Millionaire Lessons From Jessica Alba
/In my “Millionaire Lessons From Jessica Alba” case study, I did a deep dive into how Alba grew The Honest Company from a burning desire to create a safe home for her children to a company once valued at $1 billion. Continue reading to learn how to apply Jessica Alba’s money moves to your own life.
Lesson 1: Start before you are ready
Jessica Alba launched The Honest Company with a burning desire to create a safe, natural, non-toxic home for her family. She did not go out to get an MBA then launch or wait until she knew the ins and outs of the consumer goods business. Alba launched with a desire, a lot of heart, and a ton of hustle. She figured it out as she went. So many entrepreneurs are affected by paralysis analysis and remain stagnant. But, in order to attain success, you have to get started. You will never know everything you need to know before you launch. Just got for it and start before you are ready.
Lesson 2: Be prepared to hustle
Once Alba had her idea, she hit the ground running. Once the company launched in 2012, she reached out to her media connections to drive press to the brand. She also entered the VC world and started fundraising. In 2013 the company had $50 million in sales. Three years later it was $250 million. Also in 2016, they raised $15 million. Two years later they raised $50 million giving the company a valuation of $1 billion. Overall, they have raised over $530 million in funding.
Lesson 3: Find partners that fill your knowledge gaps
Jessica’s strengths lie in visual branding, being a visionary and storyteller, and the face of the brand. When it came to e-commerce, the intricacies of distribution and manufacturing, she realized that she needed to surround herself with experts to handle those areas. So, she enlisted Brian Lee as her co-founder. Brian Lee is known for co-founding companies with celebrities. One of his previous projects was ShoeDazzle.com with Kim Kardashian-West. The Honest Company was Lee’s third startup company. He helped Jessica create the online-only model for the company, akin to the Warby Parker model. Together the developed the entry point to the customer - a subscription-based diaper delivery offer.
Lesson 4: Build community
Jessica is incredibly passionate about eco-friendly products and corporations doing their part to elevate the community. The company’s focus on social responsibility led to partnerships with March of Dimes, Baby2Baby, #GivingTuesday, and many other philanthropic organizations. In doing so, they attracted a community of like-minded people and companies.
Lesson 5: Develop a compelling brand story
In scores of interviews, Jessica shares the inspiration behind launching her business- becoming a mom. As a young child, Jessica suffered from asthma attacks and contracted pneumonia 3-4X every year. She spent many lonely days in the hospital wishing she was a superhero and live another life. By the time turned 13, she had designed a diet and lifestyle that allowed her to lead a more normal life. But, once she became pregnant with her first child, her allergies resurfaced. One specific situation occurred when she was washing clothes with a detergent that claimed to be safe for children. As she was folding the clothes, she looked down and saw her hands had broken out into a rash. She looked at the ingredients and realized the detergent was full of synthetic, toxic ingredients. Ingredients that were clearly not safe for an adult and definitely not safe for a child. This was the impetus of The Honest Company. The horror that she felt as a new mom is something that everyone can relate to whether they are a parent or not.
Lesson 6: Don’t grow too quickly
The Honest Company has not had a smooth ride. They launched with 17 products and quickly expanded to include over 90 products. This fast-paced growth has led to quality assurance issues. They have faced class-action lawsuits for products that include synthetic ingredients although they claim to be all-natural. In fact their billon dollar valuation slipped a couple of years after they were declared a unicorn. Growly slowly and with more intention could have helped them better navigate these growing pains.
Lesson 7: Stay in it for the long haul
Despite the challenges, Jessica has remained the course. It reminds me of the quote Meghan Markle shares from her mentor that “if you’re willing to do it for 5 minutes, be willing to do it for 5 years”. The Honest Company launched in 2012, but Jessica first had the idea beginning in 2008. She pitched it in 2009, and was denied. Instead of giving up, she turned her focus to Congress and lobbied for an update to the 1976 Toxic Substances Control Act. From the idea phase, it took over three years to launch the first product. Even now, it takes at least a year to bring a new product to market. Jessica shows that if you have a strong vision, you have to be willing to be patient to see it through to fruition.
Lesson 8: Share your truth
Alba is not shy about expressing her authentic truth. She is blunt about the racism and sexism in Hollywood. The challenges she has faced because she is half-Mexican and the snootiness that can come from others when one starts a business without an MBA. She also shares her distaste for U.S. corporations who continue to pump the system with toxic products. This bold truthtelling elevates brand trust and drives sales.
Lesson 9: Always think of yourself as a personal brand
From her acting days, Jessica has taken a proactive approach with her brand. She knew as an actress that she didn’t want to be pigeonholed, so she sought out a variety of opportunities. From action hero to comedian to sexy starlet. Once she launched her business, and also became a mom, she took conscious steps to pivot her brand to embody more family values. She does this through social media, the types of photos she shares and the messages she spreads. This is a lesson to not rely on others to share your story. Own your narrative and you will own the direction of your company.
Lesson 10: Get excited about your life
It is clear that Jessica loves her life. Sure it may seem as if it’s easy to do as a Hollywood actress with a gorgeous family, but it takes intention to get excited about your life (to borrow a quote from Dr. Phil). She loves treating her body well, taking care of her skin, and finding new ways to be inspired.
Lesson 11: Always learn new things
Whether it’s personal development, beauty routines, or distribution processes, Alba is constantly learning new things. She is a voracious learner and easily inspired. As an entrepreneur, learning about finance, geology, the arts, culture, economics will add to your ability to build wealth and create new opportunities for yourself.
