relationship | The Barefoot Spirit

Maximize Communications Technology to Avoid Misunderstandings

Michael Houlihan & Bonnie Harvey — Thu, 15 Jun 2017 17:00:02 +0000

Today we have many methods of communications. But which ones are the most appropriate for what kinds of communication? When should we use in-person, video conferencing, phone, email, or text? Some folks favor one form over another, but each has its place and should be used accordingly. Here is our short list for communications etiquette.

In-Person: This is still, by far, the most effective way to establish a relationship. You have a chance to read body language and so do they. You demonstrate your undivided attention by your presence. The time you have taken to physically be there also adds to your credibility. In-person is best for first meetings and important negotiations. It’s also a great way to diffuse any misunderstanding.
Video Conferencing: If you can’t meet in person, video conferencing is the way to go. It’s live, it’s real-time and it has many of the advantages of an in-person meeting. You can read the other person’s facial expressions to see if they get it, or if they have issues, you can address you can address them on the spot. Many misunderstandings are avoided by face-to-face conversation. We like to set up a video conference with anyone we are considering doing business with. It breaks the ice and they can see that we are real human beings, same as they are.
Phone: We have a client who is in the relationship sales business who says, “We have mastered an ancient form of communication: the telephone!” Before you laugh too hard, he has determined that phone sales are 108 times more effective than email sales. Why? Because you can hear the tone of the other person’s voice and make changes on the fly. You can give explanations quickly that would take mountains of back and forth emails. And your sincerity can be heard in your voice.
Email: We believe the best use of email is to document or flesh out agreements made in real-time. We send an email on the heels of a real-time meeting that basically says, “These are the understandings we have as a result of our meeting today. Please let us know before 5pm if we have anything incorrect. Otherwise we will proceed based on these understandings.” Email is a great way to memorialize conversations, but as a sales tool it is grossly abused, overused, and opened less and less. When it comes to requests, we like to ask for only one thing per email. If you ask for a list of things, the other person will generally only respond to the last thing on your list, causing you to go back and ask for all the others to be answered. Oh, and if you have a misunderstanding on email, pick up the phone and resolve it quickly. Don’t get into an email argument! And lastly, there are some things that should never be in email unless you want to live them down forever.
Text: This is a great way to coordinate meeting details with someone who is in the final legs of coming to visit. It’s also a great way to carry on a conversation with someone you are already familiar with and want to give them a chance to respond at their leisure (unlike the phone). Texts should be short and to the point – no more than three lines at a time. Make sure ahead of time that the other person agrees to being texted so they will keep their phone on.

All of these methods of communication have their place, advantages, and disadvantages. When you use them correctly you will have less misunderstandings and more improved relationships.

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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Successful Entrepreneurs Must Constantly Sell to Each Business Relationship

Michael Houlihan & Bonnie Harvey — Thu, 14 Apr 2016 17:00:44 +0000

Most agree that selling products and services are at the core of any successful business. Without sales there is simply no money to pay the bills and the business fails. But there are other, less obvious types of “sales” that are just as essential to the success of your business. Without these sales, made regularly, your costs will increase dramatically. These are the “sales” you must make, not with your prospects, but with your support team.

Your support team includes your employees, your outsourced services, and your suppliers. Each one of these “sales” requires a different approach to fully engage them to do their best work for you, take on additional responsibilities, provide quality products and services, and extend your credit and terms. But they all have one thing in common. They must believe you have their best interests at heart before they will commit their time, energy, loyalty, products and services to you. But when they do, they can significantly reduce your costs, turnover, and need for capital, thereby dramatically increasing your chances of success.

Employees. Your employees are key to your success – if they really understand that you are offering them a career opportunity, security, a piece of the action, appreciation, guidance, respect, and time off. They must be clear on how their job, however removed, eventually affects sales, why it’s important, and how it fits into their careers. Show them that you have their best interests at heart so they will be more appreciative of performance based-compensation plans, bonuses, and increased decision-making power.

Outsourced Services. Show appreciation for your outsourced services by providing them with a clear message about your expectations. You can achieve this by having policies in place to constantly improve communication, being clear on requirements and deadlines, and sharing with them the reasons for your requirements. It also means that you give more praise than criticism, and your criticism is constructive. Show them that you are easy to work with. “What can we do on our end to help you be more effective” is a great “sales” pitch for these folks.

Suppliers. Show empathy for the risk they are taking with your new or growing company. Share with them your goals, challenges, and opportunities on a regular basis. This will alleviate some of their fears when they take a chance on you by extending credit and terms that enable you to grow. They worry that you may pay your bill late, or be a “beg pay.” Work out a long-term commitment so they know you won’t dump them for another supplier. They have to believe they can grow with you. It takes considerable seasoning over time to prove you have their best interests at heart.

Negotiating every business relationship is a sales process. You have to gain their trust and prove to them that you fit into their business and growth plan. You have to be aware of their fears and allay them. You do this by demonstrating over time that you will live up to their expectations, and that you are a true strategic partner, helping them achieve their goals.

The alternative to making these “sales” is to spend tons of money on turnover, lost corporate knowledge, high interest rates, short payment terms, and higher service and supply costs. This is money that startups can’t afford, and money that is better spent growing your business.

These types of sales to your support team are rarely taught in school and receive little focus in the entrepreneurial media. But when you demonstrate that you have your team’s best interests at heart, you spend less and monetize faster!

Who We Are

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

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5 Key Elements of Productive Business Relationships

Michael Houlihan & Bonnie Harvey — Thu, 08 Oct 2015 17:00:39 +0000

As you conduct your business, you will find a myriad of folks you will interact with, and their cooperation and support are crucial to your success. Simply having a killer product at an unbeatable price just isn’t good enough to guarantee success. You must gain the trust of everyone you do business with whether they are a buyer or a supplier. Here are some essential elements of business relationship building that worked for us:

Time: For years we called on a big buyer who never gave us an order. But when he finally did buy, he bought big! We asked why he hesitated, and he said he had to get to know us first. He said our persistence proved we were dependable! When we asked a supplier for a higher credit limit they initially said no. But after years of sharing our plans with them quarterly, generally making timely payments, and calling in advance when we were late with a plan to bring us up to date, they dramatically increased our credit. Time is the ingredient that turns an acquaintance into a trusting supplier or buyer who will work with you to help grow your business.

Integrity. Do what you say you are going to do. Show up when you say you are going to. Honor your pricing and delivery dates, even when it hurts. Be reliable. Remember, you are judged by your behavior and that behavior can make the difference between business as usual or a growing business. Your buyers and creditors want to trust you. They make money when you are dependable, so give them no reason to worry about your company. Eventually we had buyers who said, “Keep me in stock on your products and let me know when you want to promote them.” That relationship was built on integrity.

Empathy. Put yourself in your customers’ and suppliers’ shoes. Find out what is important to them. From your buyers, find out the products and suppliers they like and why, and the ones they don’t and why. From your suppliers, understand their concerns extending you credit. Have their interest at heart. Demonstrate this with suggestions, products, and the kind of dependability that puts their fears at ease. If you show that you are concerned about their needs, sooner or later you will find an opportunity to provide them with a solution that solves their concerns – and yours!

Resolution. When there’s a problem, solve it quickly and in a way that makes the offended party whole. Then show them how you will prevent the problem from reoccurring. Remember, you are judged more by what you do when you’re “bad” than what you do when you’re “good.” So go beyond just apologizing and “make it good.” Make up for the time and hassle you caused, even if it costs you to do so. That will impress them more than a hundred great performances where everything went smoothly.

Loyalty. Give special treatment to the buyers and suppliers who took a chance on you and your product. Think twice before making a move that may hurt anyone’s business with whom you have been working with for years. Remember, they helped you and were expecting to benefit by your growth and success. When suppliers and buyers help you get off the ground, look for a ways to keeps your relationship strong, and give them your loyalty.

Sure, there’s more but these are the deal breakers when they are missing, and they cement the relationship when they are followed. Building relationships is the most important part of successful business. Take the time and show them what you are made of. It doesn’t cost, it pays!

Who We Are

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

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