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By Michelle Leder

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The Business Side of Sleep

By Jennifer Hopfinger
September 30, 2008 03:36 PM
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We read about it all the time: most people don’t get enough sleep. But the September issue of Fortune Small Business makes an argument for proper rest that goes beyond the usual litany of health problems caused by sleep deprivation.

According to the cover story, “Make Sleep Work for You,” by Anne Fisher, lack of sleep triggers hormones that affect appetite, causing tired people to eat more. This leads to obesity and obesity leads to diabetes. According to health experts, sleep deprivation can also damage the immune system to the point where it may cause cancer.

But from a business perspective, a compelling reason to get some shut-eye is to avoid cognitive impairment. You may think you’re getting more done by working into the wee hours, but you’re actually decreasing your productivity. Eventually, the law of diminishing returns kicks in--it takes you longer to do tasks, it becomes harder to do them well, and it increases the chances of making costly mistakes.

Entrepreneurs are particularly vulnerable to sleep loss. One study cited in the article found that business owners lose about 700 hours of sleep the year they launch, which is the same amount of sleep parents lose in their baby’s first year of life.

And, contrary to popular belief, sleep isn’t mindless downtime. The brain is actually doing crucial cognitive work during sleep--processing data, consolidating memory, generating ideas and forming analysis. Several studies cited found that people were measurably sharper after a good night’s sleep than those who stayed up all night. The article gives examples of executives who claim they’ve trained their brains to do specific “sleep work.”

One source in the article summed it up: “There's a mindset that values burning the midnight oil. But once you realize how it affects you, deliberately depriving yourself of sleep is actually kind of dumb.”

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