Sleep Deprivation and Startup Failure

Sleep deprivation and wacky sleep schedules are synonymous with entrepreneurship. It is probably the most common condition my clients report. So much so, that they consider it normal — a badge of honor. Poor sleep is just what comes with being a founder, right?  I submit that a founder who is not getting good quality sleep, not necessarily more sleep, has a lower chance of success. In my quest to get to eradicate the high failure rate of new businesses (70-90% depending on your sources), I look to the core of the problem which includes the well-being of the founder. Snap judgments, impulsive decision-making, concentration complaints and irritability are frequently signs of a founder in trouble. These are also symptoms of sleep deprivation. To make good decisions, and the rest, our prefrontal cortex (the CEO of our brain) needs to be able to inhibit the activity of emotional parts of our brain. With a good night’s sleep we experience a better balance between emotion and rational, logical thought.

A study several years ago by Matthew Walker Ph.D, author of Why We Sleep, compared brain scans of two groups of subjects – sleep deprived and well rested. He looked at the activity in a part of the brain known as the amygdala – a hot spot for triggering strong emotions. The brain scans of the sleep deprived subjects  showed a 60% amplification of emotional reactivity. The well rested group showed “a controlled, modest degree” of reactivity in the amygdala. He concluded that “without the rational control given to us each night by sleep, we’re not on a neurological –and e emotional –even keel.” Notice how more nights of good quality sleep increase your chances of staying in business!

See my article for ways to getting better sleep!

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