Profitability | The Barefoot Spirit

Small Business Creates the Most Jobs and Does Most of the Training

Michael Houlihan & Bonnie Harvey — Thu, 11 May 2017 17:00:22 +0000

Last week was National Small Business Week. Every year at this time the North Florida Small Business Development Center at the University of North Florida celebrates with an awards luncheon singling out small business owners in their region who are outstanding. This year was their 25^th anniversary and we were honored to be their keynote speakers.

Earlier in the day, they asked us to present a workshop to their VIP members and supporters. These folks were already successful, so we had to give them something special that would help them, hopefully, in a unique way.

We shared one of our favorite business principles, which is “Make Mistakes W-R-I-T-E,” (not just right)! We had plenty of experience in making mistakes; so much in fact that we got good at it. We actually developed a process for making mistakes that greatly improved our company and caused our acquirer to remark, “Wow! This is the best documented company we’ve ever seen!”

It all starts with giving your people permission to make mistakes. They are going to make mistakes whether you give them permission or not, but without permission, they are going to deny the mistake, cover it up, or blame others. They prefer to think it never happened, and go off to the next thing.

You can’t blame them. They’ve been programmed since grade school not to make mistakes. After all, a mistake would get you marked down, give you a lower grade, and could go on your record.

Yet, by giving your people permission to make mistakes w-r-i-t-e, you encourage the improvement of your documents and your very way of doing business. How? By asking your people to identify all the documents that need to be changed, clarified, or created to make the mistake less likely to happen again. Something written must be created, changed or improved. It may involve policies, procedures, checklists, sign off sheets, or even clauses in contracts.

The next step is circulating the new document to get everyone’s sign off of understanding. Then, and this is an important part, thanking the person publicly for improving your business!

Now, everyone knows that you celebrate mistakes – when they are used to refine your business process and ultimately help with training, communication, and profitability.

Sure, you have to apologize and make any one hurt by the mistake whole again. But when you show a customer or a vendor that you are changing written materials to prevent a reoccurrence, they are more likely to not only forgive you, but give you more credibility. They saw you in action. Remember, people judge you by how well you handle a mistake. So, why not do it really well?

And what about those outside vendors, that salesperson, or that difficult customer? Surely, many of the mistakes are their fault, right? We say, “Aim, don’t blame!” When you blame the other guy, you disempower yourself. Rather, take action and clean up you own backyard. What can you do to make the mistake less likely to happen again?

We once had an executive who commented on our unrelenting campaign to tweak, write, and rewrite our documents in the face of any mistake. He complained, “You guys are trying to make everything idiot proof!” We responded, “No, we are trying to make it idiot resistant!” to which he responded, “But even now, as we speak, they’re building a better idiot!”

So, the best way to stay ahead of the “improved idiots” out there is to make mistakes write, and build your business on the back of your mistakes – like we did!

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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The 4 Stages of Business Growth Face Their Own Challenges

Michael Houlihan & Bonnie Harvey — Thu, 02 Mar 2017 18:00:29 +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:

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 1 in 7. 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.

Build Up. Now that you have beaten the odds and achieved a positive cash flow, you must identify and sell a few large customers. This will keep you going long enough to overcome the challenges of personnel management, cash flow management and distribution management. This is a dangerous time for most businesses because you may have all your eggs in a few baskets. Sure, you have secured a big buyer enabling you to pay your bills, but now you must service that buyer or get discontinued. This increases the cost of sales and now you are trapped. With volume purchases over time, you become dependent and then the big buyer can coerce you to lower your prices – or worse, temp you to give up on your brand equity by becoming a mere supplier of the big buyer’s house brand. If this big boy discontinues you, you are out of business. The goal of the Build Ups is to increase cash flow, maintain profitability, build brand equity and prevent discontinuance by your biggest buyer.

Build Out. Here is where you expand your branded product into other markets. This will help you diversify, thereby reducing your dependency on any single buyer. And it will give your brand the geographical recognition it needs to command the respect of future buyers. It also provides you with the commercial proof that your brand is in demand in other markets. However, now you must support those sales with local representatives, resulting in a dramatic increase in the cost of sales – which threatens your profitability. The goal of Build Outs is to expand slowly enough to afford the increased cost of sales while properly servicing multi-state buyers.

Enterprise. At last you have achieved a national brand. Now you can reduce your cost of goods by getting discounts for larger bulk purchases. Now you have brand recognition and can become an acquisition target. But now you can also suffer from the loss of the entrepreneurial spirit. Your non-sales divisions start to act like the sales division is somehow below them. Employee engagement and innovation can take a hit. Turnover can increase as “professionals” begin to use your business as a stepping stone in their careers. The thrill of those start-up days in the garage is gone. The goal of the Enterprise stage of business is to capitalize on efficiencies without losing entrepreneurial spirit.

If you make it this far, you have gained great insights into business, as well as our heart-felt respect!

Who We Are

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

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Startups Must Hire Employees with the Entrepreneurial Mentality

Michael Houlihan & Bonnie Harvey — Thu, 19 May 2016 17:00:08 +0000

Hiring people who are paid, whether or not they produce, has been the death of many startups. In the early days of growing your business with limited time, resources, and funds, you don’t want to hear, “I was there, pay me!” Paying for attendance, instead of performance, will quickly drain your budget and cause you to miss precious opportunities. You simply don’t have the luxury to pay people for attendance alone, even if you wanted to.

When you are looking to hire new employees, look for folks who are self-starters and problem solvers. Look for people who have worked on a project with a team, preferably as the team leader. Even better, look for experience operating a small business. In other words, look to hire people who think like an entrepreneur. These are the ones who have the mindset to think and act beyond their assigned duties and look at the whole picture.

One of the biggest challenges your startup faces is a clear definition of the jobs that are required to make it run successfully. When you start out, you simply don’t know what is required of you and your fledgling company to satisfy the needs of your clients. You find out as you go along. Likewise, your employees must be flexible and look for every opportunity to contribute, whether or not it is in their job description.

Just like a tennis player with knees bent, ready to spring into action in whatever direction required to return the ball, no matter where the ball comes from, your startup team has to be flexible and prepared to get the job done. They must also be looking for the ball! You can’t afford to have folks who don’t think sales is their responsibility. They have to have a financial interest in sales in order to understand the most important word to any startup, “urgency!” They have to know that somehow their income and job security is based on that next sale – and do all they can to make it happen, and keep it happening!

To reinforce this idea, you as the owner must be ready to take a smaller slice of a larger pie. You must be willing to share in the upside and offer quarterly bonuses based on sales, growth, and profitability. If you must pay guarantees or base salaries to salespeople, make it an advance on commissions. Do whatever you can to send the message that their income, security, bonuses, and benefits all come from sales.

When you hire entrepreneurial thinkers you have employees who are willing to bet their income on your success, folks who believe in what you are doing, and believe they can be instrumental at some level in making it happen. To support this idea, you must present them with a comprehensive orientation period, thorough training, and access to continued learning resources. Show them how they can best contribute to the needs and ultimate success of your company by investing their skills with the knowledge that they will benefit when the company grows and becomes more profitable.

Wouldn’t you rather have “investors” than “employees” anyway? Think of what it will do for your startup company culture! Think teamwork, focus, and commitment. Think of how it will reduce your need to supervise and micro-manage your people, allowing you the time and attention to focus on more pressing matters. We like to say, “In a startup there is no room for passengers. If you’re not steering, rowing, or bailing, you are swimming because you are no longer on board!”

Who We Are

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

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Base Compensation on Sales, Growth, and Profitability

Michael Houlihan & Bonnie Harvey — Thu, 24 Mar 2016 17:00:21 +0000

Brian Tracy once said that most employee behavioral problems are caused by compensation systems. In short, you get what you pay for. Nowhere is this more critical than in how you compensate your sales team. For years we paid our salespeople a commission based on sales alone. Much later we realized that our compensation plan was incomplete. We had to find a way to also reward for growth and profits!

Growth is the key to survival for any new startup. But be careful. Your sales team will do exactly what you pay them to do! If you pay by the hour, then you are giving them the message that you pay for attendance. They will put in the time but not necessarily do the job you need them to do. The alternatives require some serious thought: If you pay a guaranteed flat rate plus commission, how big is the guarantee? What is the commission based on? And what are the levels and how are they set? Can these levels be achieved at any cost, because if they can, your sales team will spend as much as necessary to make sales, thereby reducing your overall profitability.

So you need a system that rewards for sales, growth and profitability.

This may sound simple, but it’s not. Your salespeople must be provided with last year’s sales figures. They have to be aware of the cost of sales. And they should understand the cost of goods of each of the products your company sells. Although they have no control over the cost of goods, they can increase profitability by offering discounts on products that have a lower cost of goods, rather than discount products that have a higher cost of goods.

We built our system over a period of years of trial and error. First, all sides had to agree on the term, what was being measured, when, and why. We started by providing a small base salary that would basically cover their bills.

Every territory was different and had to be treated differently when analyzing sales. In each, we used the sales for each month last year and the cost of those sales per case. That became our baseline to compare to this month’s sales figures. We then determined profitability per case in that territory.

But some argued it wasn’t fair because of special market dynamics that created one-time anomalies. So we calculated a 3-month average, using the previous month, the same month, plus the following month of the previous year. This became our new baseline for sales this month this year.

Now we needed a plan that would reward for growth, which was sales greater than the baseline. We paid commission on each case sold that exceeded last year’s 3-month baseline.

Then, if in any given month, sales exceeded the baseline by a pre-agreed upon amount, say 25%, the commission would double on all cases back to the baseline. And if sales exceeded the baseline by 50%, all cases over the baseline were worth 3 times as much in commissions.

So the same case could be worth one, two, or three times the commission if the salesperson hit the various plateaus. Our salespeople naturally would push for the next highest plateau every month!

We also kept a close eye on their cost of sales and would reward them for savings in this area, or penalize them for increased costs. This kept them mindful of the costs and use of marketing materials, sales trips, distributors’ incentives and other costs required to make sales. Our sales staff became very resourceful and frugal!

Finally we were paying for sales, growth and profitability. Within two years of implementing this plan, we became one of the fastest growing wine brands in the country. It was well worth the effort! Now, with the proper compensation plan in effect, you too can watch your sales, growth, and profitability soar!

Who We Are

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

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Busy is Not Necessarily Productive

Michael Houlihan & Bonnie Harvey — Thu, 29 Oct 2015 17:12:46 +0000

Are you paying people to stay busy or are you paying them to be productive? Having a great deal to do or keeping occupied is no measure of productivity. If you pay employees no matter whether the company succeeds or fails, folks will actually look for ways to appear occupied. This makes them feel comfortable that they have filled up their time. But are they making a contribution? Or are they just being busy?

We think this happens because it is allowed to happen. The way these folks have been oriented during the training process, the way they are paid, and the level of their knowledge of the company’s sales, growth, and profitability can make all the difference. With the right preparation, incentive, and visibility, employees will know how to set their priorities so they’re not just busy, they’re productive!

Orientation. This is not something that has to do with the coffee room, the bathroom, or the forms. It has to do with where the money for the company that pays their salary, bonus, and benefits actually comes from. It has to do with how their job impacts that process. It has to do with really breaking it down graphically so there are no misunderstandings about who the real customers are, what they expect, and why they continue to pay good money for the goods and services the company provides.

We developed a “Money Map” to make this clear to all new hires. Not too different from a treasure map, it showed our people how the money travelled to them, who were involved at each level, and what they wanted. This kind of orientation is not a one-shot deal. It should be revised and repeated annually to keep people focused on the real priorities which change as the company strives to remain relevant and advance in the marketplace.

Compensation. We believe at least some part of an employee’s salary should be based on the performance of the company. Sure you can get granular and bonus on specific production, but in order to build team peer pressure and cooperation, you must focused their attention on the customer. And that goes for everybody in the company.

Since most people are coin operated (respond to monetary incentives), a quarterly 401K matching contribution gets the attention of your staff. Base it on agreed upon metrics of sales, growth and profitability. Since the employer’s matching contribution is voluntary, you have the ability to send a powerful message to your people every quarter. This works better than annual bonuses because the one year time period is simply too long and allows your employees to give up if the first quarter is poor, or lay back if the bonus number is met mid-year.

Visibility. If you have their attention with a well-thought-out performance bonus, they will be very interested in how the company is doing simply because it now reflects in their paycheck. So share with them your monthly reports, identify key challenges and focus on priorities during regular monthly meetings. This will help them zero in on the tasks that really make a difference to the bottom line. It will give them the perspective to understand what they can do to improve the picture.

By practicing what we called “Know-the-Need’ rather than “Need-to-Know,” we got great ideas from our people on a regular basis that solved problems in production, quality control, and marketing. We were able to cut costs and increase profitability because they knew what was needed, they knew we would listen, and they were members of a team interested in achieving quarterly bonuses. Suddenly they were focused on being productive and not merely busy!

Who We Are

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

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World’s Greatest Sales Pitch: I Can Help You Sell Your Product!

Michael Houlihan & Bonnie Harvey — Thu, 19 Mar 2015 17:00:26 +0000

Everything is dependent on sales. There is no better justification for salaries, offices, production facilities, or even products. With enough investment capital you can have all those things, but they are unsustainable without sales. Our modern business culture has gotten so carried away with funding as the source of all cash that we have forgotten that sales ultimately makes the wheels go ‘round. When businesses use up their investment dollars in research, administration and facilities, they have to go back for more – or close the door.

That’s why we put such emphasis on sales. In 2015 there are still very few secondary schools of entrepreneurship that actually teach sales. They teach sales management, how to add up the numbers and write reports, but not nitty-gritty sales. They teach the “sales funnel” and the elevator pitch, but not sales as we know it. For us, sales is the ability to get a prospect to buy your goods and services time and again, and remain loyal.

Entrepreneurial success is not about getting funded. You can easily burn through those funds without sales. It’s not about launching your business either. Every ship that sinks was first launched. It is not about offices, production, or even a disruptive world-changing idea. For us, true entrepreneurial success is still being in business three years later. And even better, having sold your enterprise at a huge profit. You can only get there through sales. So let’s focus on sales first.

We are frequently asked, “What is the world’s greatest sales pitch?” We think it’s, “I can help you sell your product!” Why? Because it compels the prospect to answer, “How?” This is a buying signal. He has given you the floor. You have said something he wants to hear. So now you have to answer the question. How can you help him sell his product?

Well, first of all, you had better know what his product is. This mean you have done a lot of research, questioning, listening and observing. It also means that you know to whom you are selling and what is important to them. Each person who touches your product must be sold, and what each of them wants is not the same as what your eventual downstream consuming customer wants. Not by a long shot!

If you are selling to your wholesale distributors, jobbers, or middlemen, their product is strategic importance to retailers or other distributors. Perhaps you presold a big retailer they supply and your product strengthens their strategic importance. Perhaps your product rounds out or distinguishes their portfolio.

If you are trying to sell your retailers, their product is retail goods on precious shelf space that must turn quickly. Perhaps your product has a reputation for fast turn and profitability. Your sales pitch might be that your marketing materials help them decorate their retail business to celebrate seasonal events to attract more shoppers.

We are also often asked, “Who is the world’s best sales person?” We always answer, “The assistant buyer.” Why? Because when your prospect sees you as having their best interests at heart, they will trust you and hand you the keys to their warehouse. They are relieved that they don’t have to worry about being out of product any more. They don’t have to worry about your motives any more. Now they rely on you and will ask you what they should buy.

We have seen many successful entrepreneurs over the years. What they all had in common was their ability to help sell their customers’ products and be their “assistant buyer.”

Who We Are

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

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A Wish for the New Year: Let’s Have More “B” Corporations

Michael Houlihan & Bonnie Harvey — Sat, 04 Jan 2014 18:46:43 +0000

As we make our wishes, resolutions and plans, we would like to suggest that we see more “B” Corporations in the New Year ahead. “B” stands for “benefit,” and this new type of corporation distinguish itself from the traditional “S” and “C” Corps because B Corps are not only for profit, but also for the public benefit.

B Corps are typically defined as “people using business as a source for good,” and are certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. They have a much wider fiduciary responsibility that includes a responsibility to their employees, the community, and the environment as well as to their shareholders.

Is it Socialism or is it smart 21^st century capitalism? Here are three good reasons for electing to create a B Corp:

1. Transparency. Today’s information revolution has created a demand for transparency. Consumer’s now know that they are voting with their money and consequently for the policies and behavior of the companies whose products they purchase. Companies that hurt the general welfare are being exposed daily, whether it’s for poor treatment of employees, disregard for the community, or environmental damage.

2. Engagement. Employees want to work for companies that stand for more than their mercantile products and services. They want to know that they are participating in a company that is making the world a better place. They want to “brag” about their employer’s higher standards to their family, friends, and followers in social media.

3. Investment. Investors increasingly are looking for companies that will make a difference while returning a profit. Investors realize that companies that have reduced turnover and engaged employees will be more profitable, and that companies that give their customers a social reason to buy their products will have greater customer loyalty.

As more B corps demonstrate profitability, sustainability, and popularity, the old paradigm that “good deeds only come at the expense of profits” is slowly but surely coming to an end.

Maryland was the first state in the country to authorize the creation of B corps. Since then, California, New Jersey, New York, Vermont, Virginia, and even “corporate haven” Delaware have joined the movement. Why? Because it’s (finally) just plain good business.

When we started Barefoot Wines in 1986, there were no B Corps, and there was no such term as Social Entrepreneurship. But as cash-strapped outsiders, we stumbled onto a way of getting the word out on our brand without paid advertising. We called it “Worthy Cause Marketing,” and years later when we finally could afford to advertise, we chose to continue our support of non-profits as our sole means of spreading the word about our product.

Not unlike today’s definition of Social Entrepreneurship, we supported social and environmental causes that were important to us and to our customers. The membership of the non-profits we supported had a social reason to buy our products. Our employees were engaged because they knew they were making the world a better place. The success of Barefoot Wine is proof positive that social entrepreneurship works!

Today’s new B Corporation is an excellent way for companies to tell the world, including their investors, employees and customers, that they are making a difference. We would like to see more states pass legislation this year to enable this new corporate structure of social entrepreneurship. We hope more companies and start-ups will elect to become B Corporations in the New Year, making it a happier New Year for all!

Who We Are

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

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Customer Service Trumps Price

Michael Houlihan & Bonnie Harvey — Sat, 04 May 2013 21:24:02 +0000

Brian Tracy, our mentor and author of more than 60 books on business and sales, says if you really want to be successful, ask yourself this question: “How can I increase my service to my customer today?” We couldn’t agree more.

Getting to know your customer is the first step in increasing customer service. What is your customer’s business and needs? How can you deliver your product or service in a way that will remove anxiety, improve confidence, and reduce her need for oversight? How can you best deliver your product to reduce her price, turnaround, and balance her inventory? How can you improve your customer’s business with seasonal themes, colorful displays, and community outreach to bring in customers for her business? How can you improve the way your people treat her throughout the total experience of being your customer? All these questions are part of the answer, but from our experience, improvement in customer service is built on “personalized attention.”

Sure, Customer Service is a department most businesses have, especially as they grow larger. Unfortunately, too many businesses think that establishing a department for customer service “issues” relieves them of the responsibility to provide personalized attention in other areas. They may even make the second mistake of thinking that the Customer Service Department is just for complaint resolution and miss out on the tremendous amount of suggestions for product and service improvements coming from their own customers.

But let’s look at the bigger picture. Customer service should stem from the very core of your business to the outer reaches of every customer contact and experience.

This requires that everyone, from your receptionist to your office people, from your sales people to your delivery people, and from your service people to your cashiers, knows where the money that pays their paycheck really comes from – your customer! They need to know that when customers are offered similar products or even slightly more expensive ones, they will consistently choose the one that provides the best customer service.

Getting that message across to your people is easier when they see that any interaction they may have with your customer requires some form of personalized attention. This means acknowledging your customer’s presence, making eye contact, addressing them by name, and conducting business in a helpful, friendly and personable manner. If your people take your customers for granted, they’re just not getting paid properly. To clarify this point, at least some portion of their compensation must be based on growth, profitability and customer loyalty. This does not just apply to your sales people, but everyone who deals with your customer at any level.

When your people realize the connection between good customer service, personalized attention, and their paycheck, your business will benefit. Customers will generally choose the business that treats them like an individual and shows them some empathy for their circumstances, even if it costs them a little more.

Give your people the financial connection they need to look for ways to provide personalized attention and increase your service to your customer every day. The ultimate success of your business depends on it!

Who We Are

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

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Grow Your Business Faster by Sharing the Wealth

Michael Houlihan & Bonnie Harvey — Fri, 18 May 2012 03:19:46 +0000

Henry Ford used to say he’d rather have 1% of what a hundred others made working for him, than 100% of what he made by himself. Some business owners want to have it all, but in the process, cut off the very folks they need to get what they want.

Our business colleagues have chastised us for “overpaying” our sales people. They’d say, “Aren’t you afraid they will make more than you?” Actually, we had several sales people who made more than we did.

When we looked at the efficiencies of scale, the value of stability, and the increase in sales, we knew we were doing the right thing. So, why should you apply this winning philosophy to your business?

1. Reduce Your Turnover. Turnover is the largest hidden cost in business. It can take up to six months to find and train a new person. There is no guarantee that this new person will work out, either. You may have to start all over again with someone new. This can go on for quite a while until you get the right person.

Now you have someone who will be under-producing until he or she is fully trained. You also lose the time of the new hire’s trainer, who now has two jobs to do. Both jobs suffer. And the relationships built by the person who left could either be dropped or taken away by the departing employee. These must be re-built.

Remember, top performers who get a “piece of the action” are generally loyal and truly concerned about the welfare of your business.

2. Attract the Go-Getters. People who know they are excellent at their jobs want to work for a company that compensates them based on their performance. People who are less productive can’t afford to work for a company that has performance-based compensation plans.

When your job candidates ask where your profit centers are and how that flows into their paychecks, you should realize you are talking to a go-getter. Keep your performance metrics well thought out and achievable.

Rewarding for growth over same month last year is a good start. Averaging last year’s prior and subsequent months with the same month will smooth out most anomalies. Renegotiate profit-sharing bonuses annually.

3. It’s Free! If you know the profit of your business now, and you know your rate of growth for the past few years, any increase in that rate of growth attributable to your people’s performance is “found money.” When you cut an employee in for a piece of your increased profit, he is motivated to produce even more. It really costs you nothing. Just make sure the payment is tied into profitability, and not based solely on “growth.”

You are paying too much for labor when you pay for “attendance” alone. It’s their production you really want, because that is where your profits come from.

Why settle for 100% of a smaller pie when you can have more pie by taking a smaller piece of the larger pie others helped you get. When it comes to growing your business fast, it pays to share the wealth.

Who We Are

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

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