New Category | The Barefoot Spirit

The Wright Brothers Followed Guiding Principles for Success

Michael Houlihan & Bonnie Harvey — Thu, 25 Jun 2015 17:00:21 +0000

The Wright Brothers came from humble origins to change history. It’s hard to believe as we cruise across the continent at 30,000 feet that the initial flight of man was slightly further than the wing span of most of today’s modern commercial aircraft. They built their original airplane with less than $1000 in supplies. But what we especially like about their story is that it underlines the guiding principles for success that we recommend to aspiring entrepreneurs and startups.

Two-time Pulitzer Prize winner David McCullough has blessed us with yet another masterpiece of historical story-telling in his new book, The Wright Brothers. Recently we heard his PBS interview on our way to the airport to take a flight to speak about entrepreneurship to college students.

David carefully researched the lives of these two American heroes and their sister who played a pivotal role in their success. It is a must read for any aspiring entrepreneur and underlines the basic guiding principle for success we call “The Entrepreneur’s GPS.” Our new video webinar on this subject, over a year in the making, will be out soon and we hope our attendees will take those principles to heart and soar with their own dreams.

The Wright Brothers used guiding principles for success in the following ways:

Ask for Help. They practiced practical humility by readily admitting they didn’t know it all, but they were not ashamed to ask for help. For instance, they asked the Smithsonian Institute for any books or reports they may have on the subject of powered flight and studied them intensely. They asked the US Department of Weather where they would encounter sustained winds which lead them to Kitty Hawk.

Be Resourceful. They were without outside funding and did their project solely with their own money, made all of their own parts, and survived on a modest income from their bicycle business. They read incessantly. Even though they had but a high school education, they were self-taught by consuming a large supply of books their preacher-father made available to them.

Communicate Effectively. They were skilled in the art of the English language and used that expertise to communicate what they were attempting and to engage the help of others. Their convincing use of the language reminds us that the Liberal Arts may just be the best education for entrepreneurship. Their knowledge of history and literature helped them understand how to convey their needs and intentions to others.

Be Determined. The Wright Brothers never gave up. They took incredible risks. For one thing, they knew that every time they tried to fly, they could very well be killed. They deliberately chose the soft sands at Kitty Hawk to cushion any potential crash. They continued on in spite of their growing reputation that they were “nice fellows but just a little off.” In spite of setbacks, limited funds and the time it took to make it happen, they were persistent. When they eventually achieved their mission of powered flight it was dismissed as a hoax. Only after five years, when the French (not the US) sent a delegation to Kitty Hawk and they were invited to France to demonstrate their flying machine, did the world finally get it.

We appreciate David McCullough for reminding us at this particular time, when we seem to be swept away by technology, that there are some good old fashioned American values that we would all do well to revisit and apply to our own ventures. Want your ideas to take off? Use The Entrepreneur’s Guiding Principles for Success to get them off the ground and keep them flying.

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post The Wright Brothers Followed Guiding Principles for Success appeared first on The Barefoot Spirit.

Entrepreneurship is Hot in Asia!

Michael Houlihan & Bonnie Harvey — Thu, 23 Apr 2015 17:00:31 +0000

Last weekend we entertained nearly 100 students and faculty from Nanyang Technological University located in Singapore. They were keen on finding out what made us tick as entrepreneurs. Every year the school sends 100 of its brightest entrepreneurship students to the United States where they visit some of our country’s most successful entrepreneurs at businesses and schools in Silicon Valley and the Boston area.

One of the highlights of their visit has traditionally been a visit to the Napa wine country. Bonnie happened to be sitting next to their organizer at the World Conference on Entrepreneurship in Dublin, Ireland where we gave the keynote address last June. She suggested the students visit Sonoma County’s wine country instead this year and offered a two-hour seminar personally hosted by us.

Last Saturday they arrived in Sonoma County where we took them on a walk-and-talk. At each stop we gave them an essential lesson in entrepreneurship:

The 3 Core Competencies. No matter what business you think you are in, you are actually in 3 core businesses which you must master to be successful.

Cash-flow Management: paying your bills with income from your business. You have to reduce your need for capital by outsourcing as much as you can, and by using your suppliers and buyers as bankers. Regular meetings and empathy for their interests are the keys to building trust and extending credit.
Personnel Management: finding good people and building great people. This results in a reduction of turnover, the #1 hidden cost of any business. Requirements include the ability to create compensation systems for all staff based on sales, growth and profitability; public recognition for a job well done; and treating your people as an asset rather than a cost.
Distribution Management: making every “sale” between you and your end-user. The first sale is to your own people who buy because they believe in your product and what your company stands for; next is the distributer’s or wholesaler’s ownership, who buys for strategic reasons; then the wholesaler’s sales people who buy for commissions; the retailer comes next who buys for quick turn, followed by the retailer’s clerk who buys for attention and recognition; and finally, the general public who buys for value, availability and social reasons.

The 2-Division Company. The most successful entrepreneurs think of their businesses, no matter how many divisions they have, as having only two divisions.

Sales: Without sales there can be no other divisions because there simply won’t be any funds to support them. All income comes from the customer. The feedback that keeps your products and services relevant and marketable passes through your sales and customer service departments. They should be advising Marketing and Production, and not the other way around.
Sales Support: This is everyone who is not in sales! This includes the administration, marketing, production, research, legal, accounting, HR, and even the receptionist. Tie part of their income to sales, such as a bonus. Have regular meetings between your sales and sales support people to discuss market changes, opportunities and challenges, and work together on solutions.

The #1 Rule. At every level of business, put yourself in the other guy’s shoes. Ask yourself how would you like it if you were on the receiving end of your own employment, sales, buying, and accounts payable policies? Empathy drives and bonds all business relationships.

We offered the students some infographics we have developed which take some of these complex concepts and graphically represent them for easy understanding. They are available to you as well with our compliments at www.barefootbonus.com.

We wish the students of Nanyang U. good fortune in their own businesses!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Entrepreneurship is Hot in Asia! appeared first on The Barefoot Spirit.

5 Entrepreneurial Competencies Community Colleges Should be Teaching

Michael Houlihan & Bonnie Harvey — Thu, 16 Apr 2015 17:00:03 +0000

As President Obama points out, community colleges are the backbone of the American educational system. He wants to make this 2-year college education financially attainable for all Americans since for most, it is all the formal education they are ever going to get. The question is, what should be taught at the community college level to best prepare the greatest number of Americans to contribute to our economy?

What are the current skills employers want and what are the basics community college grads need to survive economically in the 21^st century?

To answer these questions, we need to take a look at the profile of the typical community college student, where they come from, and where they are going.

For starters they are typically working class people who are the sons and daughters of blue-collar parents and immigrant entrepreneurs. Unlike their colleagues in 4-year schools, many are putting themselves through college by working at part-time, or even a full-time jobs. Consequently, many take up to 6 years to complete 2 years of secondary education. Also, most students in community colleges tend to be more interested in their education than campus life. They are typically down to business.

So given this profile, what would be the most effective education the community colleges could offer? We think it should include entrepreneurship. Since the recession demonstrated to today’s grads that there is no more long-term security in corporate employment, entrepreneurship is now a valid alternative and one many community college grads already choose.

If the goal of the community colleges is to graduate students who are ready to take their places in the work force, isn’t self-employment and the creation of new jobs part of that responsibility? And are their grads ready?

Ironically, the corporations that are hiring, increasingly prefer students with entrepreneurial education. Why? They empathize with their employers as they view business as a whole and not just a group of specialized jobs. They know where the money comes from and what it takes make a profit. We believe this is the most desirable employee.

So what would a two-year entrepreneurship curriculum look like? We think it should include at least the following:

1. Liberal Arts including psychology, philosophy, history, sociology, critical thinking, and communication skills (verbal and written). These competencies will aid greatly in developing and growing relationships necessary at every level of entrepreneurship.

2. Technical Skills including Word Press and other popular programs necessary to maintain a website, and an understanding of all the various social networking platforms and their appropriateness for communicating with prospects and customers.

3. Cash Flow Management including modeling, cost accounting, projections, and budgeting. This should include developing alternatives to getting loans or seeking funding. Resourcefulness can reduce the need for capital, and so can identifying and working with strategic alliances, as well as the outsourcing for products and services required.

4. Personnel Management including compensation and incentive plans, company culture, mentoring, and understanding how to prevent turnover which is the #1 hidden cost of any business. Also, staff selection, hiring, firing, orientation, training, and profit-sharing.

5. Distribution Management, which should include: sales skills and closing techniques; customer relations; the various levels of sales in the distribution chain and what each level wants and why; and how to see every player’s job from their point of view. Also, how to work with the community from which customers emanate.

Whether entrepreneurship is offered as a certification or as an elective part of the AA (Associate of Arts, 2 –year degree), this education will help grads get jobs or start their own companies. Either way, the economy will benefit by reducing the number of “unemployed” grads.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post 5 Entrepreneurial Competencies Community Colleges Should be Teaching appeared first on The Barefoot Spirit.

World’s Greatest Sales Pitch: I Can Help You Sell Your Product!

Michael Houlihan & Bonnie Harvey — Thu, 19 Mar 2015 17:00:26 +0000

Everything is dependent on sales. There is no better justification for salaries, offices, production facilities, or even products. With enough investment capital you can have all those things, but they are unsustainable without sales. Our modern business culture has gotten so carried away with funding as the source of all cash that we have forgotten that sales ultimately makes the wheels go ‘round. When businesses use up their investment dollars in research, administration and facilities, they have to go back for more – or close the door.

That’s why we put such emphasis on sales. In 2015 there are still very few secondary schools of entrepreneurship that actually teach sales. They teach sales management, how to add up the numbers and write reports, but not nitty-gritty sales. They teach the “sales funnel” and the elevator pitch, but not sales as we know it. For us, sales is the ability to get a prospect to buy your goods and services time and again, and remain loyal.

Entrepreneurial success is not about getting funded. You can easily burn through those funds without sales. It’s not about launching your business either. Every ship that sinks was first launched. It is not about offices, production, or even a disruptive world-changing idea. For us, true entrepreneurial success is still being in business three years later. And even better, having sold your enterprise at a huge profit. You can only get there through sales. So let’s focus on sales first.

We are frequently asked, “What is the world’s greatest sales pitch?” We think it’s, “I can help you sell your product!” Why? Because it compels the prospect to answer, “How?” This is a buying signal. He has given you the floor. You have said something he wants to hear. So now you have to answer the question. How can you help him sell his product?

Well, first of all, you had better know what his product is. This mean you have done a lot of research, questioning, listening and observing. It also means that you know to whom you are selling and what is important to them. Each person who touches your product must be sold, and what each of them wants is not the same as what your eventual downstream consuming customer wants. Not by a long shot!

If you are selling to your wholesale distributors, jobbers, or middlemen, their product is strategic importance to retailers or other distributors. Perhaps you presold a big retailer they supply and your product strengthens their strategic importance. Perhaps your product rounds out or distinguishes their portfolio.

If you are trying to sell your retailers, their product is retail goods on precious shelf space that must turn quickly. Perhaps your product has a reputation for fast turn and profitability. Your sales pitch might be that your marketing materials help them decorate their retail business to celebrate seasonal events to attract more shoppers.

We are also often asked, “Who is the world’s best sales person?” We always answer, “The assistant buyer.” Why? Because when your prospect sees you as having their best interests at heart, they will trust you and hand you the keys to their warehouse. They are relieved that they don’t have to worry about being out of product any more. They don’t have to worry about your motives any more. Now they rely on you and will ask you what they should buy.

We have seen many successful entrepreneurs over the years. What they all had in common was their ability to help sell their customers’ products and be their “assistant buyer.”

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post World’s Greatest Sales Pitch: I Can Help You Sell Your Product! appeared first on The Barefoot Spirit.

The Top 5 Challenges to Going Global

Michael Houlihan & Bonnie Harvey — Thu, 26 Feb 2015 18:09:28 +0000

As our world gets smaller, more and more entrepreneurs are going global. But just what does that mean in terms of entrepreneurship? Sure, it seems easy enough when you market through e-commerce. It’s almost a given that you will be selling internationally as the internet seems to be boundless. But what if you are selling a real product with dimensions and weight? Now you are selling a product in international commerce. You can get degrees in international commerce, but if you are like us, you may find yourself thrown into it, especially if your product is a hot seller in the US. We are often asked what where the main challenges we faced selling internationally. Here is our short list for you to consider:

Compliance. Make sure that you or your agent is licensed to do business in the foreign country with all the various agencies that require licensing. Labeling is a big deal. Most countries want metric weights and measures, and many want terms in their own language. Your US trademark won’t protect you there. You’ll need a trademark in each country in which you intend on doing business. In fact, you may have to buy out a trademark sitter who isn’t even producing a product but has your mark already registered in that country.
Shipment. Find a freight forwarder who specializes in your type of product. They should know the myriad of documents required. When using ocean-going freight, be sure to account for the time necessary to make the journey. You may well be shipping weeks in advance to prevent run outs. Most international shipping is done in 20-foot containers that hold 850 to 1,050 cubic feet. For the most part, your pricing and quantities are based on this. You may want to use refrigerated cargo shipping containers to transport your temperature sensitive items.
Receivables. Extending credit is always a big risk. You are not likely to take buyers to court in a foreign country and they know it. The instrument that we used successfully is a Letter of Credit which works very much like an escrow account. It’s written on a US bank with orders to pay you upon the presentation of certain documents, one of which is a signed ocean-going bill of lading which proves the goods have left the US.
Duties and Dollars. Import duties are usually due before the goods can leave the dock of first landing. Depending on your type of product and the political situation, the other country’s import taxes and tariffs will vary widely. In some countries you can ship your goods to a duty-free zone within the destination country and maintain possession of them in your name until they are removed by you or your buyers, at which time the taxes are due. Even with the ever-changing exchange rates, your foreign buyer wants long-term stable pricing.
Brokers. International brokers will approach you at trade shows and ask for the rights and the exclusive to a foreign market. They may offer to take care of all the details. They will work on a percentage of sales. Be careful! You don’t want to give the exclusive to a non-producer who just wants all sales to go through them. We found few who will actually go out into the market and merchandise products at retail. Sometimes it’s much better to invest in your own sales representative in that country.

Selling to a global market is challenging. If you can master the 5 steps here, you will be well on your way to successfully selling internationally!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post The Top 5 Challenges to Going Global appeared first on The Barefoot Spirit.

University of Lethbridge Teaches Marketing and Management with Real World Experience

Michael Houlihan & Bonnie Harvey — Thu, 05 Feb 2015 18:00:23 +0000

This week we were the Executives in Residence at one of Canada’s premier universities, the University of Lethbridge, with campuses in Calgary, Edmonton, and Lethbridge. In addition to delivering keynotes to several hundred students, faculty, and business leaders, we are also speaking to individual marketing and business management classes about the lessons we learned building the Barefoot Wine brand.

One professor asked us to speak about how we conducted marketing research and acquired information before the launch of our product.

When Barefoot started, we didn’t have a preconceived idea about what we wanted to do. We knew only that it was going to be a wine product. Barefoot Wines was the end result of our efforts to collect a long over-due debt for a grape farmer. Instead of cash, we did a trade for bulk wine and bottling services.

Now we just had to transform the raw materials into cash to pay the debt. But not so fast! This meant that we had to find a buyer for a finished, branded product. We had no idea what was needed or how it should look, but we knew that the chain stores were buying wine in huge quantities, so that was where we started.

We did something that in retrospect seems obvious, but it wasn’t obvious to any marketers with previously designed finished products. Rather than pitch the features and benefits of what we created, we asked the largest buyer in our region what he needed. What he told us was the key to accessing the market in the first place. Never mind the way the brand developed and succeeded. It had to get into the market first.

We acquired the critical marketing information we needed, not from pouring over piles of data, not from extensive focus groups, and not even from interviewing successful brand owners in our industry. We didn’t have the funds nor the time for that approach.

Instead we asked the consumers what they wanted, the warehouse workers how to assure correct deliveries, the clerks what products got the greatest reorders, and the bottling line managers what labels they bottled the most. We asked the retail buyers what price the market would bear for what kind of package and product. Then we worked backwards to develop our product, logo, and budget.

We didn’t realize it at the time, but due to our time pressure and being industry outsiders, we actually collected better, more current, and more relevant marketing information than if we had approached the challenge in a more traditional way.

In fact, the Barefoot brand concept could not have originated from within the wine industry at that time, nor could it have originated from any conventional approach to marketing research. It would have been prejudiced by the way questions were formulated and the way things had been done in the past. In an effort to copy or compete with other successful brands in the space, Barefoot would have turned out just like them. Barefoot was out-of-the-box because it’s founders where never in the box and had the audacity to ask everyone who touched their product for advice. They collected marketing information from the people who physically dealt with products in their category every day. Most had never been asked before.

We laud the management and marketing curriculum at Lethbridge University because it incorporates the experiences and learnings of real-life successful entrepreneurs who overcame the toughest challenges in new and creative ways. We are honored to be a case study and adjunct to their commitment to create the next generation of business leaders.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post University of Lethbridge Teaches Marketing and Management with Real World Experience appeared first on The Barefoot Spirit.

7 Ways to Spot Entrepreneurial DNA – Part 2

Michael Houlihan & Bonnie Harvey — Fri, 30 Jan 2015 00:17:08 +0000

How do you spot the candidate with entrepreneurial DNA? Here’s part 2 of our discussion on the 7 things to look for during the interview.

4. Resourcefulness. Ask them how they solved a professional problem when they lacked the time, support, or funds they needed. Listen for how they used their imagination, asked for help, and thought outside the box. Listen for how they identified, re-purposed and used unlikely resources to achieve their goals in spite of the obstacles. Take note of how they rephrased the problem, saw the bigger picture and enlisted the help of strategic allies who would also benefit from the solution. See if their solution solved more than one problem. Those with entrepreneurial DNA will demonstrate their resourcefulness.

5. Preparedness. Does the candidate expect you to ask all the questions? Do they just react to your initiatives? Do they wait for you to tell them about your company, its goals, successes and challenges? Or do they ask you questions? Candidates with the entrepreneurial DNA will treat you like a prospect for their services. They think of everyone as a customer for them, their service or their product. They know that the best sales pitch is, “I can help you sell your product,” and they can’t do that unless they thoroughly understand their prospect and how they can help. They have carefully researched your company in preparation for the interview. They know your products, your challenges, and your history. They come to the interview with a pen and notepad, and a list of questions.

6. Teamwork. Contrary to popular opinion, entrepreneurs are not loners. Realistically, they know that they must build, depend on, and be an essential part of a team. This requires respect for how each player is key to the overall success of the company. They are keen on understanding all the jobs, procedures, outsourced services and suppliers that keep the customer loyal. Listen for candidates who show an interest in this process. Ask them how their last job fit in to their company’s big picture. Ask them how they worked with their teammates and improved communication both inside and outside their previous company.

7. Organization. During the final interview, you do all the talking. Tell the candidate more about what the job entails, who they will be working with and why, how their job supports the customer experience, how your company is organized, and what the expectations are of their performance. Be sure to include how the funds get from the ultimate consumer to the company to cover their paycheck. Then ask them to write a one page summary of your company, the money trail from the end-user consumer, how they will be working with their teammates and why they qualify for the job. Then, tell them it’s due by 5PM tomorrow. This summary will tell you volumes about their comprehension, organization, communication, and ability to hit a deadline. These are all attributes of the entrepreneurial DNA.

There are other key “tells” that can help you spot the entrepreneurial DNA, such as assertiveness, dependability, sociability, humility, practicality, tenacity, empathy and humor. Asking the right questions will bring these attributes to light.

Also remember, it’s not enough to say you are looking for the entrepreneurial DNA in your candidates. You and your company have to walk the talk. You must build a culture of permission, enthusiasm, inclusiveness, recognition, and acknowledgement, and have a performance-based compensation plan to provide the environment the candidate with entrepreneurial DNA needs to flourish and remain with your company. If you want your employees to be more entrepreneurial, create the fertile ground in which they will bloom!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post 7 Ways to Spot Entrepreneurial DNA – Part 2 appeared first on The Barefoot Spirit.

7 Ways to Spot Entrepreneurial DNA -Part 1

Michael Houlihan & Bonnie Harvey — Fri, 23 Jan 2015 23:30:21 +0000

Today there is a loud buzz about the entrepreneurial spirit, the entrepreneurial culture, and even the entrepreneurial DNA. Corporations realize that in order to stay relevant, engage and empower their people, and create a positive and innovative culture they must learn to spot entrepreneurial DNA in their job candidates. This topic is so interesting and involved that we have divided it into two parts.

We have a friend who runs the school of entrepreneurship at a major university. She says that, surprisingly, large corporations are now very interested her grads. Why? The answer is because entrepreneurial grads are more self-reliant and creative compared to grads who do not possess these business acuities. Most importantly, they have their eyes on the money and they understand that the money comes from the customer. You have to remember that entrepreneurship students are not pursuing a degree in entrepreneurship to show it to an employer. In fact they often have no intention of taking a job, but they sincerely want to learn what they need to know to be successful in their own enterprise. They are, by their choice of study, self-reliant.

But if you want to hire someone with entrepreneurial DNA, what do you look for?

Here’s the short list:

1. Performance Pay. Ask them if they want to get paid on attendance (salary), or are they willing to bet a portion their compensation on their own performance. Entrepreneurs don’t have any income unless they are constantly satisfying their customers. Seek out someone who knows they can add significant value to your bottom line. Look for self-confidence and self-reliance. Entrepreneurs are always looking for ways to increase income, profits and growth. They bet their income on themselves because they know their performance will mitigate the risks they are taking and abundantly reward them. So, make sure your company has some kind of profit sharing plan if you want to entice someone with entrepreneurial DNA to work for you.

2. Body Language. Watch how they move. Ask them to get a file from the next office. Do they lumber out aimlessly, take too long, shuffle back slowly, flop down in their chair, and lean on their elbows? Is their posture like a question mark? Or do they move with hustle, determination and purpose? When people sit erect and lean slightly forward, that indicates their engagement and interest. Entrepreneurs exude confidence and it shows in their posture and their body language. They have prepared themselves by learning about your company, and display confidence when they are interviewed and scrutinized by strangers like you. These “tells” are important to recognize because they are physical evidence of your candidate’s attitude and self-esteem.

3. Mistakes. Ask them to describe the biggest mistake they ever made professionally, and more importantly, what they did about it. Listen for whether they fixed it fast and quickly went on with their project, or ultimately blamed others and were “victimized.” Note if they took responsibility. Successful entrepreneurs know that blame is disempowering, while doing what can be done to prevent reoccurrence is staying in control. Learn if they analyzed what happened and modified signs, labels, contracts, job descriptions, policies, or procedures to prevent it from happening again. Entrepreneurs can’t afford to make the same mistake twice. They build their successes on the backs of their mistakes.

Next time we will discuss how you can spot candidates who exhibit resourcefulness, preparedness, teamwork and organization, all essential ingredients of the entrepreneurial DNA.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post 7 Ways to Spot Entrepreneurial DNA -Part 1 appeared first on The Barefoot Spirit.

Worthy Cause Marketing Makes Dollars and Sense

Michael Houlihan & Bonnie Harvey — Sat, 17 Jan 2015 19:30:31 +0000

What we dubbed Worthy Cause Marketing back in 1990 was really an outcome from a serious business problem: How could we get the word out about our products when we had no money for commercial advertising?

We discovered something very important when we got a call one day from a neighborhood non-profit looking for a donation for a kids-after-school park. We had no money for a cash donation but we did have product which we donated for their fundraiser. As a result, the membership of that non-profit was able to sample our products and saw that we supported their cause. Sales in the nearby retail account took off.

When we finally put it together that sales were up in that store because we supported the local neighborhood fundraiser, we decided to try it in another neighborhood. It worked! Then we realized that we didn’t have to give up our true passion which was conservation and civil rights just because we were in business. We realized that we could support worthy causes that were worthy of us, our brand, and our products as a way of getting the word out in lieu of costly advertising that we couldn’t afford anyway.

In fact it worked so well that even when we could afford commercial advertising we did not do it. And we discovered something else that was very important yet subtle. The members of the non-profits we supported not only selected our products when they had a choice, but they actively promoted them to friends, family, neighbors and co-workers. They also promoted our products through their networks by thanking us for our support.

We began to realize another important lesson. Part of the discovery process that makes people want to share their discovery is not only the knowledge that the product is great, but also and most importantly, that the person they are turning on to the product couldn’t have known about it any other way. They believe this precisely because they have seen no commercial advertising. They know they will be gratified when their friend says, “Thanks for the great recommendation! We tried it and you were right. It’s great!” So now we had a business reason not to advertise, because the folks who were spreading the news by word of mouth would simply stop if they saw the commercial ads!

So isn’t this just another type of cause marketing? Not quite. The biggest distinction we can make between Worthy Cause Marketing and Cause Marketing is that within Cause Marketing, the support for the cause is advertised to the general public in the hopes that the general public will chose your brand because you are doing good. In Worthy Cause Marketing however, the support for the cause is not advertised to the general public, but is only known to the non-profits’ members and their supporters.

In both cases the decision to support the cause is a sincere intent to help that cause achieve its goals, but the process differs substantially. We have found that Worthy Cause Marketing creates a loyal following when practiced year after year on a long-term basis.

We were honored to be the keynote speakers today at the prestigious Pepperdine University in Southern California at the Margaret J. Weber Distinguished Lecture Series. Given the school’s admirable commitment to social entrepreneurship, we thought no topic could be more appropriate than Worthy Cause Marketing, a driving influence behind the success of the world’s largest wine brand. We hope that our demonstrated success will encourage start-ups, growth-phase and established companies to use Worthy Cause Marketing in their own businesses. We believe they will see, just as we did, that doing good is just plain good business!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Worthy Cause Marketing Makes Dollars and Sense appeared first on The Barefoot Spirit.

Teaching Entrepreneurship is as Challenging as Being an Entrepreneur

Michael Houlihan & Bonnie Harvey — Sat, 10 Jan 2015 19:30:02 +0000

Ten years ago there were very few schools of entrepreneurship. Many asked, and some still do, “Can you really teach entrepreneurship?” They felt you just had to do it, take your lumps and learn from them. Many heroes of entrepreneurship actually dropped out of school altogether to pursue and master their own businesses. We think this sends a wrong message to aspiring entrepreneurs.

With all the hard knocks we got on the street, we would have certainly benefitted by some formal education in business and entrepreneurship. Today there are many schools of entrepreneurship popping up all over the country. We have spoken at more than 30 of them in the past 18 months. This experience has given us a unique perspective on the state of the art of American (and international) entrepreneurship education.

For one thing, the entire world looks to the United States as the cradle of entrepreneurship. So what we decide to do in terms of entrepreneurship education has international ramifications. For another, like the entrepreneurs they are trying to develop, schools of higher education are casting about for best practices, effective content, and real-world experience. They want to discover what works in the classroom, the start-up hub and the marketplace.

Each school we visited had a different idea about how to teach entrepreneurship and how to measure its effectiveness. Most schools view entrepreneurship as an offshoot of their business schools. For them the business curriculum is ready made with courses you need to run your own business. We agree, but there’s more to it than that.

Some schools take a different view. For them, entrepreneurship education is an offshoot of whatever they specialize in, whether it’s engineering, agriculture or hospitality. They realize they must have at least some courses in entrepreneurship so their sciences and technology grads who want their own businesses leave with the knowledge to do so.

Still others see entrepreneurship as an offshoot of the liberal arts school, pointing out the need for entrepreneurs to obtain such core competencies as psychology, philosophy, communication, history, sociology and the other humanities. They recognize that in order to run a business, one must find, hire and train good people and build great people. One must communicate and bond with a wide range of customers, vendors, and other business people who have varying psychologies, philosophies, cultures and communication styles. We tend to agree with this approach although business form and function is also a must.

Some schools merely offer classes in entrepreneurship, others offer majors, a few offer masters degrees, and still others have start-up incubators with academic credit.

So the approach is still in its emerging stages even here in the “cradle of entrepreneurship.”

The jury is still out on what the metrics of success are. Unlike a business school where you can tout how many of your grads received high paying jobs, entrepreneurship educational success is not as clear. Is it how much money was raised for business plans? Or how many new businesses were launched? Or even how many entrepreneurial super stars graduated from your school? These are easily measured as the data is readily available. But we think schools of entrepreneurship should start keeping track of how many of their grads’ newly launched business are still in business three years later!

We salute the schools of entrepreneurship for their multi-faceted approach to the teaching of this multi-faceted subject! It is from this melting pot that the consensus will be built on the foundation of their students’ success. We are honored to be a part of this process.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Teaching Entrepreneurship is as Challenging as Being an Entrepreneur appeared first on The Barefoot Spirit.