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 Some information may be out of date.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.
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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.
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.
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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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,
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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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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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From a growth perspective,
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the results are actually
quite interesting.
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We compared companies with
founders who average sleep at
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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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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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but the gains
weren't considerable,
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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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of sleep per night were
essentially dead on with the
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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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founder happiness in
the context of sleep.
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We measured a founder NPS
or net promoter score,
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which was essentially looking
at how likely founders were to
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recommend becoming
a founder to others.
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We found that those individuals
getting the most sleep had the
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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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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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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
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