Hello, future business owners! If you’ve ever thought about starting your own company, pay attention. Do you know which mistake is stopping you from becoming a successful businessman?
Alexa von Tobel, the mind behind the popular online financial advisor LearnVest, which she sold for an astounding $375 million, has some priceless advice for us.
The most important lesson she imparts to CNBC Make It is that while confidence is important, having too much of it may be disastrous for your firm.
Think about it. You’ve got a game-changing company concept, you’re fired up, and it looks like everyone is praising your brilliance.
But here’s the catch, says von Tobel: don’t let your initial success make you complacent and that’s stopping you from becoming a successful businessman.
She maintains that successful business owners always remain aware of potential dangers and have a “healthy paranoia” about their projects.
In the past, after the 2008 financial crisis, von Tobel made a risky move by quitting Harvard to found LearnVest.
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She remained grounded even when her invention attracted a wave of enthusiastic visitors on day one, temporarily forcing the website to crash.
The takeaway? It’s more like a tough climb than a stroll around the park to carry out a business plan.
Early victories are wonderful, but they’re only the beginning; if you let up too soon, you run the risk of losing everything.
The problem is that arrogance is not on your side. According to research, aspiring business owners frequently fall into this trap, which is understandable given the remote likelihood of a startup’s success. Overconfidence might lead to careless actions, which could lead to the failure of your dream.
The tale of Von Tobel is unique. She refrained from becoming overawed by LearnVest’s early successes. Instead, she opted for a steady expansion strategy, which let the business amass a staggering 1.5 million subscribers in just seven years.
Northwestern Mutual soon became interested in this amazing achievement, and in 2015 it acquired LearnVest for an astounding $375 million.
But don’t ever imagine that having a “healthy paranoia” entails being paranoid or disliking your accomplishments.
That is not what Von Tobel is stating. She has dedicated herself to a decade of hard effort, wise decision-making, and smart work.
That, according to her, is the secret to creating a truly successful business.
So, keep this in mind. Overconfidence is the enemy that can sink your ship, yet confidence is your ally. Keep an eye out, put in the effort, and construct your success piece by piece.
The transformation of Alexa von Tobel from a Harvard dropout to a multimillionaire success story demonstrates that a healthy dose of prudence and assurance can truly make all the difference.
