Michael & Bonnie contributed to an article written by Rombus Packaging Limited on the latest trends in retail packaging. To read the article, please visit Rombus Packaging Limited 

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 Branding Experts Reveal The Latest Trends in Retail Packaging appeared first on The Barefoot Spirit.

You’re starting to get bored with the same old stuff that you get in your food box every week. There’s nothing new in there and since you’ve stopped shopping at your grocery store you’re no longer exposed to new branded products. It’s too much trouble to even change your order now because you wouldn’t know how to change it anyway. And so, you resign yourself to getting more of the same. You’ve sacrificed variety for convenience.

Sound a little far-fetched? It’s not as far away as you think. As more and more grocery stores promise speedy home delivery to save you the trip to the store, your choices are being reduced by the very technology that enables the ordering process. One of the ways this technology is dumbing down your shopping experience is with the assumption that you’ve already chosen the brands you like, and, unspoken but implied, that you will never change! This is especially true once you start reordering your “same as last time” purchases.

Sure, online grocery shopping will certainly attempt to account for this in a very profitable way. They will charge producers for pop-up ads that target the types of previous purchases you’ve made. They will also tell you what other products were purchased by people who have bought similar branded products. But in order to see these pop-ups you must be on their site every week. Not very likely.

What will happen in fact is that many people will not even go back to the site once they’ve set up their initial order. They will simply give the store permission to deliver the same order with the same brands as last time. But viewing the store visit as strictly an act of replenishment, collection, or delivery to replace your larder is forgetting something very important. Discovery! Not to mention, Entertainment!

When you go into a physical store you enjoy what some psychologists call “retail therapy.” The act of setting time aside, making yourself presentable, changing your scenery by physically going to a store, interacting with other people in real time, asking for and receiving suggestions, being exposed to a variety of choices in every category, and stumbling upon that new, impulse, notion buy, all add to revitalization and discovery.

Stumbling upon that new, impulse, notion buy doesn’t really happen online. So the last brand choices you made before you started getting your “regular reorders” are generally the ones you’re stuck with.

And what about new CPG brand producers? Their challenge of building a new CPG brand just got a whole lot tougher! With Walmart adding to the ever-growing list of retail grocery stores offering online delivery, impulse buys are going to become a thing of the past. The growth of online ordering with home delivery will inadvertently create repeat customers who want “more of the same!”

The brands that are already established will benefit greatly from this change because it’s too disconcerting to shop for new brands in the first place. There’s always the anxiety that the new brand you choose will not perform as expected. There’s always the worry that you will have to choose yet another new brand, and another and another until you find a satisfactory replacement. This is hard enough to do with the store visit. Imagine how hard it’s going to be without tactile comparison and displays of new brands that you stumble upon when in a physical store. May as well stick with the old brand even if it’s not performing…

Once again, we see technology that’s being sold to us as improving our efficiency really just dumbing us down to the point where we are willing to accept less choices. To save a little time, will we give up discovery? Will we let the improvement in our food brand choices end with the last trip we made to the grocery store right before we started re-ordering the “same as last time?” Sounds pretty boring, doesn’t 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.

The post Are We Sacrificing Choices Just to Save a Little Time? appeared first on The Barefoot Spirit.

There are several other ways to raise capital for your business, but they all require that dirty word that everyone seems to shun, “Sales!” Yes, sales. We found it down right shocking that out of 40 schools of entrepreneurship where we have spoken over the past three years, only one taught sales. Real sales! Not sales management, not sales projections, not marketing, but real sales, from “Get out of my office!” to “I’ll take two truckloads!” And that only happened because one of the entrepreneurial benefactors of that school said, “Hey, why don’t you guys teach sales?”

When you think of sales as a pitch to an investor, you are starting off on the wrong foot. You might start using terms like “burn rate,” as in how fast you burn through cash without income (from sales) to offset it. You might even get the idea that you have “succeeded” because you got an investor when in fact you may be a long way from a positive cash flow.

Before the investment, you couldn’t lose. Now you can lose the investor’s money. Now you can go back and ask for more because, you may think, if the investor’s in for a dime, he’s in for a dollar. But even if you do get more funding, it comes with a price. You lose more and more of your company until you are working for the VC – who now wants to sell the company the first time he thinks he can get his money back. So much for growth!

We all see so many crowd-funded ideas that never see the light of the retail marketplace. How can this keep happening? Lack of sales before their crowd-funded investment is depleted by extensive R&D and operating costs – that’s how!

So that’s why we advise our clients to get a good sales education first, before trying anything entrepreneurial. The liberal arts are a good place to start. You know, communication, history, culture, psychology, and philosophy to name a few. The human, or soft, skills along with actual sales training can make a positive difference in your business, especially in the early stages.

We also advise our clients to start small and focus on a small area. Limit your number of offerings until you have achieved positive cash flow. Find out what quirks and service requirements lie in a small market so you can take your well-rehearsed show on the road. Make sales your top priority.

If you do, you may qualify for a line of credit from your local banker. Without taking any percentage of ownership, your bank can set up a “revolving charge” so to speak, where your accounts receivable, purchase orders, and inventory are held as temporary collateral to advance funds you can use to pay your bills and grow your business. But it all starts with sales.

Sure, they’ll probably want a “warehouseman’s lien” on your inventory that gives them first dibs if you go south. They’ll want to set up a separate account to collect your receivables. But that can be done on a zero-balance, sweep basis where you only pay for what you need. And isn’t that better than giving up the ownership of your company?

Make sales. Get a “Line.” Save your ownership. Pay your bills. And grow 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 Lines of Credit Can Help Startups Retain Their Ownership appeared first on The Barefoot Spirit.

What most selling seasons have in common is that they begin right after the last 3-day bank holiday weekend and run through the next 3-day bank holiday weekend. During that period most retailers and smart producers are putting out signs, decorations, and trade dress on their consumer products in an effort to take advantage of the seasonal theme. In most cases, every seasonal selling promotion has to be scheduled substantially in advance to reserve display space, ad space and special pricing.

Let’s examine these selling seasons (theme-promotional periods) and the opportunities they present for producers to help their retailers decorate, celebrate, and move product:

1. The Martin Luther King 3-day Weekend – the 3rd Monday in January celebrating the great civil rights leader. The selling seasons begins on January 2^nd. It’s relatively short but this is the time when retailers try to sell off any unsold inventory they bought for the Christmas – New Year’s selling season. Expect big sales and volume discounts during this selling period, making it difficult to sell in when retailers want to reduce inventory. It’s a great time for snow sports and winter recreation, however.
2. The Valentine’s Day- President’s Day Weekend – the 3^rd Monday in February and because Valentine’s Day (February 14^th) falls so close, we end up celebrating our two greatest presidents and romance around the same time. Super Bowl Sunday also occurs during this period. The period starts the day after MLK Day and is a month-long selling season. You guessed it, a perfect time for all thing romantic – flowers, chocolate, wine, pajamas, travel, restaurants – you get the picture. How can you make your product romantic?
3. St Patrick’s Day – Easter. Although neither is a bank holiday, Good Friday is generally observed as a day off making Easter a 3-day weekend. Some years when Easter falls early, it’s very close to St Patrick’s Day which can combine the two into one selling season. When Easter falls late we can have an up to three-week Easter selling season. You get the idea, shamrocks, eggs, bunny’s and new items.
4. Memorial Day – in honor of our military service people, the last Monday in May. It is also considered by many as the “official” first day of summer, with picnics and barbeques, outdoor activities, and vacation time. Discover how your product can fit in. This is a two-month selling season starting the day after Easter. The only big selling day in between is Mother’s day, the second Sunday in May, which obviously has its own theme.
5. Independence Day. Depending on how close it comes to a weekend, it can be a 3 or 4 day weekend. Get out the red, white and blue! The Independence Day selling seasons starts the day after Memorial Day and continues with the summer vacation and recreational theme for over a month. The only other big selling day is Father’s Day, the 3^rd Sunday in June.

Next time we will examine the last 4 selling seasons of the year and their commercial implications. But knowing what’s coming and how you can lever each one gives you a real advantage, if you sell with the seasons!

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 The 9 Selling Seasons: Seasonal Selling Can Get You More Sales appeared first on The Barefoot Spirit.

Halloween has different meanings in different cultures. In ours, it’s all about trick or treat with witches and goblins, but our amigos in the Latin countries have a more significant approach to this auspicious holiday. They set a place at dinner to honor their dearly departed. With that in mind, we would like to remember two people who were instrumental in our success with Barefoot Wine.

Steve Rinetti was on in years when we hired him shortly after we started Barefoot Cellars. Back then, we really didn’t know anything about chain stores. Terms like category management, on deal, scan data, and set position meant little to us. But if we intended to sell America’s personal house wine, we had to find out – and fast!

Steve may have been “long in the tooth,” but he had over 30 years of management experience in the chain store wine industry. He provided us with insight, advice and direction that would have taken us years to gain on our own. Steve was a gentle spirit who sincerely appreciated this inexperienced wine business couple who had respect for his experience and gave him the opportunity to make good use of it.

Steve worked long hours and used all his connections to help us get into the chains. Thanks to him, we created our packaging, signage, and pricing to work efficiently with the chain store system. We eventually became experts at category management and other aspects of a brand’s success. Thanks, Steve! We miss you!

Don Brown had a different style altogether, but was just as much of a positive influence on Barefoot. He had an acrid manner that made some salespeople shake in their boots. He was the buyer for one of the top chain stores in northern California. After waiting hours to see him, he would hustle you in and out of his office in minutes. He was demanding and blunt. But Don was one of our mentors.

Before the first wine was in the bottle, we went to Don for advice. He told us the requirements for any new wine brand in about 30 seconds and then, citing his busy schedule, abruptly asked us to leave. But his suggestions helped make Barefoot wine a success.

When we went back to him with the finished product and asked for the order, he said he couldn’t put anything in that no one ever heard of. If we wanted to put a million bucks into advertising and make it a household word, then he’d consider it. Or, he said, we had to go out and sell it to every independent and get a reputation. Then, he might consider it. Then he showed us the door.

In the next two years, we discovered Worthy Cause Marketing and used that instead of paid advertising to get the word out. And, we sold it store by store for two years and began to make some headway. Eventually, Don put it in. He was rough around the edges, but he always did what he said he would do. We miss you, Don.

So who’s made a difference in your business that’s no longer with us? Give them some appreciation and honor them by setting a place for them this Halloween.

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 Halloween is More Than Trick or Treat appeared first on The Barefoot Spirit.

There are many books written on the subject of sales, sale techniques, and best closing strategies. We’ve often said the best sales person is the “Assistant Buyer”. The key to sales success is simply to sincerely have the buyer’s best interest at heart.

When you produce a product that goes through distribution channels, or when you offer a service business to business, the funds your buyer has to buy from you came from the sale of their product or service. If you are selling direct to the consumer, you still have to recognize that they have to work for the income, one way or another, that enables them to buy your product.

Everybody who sells products or services wants to sell more. The ultimate question from your prospect is: “How does your product or service help me sell my product or service?” or “How can you help me make more money?” That’s why positioning your sales pitch as enhancing theirs is so effective.

Here are some ways your product or service can help your customer’s bottom line:

1. Reduce his overhead cost per unit sold. He has to pay rent, lights, power, insurance, staff, cleaning, etc., whether he sells your product quickly or slowly. If it’s a fast seller, his cost per sale is reduced. He improves his ROI on his capital investment, maintenance, advertising, and staffing.

2. Increase his profits with lower acquisition costs and, consequently, higher profit margins on your product. Give him a volume purchase program that enables a lower retail price and increased volume resulting in higher profits per month.

3. Make his retail environment more attractive with seasonal point of sale materials and promotional programs geared to the theme of the given holiday. Make your displays festive decorations to his retail space.

4. Increase his business with local promotions and support for neighborhood causes. Use Worthy Cause Marketing to bring in customers who have a social reason to buy your product. Let the membership of the non-profit you support know where your product is for sale in his neighborhood.

5. Sell him a product or service that makes him more attractive and more competitive to his clients or retail customers. Give him the best price in your category, or an area-wide exclusive for an introductory period.

6. Add value to his total sales package. Is there something you can sell him that makes what he’s selling more valuable, adds an extra feature or delivers another benefit – like a guarantee, excellent customer service or loyalty program? Does your product give him “green” bragging rights?

7. Improve his personnel’s efficiency by providing training, benefits or tools his staff can use to increase his sales. Help him find and keep good people.

These are just a few examples of how you can help your buyer increase profits and do his job more efficiently. When you focus on what your buyer is trying to do, you can quickly get a clue as to what you can do to help him increase his sales. Adding value to his sales efforts with your product allows him to say to his customers, “But wait, there’s more!”

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 World’s Best Sale Pitch: “My Product will help you Increase Sales” appeared first on The Barefoot Spirit.

Every successful business learns eventually that there are a whole lot of folks between them and their end-user. Each one wants to hear a different message for a different reason. Sometimes we get so excited about our new idea and how well it will go over with the general public that we forget how essential it is to get it to them. Focusing on the benefits to your end-user is fundamental, but don’t forget all the other folks in between and what each of them wants to hear.

“What’s in it for me?” is the question they all want you to address.  It may surprise you that it has little to do with those end-user benefits you are so excited about. Research, experience, questioning and listening can tell you what they want to hear.

Your own staff may want to hear how they will share in your success. They may want to hear about the incentive programs, benefits, working conditions, days off, and advancement opportunities. They may also want to hear how your idea will make the world a better place. They want to hear about your previous successes and your ability to weather a storm.

All your middle men want know how your product improves their strategic position versus their competition, how you are going to help them sell it, how they can get it for less, and how much you have budgeted for marketing. They want to know who will buy it and why.

If you depend on retailers, they will want to hear how your product fits into their existing categories, what kind of point-of-sale promotional materials you have, and what kind of a warranty you provide. They want to know that you have a representative in their area. They also want to hear how you will send customers to them to buy your product.

Your idea may be a game changer, but are they ready to play a new game? Sometimes pioneering a new concept can take years to catch on. Your initial buyers may buy for reasons you never dreamed of. If you are changing the world, get ready for some missionary work and some unlikely initial customers. Be ready to change your message to stay relevant with the market as it is now and as it changes.

Does your product weigh a lot or is it inexpensive? That’s all the more reason to be ready with multiple messages. Internet product sales, with the exception of downloads, require shipping whether or not it’s included in the price. Somebody pays for it. Most heavy or inexpensive items can’t compete with conventional brick and mortar store pricing because of shipping costs. If that sounds like your product, you likely will want to go through the general retail market. Identify what each person between you and your end-user wants to hear, and give them what they want.

Don’t just make a statement, make a deposit!

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 Tailor Your Message to What Your Audience Wants to Hear appeared first on The Barefoot Spirit.

The shotgun approach may get you more distribution in the beginning, but, due to complications and idiosyncrasies in the distribution system, or due to you own underestimations of labor and oversight, your product can be easily discontinued in several parts of the larger market. This will give your product a stigma with new buyers that is almost impossible to live down. Even if you are lucky, it may take years to get back in.

It’s better not to be there yet, than to be there and fail. So how can you approach the roll out of your new product when you are a small, undercapitalized start-up?

1. Be humble. Don’t assume anything. Remember that yours is just one of the thousands of products in the system. Regardless of how good it is, or how well it’s priced, it can be lost in the shuffle, ignored by the buyers, or squashed by the competition. It’s OK not to know it all.
2. Start Small. Give yourself a sales area you can easily monitor and control. You will probably find that you need to get to every retailer on a regular basis. You will be surprised at what you have to do to keep your product on the shelf.
3. Start Slow. Do a test market to get a feel for the distribution realities. Out of Stock is the number one cause of failure for new products. The faster it sells, the more you can run out and lose your precious shelf space.
4. Take notes. Start a journal that can be converted to policies and procedures, check lists and sign-off sheets for later when you expand. Don’t just fix the problem. Write it down so it won’t happen again and develop your training manual.
5. Don’t believe everything you hear. “It just didn’t sell, you should lower the price, and send more sales materials” are the common excuses you will hear. Many times it turns out to be that it just wasn’t on the shelf at all! It never had a chance.
6. Do the other guy’s job. Don’t say, “I thought they were supposed to take care of that.” Your goal is sales, not blame. At first you may have to make all the sales yourself and get most of the reorders as well. You have to be there to do that.
7. Build a Hot Seller reputation. It’s OK not to be everywhere as long as where your product is, be it ever so small a market, it is on fire! The leg work you put into your first small markets will give you bragging rights in the next one.

Each market is different with its own peculiarities, but all markets require vigilance that requires more manpower than your small start-up can field. You may underestimate what it really takes. Brands don’t just take off. They get pushed and pulled through a complex distribution system.

Some brands are mediocre, but readily available on every shelf in America. It’s because they have excellent distribution and the merchandising forces to keep their products there. There are many wonderful, imaginative products that expand too quickly and get discontinued. They got the reputation, “they just didn’t sell.”

They can’t sell if they’re no longer on the shelf. They can’t be discontinued if they were never there. So make every small step a winner.

The big boys are looking for proven products to acquire. Proven doesn’t necessarily mean national. With even small market penetration, with repeat and loyal buyers, you can become an acquisition target, but only if you have not been DC’d. The big guy wants to expand your success with massive market penetration because he can. In fact, he views your product as more desirable when it is brilliantly executed, and there is still lots of room for him to capitalize on a proven formula.

Avoid the urge to expand too rapidly, and remember it’s easier to give birth than to raise the dead.

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 Improve Your Chances of Success by Starting Small and Carefully appeared first on The Barefoot Spirit.

Small start-ups face a myriad of challenges. They are undercapitalized, unproven and have no market traction. They are up against the status quo that will use its established power and influence in the marketplace to suppress any new challengers. Buyers are reticent to take a risk on anything new or unproven.

The big boys have might and muscle, but there are still several advantages the little guys have that can move them ahead:

6. Being New. The small start-up has not yet established its direction and can turn on a dime. This advantage affects everything from plans to budgets, from design to being responsive to consumer feedback.  Flexibility is a big advantage when it comes to satisfying your customer and improving your product. The big corps are well established with set ways of doing things that can bog them down.

7. Closer to the Ground. If you are the little guy, survival is dependent on having your ear to the ground and in most cases, your feet as well. Starting out requires a lot of hand-selling and “missionary” work. You are painfully aware of what needs to be done in the market place. Because it’s your company, you deal with your customers up close and personal on a daily basis. You can’t afford to be isolated and insulated. You don’t have MBAs and focus groups to rely on. You rely on yourself.

8. Faster Communication. Information can cross departmental lines easily in a small start-up. For one thing, there are fewer departments. For another, staying in business is more important than “going through channels,” which can be a maze of department heads, divisions, silos, and, if you’re lucky, ending with the intended recipient. The big company keeps order by installing informational gatekeepers. They can stop, change, or delay a critical message based on their perception of priorities, and, too often, job security.

9. Out-of-the-Box Thinking. Because the small companies are usually under financed, they are always scrambling for inexpensive and effective ideas to stay in business. This apparent financial hardship forces you to discover and employ unorthodox ideas, strategies, and tactics that the big guys wouldn’t dream of. They don’t have to. In a small company, cost-saving ideas, customer retention, and marketing concepts can come from anywhere. The big guys tend to want ideas to originate from their proper divisions, which can miss or kill some gems in an effort to defend precious turf.

10. Better Risk Tolerance. Just starting something new is a big risk, and most start-ups don’t make it. Because they are desperate to survive and have less at stake, they are more risk tolerant than the established companies. Small companies tend to tell their legal advisors what they want to do, then ask how to do it. The big guys are more risk adverse and tend to be guided by their legal advisors. Risk adversity can blind companies to new, unproven concepts.

So when you feel overwhelmed by big, established competition, remember that your flexibility and freshness can help you survive. The benefits of being a start-up give you the flexibility to grow and ultimately improve not only your own company, but also your industry.

Next time we will see how being an outsider, with enhanced concepts and simplified processes can have an advantage over an insider with simplified concepts and complicated processes.

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 The Advantages of Being a Small Start-Up – Part 2 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.