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How Does Founder Sleep Impact Company Growth?

Today on ProfitWell Report, we're answering the question: How does the amount a founder sleeps every night affect company growth? To answer this question, we looked at the data from roughly four hundred subscription companies in the context of their founder’s sleep habits. Here’s what we found.

This episode might reference ProfitWell and ProfitWell Recur, which following the acquisition by Paddle is now Paddle Studios. Some information may be out of date.

Originally published: June 12, 2019

Sleep has been one of the most en vogue topics for founders and just modern humans in general. We’re surrounded by struggle porn that tells us to hustle our faces off, as well as more screens and stimulative calories than our grandparents could dream of in their lifetime. While we’ve learned more and more about what sleep does to the body, we’re forced to wonder how sleep impacts the success of a company.

From a growth perspective, the results are actually quite interesting.

But first, if you like this kind of content and want to learn more, subscribe to get in the know when we release new episodes.

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We compared companies with founders who averaged sleep at the medically recommended amount of 7 to 8 hours with the companies who had founders who received less than 7 hours of sleep.

Founder & CEO Sleep Patterns Slightly Impact Growth

Note that founders of companies who were averaging 4 to 7 hours of sleep did seem to have higher growth rates than their more restful counterparts, but the gains weren’t considerable, topping out at 12% higher on a relative basis at the peak. Companies helmed by founders receiving less than 4 hours of sleep per night were essentially dead on with the founders who were getting the fully recommended allotment of sleep, and within the interquartile range were actually trending to grow at a lower rate.

The story gets a bit more interesting when looking at founder happiness in the context of sleep. We measured a Founder NPS or net promoter score, which was essentially looking at how likely founders were to recommend becoming a founder to others.

Low sleep impacts Founder and CEO satisfaction

We found that those individuals getting the most sleep had the highest fNPS with a score of 70. They were very closely followed by those founders averaging 4 to 7 hours with a score of 65. Those individuals receiving an average amount of sleep over 4 hours per night had an fNPS that plummeted to 12.

So what’s this mean?

Well, this data is highly qualitative with plenty of lurking variables, so it definitely has limits. There seems to be an indication that losing some sleep, which you’re bound to do as a founder, does have advantages. Of course, if you go too far and get even less sleep, your well being is going to hit rock bottom and you’re not going to gain the growth tradeoffs that you think you will by sacrificing your health.

All that being said – you have to keep in mind that building a company is a marathon that appears to be a sprint. You do need to move quickly, but you also need to be doing things that are purpose built for the long term.

Want to learn more? Check out our recent episode on How Do Bay Area Companies Compare to Those Outside It? and subscribe to the show to get new episodes.

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You've got the questions

and we have the data.

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This is the ProfitWell Report.

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Hey, Neil. Matt here,

papa at Bonjoro.

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Bit of a different question

for you from down under.

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How does founder sleep

affect company growth?

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Cheers.

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Welcome back, everyone.

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Neil again for the

profitable report.

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Sleep has been one of the most

invoked topics for founders and

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just modern humans in general.

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00:00:27,025 --> 00:00:29,745

We're surrounded by struggle porn

that tells us to hustle

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our faces off as well as

more screens and stimulative

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00:00:32,945 --> 00:00:35,840

calories than our grandparents

could dream of in their lifetime.

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00:00:35,840 --> 00:00:38,880

While we've learned more and more

about what sleep does to the body,

15

00:00:38,880 --> 00:00:42,560

we're forced to wonder how sleep

impacts the success of a company.

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00:00:42,560 --> 00:00:43,825

To answer this question,

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we're gonna look at the data

from roughly four hundred

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subscription companies in the context

of their founder sleep habits.

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Here's what we found.

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00:00:50,305 --> 00:00:51,585

From a growth perspective,

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00:00:51,585 --> 00:00:53,930

the results are actually

quite interesting.

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00:00:53,930 --> 00:00:56,890

We compared companies with

founders who average sleep at

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00:00:56,890 --> 00:00:59,770

the medically recommended

amount of seven to eight hours

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00:00:59,770 --> 00:01:03,905

with companies who had founders who

received less than seven hours of sleep.

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00:01:03,905 --> 00:01:06,145

Note that the founders of

companies who were averaging

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00:01:06,145 --> 00:01:09,185

four to seven hours of sleep

did seem to have higher growth

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rates than their most

restful counterparts,

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00:01:11,690 --> 00:01:13,770

but the gains

weren't considerable,

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00:01:13,770 --> 00:01:17,375

topping out at twelve percent higher

on a relative basis at the peak.

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Companies helmed by founders

receiving less than four hours

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00:01:19,855 --> 00:01:22,255

of sleep per night were

essentially dead on with the

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00:01:22,255 --> 00:01:25,150

founders who were getting the

fully recommended amount of sleep.

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And within the

interquartile range,

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we're actually trying

to grow at a lower rate.

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The story gets a bit more

interesting when looking at

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00:01:32,430 --> 00:01:34,925

founder happiness in

the context of sleep.

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00:01:34,925 --> 00:01:38,045

We measured a founder NPS

or net promoter score,

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00:01:38,045 --> 00:01:41,085

which was essentially looking

at how likely founders were to

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00:01:41,085 --> 00:01:43,580

recommend becoming

a founder to others.

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00:01:43,580 --> 00:01:46,460

We found that those individuals

getting the most sleep had the

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00:01:46,460 --> 00:01:49,580

highest founder NPS

with a score of seventy.

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They were very closely followed

by those founders averaging

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00:01:51,980 --> 00:01:54,595

four to seven hours with

a score of sixty five,

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and those individuals receiving an

average amount of sleep over

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four hours per night had a fan

or MPS that plummeted to twelve.

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So what does this mean?

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00:02:03,320 --> 00:02:05,960

Well, this data e is highly

qualitative with plenty of

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00:02:05,960 --> 00:02:09,065

lurking variables, so it

definitely has its limits.

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00:02:09,065 --> 00:02:11,225

This seems to be an indication

that losing some sleep,

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which you're bound to do as a

founder, does have advantages.

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Of course, if you go too

far and get even less sleep,

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your well being is going

to hit rock bottom, man.

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You're not going to gain the

growth trade offs that you

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think you will be by

sacrificing your health.

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All that being said,

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you have to keep in mind

that building a company is a

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marathon that appears

to be a sprint.

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00:02:31,135 --> 00:02:32,500

You need to move quickly,

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00:02:32,500 --> 00:02:35,380

but you also need to be doing

things that are purposely built

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00:02:35,380 --> 00:02:37,040

for the long term.

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Well, that's it for now.

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If you have any questions,

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send me an email or video

to neil at profit well dot com.

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And if you got value today

or any other week of the report,

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we appreciate any and all

shares on Twitter and LinkedIn

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because that's how we

know to keep going.

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I will see you next week.

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This week's episode is brought

to you by Secured Signing.

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