Could lack of sleep contribute to the failure of start-ups?


With about 75 percent of start-up businesses failing, many New Jersey entrepreneurs may start to wonder why these businesses are failing. Lack of marketing, business sense or simply a lack of funding could all be to blame. But strangely enough, a lack of sleep - a condition that can be easily fixed - can be extremely detrimental to start-ups, according to sleep researchers.

When entrepreneurs and employees are in a start-up mindset, everything revolves around the business. In order to maintain productivity, many forego sleep, which is required in order for the body to properly function. But sleep deprivation can cause serious damage to one's mental and physical health. It can not only mess with alertness and creativity, but also cause psychosis, hallucinations, seizures and in extreme cases, even death.

It seems that tech start-ups are always looking for ways to increase new business, which explains the lack of sleep. Even Marissa Mayer, the president and CEO of Yahoo!, admitted to working a whopping 130 hours a week while employed at Google. Contrary to popular belief, instead of increasing productivity, working non-stop actually kills brain cells and decreases alertness and focus while leading to exhaustion.

Many people underestimate the effects of sleep deprivation, but the reality is that it can cause problems in the workplace. We know that when motorists drive while tired, they are more prone to accidents. The same is true for start-up employees. Business owners who promote this type of environment are causing their workers, who are their greatest asset, to become ill or injured. They are also disrupting their own work-life balance. Aside from sleep patterns, new business owners can consult with an attorney who specializes in business law. When stress levels run high at the outset of a new venture, an attorney can assist with the process and put minds at ease.

Source: Forbes, " How Sleep Deprivation Drives The High Failure Rates of Tech Startups," Michael Thomsen, March 27, 2014