Breaking Industry Rules

In my industry, and I bet in yours too, there are a set of rules that the incumbent companies have put in place.

Here’s my favorite example of a “made-up” industry rule at work:

When I worked on Wall Street 10 years ago, there was a game that the hedge fund managers liked to play, and I’m sure it still goes on today. Here’s how it goes…

A hedge fund manager responds to a candidate’s inquiry to interview with the firm. They say, “We’re interested to interview you. Please come in fully prepared to pitch two great stock ideas.”

The candidate who is unemployed has been working very hard the last couple of months to stay in the loop with the industry of expertise and nails the interview, pitching 2 really strong ideas. In fact, 2 weeks later the stock price of both of their ideas has each gone up 30%.

But they never heard back from the hedge fund manager.

After 3 months the position has either been filled by one of 20 experienced candidates who were interviewed or remains unfilled because the manager had in fact no interest to hire anyone.

This little game has gained the hedge fund manager at least 10 great stock picks to use to make money… For free.

All the candidates go along with this, because it’s an…

“Industry Norm.”

What if I tell you, that you’ll transform your income in direct proportion to how many industry rules you can break?

Try this exercise:

Write down on a piece of paper (or two) every industry rule in your business:

  1. How things are supposed to be priced?
  2. How things are advertised?
  3. What types of contracts are used?
  4. How things are delivered?
  5. And so forth?

Now try to break as many of these as you can (while remaining ethical and legal, of course) in your business dealings. You’ll probably really upset your competition. In fact, I hope you do. These are their rules that work supremely well for them.

The more rules you break the more profit you’ll see.

Today, we’ve barely scratched the surface

Whatever stage you’re at in business, you need to be all over the numbers. In posts like this, we aim to offer bite-size food for thought – but in a few hundred words, we can only do so much.

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