Conventional investor wisdom is simple: just invest in 10 – 20 startups, play the numbers game and hope for a unicorn. And the unicorns fill the covers of the business magazines with unlikely stories of instant success. This certainly panders to their readers desire for a fast track to success. But like Las Vegas, it’s only the winners you hear about.

Building the Barefoot Wine brand, we made a ton of mistakes. Since the acquisition, we have been writing, speaking and blogging on two sites about our real-world experiences. We have spoken at over 50 schools that teach entrepreneurship and regularly contribute to several business publications. Our goal is to increase the odds of success by sharing insights that come from actually doing it, so others, like you, don’t have to make the same costly, time-consuming mistakes we did.

We have been promoting the Barefoot Startup movement in an uphill battle against the backdrop of this kind of conventional “fast wisdom” for years. Now, finally, some help is on the horizon. We are absolutely thrilled with the new business book: Shortcut Your Startup: Speed Up Success with Unconventional Advice from the Trenches.

It’s the brain child of Courtney and Carter Reum, the founders of M-13, “a diversified holding and branding development company at the nexus of consumer brands, media and technology.” Their new book promises to “flip traditional startup advice on its head.”

Hailing from the beverage alcohol business like ourselves, we have an added level of respect for this dynamic duo. They created VEEV Spirits and took it through every stage of development from identifying the market opportunity, hand selling, building their customer base, taking it national, expanding their line, and monetizing on their brand equity through a successful acquisition. From what we know first-hand about the difficulties of that particular industry, this is an amazing outcome to a daunting task!

They started VEEV after successful careers at Goldman Sachs. They wanted to create a “one of a kind vodka alternative” with a commitment to sustainability and innovation. And they did just that.

Since then, M-13 has invested and involved itself with over 130 companies in the consumer brand, media, and technology spaces like, Pinterest, Lyft, SpaceX, Warby Parker, Bonobos, Thrive Market, Tender Greens, Pressed Juicery, KeVita, Blue Bottle Coffee, BirchBox, Ring, and more.

Their new book, Shortcut Your Startup, is based on their own experiences and that of their associates. These real-world lessons are a must-read for any serious startup. Some of the principles with which we wholeheartedly agree include:

• “Do What You Do Best, and Outsource the Rest.” This is always great advice. Too many startups try to do it all. We used outsourcing for most of our business functions so we could focus on sales and quality control.
• “Nail It Before You Scale It.” We like this way of putting it. We say, “Don’t scale to fail,” and, “Get your act together before you take your show on the road.”
• “Think Milestones, Not Time.” We advise our clients to understand the milestones and focus on their achievements no matter how long they take.
• “Get into the Trenches.” We like to say, “Don’t be afraid to get your hands dirty; you will gain insights you can’t see from your office.”
• “Gain Buy-In with Heart-Based Momentum.” We advise or clients to “Give your customers a social reason to buy your products, and turn them into advocates.”

There’s much, much more in this great startup toolbox to help you achieve the success you have always imagined. We are proud to give Shortcut Your Startup two toes way up!

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 Conventional Wisdom about Starting a Business All Wrong? 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.