Mike Alfred graduated from Stanford University in 2003 and, like many, jumped into the financial field. He spent years working as a financial advisor and investment manager at several firms, including his own, Alfred Capital Management. However, he had always had an itch to be a web entrepreneur.
With the help of a little Maker’s Mark and Monday Night Football, he found his inspiration: tackling the 3 trillion dollar industry. This spark of an idea led to the creation of BrightScope, a platform that brings transparency and accessibility to retirement planning.
Could you describe Brightscope and what it does?
BrightScope is the leading provider of retirement plan ratings and investment research. We’ve quickly become the standard rating for 401k plan quality and we market a suite of web-enabled software products to Fortune 1000 employers, investment companies, consultants, and financial advisors. In addition, we provide free ratings and analysis to 401k savers at our public website www.brightscope.com
How did Brightscope go from idea to reality?
I’d always thought it would be cool to be a web entrepreneur. In 2007, I was working with my brother at our investment firm when we were introduced to Dan Weeks. Dan had been working at HP for 25 years and was ready to try something new. With a little prodding, he convinced us to take a closer look at the 401k space over our initial objections. After months of exploring the space, we were drinking Maker’s Mark and watching Monday Night Football when the idea struck us like a lightning bolt. Why isn’t there a Morningstar rating for 401k plans? How can there be over 3 Trillion Dollar Industry (with a T) invested in 401k plans and no comprehensive database of 401k information available to help the average person analyze their plan? We knew that someone had overlooked a massive opportunity.
Was it hard to build credibility in the financial industry at a young age? If so how did you overcome this?
Definitely. I remember the first time I pitched a prospective client on my investment management services. They asked me how old I was. That was the first sign that I wasn’t going to win the business. As I developed, I almost never got asked. There is a certain confidence and aura that only comes with experience. Pay your dues!
What do you think is the biggest reason for you and Brightscope’s success?
I like that saying about 99% perspiration. But that doesn’t mean I believe it. In our case, it’s about the right idea, the right team, and the right time. And of course, we’re willing to outwork anyone who tries to come in to the space.
What do you think is the biggest barrier to people starting a company? How can they overcome this?
Fear. Find mentors.
If you could give 1 piece of advice to a young entrepreneur today what would it be?
Stop telling yourself what you need to have before you do something. Just do it. If I waited until I had money to start a company, I never would have started one. Instead, I got the maximum limit I could get on as many credit cards as I could qualify for. Suze Orman would kill me but that’s how you get rich in America.
Care to brag at all? User numbers? Sales numbers? Big achievements? Press?
I’m usually shameless about self-promotion but I don’t want to overdo it. We’ve had a lot of success with our PR efforts but this month I’m just really proud of my sales team for hitting a major sales milestone that we weren’t supposed to hit until late in the year.
Favorite business book?
I don’t think I can add anything too new here. I like Jim Collins, Ram Charan, Bill Taylor, etc.. But I’ve gained unique insights from reading books about the more notorious figures in American business – books like Den of Thieves and Smartest Guys in the Room. I also swear by Fortune magazine as the best place for young entrepreneurs to learn about and understand big business and corporate America.
What do you to in your spare time?
I run ultramarathons. Ultramarathons are running races longer than the standard 26.2 mile marathon distance. I’ve finished a 50 mile and 100 mile race and last March I won a 50k (31.25 miles). If I’m not working, I’m probably running on some mountain trail.
What are the future plans for Brightscope?
We’re building the next great data business. The sky is the limit and I don’t want to put an artificial cap on it.
Where can people find you online? Twitter, facebook, email etc…
@brightscope on Twitter
The 3 Trillion Industry
The 401(k) industry is a massive and rapidly growing market, with over $3 trillion invested in retirement plans. Despite its size, there was a clear gap in accessible, reliable data for everyday savers. Mike Alfred recognized this opportunity while working in finance and saw how millions of Americans struggled to make informed decisions about their retirement savings.
With this realization, he founded BrightScope to provide transparency, insights, and ratings for 401(k) plans. By tapping into this $3 trillion industry, BrightScope has revolutionized retirement planning, empowering individuals and financial advisors alike with the information they need to make smarter choices.
The Potential of the 3 Trillion Industry
The $3 trillion dollar industry offers significant opportunities for entrepreneurs and innovators. With so much money invested in retirement plans, the potential for disruption is immense. Companies like BrightScope have already shown how data transparency can change the game.
By providing detailed ratings and insights, they help people make better decisions for their futures. As more people become aware of their 401(k) options, the industry will continue to evolve. Innovators have the chance to tap into this growing market, shaping its future for years to come.
In Conclusion
BrightScope has revolutionized retirement planning by providing accessible, transparent data to everyday savers within the $3 trillion 401(k) industry. Its focus on empowering users with knowledge bridges the gap between financial experts and individuals planning for their future. By continuously innovating and delivering reliable insights, BrightScope remains a trusted resource for informed decision-making.
Through its commitment to accessibility and progress, the company is reshaping how people navigate the $3 trillion industry to prepare for a secure retirement.
