Starting a business feels overwhelming. It seems like there’s never enough money, time, or resources to gain traction in the marketplace. We may apply industry standards in our own business, and not even question them. Then we add our own personal standards that we inadvertently bring to our new business. Some may be counterproductive to our very success. Business consists of one decision after another, back to back, sometimes in rapid succession, and often under pressure. Is there a set of guiding principles we can weigh those decisions up against to help us make the choices that will sustain and grow our business?

While building the Barefoot Wine brand, we learned, sometimes the hard way, what those guiding principles looked like. We call them collectively, The Barefoot Spirit . They enabled us to get the advice we needed, and keep the best people. They reduced our need for capital, and increased our credit and terms. By relying on our guiding principles to make decisions, we increased sales, reduced our overhead, gained new loyal customers, and grew our brand. Since then we have found that these same principles apply to most businesses.

Over the next few posts we will examine these guiding principles and how they may benefit you. We will ask questions in four categories to uncover a series of critical decisions that can make a big difference in your success. They may seem simple at first, but as you get into them and their implications, you will realize they are anything but simple.

The questions are: How would you like it if you 1) worked for yourself, 2) extended credit to yourself,   3) sold to yourself, or 4) bought from yourself?

1. Would you work for yourself? Would you want to work for an employer who treated your labor as a commodity, trying to see how little you would work for? Would that save the company money, or lose money due to turnover and lost relationships? Or would you prefer an employer who sees people as an asset, rewarding them for performance and acknowledging their achievements? Would this increase innovation and long-term relationships? We found that people work primarily for income, recognition, personal time, and security. When we began paying for performance rather that attendance, we found our best people didn’t leave because they benefited financially from their own production. Those who were less productive were paid less and could not afford to stay. As an employer, do you acknowledge producers publically, or are you afraid they will ask for a raise? By giving time off, do you think you are losing production, or that you are increasing production with recharged and loyal people? Do you see medical and retirement benefits as a cost, or as an investment in long-term stability?

Your attitude and philosophy toward these critical aspects of business will shape the decisions you make. Next time we will examine the other questions that reveal your basic business philosophy. In the long run, if you would be happy doing business with yourself on all of these levels, you will have a big head start on the ultimate success of your company.

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 Build Your Business using Guiding Principles – Part 1 appeared first on The Barefoot Spirit.

Although these structures seem unavoidable just to get the job done, they can have a sinister creative-stifling side effect. The heads of each mini- and maxi-pyramid can actually stop good ideas simply because they did not think of them, and they find that threatening to their position. Job preservation can become job number one, even at the expense of the company itself. When this happens, the flow of information and ideas become constricted.

Add to all that the well-meaning policy of  “need to know.” Now you have inadvertently put a price on information. It can become a commodity used as a type of corporate currency where one person will only tell what he knows in return for administrative favors or other scraps of information. When you add in the possibility of incorrect information, rumors and gossip, corporate culture and morale can suffer. This results in a decline in productivity and profitability.

Since the top of the pyramid is narrower, there’s simply not enough room there for all the ambitious and aspiring folks further down the pyramid. So there’s a natural competition for those top jobs. Many see using and controlling information as critical to their advancement.

We recently attended a fund-raising dinner and sat next to a top executive from a major corporation. We were talking about why so many of the new good ideas seem to be coming from the entrepreneurs and not the big companies. When we pointed out the free flow of information and ideas enjoyed by entrepreneurs and the restriction of information flow in some corporate structures, due to their size, he responded, “We don’t have those problems in my division.”

When companies are in their start-up phase, information and ideas flow freely. They listen to all ideas, from anyone who will offer them, because they are struggling just to stay in business. Being small and undercapitalized encourages this to happen naturally. Everybody in a start-up knows that their job is dependent on the survival of the company. They readily share information with other divisions because they are not cast in stone – yet.

As a company grows, it’s hard to say where this potential “hardening of the arteries” begins to set in, but we think it is more likely to happen as more employees are hired. However, without governing factors, it can happen in a company of any size.

Next time, we will share some ideas we employed to encourage the free flow of ideas and communication, and ways to prevent information from becoming a currency.

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 Corporate Structure Can Turn Information into Currency – Part 1 appeared first on The Barefoot Spirit.

Recurrent, personnel issues can be a distraction to you and your staff. Some react to personnel problems by firing the offending parties. Occasionally this may be necessary, however the issue may be a symptom of misunderstanding how your company works.

This is why it’s so important to address the main areas that can permit or actually cause personnel issues:

1. Hiring. Before you are dazzled by a stellar resume with the perfect skill set for your opening, consider the individual’s ethics, motives, and team outlook. Do they think they should be paid whether or not you are paid, or whether or not the company satisfies its customers? Are they bringing an agenda to work that has nothing to do with the job? Do they want to get paid for attendance or for production? Are they willing to take responsibility for their own behavior or are they looking to blame and complain?

2. Orientation. Don’t just show them the lunchroom and the bathroom. Show them where the funds come from that pay their salary, benefits, and bonuses. Give them an info graphic that traces the money from your customer, through your sales people, to cover your overhead and eventually pay them. Show them how their job affects the bottom line. Show them how everybody else’s job affects their paycheck. It’s easier to look beyond a co-worker’s personality when they know how everyone fits into the big picture.

3. Compensation. Most compensation plans are based on an hourly rate, which is paying for attendance, not necessarily production. Consider offering bonuses based on sales, cost reductions, and customer retention. Give them a financial reason to help the team perform. With the ideal compensation system, non-producers can’t afford to work for you and producers can’t afford to leave.

4. Mentoring. The time and attention you put into a new hire pays off. Listen to their questions. Clear up quickly any misconceptions about processes and interrelationships. Instead of narrowing down their focus, broaden their outlook to include their co-workers and the larger processes at work. Help them establish priorities. Seeing the big picture keeps the focus on their careers and performance rather than personnel issues.

5. Acknowledgement. A great way to build team spirit is to send out written acknowledgements or make an announcement when a person does something that positively affects business. We did this on each employee’s anniversary. Your people will gain more respect for their co-workers’ value as a team member. It is great when your employees can be friends, but respect and appreciation for their interdependence can be more effective in reducing personnel issues.

When your people know how their check gets to them, how they depend on their teammates, and how their bonuses are affected by the company’s performance, they are more likely to all pull together. Then you can focus on the journey and not the pebble in your shoe.

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 Put Your People on the Same Team appeared first on The Barefoot Spirit.

Many companies these days seem to think that they are giving their office staff some kind of a benefit by letting them dress any way they want. Business casual has become casual and casual has become downright scruffy. What happens when Mr. Big walks into your company and your people are dressed in a way that doesn’t telegraph customer service and professionalism? Before you can say anything, your new client has made a judgment about you, your company, your service, and your product based on how the first person he met was dressed. Now, un-ring that bell! It seems old-fashioned and unpopular to enforce a dress code, but before you write the whole idea off, consider the following:

1. Are you influenced by the way your retailers, vendors, and people trying to sell you something are dressed? How would you like it if your pilot wore jeans, your attorney wore a tee shirt, your doctor wore a sweat shirt? Would you be more likely to chose a service or product presented by a crisp and sharp dressing representative? Why give the advantage to a competitor who gets the “first yes” just because of the way she dressed?
2. Is your staff influenced by the way other staff members are dressed? When your staff looks around at their fellow staff members, does the dress they see convey expectations for productive and time-sensitive action, or is it a message that is laid back and disorderly?
3. Are your sales people influenced by the way your office staff is dressed when they visit? Most sales people have to dress at least business casual or better to gain the respect of their clients. Their success pays everybody’s salary – everybody’s! What kind of message do they get when they visit the office? Do they think “hey, these guys are with me!” or do your sales people think that they are somehow separated from your office staff?
4. Are your vendors influenced by the way your people are dressed when they visit your offices? Your vendors can provide valuable information about the market, your competition, discounts, how to buy to be the most cost efficient, and advise you about overstocks that you can pick up cheap. Do they want to waste that valuable information on what appears to be a laid-back company? Do they want to save it for a company that looks like they mean business and will expand and give him more business?
5. Is there less likelihood of problems between the genders when they are dressed to a certain standard? When men and woman are in business dress they tend to view one another as professionals, on the same team, playing by the same rules, and with the same business goals. They know they appear as capable go-getters and are proud of it.

When we had Barefoot Cellars, everybody thought, because of our beach and care-free California lifestyle theme, that we would be wearing go-aheads, shorts, and T-shirts in the office. They just naturally expected a laid back staff with surf boards out in the lobby. In fact we all wore business suits!

Customer service is Job One. Once your people start to get bonused on the profitability of your company, they’ll want to do everything they can to give your company the edge. They’ll want to dress for success. The way you dress in business reflects your respect for the impressions you and your staff give to your customers, vendors, sales people, bankers, and each other.

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 Dress for Success (Especially in the Office) appeared first on The Barefoot Spirit.

We’ve saved the best for last because having a common cause and a common challenge forges, more than any other single factor, positive company culture.

When you are growing especially a new a brand, something out of the box that has never been done before, you are going to face stiff resistance from the distribution channels and the retail establishment. You can’t blame them because what you are attempting to do is new and unproven. We jujitsued that resistance into the glue that held our team together and gave it a common cause.

The Culture of Common Causes

When Barefoot was trying to get traction in the marketplace, it was an uphill battle. Just to keep the bottles on the shelves was a daily struggle. The Barefooters ( Sales Reps) spent much of their time just replacing vacancies and point of sale materials that had been removed by competitors. Being a small company, Barefoot did not yet have the respect of the distributors or the retailers, and, therefore, did not warrant the attention required to keep the product in stock. Every Barefooter faced the same challenge all over the country.

“How could you put a foot on a wine label?” is what the wine snob detractors were demanding at the time. They thought it was just a passing fad, and a wine not to be taken seriously. The Barefooters were out to show them differently, and they did! Thanks to a great winemaker, Barefoot wines kept winning more medals than any others in the same price category. There’s nothing like team victory to bind the team together!

All the sales staff knew that Barefoot was indeed destined to become big, very big, so they worked together, shared war stories and kept each other energized. They felt like Davids, up against the Goliaths of the wine industry.

They also knew that their fellow Barefooters were actively engaging the ultimate market, the general public. They knew that Barefoot had a “secret weapon”: worthy cause marketing. They were making the world a better place through wine, and they were proud of it.

These forces forged a real team spirit and life-long friendships between the Barefooters. They all knew that it takes a certain type of person to be a Barefooter. They were happy to be one of the team, and they sincerely enjoyed each other’s company and support.

The original Barefoot culture was based on the human desire to have a positive effect on the industry, the community, and the environment, and to be recognized and appreciated for it. It was a philosophy of win-win-win.

Although the example of the original Barefoot culture was that of a consumer product delivered through conventional distribiutions channels, we hope that the lessons we learned will be helpful to you and your business no matter what it is. Good luck and good selling with a positive company culture!

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 Positive Company Culture is critical to Growth and Survival – Part 3 appeared first on The Barefoot Spirit.

Transparency is what the brand stands for, its authenticity, its identification with higher values, and the actions it takes to demonstrate those values.

When companies subscribe to a higher order of value, beyond the products they sell, they have an advantage in today’s marketplace. Employees excel, and tend to stay with these companies, providing long-term relationships with retail buyers, customers and complementary organizations.

 The Culture of Customer Service

At the time Barefoot Wine was founded, the business model was considered radical. The founders viewed it as more of a “service” rather than merely a product. At Barefoot’s price point, which we termed the “velocity price point”, it was clear that it could not survive without becoming “America’s Personal House Wine”. From the beginning, it was understood that it had to sell massive quantities to stay in business.

“Personal House Wine” was defined as the wine one serves in one’s own house as a staple: “Tuesday night wine, picnic wine, beach wine”. It was the wine to always keep on hand. It was the brand you discovered that consistently delivered the quality and value you had come to expect from your own “personal house wine”.

The company knew that customers (“foot fans”) would be loyal to the brand as long as the price remained stable (at the velocity price point), the taste profile was consistent (delicious), and it was available and easy to buy (in stock).

The original Barefoot culture wa based on the most comprehensive definition of customer service. Imagine a company that, through worthy cause promotions, encouraged customers to go into specific retail establishments to buy their brand. Imagine a company that viewed its displays as retail entertainment, adding color, fun, and theme sets for the enjoyment of its customers! This is the ultimate in customer service to your retailer, your end-user, and to your community.

The Culture of Acknowledgement

People are motivated by goal achievement, but also by public recognition. It not only validates their creativity, but it send a message to the rest of the troops that this type of behavior is not only appreciated, but also identified and exemplified.

Appreciation goes a long way toward building team spirit and encouraging everyone on the team to be creative in a productive and fun way. They know that top management and their teammates will recognize their achievement and are not afraid to speak up about it. They are encouraged to create imaginative promotions and fun events.

Public acknowledgement, especially in written form, circulated to all staff, is validation. Employees want to know that they are contributing, and that their efforts are being appreciated. Third party validation from managers, peers, customers, associates and non-profits builds confidence to go out and do more of the same, or better! It also give your people an appreciation of what their team mates are doing to improve everybody’s circumstances.

Positive company culture is the foundation of company success. It reduces turnover, improves morale, cooperation and overall team spirit, all of which result in increased imagination and productivity.  Next time we will examine the culture of Common Causes.

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 Positive Company Culture is critical to Growth and Survival – Part 2 appeared first on The Barefoot Spirit.

They’ll want to ‘fix’ it fast and hope you never find out. They may be the only ones who know how to fix it, and they, or someone else, are likely to make the same mistake again. Here are some tips on how to turn mistakes into assets.

1) Give your staff permission to make mistakes – as long as they follow up in the right ways. All hidden mistakes hurt your bottom line and customer service because you don’t improve.

2) Don’t blame or complain about the other company when they make a mistake. Do all you can do on your end to prevent it from reoccurring in the future.

3) Make a big deal about discovering a glitch or a loophole, oversight or misread. Share with your staff your enthusiasm of discovery and the rewards it will bring to your company’s efficiency.

4) Have the staffer who made or discovered the mistake describe how it happened. Then discuss what is needed to prevent its reoccurrence. Once they realize you think its better to analyze than hide, they’ll view mistakes more positively.

5) Acknowledge the person who discovered the mistake. Make him a company hero for improving the business and customer service. This sends a reinforcing message of permission to the rest of your staff to do the same.

6) Identify all the documents that need to be amended to prevent mistakes in the future (contract clauses, policies, procedures, labels, job descriptions, checklists, signage, or sign off sheets). Then immediately make the required revisions.

7) Require everyone involved to sign off on the new policies, procedures and other documents. Include these as part of all future training. If the mistake involved a customer or vendor, tell them exactly how you have implemented changes to prevent a reoccurrence. They will see your company as more of a partner rather than an adversary.

Evolution and improvement are the natural rewards of learning from our mistakes. We are all in a constant state of improvement. We can anticipate and avoid many mistakes through education and experience. So, when they do occur, let’s make mistakes right. With an insightful attitude, your company’s next mistake can improve your business!

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 Making Mistakes Right appeared first on The Barefoot Spirit.

In the previous post we examined some of the ways your well-meaning office, marketing, production and accounting staff may come up with “cost-saving” suggestions than can actually hurt sales. 

When little things go missing or the package gets simplified in the name of production efficiency, you may hear “It hasn’t affected sales”…yet! Or, “Our sales are still strong” implying all you were doing wasn’t necessary anyway, but the customer notices, even subliminally. 

Eventually a competitor will move into the void. Beware of hubris from your non-sales people especially when sales are climbing.

Only when your Sales Support staff works directly with your Sales staff will a complete picture emerge. 

Here are 5 suggestions to keep those “cost saving” ideas from hurting sales:

1. Put your non-sales people in the field so they can appreciate what the customer really wants and see first-hand what your sales people are up against. Make sure your sales people are with them to point out the nuances of the market, the distribution system, and the existing advantages of your product and package. Ask them to share what they discovered. They will be less likely to inadvertently damage the selling points by “cheapening” your product or your package. 

2. Run everything by your sales people that affects your product and its image. Before you allow a change or “improvement” to the product or the package, check with the folks who have to actually make the sale, overcome the objections, and talk directly to the decision makers and the end user. Top-down thinking, when it comes to product, package design and even promotion, can undermine what has taken years to establish. 

3. Show them the money! It’s critical that your non-sales people appreciate where the money comes from that pays their salaries, bonuses, and benefits. It comes from the customer, and nowhere else. When folks are hired, present them with an info-graphic that follows the money trail backwards from the customer through the distribution system, through the marketing and sales system, through the supply and production system, and winds up in their pockets. It seems obvious, but it is soon forgotten especially as your company gets larger. 

4. Pay your non-sales staff bonuses based on sales. Once they see the relationship between sales and their own compensation, they will have a personal interest in the details of what exactly makes sales happen in the field. You’ll be surprised at the many ways they find to assist your sales people, and their suggestions will be coming from a better appreciation for sales realities. They will want your sales people to sign-off on their “cost saving” suggestions. 

5. Acknowledge good Ideas that reduce costs and actually increase sales. Publicly identify and praise suggestions that work with testimonials from your sales people. Announce “Our Sales Support staff has done it again!” to single out the person or team that came up with the idea and the sales people who worked with them. This type of public validation from you sends a powerful message to your staff that you appreciate their sales-wise ideas. 

In today’s market, if you’re not adding value, you’re losing value. You don’t “save” money by reducing the real or perceived value of your product. It’s essential to continue to communicate your product’s value, quality, authenticity and dependability to your buyers and end-users. Run all “good ideas” by your sales team first!

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 Listen to and Learn from your Sales Staff appeared first on The Barefoot Spirit.

The Sales people are doing their job out in the field. The non-sales people are at the office or at the plant everyday. They’re the ones you see most often, and can  be the most influential. 

In their desire to help the bottom line, non-sales people may be undermining sales. They often propose various money and time saving ideas, which is wonderful, but it’s up to you to protect sales. Many well meaning suggestions contain these preamble phrases to look out for: 

1. “Why don’t we just…?” This is how the suggestions to cut costs usually start. The suggestion itself indicates that they don’t know why we “don’t just.” Be on guard for this because both you and they must know the reasons why “we don’t just.” A thoughtful discussion usually will result in many answers to this ageless question. 

2. “Why do we have to…?” This is usually followed by a suggestion to make their job easier, thus reducing labor costs. This may indicate that they don’t really know or understand why they must do this or that. There are many subtle quality queues and nuances in your product or package that they may not realize. They may well have a good suggestion, but make sure it is not at the expense of sales. 

3. “If we just cut this out, we could save…” and they do the math. This is usually a simple multiple of a small savings times the number of units sold. Beware! This may hurt sales in ways they know nothing about. This thinking is based on the assumption that sales will remain at the current level, before the “cost” savings or “labor” savings idea went into effect. Savings can rarely be as simple as a mathematical formula. By discussing the need (or lack of) the particular part of the product or package they are suggesting be eliminated, you both will come to a better understanding of what is necessary to make sales happen. 

4. “I just came up with this great idea!” Some suggestions stem from your people’s desire to make their mark on your product or package. Sometimes their motive is career, sometimes it’s based on a desire to be more like your competition, or they may think “its time for a change”. Your product’s uniqueness may be the very advantage that distinguishes it in the marketplace. Consistent packaging and logo designs are critical to your product’s image of dependability.  

5. “This will increase sales.” Your marketing people can make or break your company. They may have a tendency to think they have control over your sales people, and that your sales people must use what they are given. What they design on their computer screens may look fine to them and the other marketing people, but until it has it been field-tested, whether or not it will “work” is an unknown. Marketing is expensive, so think carefully before funds are spent on a new idea. 

Your Sales Support staff is well meaning, and you should welcome their ideas. In my next article, we will discuss how to keep the good suggestions coming, and how to make money and time-saving decisions that won’t hurt your sales.

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 Beware of “Money Saving” Suggestions from Your Non-Sales Staff appeared first on The Barefoot Spirit.

Some people think “culture” is what you get in your yogurt. So called “company culture” starts from the top and permeates throughout your organization. The attitudes, principles, philosophies and values of owners like you and your managers shape the decisions, actions, and motivation of your employees.

The morale of your people and the impressions of your vendors and customers are greatly impacted by your company’s culture. If your staff treats information as a jealously guarded currency, if the division of labor is creating turf battles, if good ideas are being suppressed, or if job preservation is taking precedence over customer service, you can expect to lose your best and most creative people. Your company will be upstaged in the marketplace by competitors who allow and encourage creative ideas.

Each of the following concepts helps you build a positive company culture, and will receive more attention in later posts. Here is a brief summary:

1. Create Two Divisions. Your employees are either in Sales or Sales Support. Ultimately, everyone in your company gets paid from sales. No matter what their job or profession, make sure each of your people know how he/she affects  sales. Emphasize the point by finding ways to link their compensation to sales. When you keep them up to date on your sales and get their feedback, you will be surprised at the improved team spirit.
2. Give Your Staff Permission to experiment, take chances and even make mistakes, so long as they document the changes needed to prevent them from occurring again. In the process, they will improve the company’s policies and procedures while coming up with out-of-the-box solutions and innovative improvements.
3. Improve the Planet. Your people want to make a difference. Show them how your product, sales program, and groups you support are making the world a better place. When they know that they are part of a higher value than just selling a product, they will approach their job with the added enthusiasm, knowing they are making a difference.
4. Give Congratulations.  Your people are motivated by goal achievement, but also by public recognition. It not only validates their creativity, but it sends a message to the rest of the troops that this type of behavior is identified, appreciated and celebrated. Appreciation builds loyalty, encourages achievement, and builds a productive environment.

Everyone in your company is playing by a set of rules. Instead of letting those rules evolve by divisions of labor, hierarchy, and apathy, take charge of your company culture and build it in a positive and nurturing direction. Culture is not just found in yogurt!

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 Does Your Company Culture Give Rise to Great Ideas? appeared first on The Barefoot Spirit.