The conference was held in Anchorage, Alaska’s largest city, but still under 300,000. The state is much bigger in area than Texas but lacks the infrastructure we take for granted in the lower 48. As you can imagine, the winters are harsh, and the people are stalwart.

While most of the rest of the country enjoys a booming economy, Alaska suffers from a recession, brought on by the collapse of oil prices in an oil-producing state. Needless to say, they have to find a new path economically and so they are turning to entrepreneurship.

What could we possibly bring to the table that would help them in their challenge? What could we bring that would have a universal and positive impact on those folks who now face raising themselves up by their own bootstraps? We looked at our own bootstrap experience and discovered three practical lessons we could share:

1. Follow Your Opportunity …Passionately!

You often hear, “Follow your passion!” It seems to make sense on its face, since we all need that drive and tenacity that comes naturally when we follow our passion. But you can follow your passion right into the poor house if you are not fortunate enough to have a passion that is in great economic demand.

We followed our opportunity, passionately. The chances are greater that opportunities, not necessarily in your passion, will present themselves more often. We found we didn’t have to give up on our passions to seize the opportunity we were presented with. As a matter of fact, we found many creative ways to use and incorporate our passions into our mercantile business, not the least of which was Worthy Cause Marketing.

We saved a bundle on commercial advertising by supporting worthy causes we were passionate about. We wanted to give the members of those causes a social reason to discover, buy, and advocate our products. This can work in Alaska!

2. Use your Hidden Assets and Resources.

The VC’s have brainwashed most startups and small businesses into believing that the only way to success is to secure a big investment, go through a burn rate, scale fast, and fail fast. If you are playing a numbers game, then you only need one unicorn in 10 if you expect a 10X return. Forbes, the SBA, and others all agree that still, today, 9 out of 10 new businesses fail. ‘Sounds like they are indeed failing fast.

But what if you don’t get a big investor and don’t have the luxury of a big burn rate? If you are like most of us, you don’t! So now we are talking cash flow management. And the secret to cash flow management is reducing your need for cash and growing slowly, but surely!

One hidden asset we had was our top supplier. Outside of product (wine), our biggest need was packaging materials (glass, corks, closures, labels and cartons). Because we were a low priced product with high volume, we would use more of these materials than any of our supply company’s other customers. We certainly let them know this, but we didn’t stop there.

We met with them quarterly to share our growth plans and negotiated a long-term contract. We let them know ahead of time when we couldn’t make our payments. And we gave them a catch-up plan that would bring out account current. Over time, we were able to gain extended credit and terms that saved us from borrowing the money or worse, trading equity for it.

Treating your suppliers as partners to save money can work in Alaska!

3. Put Your Self in the Other Guy’s Shoes.

You hear this all the time. It basically the golden rule. But just how does that translate into practice in the business world? And why does it remove obstacles and speed the processes you rely upon?

We found 7 distinct people we had to sell in order to get our product to market. They each wanted something different. Surprisingly, most of them were interested in something else entirely beside “The best wine and the best price” (our slogan).

For instance, our own people wanted income, acknowledgment, time off, and a company that stood for more that its product. The ownership of our distributors wanted a strategic advantage with a powerful retailer who wanted our product. The distributer’s sales managers wanted to make their numbers. The salespeople wanted to make their commissions. The retailers wanted a proven product with excellent customer service. The store clerks wanted to feel important, so they would recommend and reorder our products. Only the consumer really cared about the wine or the price!

But discovering and delivering what each person in the chain wanted (and not what we thought they wanted) was the key to our success. This can work in Alaska, or, for that matter, anywhere.

We admire the spirit of Alaska, and hope these lessons help vitalize their recovery!

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 3 Lessons to Vitalize Your Business! appeared first on The Barefoot Spirit.

What could we give these aspiring entrepreneurs that would help them the most in their journey? How about a “Count Down to Success”? This is our best list of understandings necessary for a successful launch and happy landing:

FIVE! The Top Five Guiding Principles for Success (GPS)

1. Make Mistakes W-R-I-T-E. (Not just Right) Write down all your mistakes, and more importantly, identify all the documents that need to be created, changed, or improved so there will be no repeats.
2. Put Yourself in The Other Guy’s Shoes. In every relationship with your people, your vendors, or your customers, ask what is important to them. Then give them what they want first to get what you want.
3. Forge Strategic Alliances. Ask, “Who benefits if I benefit?” Those are your potential allies. Vendors can be bankers by extending credit and terms. Customers can be bankers by paying in cash. Threat them like partners and share your plans.
4. Sales Is King. Achieve a positive cash flow as soon as you can. Don’t expand too quickly. Start small and learn how to get your act together before you take your show on the road. Without sales, all else is moot.
5. Service What You Sell. You are not judged so much by how well you do when everything goes right, but by how well you do when there is a problem.

FOUR! The 4 stages of Business Development

1. Startup. Goal is proving the viability of the concept. Danger is chewing up investment money on overhead and production without sales.
2. Buildup. Goal is securing a few big customers that can sustain the business without more investment. Danger is having all your eggs in one basket and being discontinued.
3. Buildout. Goal is diversifying your customer base so you can sustain a significant hit. Danger is spreading yourself too thin, not servicing what you sell, and significantly underestimating the cost of sales.
4. Enterprise. Goal is continuing to deliver high quality and service until you get noticed and become an acquisition target. Danger is losing the entrepreneurial spirit and taking sales for granted.

THREE! The 3 Core Competencies of Any Business

1. Cash Flow Management. Goal is reducing your need for capital by identifying and working with strategic allies, growing slowly, and relying on cost accounting. Danger is too much debt, not enough income, too much focus on production, and inadequate sales.
2. Personnel Management. Goal is hiring good people, building great people, reducing turnover, and engaging your people in finding solutions. Danger is high turnover, and loss of communication, knowledge, and customers.
3. Distribution Management. Goal is discovering and satisfying everyone who touches your product. Danger is your product gets stopped in the system on its way to the eventual customer.

TWO! The Two Division Company. All businesses have only two divisions.

1.  Sales. The customer can only give you payment and feedback. Feedback goes to your Sales and Customer Service people. Danger is that this feedback never gets to your production and marketing people who can keep your products relevant.
2. Sales Support. Everyone who is not in Sales is in Sales Support – everyone! Everyone’s check comes from sales. Everyone’s job should support sales at some level. Danger is that non-sales people think they are more important than Sales and won’t listen to their feedback.

ONE! Have Fun!  

Don’t take yourself too seriously, lighten up and have a little fun!            Your employees, vendors, and customers will love you for it!

ZERO …IGNITION!

We wish all the Nanyang students happy launches and landings in their new businesses!

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 Countdown to Success appeared first on The Barefoot Spirit.

There are way too many folks out there today selling “shovels” to the entrepreneurial “gold miners.”  They’ll help you with your website, your social networking, your on-line business, and even your pitch, as long as you make all the sales.

The idea behind the “shovel” merchants is to find folks who are excited about the possibilities, hyped up by the media, and possibly over simplifying the sales process.  If you are a new entrepreneur, you may be like the miner without the map. You’ll buy the shovel because you think if you’re going to mine gold, you’ll need it… assuming you’ll find gold, that is. The merchants will load you up with goods, services and applications you think you need …everything except the map. Bonnie has an expression we think is apropos, “If we had ham, we’d have ham and eggs, if we had eggs!”

Many of the products they’ll sell you are premature for your business development, based on faulty assumptions, or down right unnecessary.  Many require costly subscription fees and even require “experts” to run those services. Many of these services are trying to be all things to all people, so you wind up paying for services you will never need. Still, they require a myriad of plug-ins that work around their short comings. But what do the sellers care? They got your money and they’re down the road.

The map to the gold can only come from one source: another successful gold miner! In the case of entrepreneurship, this is an entrepreneur who has actually successfully started and run a business, and is now willing to share the secrets that lead him or her to the “gold.” These are the folks you should be seeking out –  especially when you’re starting out. For one thing, they can save you a ton on premature overhead and monthly fees because they too have made those same mistakes. They will help you focus on building the true client base that justifies buying any supportive services, as well as identifying exactly what kinds of services you need, and more importantly, when.

New business owners who have recently been funded are sitting ducks for the shovel sellers who prey on those looking for the “next” gold rush. Today entrepreneurship is the next gold rush. Don’t be swept up in the hype. It’s really all about getting and keeping your customers. Take a closer look at that reality first! The tools and services won’t guarantee those customers but acquiring those customers is absolutely necessary to be able to afford taking on additional overhead. And how do you acquire those customers? Talk to successful entrepreneurs who have already done so, built their business, and even monetized their brand equity. These are the folks with the gold maps!

We can’t tell you how many failed businesses we have seen that loaded up on needless overhead before they ever made a sale and just flat out, ran out of money. Today’s access to capital through crowd funding seems to exacerbate this problem. Often, neither the crowd doing the funding nor the recipient of the funding fully understand the process of achieving a positive cash flow. They are both clouded with the hype surrounding the product or service itself, and they believe taking on major overhead is a requirement for success. So they tend not to scrutinize the investments in overhead until it’s too late!

Bottom line: Buy a map before you buy a shovel!

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 New Entrepreneurs are Easy Prey for Dubious Merchants appeared first on The Barefoot Spirit.