Challenges | The Barefoot Spirit

Why Reflection, Analysis, and Redirection Are so Important to a Business’ Growth

Michael Houlihan & Bonnie Harvey — Tue, 29 Jan 2019 18:15:24 +0000

One of the biggest challenges that entrepreneurs face is not coming up with a good idea as much as it is deciding on which one of their good ideas they want to focus on.

You don’t want to put all your eggs in one basket, but you don’t want to be so distracted that you can’t put the proper amount of energy into the one idea that will bring you the greatest return.

To read the complete article, please visit The Business Journals

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.

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Casting About or Fishing Where the Fish Are

Michael Houlihan & Bonnie Harvey — Thu, 03 Jan 2019 18:00:51 +0000

One of the biggest challenges that entrepreneurs face is not coming up with a good idea as much as it is deciding on which one of their good ideas they want to focus on. You don’t want to put all your eggs in one basket, but you don’t want to be so distracted that you can’t put the proper amount of energy into the one idea that will bring you the greatest return.

This dilemma is especially perplexing as we begin the new year. We’re determined to make a change. We’re determined to stop beating on dead horses. And we’re determined to seek out and recognize alternatives. There’s been books written about how entrepreneurs on the edge of success have been distracted by the shiny ball. If only they had worked a little harder a little more focused… But no, they were distracted.

Somewhere between the dead horse and the shiny ball is the answer. Is that horse really dead after all? Or maybe there is something in that shiny ball that will save him.

Most entrepreneurs have just completed a year working hard on their main project while, at the same time, entertaining new opportunities. As we start the new year we should take a lesson from the ancient Japanese craft culture. At the end of every year they clean their shop. They do this to show respect for their workplace and it is their opportunity to sort things out mentally and physically.

Take Inventory

By looking at their inventory, they discover what sold and what didn’t sell. Although this simple exercise seems obvious, most entrepreneurs just plow ahead without really taking the time to acknowledge and validate what worked! What’s left in inventory are the un-sold products and slow moving items. Now they’re taking up room in your physical and mental workspace. It’s time to reflect on how much energy you put, and continue to put, into your slow movers. You’ll need that space and mind share in the new year!

Clean House

Pick up everything you’ve made and decide if you want to keep it, change it, or just plain get rid of it. When you look at each initiative you have pursued in the past year, the ones that didn’t work don’t have to be a total loss. What did you learn from each experience? How can those lessons help you when applied to your main pursuit?

One approach is to reorganize. Take your failed and nonproducing initiatives and incorporate them into the one or ones that worked. Have you acquired new skills, new contacts, or new referrals that will help you in the new year? Identify them and make a list to acknowledge them, so you will have gotten the most out of those “shiny balls.”

Refocus

Use the experiences of the past year to help you focus on your true customer. They may not be the people you have been pursuing. Like a fisherman casting about hoping for a bite, now it’s time to pull in the lines, check your bait, and move the boat in the direction you experienced the most action.

There is a market for what you have sold in the past year. It’s time to move closer by better addressing that market. How did the customers who bought products from you last year find out about your offerings? How can you improve those channels? Identify and endeavor to utilize any new communication skills you have learned over the past year.

Has the market for your main pursuit changed? How can you modify your product and your presentation to become more relevant and compelling? Time to talk to your customers.

We know that years are just arbitrary measures of time. But they also represent a period of work that we can learn from if we take the time to take inventory, clean house, and refocus. So while everybody is feeling compelled to blastoff in new directions, maybe we can emulate those Japanese craftsmen with reflection, analysis, and redirection.

Here’s to a New Year made better by the last!

Who We Are

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

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7 Techniques to Overcome Adversity – Don’t Let Fear Stop You or Force Rash Decisions

Michael Houlihan & Bonnie Harvey — Thu, 12 Oct 2017 17:00:10 +0000

FDR said at his 1932 inauguration, deep in the great depression, “The only thing we have to fear is fear itself.” It’s only natural to feel anxiety, uncertainty, and apprehension when you think of possible negative consequence of any business venture. It’s easy to worry about sales, be concerned over the latest initiative, or freak out over the mounting bills. So why should we chill in the face of these ongoing threats to our security? Survival is the main reason.

A fear consciousness tends to create tunnel vision when we allow our fight-or-flight mechanisms to take over. The clear path to the best solution can be hidden from view when we are blinded by negative emotions. In our desperation to quickly solve a problem and move on, we can easily make wrong decisions. Most of our worst decisions were made in a state of fear.

If you are in business, uncertainties and threats to your success abound. They’re not going away. Downright disasters are to be expected now and then. Your financial survival will be on the line. Business is always going to be risky and pop-up problems are the norm. The sooner you realize this, the faster you can get on with developing the “bullet-proof” attitude you’ll need to cope, contain, and crush these daily challenges.

Relax. We know it’s hard, especially when you can’t see the solution. But take a deep breath, take a walk, or take a break. Give yourself a chance to calm down. Your brain will work better and you’ll become aware of options you could easily miss when you’re up tight.
Believe. Even though you can’t see the solution yet, believe there is one. In fact, believe there is more than one from which you can choose. That way you will be less likely to jump at the first one you see, which may solve the immediate problem but could cause bigger problems down the line.
Allies. How can you identify your allies? Take a close look at who benefits besides you when the problem is solved. They may be buyers, suppliers, associates, employees, investors, or even competitors. Can you solve their problem while solving your own? Think about how you can enlist their support in solving your problem, and how they will benefit.
Elegance. The elegant solution solves more than one problem. To find the elegant solution, put your other problems out on the table. Examine them all and look for interrelationships. Is there one solution that solves more than one problem? With an open mind free of preconceptions, look for the clues.
Help. Ask for help from folks with more experience, or a different experience, than you own. Ask questions of people who work in various areas of your industry. Ask for help from folks at the highest levels and the lowest levels. Look to other industries, and how they have solved a similar problem. There may be a way that their solution can be useful in solving your problem. Most folks will feel honored that you asked for their advice.
Elevate. The fastest way out of any box is straight up. Look at your problem from all sides, over, under, left and right. In the process ask yourself if you are even framing the problem correctly. Can you redefine the situation? Often the best solution is wrapped in the best statement of the problem.
Patience. It takes time to calm down, assess your options, consider the consequences, and receive good counsel. It takes time to identify strategic allies and gain their support. And it takes time to consider the outcomes and make compromises. Be patient.

Just knowing that you have a systematic process to tackle your daunting business challenges will help give you the attitude of confidence you need. Fear can blind you when you need your vision, focus, and foresight the most.

When we started freaking out over the latest emergency, we all got a laugh when Bonnie screamed, “For God’s sake, DON’T PANIC!”

Who We Are

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

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The 7 Tenets of The Barefoot Startup

Michael Houlihan & Bonnie Harvey — Thu, 31 Aug 2017 17:00:24 +0000

According to Forbes, 90% of all new businesses fail. Why is the rate so high with so many great ideas? Is something missing? Something basic? According to the Small Business Administration, businesses that survive over 5 years tend to survive over 10 years. Do they finally learn something that saved them? What if they knew those things right from the beginning?

We are often accused of being Monday morning quarterbacks with 20-20 vision. Well, guilty as charged! And lucky for you! Having been through it from ideation to monetization, we are in a unique position to offer help. After years of wrong assumptions, and actions based on those wrong assumptions, it ultimately became clear to us what we were doing right and what we were doing wrong. Our experience and success in the real world can save you a ton of time, money, and anxiety.

Like the man says, “If you had it to do all over again, what would you do differently?” Well, some things we would do just the same, but others, we would have started doing a whole lot sooner. Starting with no money and no knowledge of our industry, you can bet we had a lot to learn. You can bet we made plenty of mistakes.

These are the same challenges startups face today, like being undercapitalized, finding and keeping the right people, providing effective leadership, and getting the word out, just to name a few. But the biggest mistakes startups make may be in their own heads! They tend to accept popular assumptions about business that are just, well, wrong! We want to change all that.

There’s a new movement afoot. We call it “The Barefoot Startup.” Why “Barefoot”? Because it’s a great analogy for a feet-on-the-ground, step-by-step approach to starting and growing your business. It’s beyond “bootstrap” because it’s sensitive to the terrain, its well-grounded in principle, and clears the path for success.

The Barefoot Startup incorporates the proven strategies we used successfully and the lessons we learned over 20 years building the Barefoot Wine brand. These key tenets made the biggest difference in our success. They can work well for any business. The tenets of The Barefoot Startup (#BarefootStartup) will give you a big head start, mitigate your risk, and reduce your need for capital.

It’s not another set of tactics. It’s not another cut-and-paste process for 6 figures in 6 months. But it is a fundamental understand, and application, of the basic principles of long-term business success. Think of it as an insurance policy for your start-up.

The 7 tenets of The Barefoot Startup spell S-U-C-C-E-S-S:

Strategic Alliances. Who wins if you win? How can you help them win? How can you work with your community to get the word out?
Understandings. How does your distribution system work? What are the challenges you face gaining acceptance in your market?
Customer. Who are your customers? What does each of them really want? How should your company be structured to gain their loyalty? How do you turn your customers into advocates?
Compassion. What does everyone who touches your product want? How can you show empathy for their needs? How do you gain their respect and cooperation?
Empowerment. How can you get the most out of your people, your suppliers, and your buyers? What do they need from you to do their job better for you?
Sales. What is the fastest way to create a positive cash flow? Where is your low-hanging fruit? What is the quickest way to gain a “Hot Mover” reputation?
Slow Down! How can you reduce your need for capital by being more resourceful? How can starting small show you the true cost of sales? How can you get your act together before you take your show on the road?

The Barefoot Startup offers detailed answers with real world examples. How do you spell success? Join the movement at www.thebarefootstartup.com!

Who We Are

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

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The 4 Stages of Business Growth Each Present Their Own Challenges

Michael Houlihan & Bonnie Harvey — Wed, 07 Jun 2017 07:00:10 +0000

We like the way Jim Canfield of Renaissance Executive Forums defines the various stages of business growth. They provide a convenient classification that helps us recognize and appreciate the goals and challenges of each level of progression.

Here we apply his staging definitions to the physical consumer product business:

1. Start-up

This is the exciting phase when your business concepts are launched. First you must get through the pre-launch by raising enough capital to prove your concept. Then you must design, build, test and hone your product and marketing plan. Then you enter the real market.

Here you discover the misconceptions you had regarding what your customer really wants, and what that means to your product, package and pitch. The speed of this early course correction is critical. You must make many expensive changes at a time when you are racing the clock to achieve a positive cash flow.

Most studies put the start-up success rate at less than one in seven. The goal of the start-up phase is to prove your concept and achieve positive cash flow before running out of funds — or losing control of the company through subsequent rounds of financing.

To read the complete article, please visit The Business Journals

Who We Are

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

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Happy 34th Anniversary to M&B!

Michael Houlihan & Bonnie Harvey — Thu, 18 May 2017 17:00:18 +0000

We met on May 20th 1983 at a rock & roll club in Sonoma County, California. Our attraction to each was immediate, and we have been together as a couple ever since.

In 1985 we began working together, doing the research required to start our new business, Barefoot Cellars.

Couples love being in love! And business partners rely on the expertise of their partners! But, can these two ideal relationships be simultaneously successful with the same couple?

Folks ask us this question all the time: How do you make it work? Our first response is, “Kids, don’t try this at home!” For most couples, it generally doesn’t work well at all. But for those rare couples who successfully have both a romantic relationship as well as a business relationship, it is glorious!

We can’t accurately predict which couples will succeed at both, nor can we say exactly what they should do to keep both relationships healthy. But we will share with you what we did and didn’t do that worked for us.

First of all, we had respect for each other’s intelligence and motives. That enabled us to appreciate the other’s opinions and suggestions without wondering if they were self-serving. We were both headed toward the same goals, although on different tracks. That difference of opinion was welcomed! Two heads are better than one, they say.

Fortunately for us, we had different skill sets. Michael was good at seeing the big picture. Bonnie was keen on the details. Michael could talk easily with all sorts of people and boldly spoke in front of large crowds of salespeople. Bonnie worked well on a one-to-one basis with attorneys and accountants. She scheduled the bottlings, ordered all the necessary supplies, and oversaw the production at the winery. He made friends with everyone who touched our product along the way to (and including) the end user. She bottled it and he sold it.

Well, it wasn’t quite as easy as that, but by dividing up the responsibilities required and matching them with our natural talents, there was less disagreement. We weren’t looking over each other’s shoulders to make sure things were exactly this way or that. We agreed to allow decisions to be made by the other without interference.

The major goals were set by both of us. We preferred to go to a retreat, so we would not be interrupted during this essential planning phase. It wasn’t always possible. However, two of our favorite retreats were the island of Kauai and the historic Ben Bow Inn in Northern California. By removing ourselves from the day-to-day challenges, we could set our sights on the bigger picture – how to get from where we were to where we wanted to be.

These retreats were not only for business but for our personal goal setting as well. We keep “Goal Books” that go back to 1996! They include subjects such as home, social, spiritual, and health, as well as financial and business. These retreats always brought us closer together both romantically and professionally. We would plan them many months in advance, and get non-refundable tickets so we would not be tempted to cancel due to the “too-much-going-on-to-leave” syndrome.

We have identified many more ways of living happily as a romantic couple in business together, and we are planning a retreat for such couples at our home in west Sonoma County. Let us know if you are interested in joining us. It will be eye-opening! You will leave with a better understanding of just what it takes to keep your mate as the love of your life as well as your business partner. We know. We’ve been there, done that, and MADE the t-shirt! And best of all, we are still madly in love.

Who We Are

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

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3 Reasons Why Budding Entrepreneurs Should Finish College

Michael Houlihan & Bonnie Harvey — Thu, 12 Jan 2017 18:00:32 +0000

About this time of year, many students are questioning the value of staying in school. There’s an increasing chorus of proponents urging them to drop out. They say, “You don’t need a formal education any more, especially if you are planning on being an entrepreneur.” They say, “Just get started, the real-world experience will be more effective than the abstract and theoretical education you get in college.” They are quick to support this advice with an impressive list of some hugely successful people who dropped out of college and made gazillions!

Our advice: “Don’t do it!”

Here’s why, if you are truly planning on becoming an entrepreneur, you should stay in school:

Learn How to Learn. College teaches you much more than the subjects offered. Due to the course load, the number of classes you must take per day, and the limited amount of time you have to study, you simply won’t pass unless you develop a systematic approach to learning. You must make some assumptions about the material on a very general level, fill in the blanks and make adjustments to your assumption as you go. All the while you must outline the materials in a way that you can recall and use them – even if it’s only for an exam. You must learn how to learn. And that skill is essential for successful entrepreneurship in the real world.
Learn How to Juggle. College requires that you master another essential skill of entrepreneurship – juggling. You must juggle your time between classes, work, and social activities. You must remain healthy and get enough sleep. Most have to juggle their finances to be able to afford college. This means you must learn how to budget your time and your money. You must prioritize, sometimes going without and deferring gratification, all critical skills in the real world of entrepreneurship.
Learn How to Stick to It. Seeing things through is crucial in the world of entrepreneurship. Completing college demonstrates that you can finish what you start. Commitment and tenacity require practice and reap rewards. In the business world, if you pivot too often you will get the reputation of a quitter, someone not to be taken seriously when they say they are going to do something. As an entrepreneur, your customers buy from you because they believe you will do what you say. Your reputation is on the line.

If you are still are in doubt, then here’s two things you can do:

Take Some Humanities Courses. They are also known as the Liberal Arts or Liberal Studies. Successful entrepreneurs understand and properly use skills they have learned about communication, critical thinking, philosophy, psychology, history, and sociology. Those studies will give you an appreciation for others that will come in handy when selling your ideas to others and communicating leadership skills.
Work Part-Time for an Entrepreneur. Yes, get a job working for someone who is already doing what you want to do. It will give you insight and respect for what is involved. Watching a real entrepreneur face challenges, decide on priorities, and make tough decisions will prepare you for the road ahead.

You’ll notice we did not defend the content of formal education, but did defend the rigor and challenges necessary to see it through. The college experience itself forces discipline, focus and frugality at a time in your life when you need to develop these attributes. They will play a significant part in your future as an entrepreneur. So, stay in school and learn the skills successful entrepreneurs have before you hit the bricks!

Who We Are

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

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How Know-the-Need is Better than Need-to-know

Michael Houlihan & Bonnie Harvey — Tue, 20 Dec 2016 17:22:41 +0000

Most companies, in their attempt to present the image of stability and security to their employees, will deliberately prevent them from knowing about the challenges the company faces.

They fear their people will jump ship if they know that the company is facing difficulties. They put their people on a strictly need-to-know basis.

This may keep them from jumping ship when times get tough because ignorance is bliss — till they get the pink slip.

We think there’s another way that may solve those challenges and even prevent the pink slip. We call it the “know-the-need” basis. The concept is simple. Your people can’t help solve the problem if they don’t know what the problem is.

To read the complete article, please visit The Business Journals

Who We Are

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

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Best Source of Good Ideas Are Your Employees

Michael Houlihan & Bonnie Harvey — Thu, 06 Oct 2016 17:00:18 +0000

Most companies, in their attempt to present the image of stability and security to their employees, will deliberately prevent them from knowing about the challenges the company faces. They fear their people will jump ship if they know that the company is facing difficulties. They put their people on a strictly need-to-know basis. This may keep them from jumping ship when times get tough because ignorance is bliss – till they get the pink slip.

With know-the-need you don’t have to go into every detail of the daily operation. It should never be a distraction. But it can be a very healthy team building and problem solving exercise when done with the right attitude. Think of your people as your most valuable asset, view them as such and never as “labor” or worse, as a “cost center”. They know your business, your policies, your procedures. They have an interest in seeing your business succeed, not just for their own security, but for their reputation. They want to work for a business that has its best days in front of it, not behind it. Changing jobs is traumatic and unsettling. They want stability. And they will participate to make that happen.

At Barefoot, we would have regular meetings between the non-sales staff and the sales staff. During those meetings the sales people would outline their challenges with the market, the competition, or with our own support. Folks who were apparently far removed from sales like accountants and receptionists would step up to the plate with suggestions. Many were completely off the wall, impractical, or down right crazy, but they all knew they had permission to say anything. Often, it got others thinking and innovative, disruptive, and practical solutions would bubble up. Everyone was thrilled when we hit upon something that worked. The folks who came up with the solutions were publicly praised. Others were thus encouraged to participate. It was actually great fun. We solved many of our biggest challenges as a result of some of these know-the-need brainstorming sessions.

In one of these sessions, our top sales person announced, “Well, we’ve got good news and we’ve got bad news. The good news is that we just got Barefoot into 400 stores in Florida. The bad news is that they put us on the bottom shelf.” This was the worse place to be in a retail set. Nobody looks down. To the bottom shelf, especially for an unknown brand. And if we didn’t make a certain number of sales in a certain number of days, we would be discontinued … forever! What were we going to do?

One person piped up in jest, “Well, I guess we’ll just have to go after the “foot traffic” then. Everybody laughed because our name was Barefoot. But then, someone else said, “Wait a minute! That’s not so crazy. Why don’t we have wine stained footprints decaled to the floor and lead the shoppers step by step down the aisle and turn them into our products on the bottom shelf!” it worked so well we used it all over the county. And that idea? It came from the receptionist.

Showing your people that you respect their intelligence, team spirit, and ability to handle challenges apparently outside of their area of expertise, gains you solutions, teamwork, and an element of trust. Let your people help you solve the problems that ultimately affect their jobs. You may be surprised at what they come up with … when they know the need!

Who We Are

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

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Give Your Problems the Deep Six!

Michael Houlihan & Bonnie Harvey — Thu, 02 Jun 2016 17:00:52 +0000

These days we’re not supposed to call them “problems.” Now they’re “challenges.” But no matter what you call them, every day we entrepreneurs seem to face a new one, from putting out small fires to tackling ongoing threats to our business. All problems have this in common: They must be solved and generally with some urgency!

How do you approach a problem? What is the best way to discover the solution? By knowing what questions to ask you are more likely to find an elegant solution – one that simplifies the situation and benefits all parties. We don’t have all the answers, but we do have most of the questions.

Define It. What is the problem anyway? Not just what it appears to be, but why it exists, and what is the outcome you want? We’ve found that many times the solution is the best definition of the problem. Open it up for others to define the problem. You may be surprised at how different people perceive the same problem. These different perceptions can give you some helpful insight leading to a solution.
Look it from All Angles. How does the problem look from a timing standpoint? Will it go away on its own? How does it look from the customer’s stand point? What about your distributer, or your supplier? Compare and contrast this problem with other problems. We actually solved several problems by realizing they were merely symptoms of a larger problem, which when corrected, solved the symptoms.
Take Inventory. List your assets. What leverage do you have? What things can change and what cannot? How much time is required to fix the problem? Is there a temporary fix? Who are the people, places and things involved? What kind of a budget is available? How many people can you put on the problem? What does the ideal solution do? Does it or can it solve other problems? Is it a tangible solution like a sign, package or price, or is it a process that requires a checklist, signoff sheet, job description, or clause in a contract?
Get Above It All. Straight up is the fastest way out of the box and may be the fastest way to the solution. If you get up high enough, you begin to see the relationships involved in the problem. And you begin to see how others solved similar problems in other spaces. You can borrow and apply parts of their fixes. By taking the 10,000-foot view, you can see other parts of the problem you may have missed and other resources you may have overlooked.
Who Wins? Does the problem hurt more than just your company? What other people benefit when you solve the problem? They also have a vested interest, so bring them on as strategic partners to solve your collective problem. We often brought market problems up with to our suppliers and vendors who were more likely to make allowances, enabling us to continue and even increase buying their products and services.
Let It Simmer! Don’t panic and rush to the first solution that presents itself. The hasty solution may cause even more problems down the line. Take some time after you have completed the 5 steps above to just chill. Then when you least expect it, Bang! All the pieces fall together! The elegant solution presents itself. We usually say, “Wow! That’s so simple, why didn’t we see that before?” It was because we were too anxious to let our minds crunch the data and spit out the answer.

Of course, believing there is a solution will open your eyes to seeing it!

Who We Are

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

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