opportunities | The Barefoot Spirit

What Business Should I Go Into?

Michael Houlihan & Bonnie Harvey — Thu, 20 Sep 2018 17:00:31 +0000

Discovering Business Opportunities in Problems

We are often approached by young folks who ask us, “What business should I go into?” – as if there was the realm of all possibilities. We assume by this question that these folks have not decided to “follow their passion.” So we talk with them about how most business opportunities present themselves as solutions to problems they are personally experiencing.

“Why hasn’t anyone done this yet?” might be their first reaction. And this is where many wantrepreneurs stop. They don’t do the research to find out why. Perhaps someone else did think about it but was unable to make a profit or get it into circulation. Many great ideas are collecting dust in warehouses somewhere because they may have solved the problem, but they were unable to solve the distribution challenges.

Many young folks spend too much time perfecting their product while grossly underestimating what it will take to get it in the marketplace. They tend to take distribution management for granted. Their idea is so good, it will distribute itself! Not!

The Challenges of Selling Online

Many think that they can “just sell it online, avoid the middleman and go directly to the customer.” They might, but then they face several challenges that are generally overlooked:

First, they are making their idea and the market for it highly public before they have amassed even a small war chest to protect their idea. This opens the door to copycats who already enjoy a war chest and already have secured access to the bricks and mortar stores. They can achieve instant market penetration and outlast you in court.

Second, online sales are a race to the bottom price-wise. The first thing your customer will do is check for a lower price. Never mind that yours is the original, and never mind that yours is of high quality. They can’t physically feel it and compare it to others in a tactile way. They must buy on picture only and so price becomes the major differentiator.

Third, because you are selling onesies and twosies, direct to consumer, you will never get a big check for a massive volume from a major retailer. So you won’t be able to compete with competitors who will benefit from quantity discounts for substantial purchases.

The good news is that anybody can sell online. The bad news is that your risk of failure is much greater.

So, our answer to “What business should I go into?”

“Choose one that you can achieve distribution with.” We strongly advise a careful study of the distribution system for your great idea, even before you finish it. Why waste your time if you can’t get it to market?

We suggest you engage someone who has already successfully navigated the distribution system for your kind of product. You may be surprised to hear what they might have done differently, now that they know what was required.

A distribution advisor can save you tons of money, time, and anguish. They don’t cost, they pay!

As advisors ourselves in this critical area of business success, we caution against growing faster than you can support the cost of sales. We advise our clients to test out distribution for their great idea in a small area to discover what they really will be required to do in a larger area. That education will determine their strategy for success. And isn’t that the whole idea? Not just coming up with a great solution, but actually getting it out there and keeping it out there?

So, go into a business for which you understand the distribution. Then you can solve a problem, and we can all thank you by buying it!

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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5 Reasons to say Thank You and Get More of What You Want

Michael Houlihan & Bonnie Harvey — Thu, 24 Nov 2016 04:00:07 +0000

Sometimes we get so busy, we forget to say thank you to acknowledge a great referral or appreciate a job well done. We tend to get overwhelmed by today’s news and financial pressures. Rather than appreciating what’s going right, we tend to focus on what’s going wrong. We are challenged to meet our deadlines, show a profit, and put out the fires. We wish there was a way to make things a little easier.

There is. Say thank you more often.

Do it with intention. Don’t just say thanks and move on. Get specific and say what you are grateful for in detail. Personalize it. For example, we recently got thanked by a client for an introduction we made on her behalf. She sent us a note that said, “I want to thank you guys so much for putting me together with Peter. He introduced me to Mary and now I am doing more business as a result.” Our reaction? Send her more introductions, of course!

We have found that the best way to get out of a slump is to take inventory of what you do have and thank the folks who helped you get it. Several beneficial things start to happen:

Improve Your Focus. When you take the time to identify the things you are thankful for, you are less likely to overlook those same kinds of things when they come around. Tune up your focus and dial in on what you want, instead of what you don’t.
Improved Your Attitude. When you focus on what’s wrong it’s easy to get nervous, pressured, and downright depressed. The sore thumb is only one out of nine fingers. Let the other nine “stick out” occasionally and you will realize that you already have a lot going for you. That should raise your spirits. And people want to do more business with someone who is happy and positive – rather than haggard, hurried and hassled. You will be more effective in all your relationships.
Get More of the Same. By acknowledging the folks who have helped you and thanking them in specific terms, they will be more likely to do more for you. We all like to be appreciated; it’s part of our human nature. So, acknowledge others for what they have done and see if you don’t get more of the same. Friends, employees, vendors, suppliers, customers, and your network of associates all want to be valued and will be even more helpful if they know you appreciate them.
Be Aware of the Process. When you thank someone sincerely and specifically, you see their reaction and renewed efforts on your behalf, you notice more opportunities that you may have overlooked, and you improve your own productivity by being more agreeable, happy, and friendly to others. You become aware that the process itself of giving thanks, showing appreciation, and giving acknowledgement actually helps get you more!
Demonstrate Your Thoughtfulness. Giving thanks shows folks that you didn’t just take their efforts on your behalf for granted. You actually took the time to send a short email, or even better, a hand-written card.

It’s appropriate that “The Holidays” start out with Thanksgiving. It reminds us that the best gift we can give each other on every card and memo we write is a sincere and specific “Thank You!”

We want to thank all of you for reading our articles and sincerely thank YOU for all your help with connections, introductions and suggestions to help us better serve other entrepreneurs. Happy Holidays!

Who We Are

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

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5 Ways to Build Trust and Grow It

Michael Houlihan & Bonnie Harvey — Thu, 26 May 2016 17:00:25 +0000

Good business relationships are built on trust. People who depend on you, from your creditors to your employees, need to confidently rely on you to treat them fairly. Once they know you can be depended upon, they will extend their cooperation and even make allowances for you. This is absolutely critical to your success.

The sooner you demonstrate that you are trustworthy, the faster you will receive the benefits, such as extended credit, loyalty, engagement, priority ranking, increased sales, and opportunities. The key is to be proactive. Look for ways to show all the folks you work with that you have their best interests at heart.

Here’s our short list for how to build and grow trust:

Communicate Often. Be clear about what you are doing and why. Don’t leave anyone in the dark guessing what you are up to. We recommend regular meetings with creditors, suppliers, outsourced services, and your own team. Alleviate their fears by sharing vital information early and often. The more they know, the more confident they feel about working with you.

Forge Alliances. Identify who gets ahead if you do and forge these strategic alliances. Treat these folks like business partners, such as sharing your plans for expansion with suppliers who will benefit from your increased business. Discover how you can work together to improve their business while reducing your need for capital, such as long-term contracts in return for free warehousing and better terms.

Mend Fences. When you make a mistake, don’t try to cover it up or blame others. It will only exacerbate the situation, lose you precious credibility, and hurt the relationship. When you realize you are about to miss a payment, call your creditors immediately. Be ready with a payment plan based on receivables that will bring your account current. This shows empathy for their position and the risk they have taken on you. Remember, you are judged more by how you handle a mistake than when everything goes smoothly.

Be Honest. If you harbor hidden agendas or deliberately withhold information to trap or manipulate others, this will result in you losing the relationship and your reputation in your industry. Voluntarily expose loopholes to reassure the people you depend on that you will not take unfair advantage of them. Show them you are a true partner, watching their back, not waiting to stab it! Don’t give them reasons to keep their guard up or you will only get the words, and not the spirit, of your agreements.

Service Your Customers. Nothing says, “I got your money and now you are stuck with my product” more than poor customer service. When you are all over them to make a sale but can’t be reached to fix a problem, you are killing your long-term business security and opening the door for competitors to take your customers. Customer service is more important than the product. Without it, your customers will no longer buy, and will feel an obligation to tell others about their bad experience. When you show them that you are treating them like a friend, they become loyal advocates.

Trust is built on a foundation of good behavior over time. The time involved can be reduced by the telling experiences that build or break trust. In the early days of a relationship trust can be lost easily. The way you handle an embarrassing situation is “the tell” that they are looking for to justify putting their faith in you or regretting the relationship. It takes a lot more than just saying, “Trust me.” You can trust us on this!

Who We Are

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

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National Entrepreneurship Week – Early Exposure Builds Confidence

Michael Houlihan & Bonnie Harvey — Thu, 18 Feb 2016 18:00:39 +0000

Gary Vaynerchuk says entrepreneurs are born, not made. We disagree! Early exposure to the entrepreneurial mindset can be the difference between young minds knowing that entrepreneurial success is possible and never finding out. Sometimes something happens at a very early age that opens the door to entrepreneurship as a valid alternative. What is that?

The Consortium for Entrepreneurship Education (EntreED) promoted Congress to designate the last week of February to answer that very question. Dr. Gene Coulson, the organization’s Executive Director, has some educational programs he is encouraging. He wants to make young people aware of entrepreneurship as a career alternative in grades K-12.

Sure, in kindergarten and the 1^st grade it might be just a definition of what entrepreneurship is, how to spell it, and how it’s distinguished from employment. Exposure progresses and by the time the students are in middle school and high school, they will be aware of entrepreneurship as an option for their future. The key is every student learning more about entrepreneurship every year.

Some of the groups he works with encourage high school students to get involved in a business plan and other types of entrepreneurship competitions. Others bring in real entrepreneurs for the young folks to see, hear, and question. They thus expose the students to successful entrepreneurs who overcame their risk adversity, solved a problem, and improved the community.

Gene feels strongly that it’s the entrepreneurial mindset that really distinguishes the true entrepreneur from the business school students learning form and function. And that mindset can be encouraged at an early age. He says young folks need to take inventory of challenges and problems within their own communities, see them as opportunities, and imagine ways to solve them. Encouraging young people to begin to notice these problems and ask, “Who else do these problems effect?” is the beginning of ideation.

One member of EntreEd is the Generation E Institute which is promoting the “Entrepreneurs Interview” during National Entrepreneurship Week. During the event, middle school and high school students have the opportunity to meet local entrepreneurs and business owners. Smaller groups of students ask them questions in an informal conversational setting, then explain what they have learned to others.

This approach incorporates social skills, writing, communication, and public speaking – all essential entrepreneurial skills in themselves. But the contacts these students make will also become opportunities for future job prospects, mentor relationships, and community goodwill. Check out more ideas for the Generation E Curricula for K through 12 in Teaching Success: New Directions in Entrepreneurial Education.

We love this whole concept! These young people grow up thinking of entrepreneurship as a valid alternative rather than something reserved for the elite or well born. We feel that the entrepreneurial mindset can be taught and with that education comes the courage to take risks and see ideas through to success. It can help young people look at problems as opportunities and can give them the communication, social, and other skills necessary to engage and empower others to make their ideas a reality.

Gene is promoting these K-12 programs in the rural parts of Appalachia. Instead of resistance to these ideas, he was met with enthusiastic support. With the demise of the coal mining culture, the community has welcomed these programs. “Entrepreneurship is the only hope for this region,” they say.

Big companies and industries come and go. And when they do go, like coal in Appalachia, those who have been dependent on them for employment will be looking for solutions. Perhaps those solutions are in our schools right now! Let’s take out an insurance policy on our future. Let’s celebrate National Entrepreneurship Week by supporting ideas like those encouraged by EntreEd to build some great entrepreneurs!

Who We Are

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

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Gratitude Gets You More of What You are Thankful For

Michael Houlihan & Bonnie Harvey — Thu, 26 Nov 2015 06:08:42 +0000

It’s easy these days to get carried away with the news. There’s shootings, war, terrorism, disease and injustice all over the front page, blasting out on the television, radio and internet. It’s designed to scare you and make you want to read, listen and watch more.

The media capitalizes on our natural self- preservation instincts and the bad news can become down right addicting. But in the process something else is happening. We are getting conditioned to expecting bad news. And that conditioning can easily make us less likely to look for and celebrate what’s going on that is right.

We actually play a game with the news every day. It’s called “Find the good news!” We each take a section of the paper or news site over breakfast and hunt for the good news. First one to find it wins! We have to really dig because it’s usually hidden in the back somewhere. Yes, it’s quite challenging and some days we have to settle for a department store ad as the only “good” news.

But we often find 2 or 3 great uplifting pieces of information. It’s not only better for digestion but it gives us some hope and a positive attitude to start our day. If the bad news will really affect our personal security, you can bet we will hear about it from our friends, family, neighbors or colleagues. So we don’t worry about missing something important to our survival.

Today was especially challenging, but Bonnie won the ”Good News” game with an article she found on the back pages where a team at the University of California in Irvine may have discovered a way to eliminate malaria. Malaria! The mosquito born disease responsible for half the deaths in the history of man! Last month Michael won with “Flowing Water Discovered on Mars!” Also in the back pages.

We also face daily personal and professional frustrations that can affect our outlook. To keep ourselves pumped up, we keep a log of all the milestones we have achieved toward each goal. When we get a little depressed, we go back and read the litany of our progress. Never mind if there was no progress one week. Taking the larger view of history, we regain our positive perspective that we are in fact making progress.

We use these and other techniques to prevent us from getting into the victim mindset where we view ourselves as helpless and powerless to make a difference or a change.

We are convinced from our own personal experience, that when you acknowledge what you want when you see or hear it, you get more of it! Why? Because you are conditioning yourself to expect solutions and you are looking for them. That expectation can keep you going through the difficulties and challenges. You keep a sharp eye out for solutions.

You are less likely to overlook a solution just because it wasn’t a shining diamond presented in a velvet box. In fact it’s often a mud-covered rock that conceals an uncut diamond that requires you to work with it. Maybe you catch a glimpse of a tiny spark of light out of the muddy rock. But you are tuned in. You see it because you are looking for it.

Happy Thanksgiving, everybody! More of what you are grateful for is coming your way!

Probably the greatest way to condition yourself to expect solutions and to tune in to opportunities is to acknowledge what you already have and give thanks. You can’t give thanks without recognition, appreciation, and a wish for whatever good news you find to endure.

Happy Thanksgiving Everyone! Here’s to getting more of what we are thankful for!

Who We Are

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

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Find the Good News!

Michael Houlihan & Bonnie Harvey — Sat, 28 Jun 2014 18:30:02 +0000

We play a game every morning at our house. It’s called “Find the Good News!” When we read the news of the day over breakfast, we find and share only the stories that are helpful, fun, and positive.

We look for stories of success, solutions, and humanitarianism. Admittedly, some days it’s a real challenge. One time we had to actually resort to reading the advertisements because all the news articles were so negative!

In many ways, we are environmental determinists. That means we believe that you are, to a large degree, influenced by your immediate environment and habitual behaviors. And that’s the good news – because you can do something about those influencers. You can clean up your desk or your backyard, you can paint your room or vacuum your car, and you can listen to classical or heavy metal.

These are all choices that have a physical and psychological effect. All of these and more are environmental choices we make actively or passively. To exhibit control, we must take control. Too often we take our surroundings as a given. It is so easy to get into a routine that puts us in a rut. It can affect the way we think, our outlook, and our emotional attitude.

If you believe, as we do, that like attracts like, you have to consider what the effect daily bombardment of bad news must have on one’s day. If you are looking for good things to happen and expect to see solutions to your challenges, you will be more likely to see them. If you are filled with negative stories, you will be more likely to overlook the good things because you won’t expect them to happen. Even when you are looking a solution right in the face, you might not see it because you don’t believe it’s there. How do we get to that point of negativity where we are actually blinded to what’s right in front of us? We believe it’s the news.

The news is a business like any other. It needs to give the customer (you) a compelling reason to buy it. News editors know “If it bleeds, it reads!” They know that our prehistoric brains are prewired for survival. They know we are always on the lookout for anything that can harm us. They know how to work this psychological defensive mechanism by assaulting you with fear and danger on a daily basis. But what does this do for you, first thing in the morning? Are you more positive and cheerful, more trusting and more expectant for great things to unfold during your day, or does it leave you more cynical and defensive, expecting the worse? You know the answer.

This is part of your environment over which you do have control. So what are you going to do about it? Do you want to saturate yourself with negativity right before you step out the door, or do you want to set the tone for the day on a more positive note? Take charge of those precious few initial hours that can affect your whole day. The news that you need to survive will come to you anyway sooner or later, but for now, try to play the “Find the Good News” game. You will be the winner!

This is not religious or woo-woo. This is a practical, proven way to open your eyes and ears to opportunities that you may otherwise overlook. Not only that, but it’s a heck of a lot of fun!

Who We Are

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

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