generations | The Barefoot Spirit

3 Big Throw Downs Challenge Today’s Grads

Michael Houlihan & Bonnie Harvey — Thu, 25 May 2017 17:00:56 +0000

We are excited to go to a friend’s graduation who just completed his Masters in Engineering from Stanford. When we asked him what he was going to do with it, his response came lightning fast, “I’m going to extend the range of electric vehicles another 200 miles!”

Now that’s the kind of goal we wish all the grads had – a goal that positively impacts the quality of life for generations to come. As much as we would like to think people will do the right thing to protect the future of the planet, many people are simply looking for a quick financial gain. Never mind that it’s clearly costlier in the long run to keep burning fossil fuel and poisoning the ocean, people want to see the immediate benefits.

A 400-500 mile range electric vehicle would provide immediate benefits, not because of politics, not because of concern for the environment, but because of market forces. The big challenge for today’s college grads is to discover ways that pay off immediately to compel consumers to make the right choices.

Better Batteries. Today’s younger generations are inheriting a power grid that fosters monopoly and extortive billing practices. For instance, we buy electricity from our local renewable power district to augment what our solar panels produce. But another company that owns the infrastructure charges us exorbitant monthly fees to be connected to their grid. Consequently, our electric bill has tripled!

Several states in the US are so dominated by the power companies that their pricing structures discourage home owners from installing solar collectors. And these are sunbelt states, perfect for generating solar power! So, what’s the challenge here for grads? Create products that store enough power to allow homeowners to cut the cord to the greedy power companies and be independent. Can today’s grads create local, affordable, and sufficient power storage?

Bio-Degradable Packaging. In the classic 1967 movie, The Graduate Mr. McGuire takes Ben, the graduate, (Dustin Hoffman) aside to advise him about his future. He says, “I just want to say one word to you, just one word … Plastics!” In 1967, the plastics industry was heating up and soon seemingly everything was made of plastic. …And it wound up in our oceans, in our fish, and in our bodies.

Maybe now the advice should be “bio-degradable packaging.” With the explosion of individually packaged home-delivered items, we are drowning in foam peanuts, plastic blister packs, and bubble wrap. Can our new grads create a cheaper and healthier alternative?

And what about the oceans? Can the grads develop a profitable way to harvest the plastic that’s floating around and keep it out of our food supply? Can they create a demand for this type of plastic that makes dollars and sense?

Sustainable Food. With 7.5 billion people on the planet, the food business is a good bet. But what kind of food business? We obviously can’t continue to destroy the world’s lungs to feed the world’s belly. The destruction of the oxygen producing rainforests for grazing lands is not sustainable, nor is it ultimately affordable.

We need to develop locally sourced food supplies that are sustainable. They need to compete economically with fossil-fuel-intensive global sourcing. This will mean food production close to, or in the cities, reducing the cost of transportation significantly. Can the grads find ways to make this more affordable? Can they create market forces that favor abundant, healthy, and delicious food locally produced?

Congratulations to all the grads out there. You have a lot of challenges. The whole world is watching to see what solutions you come up with. So get to work!

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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Is High MPG a Selling Point Any More?

Michael Houlihan & Bonnie Harvey — Thu, 23 Mar 2017 17:00:36 +0000

When we heard the auto industry’s recent request for lower federal miles per gallon standards, we were stunned! They argue that since gas is so cheap, and there is such a demand for low MPG trucks that the 2025 Standards are too costly to achieve. There was no mention of the cost to all of us if we continue to burn that amount of carbon.

Are there no financial consequences to damaging our health and quality of life, or the destruction of property if we burn more? Acting like gas is going to be cheap forever and control on pollution isn’t necessary is very short-term thinking at best. The consumer will be ultimately victimized.

What about the ultimate cost to auto buyers stuck with gas guzzlers? What about the cost of lost auto industry jobs to more efficient imports? What about the cost of reduced American exports because they no longer meet the importer’s mileage standards? The auto industry is only citing cheap gas.

We guess the thinking goes that if gas is cheap, why would a consumer want to buy a high MPG vehicle? Consumers want bigger, more inefficient vehicles. So, lower the standards and give them what they want.

But the state governments may have something to say about this. For instance, if California has stricter standards, what is the cost for the industry tooling up for two markets, one that has lower standards and one that has higher standards?

We think the auto industry is underestimating the consumer.

The consumer is beginning to realize that climate change related catastrophes are expensive and the costs are ultimately borne by them through taxation and increased insurance premiums. How many more superstorms, how many more super fires, how many more floods, droughts, vector-borne diseases will it take? How much more will the consumer pay for food, clothing, and everything consumable before they all connect the dots?

There is a good reason for regulations and standards. Any organized society has an obligation to protect its own citizens and future generations from their consumers’ own short-sighted buying patterns. The auto industry has not been held responsible for these associated costs – yet. And they can always point the finger at the consumer and say, “Well, that’s what they asked for!” And in the absence of environmental and health standards there is no long-term protection. Is it OK to hurt the environment permanently along with your health and property – and that of your children – for a temporary reduction in your fuel bill? We think not.

How far do we take this laissez faire philosophy? Do we do away with warning labels and prohibitions on poisonous ingredients in our food so that industry doesn’t have to bear the cost of compliance? Let the buyer beware? “Oh, come on,” you may say, “That’s a bit of a stretch.” But we are allowing the growth of a technology we already know to be poisonous to the environment and ultimately to us? And before all those warning labels on food? People were buying and consuming products that were harmful to them.

Let’s not give up on what most of the rest of the world has committed to: Higher mileage standards. It is about saving our environment and all the long-term costs associated with losing it. We shouldn’t burn more gas because it’s cheap! We shouldn’t burn more gas, period. Not today and not tomorrow. Take a stance and do the thing that is right for the environment, your healthy, and future generations.

Who We Are

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

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Don’t Throw the Baby (Boomers) Out with the Bath!

Michael Houlihan & Bonnie Harvey — Thu, 21 Jul 2016 17:00:41 +0000

Aging Baby Boomers with a lot to offer Millennials often lament, “We’re just too old to be taken seriously” by the Millennials. Sure, Boomers had to adopt technology as a second language and sure Millennials were born with an extra brain, the smartphone, in their hand. It is true Boomers are leaving Millennials a compromised environment, huge debt, and ongoing wars. And surely times and the economy have changed substantially since “their day.”

But there are many critical lessons Boomers have learned, mostly the hard way, that are timeless. These lessons are not “retro” but classic, and will be true for centuries to come. Millennials will have to learn these lessons themselves eventually, or, if they are smart, they can save themselves the time, money, and pain by learning from the Boomers while they are still around.

Why not get a big head start today and learn classic truisms that are understood by those with more experience in business and human behavior?

Part of the Boomers’ legacy is invaluable to Millennials trying to establish themselves in the business world. Millennial success is critical to the future economy. Here are three key areas where Millennials should seek advice from Boomers:

How to be Resourceful. Many Millennials think that you just come up with a business plan, get it funded, and voila! Instant millionaire! Any successful Boomer will tell you that the business plan takes an immediate back seat to the cash flow plan as soon as you open your doors! Also the idea that funding somehow allows a “burn rate” that presumably extends the runway long enough to achieve that positive cash flow is fraught with hubris and a quickly approaching cliff! Boomers who have made it will confess that they typically had to develop a positive cash flow quickly to survive.
How to Build Strategic Alliances. The concept that assumes that with enough money you can pay all your bills regardless of poor sales is also a classic fantasy, but somehow has become very popular. Successful Boomers will tell you that no matter how much money you have, you still need to develop strategic alliances. These are the businesses you will work with and depend upon for your essential goods and services. As you become successful, they become successful. There are ways to get your creditors to extend your credit, thereby reducing your need for cash, and successful Boomers know how it is done.
How to Create Sustainable Growth. So many Millennial businesses today go out of business because they didn’t get their act together before they took their show on the road. By the time they find out what is truly required to grow, they areout of money. Boomers who have faced this problem of growing too quickly will tell you to start small, make your mistakes in a small, manageable place, and make the fixes. They will advise Millennials that truly sustainable growth is knowing the real cost of sales.

Not every Baby Boomer has had the business experience and success to earn the credibility to be thought leaders in entrepreneurship. But the ones who have actually done it, and who are willing to take the time to share the lessons they’ve learned, are well worth listening to. They are giving the Millennials a legacy and a gift. Millennials can tell them about technology and Boomers can tell them how to use it best. Cool tools are great, but actually making money with them is better. Why not get the best of both generations working for you? Don’t throw the Baby Boomers out with the bath!

Who We Are

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

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