Netflix founder reveals he almost abandoned Stanford for a different business: "I was equally dedicated to that disastrous venture"

Reed Hastings, before co-founding Netflix, believed another of his business ideas would achieve widespread recognition.

At a recent Stanford Graduate School of Business event, Hastings stated that the "foot mouse" was a device where users could control a computer cursor with their feet. He was so confident in its potential that he almost dropped out of grad school to create a company centered around it.

He was equally committed to the terrible idea as he was to Netflix, he said.

Netflix's executive chairman, Hastings, believes that his business ideas have the potential to change the world, and he attributes his success and the success of other startup founders to his commitment and confidence.

"According to Hastings, in 2012, being an entrepreneur requires feeling confident enough to jump out of an airplane and catch a bird flying by. However, this is an act of stupidity, and most entrepreneurs fail because the bird doesn't come by. Yet, a few times it does."

At Stanford, Hastings was a graduate student pursuing a master's in computer science. He felt that the transition between his keyboard and mouse was a waste of time, as he had to repeatedly stop typing, move the mouse, and refocus on coding.

He hired a mechanical engineering graduate student to create a prototype, but forty-eight hours later, he realized it wouldn't work.

""After two days, it's gross as heck because your leg cramps and the environment is very dirty," said Hastings."

Balancing self-confidence and reflection

Hastings, with a net worth of $4.6 billion, according to Forbes, developed a talent for trying, failing, and pivoting confidently at a young age. In middle school, he decided to become an entrepreneur and sold toothpicks soaked in cinnamon oil for $0.05 each.

"Hastings stated, "Those experiences motivated me to create things. It was later that I understood the importance of selling them.""

In 1988, he graduated from Stanford and founded Pure Software, a company that developed programming tools. In 1995, the company went public and was later acquired by Rational Software for $525 million in 1997.

In 1994, Hastings used some of the profits from the sale and a valuable lesson on company culture to establish Netflix.

""We had an excellent product at Pure Software, and sales doubled every year. However, we replaced our head of sales five years in a row, resulting in a disaster. We could have achieved so much more," Hastings stated."

According to Bonnie Low-Kramen, author of "Staff Matters," having a balanced sense of self-belief is crucial for making impactful decisions in the workplace. However, Hastings' excessive confidence can become a problem if it turns into arrogance.

"According to Low-Kramen, in her recently published book, confidence is a crucial factor in the workplace, and the individual with higher confidence and lower abilities will be more likely to secure a job than the person with lower confidence and higher abilities."

To become a successful and confident communicator, enroll in CNBC's online course, "Become an Effective Communicator: Master Public Speaking." Our program will teach you how to speak clearly and confidently, manage your nerves, choose the right words, and use effective body language to make a great first impression. Register now and use code EARLYBIRD for a 30% discount through July 10, 2024.

Sign up for CNBC Make It's newsletter to receive expert advice on work, money, and life.