Note: This episode originally ran on July 18, 2016
Eli Broad is the billionaire founder of two Fortune 500 companies—Kaufman & Broad (now KB Home) and SunAmerica. You don’t reach that level of success by doing things just like everybody else does. Broad said ‘being unreasonable” led him to generate massive results.
Listen to the podcast to learn 7 key business insights from his autobiography, The Art of Being Unreasonable, that illustrate how you can apply “being unreasonable” to jumpstart your success. Here's the first one.
1. In order to innovate, be unreasonable enough to ask fundamental questions about unexamined assumptions.
Start by looking at the most fundamental operating principles of your business., what most people would call the basics. They represent the strongest, stickiest, and most unexamined kind of conventional wisdom. Broad said this conventional wisdom has often gone so long without scrutiny that they’re accepted as gospel. That's what makes these core assumptions the best place to look for opportunities to innovate.
Charging a fee for assets under management certainly qualifies as conventional wisdom and we are starting to see advisors innovate in this area. Podcast guest James Osborne now charges a flat annual fee of $4,500 for money management and planning services regardless of account size. Brittney Castro charges a planning fee and a monthly subscription fee. And Scott MacKillop, founder of TAMP First Ascent, is capping his asset management fee at $1,500 regardless of asset size.
If you want to quickly gain visibility and new business, find a piece of conventional wisdom and be unreasonable enough to shake it up and find a new angle that appeals to a certain segment of your target audience.