The overall aim of this research was to gain an insight into owner manager cognition during business turnaround. The objective was to examine managerial sense-making and decision-making during this potentially traumatic period. The exclusion of the psychological pressures and stressors encountered by owner managers as they endeavour to operate effectively in an unfamiliar and stressful working environment are limitations in previous small firm strategy formulation research. The failure of any company whether large or small will affect the lives of the managers, employees, their families and possibly the communities in which they reside. The need for a situated account of owner manager decisions and actions is necessary. These, and many other considerations pertain in business turnaround. A number of factors determined the research methodology. These included a lack of prior research within this area of management cognition; difficulties in finding Smaller firm owner managers prepared to spare the time to become involved in academic research while trying to avoid corporate failure and the recognised reluctance of individuals to convey their innermost thoughts and feelings in relation to subjects considered personal and private. These factors precluded the use of a more traditional positivist approach base on multiple samples and carried out by an independent expert observer. Instead, a qualitatively orientated case study was developed, based on the reflections of the author during the course of a live business turnaround. Records and personal reflections were maintained throughout an eight month period. Through interpretative analysis, major categories of owner manager cognition emerged which were integrated within an overall research model to indicate changing patterns of owner manager thinking across the various stages of business turnaround. These findings provide an initial understanding of the role played by owner manager cognition during business turnaround and the effect of psychological pressures on sense-making and decisionmaking processes.