In today’s “scale fast and fail fast” world of entrepreneurship, it’s easy to scale fast and fail permanently when you don’t appreciate the true cost of sales. Part of the problem of scaling fast is that you can scale so fast that you actually make sales you can’t sustain.

Why? Because you inadvertently chose to make sales to a customer or in a territory with costs you can’t afford. But you didn’t know those costs when you made those sales. In fact, you were probably thrilled to make any sales and couldn’t wait to get back to your investors with the news!

To read the complete article, please visit Entrepreneur 

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 Entrepreneur – Startups That Overlook the Cost of Sales … Fail! appeared first on The Barefoot Spirit.

The idea is to dominate your space, crush the competition, and become an acquisition target as quickly as possible. You’re even told to “fail fast!”

Seems like everything is fast, fast, fast!

If that’s such great advice, why do nine out of 10 startups fail?

The Highway Patrol will tell you that the leading cause of accidents is excessive speed. Is driving your startup too fast “crusin’ for a bruisin’?”

What makes you think you understand all the ramifications of growth when you hit the accelerator? How did you get the idea that you were ready to “step on it?”

The answers are many:

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.

The post How to Spin Up Fast Without Spinning Out of Control appeared first on The Barefoot Spirit.

For us, it’s hard to watch so many startups fail because they say they “couldn’t raise enough cash,” when, realistically, they have not yet addressed the core issue. We ask, “Did you really need all that money to start with?” At the Barefoot Startup, we believe that there are many ways to get your idea off the ground and grow your business effectively that do not require cash. One way is by being more resourceful, and yes, friendly. But you need to be genuinely sincere about your friendliness; Just acting friendly can be seen through and easily backfire!

So, what is “friendly” and how does it translate into profitable business relationships?

Here’s a clue – think about how you treat your friends. You have their best interests at heart. You demonstrate this with your actions. You would never mislead or manipulate a true friend. Think of your family members. You take a sincere interest in their lives. You know their aspirations and their challenges, and you are there to help and encourage them.

Now think about how you felt when they showed up on moving day to help you pack up your stuff, when they introduced you to that key person who helped you with your problem, or when they just listened to you when you needed a sounding board. Their interest in you and your needs made you want to treat them special, give them the benefit of the doubt, and make allowances for them.

Isn’t this what you want from your business associates? Special treatment, the benefit of the doubt, and allowances made for you are all valuable. In business, this can translate into cash. Let’s look at the 4 groups of folks most businesses have relationships with and how you can be friendly with them:

1. Employees are often seen as an expense, and therefore are an untapped resource. And yet, turn-over is the #1 hidden cost of any business. Employees are more likely to stay with you if they believe you have their best interests at heart. Demonstrate this with fair pay, time off, and an interest in them as individuals. They will be more engaged if you show them appreciation for the good work they do. They will go the extra mile if you compensate them, at least partially, on performance.
2. Vendors have the ability to extend your terms and increase your credit, but will only do so if they trust you. You will build trust by keeping them up to date on your payment status, sharing your plans for growth, and making good on your promises. When you show them your loyalty by purchasing certain items exclusively from them, they may show their appreciation by giving you breaks on warehousing, shipping, and quantity purchases. Vendors are also a wealth of information. So, treat their sales people like gold …it pays!
3. Investors are more willing to extend financing if you have demonstrated even a small positive cash flow. They want to see that you appreciate their predicament and are willing to take steps to mitigate their risk. When you demonstrate that you are being frugal and resourceful with their money, investors will be more receptive to the idea of investing more and offering you better terms.
4. Buyers require reassurance before they will carry your products and participate in your promotions. You can gain their confidence by being dependable, providing industry information, and helping them achieve their goals whether strategic, metric, or mercantile. They appreciate your kindness when you give them personalized attention and provide the help they need without being asked. They will often return your favors by opening doors previously closed to you.

When we speak at universities and technical schools, students of entrepreneurship often ask us, “What else should I be taking beside business to help my startup be a success?” We always answer, “The Liberal Arts, also known as the Humanities.” History, sociology, psychology, philosophy, literature, communications and critical thinking are great “soft skills” tools that enable you to better appreciate and communicate with the people who can make allowances for their “friend,” YOU!

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 Soft Skills Can Result in Hard Cash! appeared first on The Barefoot Spirit.

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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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

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 7 Techniques to Overcome Adversity –  Don’t Let Fear Stop You or Force Rash Decisions appeared first on The Barefoot Spirit.

We see too many entrepreneurs falling in love with their products and kidding themselves into believing that their idea itself is all they need to make them a screaming success.

Warehouses are filled with great commercial products that never got to store shelves. Founders of promising start-ups wind up working for their investors, or worse, close their doors. All hopes are dashed and they are back living with mom. Why? Because they failed to master the three core competencies of any successful business.

1. Cash flow management

You’ve got to pay your bills. And when you can’t? You have two obvious choices. Go out of business, or raise more capital.

But that comes with a price; diluted stock or loss of control. So many companies try to get financing to pay for staff without sales. They may be financed and even refinanced before they make enough sales to support their overhead. In other words, they are top-heavy and reliant on multiple rounds of new investment to stay afloat.

One different solution is to make sales a priority, sell in a small territory, service the heck out of it, and use the proceeds to finance growth. Another solution is to identify and forge strategic alliances with your vendors and your buyers. Vendors who trust you will extend your credit and terms to help you make ends meet, especially when they believe their business will grow if you succeed. Buyers will pay in cash for volume discounts, which also help you pay the bills.

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.

The post ​The 3 Core Competencies Entrepreneurs Must Master to Succeed appeared first on The Barefoot Spirit.

We ask, “Why do you need more money?”

The answer is usually, “To pay my bills” or “To grow my business.”

But we have found that more money may not be the answer. What if you could get more investors, increase your credit limits, extend your terms of payment, and close more prospects — all by using better social skills?

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.

The post How Social skills can Reduce Your Need For Cash appeared first on The Barefoot Spirit.

An Established Brand. Brand recognition is incredibly motivating for shoppers. By flying the franchise flag over your car wash or other business, you may be able to draw in more customers than you would with an independent concept. Investors should think of both the positives and negatives of working with an established brand. In most cases, increased brand awareness is a positive thing, but if the brand has been blemished in recent years, becoming affiliated with it may do you more harm than good.

Novel Ideas. When you create your own company, you have a large outlet for your creativity. You don’t have to worry about whether or not a certain product or service is allowed under your franchise model. If you decide to open a car wash, for instance, you can invent your own methods and techniques to make your clients’ cars as clean as they can be. On the flip side, however, you will also have to invent all of your own ideas from the company name to the company logo. Luckily, there are organizations in place that can help you with that. Logo Garden, for example, helps independent entrepreneurs create logos. Other companies can be used for website design, advertising and key development themes.

Franchises May Be Recession-Proof. Entrepreneurs often become interested in launching their own company in the midst of a recession. Due to lost jobs or pay cuts, prospective business owners want more control over their earnings. Starting a mom-and-pop business during an economic downturn can be scary, but opening a franchise during this same time period can be incredibly liberating. According to Forbes, a recession can be a bonanza for a franchise. The combination of relatively cheap real estate and better locations give franchise entrepreneurs the edge that they need.

Cost. The ultimate factor in your decision may be the cost of your project. If you opt to take the franchise route, you will have to pay a franchise fee, but overall, your costs may be cheaper than opening an independent shop. Franchises have greater purchasing power than their independent counterparts. Because franchises purchase in bulk, you will get on discount on all of your products and supplies.

Potential for Success. If you like to control your own potential for success, an independent operation may be better for you, but if you want to rely on a concept that has a proven track record for success, you may want to opt for a franchise. In addition to providing you with a model of success, a franchise may provide you with additional training and other support.

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 Franchise Vs. Mom-and-Pop Business: A Guide to Smart Investment appeared first on The Barefoot Spirit.