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Student Debt is Everyone’s Problem

Michael Houlihan & Bonnie Harvey — Thu, 08 Sep 2016 17:00:56 +0000

What if you gave a back-to-school sale and nobody came? That’s what retailers are facing this year as many college students and grads face the frugal realities of their college debt. In the last recession we saw how interrelated the various elements of the economy are. Remember when they said, “Don’t worry, the recession will be contained in one sector,” but as time progressed, sector after sector collapsed like a line of falling dominos? The first domino to fall this time may be the $80 billion student loan debt.

Some Boomers are quick to point out how they were able to work their way through college without relying on the easy-to-get college loans available to the new generation. Some ask, “Why didn’t they realize that the money would have to be paid back?” as if somehow shifting the blame will make it their problem? This is not their problem. This is our problem!

Just like the stock market and housing sector collapse in the last recession, a major segment of the economy is beginning to buckle. 20 and 30-year-olds, saddled with high levels of student debt, have already begun to cut back on their retail spending. This should be their most productive and strongest time to contribute to our economy. Retailers are already seeing the hit. This will affect jobs, commerce, finances, – everything.

We all need these new buyers to spend to support the future of our economy. Their contribution is essential to our standard of living. None of us can afford to lose the buying power of this generation. Our economy has always been driven by retail sales. It has always been the canary in the coal mine. How can we save the canary? And by “we,” we are talking about retailers, lenders, the government, and the general public.

Perhaps we can reverse engineer a solution by starting with the goals that would work to everyone’s advantage? The folks with student debt get a reprieve. The retailers make the sales they need to keep the economy going, the lenders get paid, the government avoids a catastrophe, and the general public side-steps another recession.

We think a possible solution has to involve a large-scale refinancing program, interest forgiveness, and in some cases, where grad businesses create jobs, actual loan forgiveness. What is the cost of another recession? Can we avoid it with timely, and ultimately less costly, measures designed to free up the productivity and financial contribution of current student debtors? What is the value to the economy of increased sales, new jobs, and increased tax revenue? What is the value of a stronger and more wealthy generation that can ultimately be in a better position to pay those loans off? Are those values greater than the cost of a solution? We think so.

In the meantime, what can retailers do beside further reducing prices and extending payment terms? Retailers have the credibility and the influence to advise their elected officials on the solutions to this pending new recession. They can warn about its attendant tax and financial implications to the government and overall economy. And they can call for immediate action before the next domino falls.

A quote from this post appeared in a recent article recent article in AMEX Open Forum.

Michael Houlihan and Bonnie Harvey are the Founders of Barefoot Wines, New York Times Bestselling Authors of The Barefoot Spirit, How Hardship, Hustle, and Heart Built America’s #1 Wine Brand and The Entrepreneurial Culture, 23 Ways to Engage and Empower your People.

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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A Message to the Graduates

Michael Houlihan & Bonnie Harvey — Thu, 18 Jun 2015 17:00:06 +0000

We attended the Stanford Commencement ceremonies to support our young friend Zach Stuart who was graduating in Mechanical Engineering. He was part of nearly 3,000 recipients in several different disciplines to receive their degrees this year from this paramount of higher education. As we sat there in the huge stadium and watched the proceedings we couldn’t help but recognize that these young people will change the future.

NBC News foreign correspondent Richard Engle, a Stanford grad himself, gave the keynote. He encouraged the grads to take chances and “Please don’t get a desk job!” He said that the world was on a collision course with three super trends: technology, over population, and climate change.

He warned that when these forces combine into a deadly cocktail we will see a chaotic and unstable future. He painted the picture of populations doubling and, at the same time, being able to better communicate. He said this would lead to political upheaval where demigods promise peace and stability but disappoint only to be replaced by yet another demigod. He drew the picture of a horrific collision between a bus and a car and said all of the human experience can be seen in that moment; life, death, rescue and escape. He told the grads they could learn from witnessing it.

After graduation Richard Engle left Stanford with $2000 in his pocket and a one-way ticket for Cairo. He said he has been shot at, kidnapped, arrested, and deported during his time as a celebrated war correspondent in the Middle East. His experiences may have contributed to the tone of his talk which was peppered with dire images of an apocalyptic future. Certainly the shock value got the grads attention with the somewhat redeeming message to get out there, take a chance and witness life to continue your education in the real world.

We take a different view. We have spoken to more than 20,000 students in the past two years, but our message takes a more positive spin. We believe this generation will be the saviors, not just the reporters, not just the helpless witnesses. On the contrary, no generation of western grads has been better educated, better informed on world events, more aware of climate change, and more concerned about over population than this one.

Today’s graduates can change the course of the “collision.” They can and will see these mega trends as opportunities for new paradigms, new inventions, and new solutions. Communication can not only make society aware of corruption and foment upheaval, but it can also demonstrate how personal behavioral can empower each of us to make positive changes that can change the world.

Over population’s consequences can be communicated and alternatives offered. New attitudes toward food, air and water can take hold much faster with enhanced communication. Increasing tech-driven transparencies can hold companies accountable for social, employment, and environmental impact.

Climate change can be mitigated with alternative sources of power and transportation. Just making alternative energy more efficient and less expensive than fossil fuel will help the environment, curb warming, and reduce the ongoing wars financed by fossil fuel sales.

All of this spells opportunity for today’s grads.

We want to encourage the grads to not just watch the future, but change the future. Maybe some young engineer like Zach will come up with a breakthrough invention that makes it all possible. One thing is for sure; all grads will be more likely to do it and even more if we let them know now that we are counting on them and believe they can do it! Go get ’em grads!

Who We Are

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

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Sales, the Job That Resists Automation

Michael Houlihan & Bonnie Harvey — Thu, 04 Jun 2015 17:00:30 +0000

Once again we have a flood of new grads hitting the job market. But now the concern is, “Will my job become computerized? Will I be out of a job?” Undergrads are asking the question a different way, “What job should I prepare for that won’t be replaced by a robot?” Long-term security plays heavily in the minds of today’s students both before and after graduation. They have already seen many jobs replaced by software or machines and want to know which way to turn.

We believe that there is one job that will always be in demand and can best be done by a living, thinking, feeling human being: Sales! Why? Because ultimately it is a human being that is making the buying decision. They place trust in another human to help them make the right choices. They want to look into the eyes of a real person that they can hold accountable when they make that choice. They want to know who they are “buying,” not just what.

Another reason a job in Sales will endure is that the same skills are required to run any company. You have to sell your staff, your investors, your suppliers, your distributers, and your ultimate customers. These require the human touch and empathy for each person who touches your product or service, from the supply chain to the distribution chain. It’s all sales.

Amazingly, Sales is rarely taught in the schools. Sales Management, where you add up numbers, produce reports, do trend analysis, and create projections is taught. But actual sales, where you farm for prospects, cold call, create relationships, learn the prospects business, gain the prospects trust, overcome objections, master communication, and close the deal, is generally not taught.

So now, the jobs that really can’t be automated are generally not being taught; you would be very hard pressed to find a degree in real sales. Yet these jobs are not only high-paying and in demand, but they will be around for at least the next 50 years.

What should one study to be prepared for a career in sales given that it generally does not have its own curriculum? The Liberal Arts, also known as the Humanities or Liberal Studies. Why? Because in our experience, the more you know about the other person and the better able you are to communicate with them, the greater the likelihood of making a sale whether that’s convincing them to take action, gaining their cooperation, or actually buying a product.

Sociology and Cultural studies will give you a respect for other cultures and their values. This is invaluable to establish essential relationships within an increasingly international market.
Literature, Composition, Speech, Debate and Critical Thinking will help you communicate with every “buyer” from your banker to your employee, and from your wholesaler to your customer.
History and Political Science will give you the big picture perspective, classic lessons learned over time, and will make you aware of the other person’s goals – all essential ingredients to making a sale.
Psychology and Philosophy will help you understand how other people think and why they make the decisions they do.

Sure, there’s more to sales than just the Liberal Arts, but it’s a great start. There is also a myriad of classes on line on sales and negotiation skills to help you with your sales career. But nothing tops actual experience, especially when your livelihood depends on it. You’ll learn the dos and don’ts pretty fast. We did.

So whatever you are taking in school, buy an insurance policy on long-term security by studying the Liberal Arts. You will be a lot less likely to be replaced by a robot!

Who We Are

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

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Teaching Entrepreneurship is as Challenging as Being an Entrepreneur

Michael Houlihan & Bonnie Harvey — Sat, 10 Jan 2015 19:30:02 +0000

Ten years ago there were very few schools of entrepreneurship. Many asked, and some still do, “Can you really teach entrepreneurship?” They felt you just had to do it, take your lumps and learn from them. Many heroes of entrepreneurship actually dropped out of school altogether to pursue and master their own businesses. We think this sends a wrong message to aspiring entrepreneurs.

With all the hard knocks we got on the street, we would have certainly benefitted by some formal education in business and entrepreneurship. Today there are many schools of entrepreneurship popping up all over the country. We have spoken at more than 30 of them in the past 18 months. This experience has given us a unique perspective on the state of the art of American (and international) entrepreneurship education.

For one thing, the entire world looks to the United States as the cradle of entrepreneurship. So what we decide to do in terms of entrepreneurship education has international ramifications. For another, like the entrepreneurs they are trying to develop, schools of higher education are casting about for best practices, effective content, and real-world experience. They want to discover what works in the classroom, the start-up hub and the marketplace.

Each school we visited had a different idea about how to teach entrepreneurship and how to measure its effectiveness. Most schools view entrepreneurship as an offshoot of their business schools. For them the business curriculum is ready made with courses you need to run your own business. We agree, but there’s more to it than that.

Some schools take a different view. For them, entrepreneurship education is an offshoot of whatever they specialize in, whether it’s engineering, agriculture or hospitality. They realize they must have at least some courses in entrepreneurship so their sciences and technology grads who want their own businesses leave with the knowledge to do so.

Still others see entrepreneurship as an offshoot of the liberal arts school, pointing out the need for entrepreneurs to obtain such core competencies as psychology, philosophy, communication, history, sociology and the other humanities. They recognize that in order to run a business, one must find, hire and train good people and build great people. One must communicate and bond with a wide range of customers, vendors, and other business people who have varying psychologies, philosophies, cultures and communication styles. We tend to agree with this approach although business form and function is also a must.

Some schools merely offer classes in entrepreneurship, others offer majors, a few offer masters degrees, and still others have start-up incubators with academic credit.

So the approach is still in its emerging stages even here in the “cradle of entrepreneurship.”

The jury is still out on what the metrics of success are. Unlike a business school where you can tout how many of your grads received high paying jobs, entrepreneurship educational success is not as clear. Is it how much money was raised for business plans? Or how many new businesses were launched? Or even how many entrepreneurial super stars graduated from your school? These are easily measured as the data is readily available. But we think schools of entrepreneurship should start keeping track of how many of their grads’ newly launched business are still in business three years later!

We salute the schools of entrepreneurship for their multi-faceted approach to the teaching of this multi-faceted subject! It is from this melting pot that the consensus will be built on the foundation of their students’ success. We are honored to be a part of this process.

Who We Are

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

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How to Get a Job in Today’s Market – Part 1: Your Résumé

Michael Houlihan & Bonnie Harvey — Sat, 26 Apr 2014 18:30:51 +0000

Today’s college graduates face increasing competition for the fewer jobs that are out there. We often are asked by college students, “What do I have to do to get hired?”

Many students chase the courses that seem to align with a particular profession hoping that their formal education in a specific area will attract an employer all by itself. It won’t!

Many students who put themselves through school with borrowed money face double jeopardy. First, the payback on the loan they’ve taken out is sometimes 3 and 4 times the amount borrowed, and because they had funds from the loans, they didn’t feel pressured to get a job while in college. So they pass up the opportunity to get real-world experience. Yet that experience is one of the qualifications an employer is seeking.

Here’s our short list of what employers are looking for today:

1. Experience. It is better if it’s in your chosen profession, but even if your experience is not, it demonstrates that you can and have held down a job. Hopefully, your boss provided you with a great recommendation you can put on your résumé. So, while you are going to college, consider working your way through, even if it makes your curriculum extend beyond the typical four-year standard. That job gives you a big edge over the students who just borrowed their way through school. And if you do borrow, you’ll be in a much better position to pay it off.

2. Entrepreneurship. Yes, employers are now starting to hire grads with entrepreneurship education and experience over those who don’t have it. Why? Because they want to hire folks that understand that all the money- including their salary, benefits and bonuses- originates from the sales of the company’s products or services. They want folks who understand that sales and customer service is the key to maintaining and growing cash flow. They basically want to hire people who really understand how their position fits into the big picture of the company.

3. Stability. Probably the first thing employers do when confronted with a ton of résumés is to eliminate the ones that look “unstable.” Instability is easy to spot because it’s measured by how long you have held onto each job. If, for instance, you have been jumping around from job to job with less than one-year tenure at each, it makes them question, “Why should I hire this person? The training alone will take 3 to 6 months.” It’s difficult for a college student to demonstrate long-term tenure with an employer, but holding on to a part-time job for two years or more speaks volumes.

4. Ethics. What was the biggest mistake you made working for an employer and how did you handle it? No, it’s not a trick question. It’s all about whether you cover up and blame others, or whether you take responsibility for your own behavior – and sometimes, for the behavior of others. Employers want to hear that you are honest and can take responsibility. So, if you can, demonstrate what you did to make sure you, or anyone, wouldn’t make that mistake again. It may be that you rewrote the policies and procedures; checklists and signoff sheets; or even put a new clause in a contract or a sign on the door! Employers want to hear how you added permanent value to your last employer’s company.

Remember, when all the résumés are lined up, you want yours to stand out. Employers are looking for employees that will justify their investment in time, money, and training. Your resume has to say, “I’m worth the risk!” So make sure your resume distinguishes you from the rest. We wish all the grads good luck landing that all-important job after graduation!

Who We Are

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

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