“Only the paranoid survive,” is a great business book title. It also contains a kernel of truth for business leaders. Without paranoia, the people running a business will grow complacent, and lose to a more innovative competitor.

The flip side is this: paranoia can kill too. The entrepreneur who deals with anxiety, fear, and insecurity by working more will also find it more difficult to think clearly. They won’t sleep as well. Their friendships, relationships, and team will suffer.

Complacency will hurt the business from outside. Paranoia, left unrestrained, will hurt the business from inside. A leader needs to know when to engage and let go of both, and not let either extreme get the best of them.