We faced this exact challenge. Our employees, business associates and clients all kept saying that we should break our journey down into its essential parts and expand upon those parts. So, for a year we kept tossing around ideas, thinking about how we could get these concepts across to startups.

Focusing on why so many startups failed seemed to be a good place to start. Did they all have something in common? What were the areas that most of the “failures” failed to master? Surprisingly, they all lacked competency in one or more of 4 key areas. So, we decided to focus on those areas and prioritize them in The Barefoot Startup’s GPS (Guiding Principles for Success). Here’s a brief summary:

1. Monetization Strategy. Crazy as it sounds, many startups never ask the fundamental question, “Why am I doing this anyway?” Is it a lifestyle? Is it a legacy? Or is it to monetize on brand equity? If you’re setting your course on an eventual acquisition, merger, or public offering, the steps you take at the beginning of your journey will be critical to your survival. They will determine your expansion plans and the steps you take to maximize your brand equity. This choice means that your goods or services must be scalable, and your business can run without you. It means that your files reflect your acquirer’s due diligence. And it also means that you know and establish the metrics and milestones you need to become an acquisition target or, as we say, “Get your peanut in front of the elephant!”
2. Cash Flow Management. The goal here is to reduce your need for capital. Do you know how identify and utilize your “hidden” assets. Ideally, your buyer’s will pay you before you need to pay for your supplies and overhead, and this is possible. But for most of us, we need to juggle! And we need to spend every dime on the bills before we pay ourselves. This is why outsourcing, reducing overhead, and pay-as-you go are so critical. This is why income and cost projections are so essential. You need to establish revenue, even if its small, before you ask for investors’ money. Do you know how to establish strategic alliances with your suppliers and your buyers, to reduce your need for capital?
3. Personnel Management. The goal is to reduce turnover, the #1 hidden cost of doing business, and to engage and empower your people. How you find good people and build great people are covered in our video. We believe it is essential to overkill on orientation from day one to demonstrate where the money really comes from, including all the hands, hoops and twists it has to go through to get to them. Paying for performance encourages better performance. Paying by the hour encourages longer hours, not necessarily resulting in productivity. Nurturing a culture of permission, encouraging innovation, and giving public acknowledgement for a job well done are absolutely vital to building a productive and supportive team. Sharing challenges with the entire staff on a know-the-need, rather than a need-to-know basis will unlock your personnel assets to solve problems on the fly.
4. Distribution management. Do you know how to get your product or service to the market, and more importantly, keep it there? Distribution is everything from supply chain management to sales. Sales is not just to your end user, but to your own people, your B2B customer, their B2C customer and eventually to their (and your) end-user. Understanding and delivering what each person in the chain requires can make the difference between access to market and being shut out. Not understanding the true cost of sales is the biggest single reason for startup failure. Start small, make your mistakes in a small place, learn from them, and get your act together before you take your show on the road. Don’t scale fast to fail fast!

Are you interested? We know that these 4 core competencies, so often overlooked, are so important that we spend an entire hour on each one in our online video course, The Barefoot Startup’s GPS (Guiding Principles for Success). Check it out.     

#BarefootStartup

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 4 Core Competencies of the Barefoot Startup appeared first on The Barefoot Spirit.

In today’s workplace, we see employees keeping vital information to themselves and not reporting it to others who have asked them for it …and need it to do or complete their job. This “sitting-on-it” style hurts everyone on the team.

In business, keeping your boss, your colleagues, and your customers up to date is essential. It builds trust in your relationships. It’s easy to say, “Don’t worry, I’ll take care of it,” but actions speak louder than words.

You must actually tell the person who asked for the information what you found out. Just because you know, doesn’t mean you can sit on the information. When you are asked to check into something, it is assumed that you will share what you have found.

You can get back to others with a comfort call, a timely update, or a status report. Or you can wait in silence until they call you and ask, “Hey, what’s going on?”

Nothing is more irritating than having to check up to see if someone really did what they said they would do, are still working on it, or dropped it entirely! Not knowing causes anxiety.

So why do so many people go dark after they say they’ve “got it covered”? The fact is, it leaves the requestors, guessing. It makes them wonder what’s going on, not just with the request, but what’s going on with you.

Are you deliberately going dark, hoping they will forget the request? Are you depending on them to remind you? Are you dropping it until they mention it again? Are you so late in your response that you are embarrassed to admit to your tardy status because you think you will get in trouble? Do you think they don’t need to know until the task is completed, even if weeks go by?

Do you realize that this makes the requesting party anxious? Their mind reels with the possibilities and it keeps them awake at night.

Whatever your excuse, it’s damaging to your company, your team, and your reputation as a professional businessperson!  No news is worse that bad news.

If you get a request that is a long-term, ongoing project, give the requesting party a comfort call or shoot them a memo every few days.

Timely status reporting has so many benefits. For one, even if you’ve had no progress, it puts the requesting party’s mind at ease. They don’t have to wonder about you or question your motives. It just plain shows respect. Suspense is stressful.

For another, it says, “I am keeping you up to date, so you can trust me to not drop it.”  When you demonstrate that you care about relieving their anxieties, they will see you as professional, reliable, and indispensable. When you show you care about the requesting party, they will care more about you.

In any case, do not let so much time go by that they feel compelled to ask you about it. If you keep them in the dark on a regular basis and they find themselves frequently asking you what’s up, don’t think they don’t notice. This kind of sloppiness can result in lost relationships with your vendors, customers, associates, and employers. You are jeopardizing the effectiveness of your team mates. You could even lose your job.

Show others the common courtesies you expect. Put their minds at ease. Show them you are on top of it. Earn their trust …and your own security. Get back to them on a timely basis!

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 Build Trust with Timely Status Reports appeared first on The Barefoot Spirit.

Today is our 30^th Anniversary! We are in New York celebrating with the release of our new book, The Barefoot Spirit, which covers 20 of those 30 years! Thanks to all our family members, former employees, business associates, friends and neighbors who helped and encouraged us! This picture is from the 1987 Renaissance Faire in Marin County California where we’re supporting the Living History Center! Hazzah!  

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 30th Anniversary! appeared first on The Barefoot Spirit.