re continuing our mindset series–and now we’re going to talk about something every entrepreneur will face sooner or later:

Setbacks.

Not the kind you shake off with a quick quote on Instagram.

I’m talking about the kind that sucker punch your momentum, drain your bank account, and make you question if you’re even cut out for this.

Let me tell you about one of mine.

The $1 Million Gut Punch

In 2016, I landed a national contract with a major hospital group.

We did everything right–delivered the work, met expectations, played by the book.

Then the payment didn’t come.

It wasn’t just delayed. It was stonewalled.

They stiffed me on nearly $1 million.

I wasn’t prepared.

I lost sleep. I spiraled.

I agonized for weeks trying to figure out how to cover the gap, keep the business afloat, and protect my people.

Eventually, I went straight to the CEO of the hospital group. 

I bypassed their accounts payable department, made the call, and pushed for accountability.

We got most of the money back.

But it left a scar–and a pile of unexpected debt.

That setback taught me lessons I couldn’t have learned in a mastermind, a book, or a podcast:

• How to structure future contracts with more payment protection

• How to evaluate client risk

• And most importantly–how to keep leading when the floor falls out

That experience didn’t make me a failure.

It made me a better entrepreneur.

The Entrepreneur’s Reality

One of my mentors told me early in my journey:

“I’ve never met a truly successful entrepreneur who hasn’t gone bankrupt–or damn close to it.”

At the time, I rolled my eyes. I thought, “Well, that’s not going to be me. I’m already a great entrepreneur and nothing bad has happened to me.”

But I hadn’t suffered yet. I hadn’t lost big.

Years later, after going through a brutal stretch in my business–one I don’t talk about often–he looked at me, smiled, and said,

“Now you’re a real entrepreneur.”

And you know what?

I agree with him.

You don’t know what kind of leader you are until you’ve taken some hits.

Setbacks are part of the deal.

If you haven’t had one yet, you haven’t been in the game long enough.

As I like to say: A setback is just feedback with bad timing.

The Growth Mindset vs. the Victim Spiral

You’ve probably heard the term growth mindset.

Psychologist Carol Dweck popularized it, and for good reason.

It doesn’t mean pretending everything’s fine.

It means choosing to believe you can learn, adapt, and improve–even when things fall apart.

A growth mindset says:

• “This hurt. But I can learn from it.”

• “That failed. But I’m not a failure.”

• “This is a detour–not the end.”

Unfortunately, there’s been some backlash against this way of thinking.

I’ve heard people dismiss it as toxic positivity–as if choosing optimism in the face of hardship makes you delusional.

Let’s get something straight:

Toxic positivity isn’t the problem. Delusional denial is.

And that’s not what we’re talking about here.

But you know what is toxic? Toxic negativity.

I’ve seen it. I’ve coached people through it.

Some folks Eeyore their way through every room–always spotting what’s broken, never seeing what’s possible.

They call it being “realistic.” I call it self-sabotage.

If that’s your inner circle–or your own inner voice–don’t be surprised when your mindset stays stuck.

Because the more you focus on the setback, the more your brain hardwires it as your default operating system.

Let me show you how that works.

What Negativity Does to Your Brain (and Body)

Neuroscience shows that repeated negative thinking doesn’t just affect your mood–it reshapes your brain’s physical wiring.

🧠 Neuroplasticity is the brain’s ability to form new neural connections.

The more you think a certain way, the easier it becomes to keep thinking that way.

It’s why people who constantly dwell on problems begin to see problems everywhere.

Their reticular activating system (RAS) gets trained to filter in only what confirms their fear, shame, or anxiety. (I've talked about this before in a previous blog post, if you missed it, check it out here)

🧠 Studies from UCLA and the University of Pennsylvania show that chronic negative thinking is linked to:

• Higher cortisol levels (stress hormone)

• Weakened immune response

• Impaired decision-making

• And even reduced size in the hippocampus, which impacts memory and emotional regulation

In other words–if you don’t interrupt the spiral, your body starts breaking down under the weight of your own thoughts.

That’s not mindset fluff.

That’s biology.

3 Ways to Bounce Back Stronger

If you’re in a setback now–or if you’ve got one in your rearview mirror–here are three things that helped me recover, recalibrate, and lead forward.

✓ 1. Name the Narrative

After that hospital payment fell through, my brain was writing all kinds of stories:

• “You’re a terrible businessman.”

• “You should’ve seen this coming.”

• “No one’s going to trust you again.”

Sound familiar?

The best thing I did was this: Write down what actually happened.

Then write down what my brain was trying to make it mean.

That exercise exposed the lies–and helped me find truth I could actually lead from.

✓ 2. Shorten the Spiral

Setbacks don’t just drain energy–they steal time.

I’ve seen entrepreneurs waste weeks sulking instead of solving. I’ve done it myself.

That’s why I created something I call a “recovery window.”

It’s a pre-decided amount of time you give yourself to fully process the setback–without staying stuck in it.

For me, it’s usually 48 hours. For a smaller issue, it might just be a few hours. For something bigger, maybe a weekend.

During that time:

• I let myself feel the frustration

• I talk it out with someone I trust

• I ask: What can I learn from this? What needs to change?

Then, when the window closes, I go back to execution mode.

This practice keeps me from spiraling too long.

It gives my emotions a container–not a leash.

Because wallowing isn’t healing.

It’s just procrastination with a story.

✓ 3. Return to Rhythm

When life gets chaotic, don’t try to overhaul everything.

Get back to your rhythms:

• Morning calibration

• Evening reset

• Weekly planning

• Simple habits that stabilize your mind and body

The best way to regain confidence is through micro-wins.

Stack them. Track them. Keep moving.

Falling doesn't disqualify you. Staying down does.

What’s Coming Next

We’re closing out this mindset series with something you might not expect: community.

Because even the strongest entrepreneurs hit breaking points–and the difference between bouncing back or breaking down often comes down to who’s in your corner.

Next, I’ll show you why going it alone is the most dangerous move you can make–and how the right voices around you will multiply your clarity, courage, and resilience.

Until then…

Go beyond the grind,
The Real Jason Duncan 🚀