Almost everyone in the audience is looking for ways to save money in their new or developing business. They’re all looking for the most bang for their buck in every area of spending. Marketing your products and services are probably the biggest challenges new business face. It doesn’t matter how good your products and services are if your customer doesn’t know about them.

No Advertising Budget, No Entry

When we started Barefoot Wine, we were completely undercapitalized. Our first big chain buyer asked us if we were going to spend $200,000 in an advertising campaign to build our brand before he would take it in to his stores. We were so strapped, we didn’t even have one of those $200,000. He then basically turned us down and for good reason, our brand was unheard of, and he would be taking a big risk giving expensive shelf space to an unknown and unproven brand.

He told us that without a well-funded advertising campaign he wouldn’t touch it …and no other chain or box store would either, for that matter. The big chain buyer said, without advertising, we would have to focus on selling the independently owned stores one at a time. We told him, “That will take years!” He said, “You’re right! You better get started!” He did say that once we became a household word, he would put us in to his 200+ store chain. Well, it took 2 years, and yes, he did put us in. His was the first large chain store in the country to take us.

Becoming a Household Name Without Advertising

But we didn’t become a “household word” through commercial advertising. And we didn’t become a “household word” throughout the country at first. We became a household word only in California and we did it through support for the community from which our customers came. You see, the independents were no different than the chains. They didn’t want to take a chance on an unknown brand that wasn’t being commercially advertised. In fact, they threaten to discontinue Barefoot if it didn’t sell within 90 days. And we only had a handful of accounts that would even take that chance, to begin with.

It was during that first in 90 days that we got a call from a nonprofit community organization asking us to support their kids-after-school park. Once again, we had no money. But we did have wine! We donated wine to their fundraiser. The next month we noticed a big uptick in sales in the stores in that particular community. Without knowing it at the time, we had given the members of that organization a social reason to buy our product. They also felt obligated to tell their friends colleagues and families to go out and buy it as well.

We thought, “Wow! Maybe we’ve discovered something here! Maybe this is an alternative to expensive commercial advertising. Maybe it’s more effective simply because it’s more locally targeted. Members of the organization lived in the neighborhoods surrounding the stores where our products were for sale. Then we thought, let’s try this in another market, only this time we asked for a few concessions that the nonprofit could readily provide. They mentioned us in their newsletter, they thanked is from the podium, they let us put up banners, they let us put out lists of where to buy our products at their fundraiser, they let us write posts in their newsletter, they used our logo and let us use theirs.

These were not big national organizations looking for paid sponsorship. These were just little community organizations, but they were made up of potential customers. Why shouldn’t we support our potential customers?

Worthy Cause Marketing

As Ivan Meisner says, “When it comes to networking, take off the bib and put on the apron!” This approach to getting the word out, which we called Worthy Cause Marketing, was so effective that as we expanded Barefoot into other states, regions, and even countries, we got the word out by supporting local communities and their worthy causes.

Already we can hear the objection, “Well it was easy for you. You are selling wine, but how does that work for me with my product and services?” At a local Chamber of Commerce meeting, we met a gentleman who was practicing Worthy Cause Marketing to get the word out about his services. What was he selling? Gun safety! He found that he could support parent-teacher associations, as well as police and sheriffs associations by offering free classes as a silent auction item during their fundraising dinners. Association members saw his support for their cause. Some members bought and used the silent auction classes. They came back and recommended his classes to all the other members.

Targeting the Networked Market

One of the great advantages of working with community organizations is that they are already networked! They are already communicating. And they are local to where your goods and services are for sale. Offering them free goods and services to support their causes as well as helping them get the word out about their goals and fundraisers will endear you and your products to their members. You become part of their organization and a supporter of the causes they hold dear. Of course, they want to support you in the marketplace.

You will not only show the world that you stand for more than the mercantile value of your goods and services, but that you support the causes that are important to your customers. It’s not only a great contribution for your company to make to your community, but in the long run, it’s the cheapest form of advertising!

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 Work with Your Community to Create Advocates appeared first on The Barefoot Spirit.

Sometimes you must persevere against the odds, struggle along until the time is right, and hold out for that big break. Perhaps the market will change, the buyer will change, or finally the amount of time you put in begins to result in traction.

Getting things started is difficult enough, but what about getting something new started, something the market hasn’t seen before, or doesn’t know it needs?

That happened to us. Our product was disruptive, broke all the rules, and identified a market no one was addressing. We had to spend several years doing missionary work just to convince buyers that they could make a profit on our product. What if we got tired of the uphill battle and quit? There would be no Barefoot Wine today!

Disruptive startups require founders who doggedly push on in the face of adversity and predisposition. But at what point does persistence become narrow-mindedness? At what point does priming the pump become beating a dead horse? How do you really know when it’s time to give up, pivot, or “rethink your drink?”

Here are 5 indicators to help you recognize the difference between determination and getting stuck in a rut.

1. Small Successes. Are you having ANY success at all? Is there a direct relationship between the amount of time, energy, and money you put into an initiative and the rate of success? If you see increased sales each day, week or month, you may be justified in sticking to it. If not, move forward on another approach.
2. Leapfrog Successes. Can you see customer demand beyond a nay-saying gatekeeper? In spite of what you are being told, do you have evidence that there is a need for your offering? Is it your offering itself that needs alteration? Or is it your approach to market penetration that needs a revamp?
3. Time and Money. Sometimes the decision to pull the plug will be made for you. You simply can’t afford to continue to stick to the path you’ve chosen. You run out of time and money. If you can’t establish an increasing cash flow within a year, you may be forced to change your course. There are a ton of great ideas out there that never made it to the market because the founder simply ran out of runway.
4. Blinded by Determination. Are you missing easier ways of succeeding because you are so dedicated to your course that you are narrowly focused on the path you’ve chosen? If an alternative presented itself, would you recognize it? Yes, most times sheer persistence is required, but keep your eyes open for more efficient ways of achieving your goals.
5. Outside Opinions. Entrepreneurship is lonely, especially when you know your idea will fly and few others see it. Sometimes you just need some support to keep you going. Find a supporter you respect to help you shore up the path towards your end game. Share your approach to identifying and accessing the market. Ask for their suggestions. They may see something you don’t. They can give you an objective view.

Knowing when persistence has led you to being stuck in a rut is difficult especially when you keep hearing stories of other startups that finally got traction. What if they gave up right before that happened? After some amount of time though, there is a point of diminishing returns. The sales just aren’t there to support the enterprise. Do you stubbornly continue because you want to justify all the time, money, and energy you have put in so far? Or do you recognize that channel vision may be blinding you to alternatives?

We hope these indicators can help you make that difficult decision to push on or shove off.

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 5 Ways to Tell If You Are You Persistent or Just Stuck in a Rut appeared first on The Barefoot Spirit.

Of course, your VC has a right to quarterly reports. They want to keep track of their investment. If you’re not performing as agreed, they want to know right away. They want to cut their losses, which means you could lose your financing if you don’t make the numbers. Are you getting a little more nervous?

You know if you push your salespeople too hard it will take away from next quarter’s numbers. You know that if you load up your buyers you may lose them due to lack of service. And you know your reputation will be hurt if you don’t service what you sell. In fact, you may not have even fully realize the true cost of sales until you got several months away from that extravagant launch party. The reality of your business is just beginning to settle in. Now you know at least part of what you don’t know. But it’s too late and the report is due!

Just since you started, you have learned a ton. It’s stuff they didn’t teach you in college. It’s stuff that you wish you had known about. It’s stuff that requires actually experience.

You thought your VC knew more about your business than you. You thought they’d warn you. You thought they would be an enabling “partner”. You thought your business plan was validated because your VC funded it.

But no! You are on your own! And now it’s clear that your VC doesn’t really care. He’s spread out his risk like a gambler playing the odds. He’s bet on 10 to 20 start ups like yours, hoping for that one unicorn. Your business is just one roll of the dice. Will you make your numbers and stay in the game or will you crap out?

You are quickly approaching a no-win situation where if you make the numbers, you could lose your business. If you don’t make the numbers, you will lose your investor, and then your business.

The Department of Commerce says that 9 out of 10 businesses fail. That’s why most VC’s play the odds. But the same Department of Commerce also reports that businesses that make it to 2 years are more likely to make it to 5, and those that make it 5, to are more likely to make it to 10.

Having been through it from ideation to monetization, we understand why. In the first 2 years, we found out our cash flow plan was more important than our business plan. As time went on, we began to respect the cost of sales, which generally increased directly with growth. That’s why we created The Barefoot Startup, a more sensitive approach to starting and growing a business. It’s more grounded than bootstrap. It’s being in touch with the environment.   

Just like being barefoot, the Barefoot Startup directs you to learn to walk before you run. It directs you to be more sensitive to the terrain so you don’t fall down. It shows you how to be more flexible so you can make quick adjustments, thoughtful pivots, and remain light on your feet.

Don’t let quarterly reports hurt your chances. Starting a business is challenging enough. Discover and use your hidden resources. Outsource everything but accounting, sales, and quality control. Create revenue earlier with the relatively small, low-hanging fruit. In other words, reduce you need for capital right from the start, and you may not have to play the VC game at all. Ironically most VC’s are shying away from pre-revenue startups anyway. Demonstrating revenue proves your concept, but more importantly, provides a priceless business education. VC’s will line up to expand a proven concept and you will be in a much better bargaining position!

The credo of The Barefoot Startup is simple: Start small. Make your mistakes in a small place. Get your act together before you take your show on the road. And don’t scale to fail …or make your quarterly numbers! By keeping your (bare) feet on the ground and building a solid foundation, your chances of success will increase, and your need for outside capital will decrease!

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 Is your Startup Doomed by Your VC’s Quarterly Reports? appeared first on The Barefoot Spirit.

Not so fast, Bucko! Do you even know what she wants to see? Do you realize that you’ve got one shot at this – and it better be good? Before you were in her stores you could not be discontinued, but once you are in, you can be discontinued …forever!

Everything hinges on the deal, the roll out, and your ability to get around to all of her stores quickly. You must make sure your product got in, is priced right, is visible, and that the clerks and store personnel like you, your representative, and your product. Otherwise they won’t promote it and probably won’t reorder it. This means you fail even with a great product.

When you see her for the first time, you must be prepared.

Pricing. Understand what she wants to “see” on sale. In other words, what percentage of her selling price does she want as profit. Your price to her has to give her that profit. Also understand what she wants to see “on deal” or “on sale.” Find out what kind of “cooperation” (financial support) she wants from you during the introductory special and for how long. Lastly make sure your volume discounts don’t leave any money on the table because she will price your product at the nearest 99 (dollars or cents), and pocket everything above her required percentage. Do the math!

Never reduce your price. Rather, give a temporary price reduction, or she will think you are raising your price when the discount is over. All this gets a whole lot more complicated if you have to go through a distributer or broker. Oh, and one more thing, don’t ever let her see it for less anywhere on line!

Introduction. This is critical to get right. If she buys too much, you may be happy …for a while! But if she doesn’t sell through within a short period of time she will close it out at such a low price that it will haunt you in the marketplace. She must sell through and she must reorder. This means that you or your representative must personally visit every store your product is in on a regular basis to ensure its success. It’s best to have a small test market in nearby outlets that you can visit often to correct sales blocking situations.

Exclusivity. If she represents the first large chain to take your product, she may want exclusivity, preferably long-term, to increase the odds of success. Settle for a reasonable period, being careful not to give her any long-term competitive advantage you will later regret as new chains will want the same deal. Tie all advantages you offer to quantity purchases.

Merchandising Materials. Remember, she wants to know how you are going to move your product in her stores. You must be prepared with allowable signage or video promoting your product. Many buyers will make their decisions on new products based solely on merchandising materials. They know that where the customer, the product, the money, and the decision all come together is at the point of sale. Make sure yours is timely, compelling, and within her size limitations.

Partnership. Think of her as your new, long-term partner. Work with her on the introductory roll out. She knows what works in her stores. Come to an agreement on the price points, price reduction programming, and the scaling of future volume purchases based on the initial success of your product in her stores.

Bottom line: she’s not buying your product so much as she’s giving you an opportunity to sell it in her stores. But hold off celebrating until year two in all her stores! Then you will really have something to celebrate!

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 Be Ready For That Big Buyer appeared first on The Barefoot Spirit.

Today there is more concern over what the subject line should be on your promotional email than what to wear at a business meeting. Sure, if you send the wrong subject line folks won’t open it. And whatever works today is obsolete tomorrow. The idea seems to be to distinguish your email and use a subject word that captures people’s attention.  Your email must offer a good and effective first impression.

Well, how ’bout how you look? Don’t those same folks make the same snap judgements about you and what you’re offering based on their first impression? Of course they do! But what do they see? Do you look like you’re on your way to a ball game? Great, except that if what you’re selling is dependability, quality, and service-oriented, you just struck out.

You should look like what you’re selling because you are being judged – even before you open your mouth, or your sample case. They make an assumption about you in that first split-second. Then they try to justify that first impression every second, every minute and every hour thereafter. We like to say, “When the cement is wet, you can move it with a trowel. But when it’s dry, you need a jackhammer!” So why handicap yourself just to fit in and look “cool”? Do you want to make a statement? Or do you want to make a deposit? If you want to make a deposit, set the stage to give yourself every advantage you can right out of the gate.

How would you feel if your pilot was dressed like a baseball fan? What about your doctor? Your attorney? Your investment broker? Clothes speak volumes especially when you want something from someone else. Think of your apparel as the subject line in a sales email. Does it send the message you want? Does it give your prospect the confidence you want them to have?

Want to be different, stand out,  and get noticed today? Dress sharp! In today’s world, you’ll stand out!

At Barefoot Wines, everyone thought we were running around in cut-offs, sandals, and tee-shirts. Actually, we were dressed in business attire, except for Fridays, when we dressed business casual, not free dress. Were we old fashion stuff shirts? With a foot for a logo? Hardly! We were dressed to send a message to every supplier, every buyer, and every investor that walked in our door. That message was serious, dependable, and professional. And it worked! More than a few big chain buyers wandered into our offices unannounced. And more than a few suppliers extended us credit after a visit, and more than a few of our vendors took us seriously when they came to our offices.

We have a friend who always dresses in top style. He usually wears, yes, a tie. But he is the top sales manager in his industry, and he is respected by all the buyers and salespeople. When you see him, you think, “Now that’s somebody important. That’s somebody who has something to say.” And after all, isn’t that what you want your prospects, associates, and superiors to think of you? Isn’t it time to be different and dress for success?

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 Time to Dress For Success – Again! appeared first on The Barefoot Spirit.

So why weren’t we equally excited? Our experience building a national brand had sobered us to the stark, cold realities. We didn’t want to pop their balloon, but we also didn’t want them to fail. Our response was “Now you’ve got some serious work to do!” Then we spent some time explaining the actualities of the situation and all the implications, good and bad.

On the good side, they have achieved an opportunity to demonstrate massive sales and customer demand.  They would be golden if the local manager who allowed them in her store would recommend them to others in the chain and possibly to the regional manager. If they went on to perform as well regionally, they have a good chance of going national, and possibly becoming part of the national chain’s “set” (the approved diagram for product positions on the shelves of all their stores). YAY!

The key is if they can quickly demonstrate massive sales.  Remember, sales to a buyer means scans. The buyer only sees the screen in front of her, not the back room, not the programming, not the shelf, and not the condition of your package, signage or pricing. Just the number of scans. Mistakes can be made that can result in “reasons” why your product is not scanning. The buyer doesn’t care. She just sees scans.

Here’s our checklist of typical sales stoppers new startups are generally unaware of, but successful producers learn sooner or later:

Backdoor scan number. If it’s a test market, then the UPC and other tracking numbers may be entered manually. One digit off at the back door will result in product rejection and the buyer will see no “sales,” or scans.

Reorder scan number. If the reorder “ticket” that fits into the pricing slot under your product is wrong, missing, or upside down, your product will not be reordered, resulting in fewer sales.

Pricing Tag. If the invoice was wrong or misread, the price will be wrong on the shelf and your consumer won’t buy it because it’s too expensive.

Out-of-stock. If it’s not on the shelf (because it’s not delivered, or it’s still in the back room, or it sold out and was not quickly reordered), it is not available for purchase. Now your customer thinks you are unreliable, and the store buyer sees a slow mover.

Front Door Register Scan number. With any test market item, manual input is subject to error. Even though it’s scanning at the register, if there was an error in the entry, your sales are credited to another product.

Blockades. Someone put the potato chip stand in front of your products. They can’t be seen, or, consequently, purchased.

Label damage. Poor handling or outright competitor sabotage result in damaged labels, stopping sales because your product looks like damaged goods.

Adjacencies. Your product looks too expensive compared to the products surrounding yours.

Shelf Position. You are on the bottom and can’t be seen. You are new on the shelf and overlooked.

Notice that none of these has to do with your wholesale price, package, marketing, quality, or wholesale availability. Yet they can result in a reputation as a slow mover or non-starter, concluding in a discontinued item.

If you fail in the test market, you are permanently exiled from the chain! So when you get that big break, it’s “ALL HANDS ON DECK!” Focus as many people as you can on the “test” stores. You will be amazed at the number of sales stoppers you will find and fix –IF YOU ARE PHYSICALLY THERE!

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 9 Ways Consumer Products Are Discontinued Right After They Are Approved appeared first on The Barefoot Spirit.

1. Time: For years we called on a big buyer who never gave us an order. But when he finally did buy, he bought big! We asked why he hesitated, and he said he had to get to know us first. He said our persistence proved we were dependable! When we asked a supplier for a higher credit limit they initially said no. But after years of sharing our plans with them quarterly, generally making timely payments, and calling in advance when we were late with a plan to bring us up to date, they dramatically increased our credit. Time is the ingredient that turns an acquaintance into a trusting supplier or buyer who will work with you to help grow your business.

2. Integrity. Do what you say you are going to do. Show up when you say you are going to. Honor your pricing and delivery dates, even when it hurts. Be reliable. Remember, you are judged by your behavior and that behavior can make the difference between business as usual or a growing business. Your buyers and creditors want to trust you. They make money when you are dependable, so give them no reason to worry about your company. Eventually we had buyers who said, “Keep me in stock on your products and let me know when you want to promote them.” That relationship was built on integrity.

3. Empathy. Put yourself in your customers’ and suppliers’ shoes. Find out what is important to them. From your buyers, find out the products and suppliers they like and why, and the ones they don’t and why. From your suppliers, understand their concerns extending you credit. Have their interest at heart. Demonstrate this with suggestions, products, and the kind of dependability that puts their fears at ease. If you show that you are concerned about their needs, sooner or later you will find an opportunity to provide them with a solution that solves their concerns – and yours!

4. Resolution. When there’s a problem, solve it quickly and in a way that makes the offended party whole. Then show them how you will prevent the problem from reoccurring. Remember, you are judged more by what you do when you’re “bad” than what you do when you’re “good.” So go beyond just apologizing and “make it good.” Make up for the time and hassle you caused, even if it costs you to do so. That will impress them more than a hundred great performances where everything went smoothly.

5. Loyalty. Give special treatment to the buyers and suppliers who took a chance on you and your product. Think twice before making a move that may hurt anyone’s business with whom you have been working with for years. Remember, they helped you and were expecting to benefit by your growth and success. When suppliers and buyers help you get off the ground, look for a ways to keeps your relationship strong, and give them your loyalty.

Sure, there’s more but these are the deal breakers when they are missing, and they cement the relationship when they are followed. Building relationships is the most important part of successful business. Take the time and show them what you are made of. It doesn’t cost, it pays!

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 5 Key Elements of Productive Business Relationships appeared first on The Barefoot Spirit.

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

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

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

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

There are many books written on the subject of sales, sale techniques, and best closing strategies. We’ve often said the best sales person is the “Assistant Buyer”. The key to sales success is simply to sincerely have the buyer’s best interest at heart.

When you produce a product that goes through distribution channels, or when you offer a service business to business, the funds your buyer has to buy from you came from the sale of their product or service. If you are selling direct to the consumer, you still have to recognize that they have to work for the income, one way or another, that enables them to buy your product.

Everybody who sells products or services wants to sell more. The ultimate question from your prospect is: “How does your product or service help me sell my product or service?” or “How can you help me make more money?” That’s why positioning your sales pitch as enhancing theirs is so effective.

Here are some ways your product or service can help your customer’s bottom line:

1. Reduce his overhead cost per unit sold. He has to pay rent, lights, power, insurance, staff, cleaning, etc., whether he sells your product quickly or slowly. If it’s a fast seller, his cost per sale is reduced. He improves his ROI on his capital investment, maintenance, advertising, and staffing.

2. Increase his profits with lower acquisition costs and, consequently, higher profit margins on your product. Give him a volume purchase program that enables a lower retail price and increased volume resulting in higher profits per month.

3. Make his retail environment more attractive with seasonal point of sale materials and promotional programs geared to the theme of the given holiday. Make your displays festive decorations to his retail space.

4. Increase his business with local promotions and support for neighborhood causes. Use Worthy Cause Marketing to bring in customers who have a social reason to buy your product. Let the membership of the non-profit you support know where your product is for sale in his neighborhood.

5. Sell him a product or service that makes him more attractive and more competitive to his clients or retail customers. Give him the best price in your category, or an area-wide exclusive for an introductory period.

6. Add value to his total sales package. Is there something you can sell him that makes what he’s selling more valuable, adds an extra feature or delivers another benefit – like a guarantee, excellent customer service or loyalty program? Does your product give him “green” bragging rights?

7. Improve his personnel’s efficiency by providing training, benefits or tools his staff can use to increase his sales. Help him find and keep good people.

These are just a few examples of how you can help your buyer increase profits and do his job more efficiently. When you focus on what your buyer is trying to do, you can quickly get a clue as to what you can do to help him increase his sales. Adding value to his sales efforts with your product allows him to say to his customers, “But wait, there’s more!”

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 World’s Best Sale Pitch: “My Product will help you Increase Sales” appeared first on The Barefoot Spirit.