market | The Barefoot Spirit

Product Development Starts with Demand and Access, Not the Product

Michael Houlihan & Bonnie Harvey — Wed, 18 Mar 2020 17:00:47 +0000

“But all my friends thought it was so cool.”

That’s the usual lament we hear from the producers of failed products.

Why?

They fell in love with their product, so much so that they actually thought success was based on the product itself.

Probably the most important factor most often overlooked by new product producers is the product-market fit. It doesn’t do you any good to come up with a cool idea, even one that solves a big problem, if the market isn’t ready yet or doesn’t understand it, or if you can’t gain access

To read the complete article, please visit The Business Journals

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Why Brand integrity Matters and How to Get It

Michael Houlihan & Bonnie Harvey — Fri, 21 Feb 2020 00:09:39 +0000

There’s so much noise out there, you don’t have the luxury to try to be all things to all people. You must focus on the core value you offer to your customer.

We are successful consumer brand developers, but we made a ton of mistakes before we finally achieved our success.

In our impatience to achieve a positive cash flow as soon as possible, we diluted our brand message several times. We were desperately trying to find the perfect product-market fit that would please our buyers.

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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Entrepreneur – ReGrained Markets Food Made From Upcycled Brewery ‘Spent’ Grain

Michael Houlihan & Bonnie Harvey — Sun, 07 Apr 2019 21:32:33 +0000

Last month at O’Hare International in Chicago, we were waiting at the gate for our flight back to San Francisco. We thought we’d use the time to discuss our upcoming article on entrepreneurship. We were looking for another example of an entrepreneur who is demonstrating a new way to make a deposit by making a difference.

We must have been getting a little excited about our favorite subject because suddenly, a young man who was working feverishly on his computer overheard us, stopped, looked up and said, “I’m an entrepreneur!”

When we asked him about his business, we were immediately drawn into an exciting conversation. This young entrepreneur had figured out a practical way to take the spent grains used in beer brewing and market them as healthy and delicious foods! Wow! Like, “Eat your beer!”

To read the complete article, please visit Entrepreneur

Who We Are

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

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Can a 15-Year-Old School Girl Change the World?

Michael Houlihan & Bonnie Harvey — Thu, 28 Feb 2019 17:40:02 +0000

If you’re over 21, you are considered an adult. If you’re 18 or older you can vote. But if you’re 14 or 15, how do you make yourself heard?

Right now, all over the world, young teenagers are making their voices heard. It’s hard to ignore. It’s in the news every week and you can expect to read more about them as time goes on. It’s a global youth movement that is not going away. It’s a worldwide climate strike!

Students in more than 450 countries are choosing a Friday to play hooky for a good cause – their own survival! It’s hard to believe that we as adults have kicked the can down the road so far that we now have a generation that is facing irreversible climate disaster in their own lifetime. As Howard Beale says, in the 1976 movie, Network, “I’m mad as hell and I’m not going to take it anymore!”

And why should they? They will be on the planet a lot longer than today’s adults. 15-year-old Greta Thunberg has become the figurehead for the school climate strikes that will soon be in your neighborhood. Greta sums it all up in her address to the UN Climate Conference in Poland and subsequent interview.

Climate Change and Entrepreneurship

Because we are big supporters of entrepreneurship, we’d like to examine the school climate strike movement from the standpoint of its implications to the business market. We believe real change, even mitigation of climate change, comes from the way we, as consumers, spend our money. Real change comes from the products and services we choose to buy.

Survivalist Buying Trends

It’s simple! The vendors who get our money use it to lobby to protect their investment in market share. If we don’t give them our money, and better yet, if we give our money to healthy alternatives, then those vendors will have the influence. It all starts with how you choose to spend your money.

These kids know that. They’re not just striking out of class. They’re communicating with each other on a level never seen before in the history of the world! They’re discussing this very premise and what it means regarding their own current and future purchases. According to Nielsen, these new “survivalist” buying trends are already beginning to dominate the market.

Given the fact that in about three years, these teenagers will be voting, and in just about six years, they will be considered adults, shouldn’t today’s savvy entrepreneurs be paying attention to what kind of products and services these kids are going to buy now and in the not-too-distant future?

Green Opportunity

For our own part, we have been looking for, researching, and helping just those kinds of “green” businesses. We know they will be in demand and more importantly, on the right side of history. Why not sell products and services to the student climate strikers? They are a growing market that is quickly becoming educated about the implications of their purchases. This is an opportunity for all entrepreneurs to get ahead of the curve and benefit from the new megatrend. And isn’t this what good business is all about anyway?

When Greta says she’s giving up on our generation to make the change in time, when Greta says that her generation is taking action, she’s not just talking about striking. She’s talking about a whole new generation changing their buying habits. Let’s give these kids what they want and what they need! It may help us, in some small way, to redeem our own generation for being asleep at the switch. It’s happening and it’s happening now!

Who We Are

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

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10 Questions Our Clients Ask

Michael Houlihan & Bonnie Harvey — Thu, 17 May 2018 17:49:57 +0000

Our clients come to us because of our credentials as the founders of the largest wine brand in the world. They want to know how we began (in our laundry room), how we were financed (we assumed a debt which we traded for wine and bottling services), and how we overcame the challenges of personnel management (we paid for performance).

All that and more is covered in our New York Times’ Best Seller, The Barefoot Spirit, How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. It contains the lessons we learned told in a humorous business adventure story. It answers the top 10 questions start-ups and business owners need to know on their way to success.

And we are really excited to announce that we are currently recording it in an audio book! Like the paperback, it will be fun. Instead of having someone read it to you, we have engaged a live troupe of actors who will dramatically act it out for you. You will enjoy the unique format and learn from their interactions. We will be releasing it in the fall!

So, here’s the short list of a few of our favorite answers to the question – “How do I…”:

1. Start a business without financing?

Trade for goods and services
Use your buyers as banker by offering quantity discounts for cash
Use your supplies as bankers by earning extended credit and terms
Pay for performance rather than for attendance
Use the assets you already have, such as a spare room, family members, or contracted services

2. Start a business with no experience in the industry?

Ask a lot of questions
Work for someone who is already doing what you want to do
Talk to everyone who will be working with your product or service
Use your suppliers and vendors as teachers

3. Find, hire, train, and keep good people?

Look for hustle and integrity
Overkill on orientation
Give them appreciation and time off
Pay for performance

4. Get my product to the market?

Start in a small area to learn your lessons
Offer samples, tastings, etc.
Ask the buyers what they need
Get the reputation, even in a small area, of being a “Hot Mover!”

5. Give my brand a soul?

Identify what your brand offers its users that they love
Identify what your brand and your company stand for beside the mercantile product you are selling
Work with your community on your shared goals
Be inclusive and earth-friendly
Treat your people right

6. Build a brand without advertising?

Donate your products or services to community fundraisers
Build brand advocates who will sing your praises to all they know
Attend farmers’ markets or other social events where your customers can be found
Do many in-store demos

7. Think outside the box?

Put yourself in the other guy’s shoes in every position of responsibility
Meet regularly with everyone on your staff, with your suppliers and your buyers and ask them what their challenges and goals are
Be open to new ideas, especially those that seem to be contrary to your own
Practice “Know-the-Need” instead of “Need-to-Know”

8. Get the most out of my people?

Use performance-based compensation and share the wealth
Share information freely; share your goals, challenges, and opportunities
Give employees your respect by asking for their feedback and advice
Acknowledge their successes in writing and copy the entire staff

9. Use outsourced services?

Communicate your needs clearly and in writing
Pay only if your project has been completed to your specs
Oversee their work on your project to assure quality control
Look for long term relationships

10. Sell my business?

Talk with a business broker who recently was involved in a sale or purchase of a business like yours
Put your peanut in front of the elephant
Work towards the metrics required to become an acquisition target and ultimately monetize the brand equity you are building
Organize your filing system according to your future acquirer’s due diligence

As advisors, we help our clients identify and move toward their goals. We learn about their business, their challenges, and their opportunities. Then we meet with them regularly to help them stay on track. They get the many benefits of our 20 years growing the Barefoot Wine brand. We learned a lot of lessons – most of them the hard way!

You too can benefit from the knowledge we gained without having to go through the time, mental anguish, and money that it took us. Think of it as saving $300,000 or more on mistakes and 3 years or more in wasted efforts. Here is to your success!

Who We Are

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

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5 Ways to Tell if You’re Persistent or Stuck in a Rut

Michael Houlihan & Bonnie Harvey — Mon, 05 Mar 2018 20:16:43 +0000

Most successful startup founders will tell you that it’s going to take a lot of tenacity to succeed.

They will all generally tell you that persistence is the better part of valor when it comes to winning. We agree. It takes a great degree of resolve and patience to see the results you are looking for.

Sometimes you must persevere against the odds, struggle along until the time is right, and hold out for that big break. Perhaps the market will change, the buyer will change, or finally the amount of time you put in begins to result in traction.

Getting things started is difficult enough, but what about getting something new started, something the market hasn’t seen before or doesn’t know it needs?

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.

The post 5 Ways to Tell if You’re Persistent or Stuck in a Rut appeared first on The Barefoot Spirit.

Now is the Time to Start a Climate Change Mitigation Business

Michael Houlihan & Bonnie Harvey — Thu, 14 Dec 2017 18:00:32 +0000

Want to start a new business? Don’t know what it will be? Take a big hint from the 2nd Anniversary meeting of the signatories to the Paris Climate Accord. Just about any business that addresses, slows down or mitigates the effects of climate change is in demand.

The attendees have put their money where their mouth is with over $1B in investments to help industries and countries abandon oil and coal.

Big guns like Richard Branson, Bill Gates and other top energy and investment fund leaders unveiled a plethora of projects designed to fund efforts to lessen the effects of climate change.

The World Bank announced that it would cease financing oil and gas projects in two years.

The “America’s Pledge” coalition to honor the 2015 Paris climate goals now represents half of the U.S. economy.

Eight U.S. states will be developing electric vehicles. The Gates Foundation has created a hurricane relief investment fund for the Caribbean and another to help farmers to develop low-carbon technology and adapt to climate change.

The projects aim to speed up the end of the combustion engine to reduce the emissions that contribute to global warming.

In other words, as President Macron of France says, big businesses and successful economies of the future will be producing and utilizing renewable energy. If you were looking for a mega-trend to capitalize on, or an expanding market with no apparent end in sight, this is it!

Why not do your business on “main street” and go with the flow? Just imaging the opportunities that are presenting themselves in these otherwise detrimental circumstances:

Fire. We’re going to get burned! Much better fire protection, fire-resistant building materials, and fire-fighting equipment are in demand. How about better warning systems, temporary housing, and integrated disaster status information systems? And we are going to need better forestry practices, underground transmission lines, and better fire retardants.

Water. We’re going get thirsty! We need more and better clean drinking water delivery, destalinization, collection and storage systems. How about technology that saves water to be used for cleaning, manufacturing, and crops? Add water purification and water-free sewage systems.

Power. We have to get off the grid! This includes alternative and local generation devices, breakthrough battery technology, independence from wires for power transfer and communications, long-range electric and other zero emission vehicles.

Air. We’re choking! We need carbon sequestering technology. It will be in demand as carbon tax begins to become the norm as the world gets more serious about this situation. Replanting of the forests and rewarding for the preservation of trees are definitely on the agenda. Carbon scrubbers and alternative power plants for industry will be in demand as they begin to pay the true cost of production and compete with producers who are carbon neutral.

Food. We’re going hungry! We need to improve production and nutrition while reducing water and petrochemical use. Demand for food produced closer to consumers is increasing. New types of aqua culture and advance in protein production will take the lead as traditional farming and cattle grazing becomes unsustainable.

Flood. We’re going under! We need to move out of harm’s way, float, submerge, or literally stem the tide. We have entire cities that will have to be saved or abandoned. We’re talking dikes, piers, and elevation techniques. We need hurricane resistant buildings, disaster relief, and independent power, sanitation, and communication systems. And don’t forget first aid, evacuation, and mobile hospital technologies.

So, these are just a few opportunities envisioned due to the effects of climate change that are already upon us. They may have once seemed futuristic, but now our lives literally depend on them. Your new business can contribute to this megatrend. We hope this short list inspires some folks to choose a business that provides even a partial solution to these needs. The world as we know it is relying on your new technology to survive. And so is its population. Now, go get ‘em!

Who We Are

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

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Make Fun out of Adversity by Playing the “No Game”

Michael Houlihan & Bonnie Harvey — Thu, 05 Oct 2017 17:00:45 +0000

If you’re going to be an entrepreneur, you’d better get used to being told “No!” No is the last thing you will hear before you get a “yes!” But how many times do you have to hear “no” before you get discouraged? And what can you do about this fact of life that comes with the territory of entrepreneurship?

How about a fun game?

Yes, we made a game out of rejection! We called it “the No Game.”

The first thing we did was set the ground rules. And to do that, we had to discover how many “no’s” our people were getting from decisionmakers before they got that big “yes.” So, we all started keeping track. That was sort of fun to start with. It assumed there was an absolute, measurable limit – crazy as it seemed. After a while, we noticed that the average number of “no’s” before getting to “yes” was 7.

That’s right, 7! Not 9 or 4, but 7! So, we used 7 as our bassline. Then when our folks would complain that they had been shut down 3 or 4 times, we could say, “Relax, you’re not even to the average yet!” And when they complained that they were up to 15 no’s, we’d say, “Well, buck up! It’s right around the corner!”

But then we started comparing notes on how certain of our people got to “yes” sooner than others and we found out the 3 things they consistently did to come in under the average and win the No Game

Ask a Different Day. Amazingly, some of our people got to “yes” by simply waiting! Maybe the buyer was in a better mood the next day, the next week, or the next month. Maybe the buyer wasn’t looking for our kind of product at the time he or she was first asked. Maybe the market changed. Or maybe a product in our category was discontinued and now there was room. Something happened that required time. What if we stopped asking?
Ask a Different Person. Some of our people got to “yes” by asking a different person who was the decision maker that day. In the case of governmental approvals, we found this especially to be true. After our countless requests for permits and label approvals were denied, they were suddenly approved! Why? Because we got a new agent who interpreted the rules a little differently, and in our favor. Sometimes the old decisionmaker was no longer the decisionmaker. They may have been fired, transferred, or promoted. The new one said yes! One new buyer actually asked, “Why haven’t we had this brand before?” We loved her!
Ask a Different Way. And some of our people got to “yes” by restating the proposition in terms that finally resonated with the buyer. This is probably the greatest sales skill any entrepreneur should develop. It takes a lot more asking than telling, a lot more listening than selling. Ask about her current concerns. Find out her favorite products and why. Find out her favorite representatives and why. The answers will help you recraft and tailor your proposal to her liking. Listen for the way your proposition solves her problem.

Yes, it started as a fun game where our people could “win” by coming in under 7 “no’s.” They would proudly announce that they beat the odds. But the “game” got extremely beneficial when everyone began to pick up on the tips and use them effectively.

The average number of “no’s” didn’t really improve, but our attitude did! We began to realize that there is no “yes” or “no.” There’s only “now” and “later.” The only one who can say “no” is you …when you stop asking!

Who We Are

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

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Can Legislative Indecision Hurt Small Business?

Michael Houlihan & Bonnie Harvey — Thu, 06 Jul 2017 17:00:21 +0000

A small business owner recently asked us if we thought Washington’s indecision over the health care issue could affect her business. Our answer was not the one she wanted to hear.

It has been the public’s willingness to commit to the purchases of new cars, refrigerators, and houses that has greatly determined the state of the economy since the great depression. This is still the situation today. As long as we continue to make these major purchases, it’s smooth sailing. But will consumers be able to afford the payments on major purchases if they have a major increase in their health care costs?

What if consumers are thinking about that new car or house right now and reading the news about the government’s indecision on health care costs? What if, suddenly, consumers had to fork up another $300-600 per month …or more? Would they be more likely or less likely to make that new car purchase PLUS committing themselves to hundreds of dollars more in monthly payments? Just the specter of this possibility may be enough to make them second guess that next major purchase.

Once a considerable segment of the market decides to postpone these kinds of purchases, the dominoes begin to start falling and sales in most businesses are negatively affected. We saw this in the last recession. Initially the pundits said it would be contained to the real estate sector. But they didn’t factor in that consumers felt less wealthy, even if it their “wealth” was on paper. They immediately cut back on their spending, especially for those major purchases. This trickled down to startups and small businesses, and many jobs were lost.

We fear the potential for this same phenomenon is at work today. Real estate is now in a significant bubble, the stock market is once more overvalued. We have lived long enough to have seen the economy take a big hit, just because the press focused too much news on poor early holiday sales, which created a self-fulfilling prophecy scaring consumers out of their wits and out of the stores. How about governmental indecision on a major part of the consumer’s personal budget?

Whether you agree with the concept of government health care or not, it’s here and it’s here to stay. Americans now expect government health care at some level. So that’s a dead debate. Now the question is, what kind and how much? This is an important enough decision that it requires some bi-party cooperation. There’s no doubt the existing health care plan needs fixing and the new plans obviously need to be better thought out. There’s no simple solution.

No elected official wants to face reelection with their name on a bill that leaves 20 million people uncovered or facing radically increased premiums. Meanwhile, the indecision about the future of health care can cause unnecessary negative effects on the economy. Indecision creates insecurity, and insecurity results in more indecision.

We are pro-business. We especially love to support startups and small businesses. For us, this current situation directly impacts those businesses, since the postponement of major purchases will have a ripple effect that will hurt businesses at every level. We would like to see all elected officials understand that working together to solve this problem quickly is more important than honoring any pre-election pledges made without consideration of the big picture. The economy is fragile, so let’s not spook the consumers!

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.

The post The 4 Stages of Business Growth Each Present Their Own Challenges appeared first on The Barefoot Spirit.