We advise our clients not to argue over pie in the sky until there are peas on the plate! Just achieving positive cash flow is such a challenge, all the proponents should be focusing on that first.

We have seen too many businesses fail to achieve positive cash flow, but boy did they have infrastructure. No positive cash flow but big overhead – staff, offices, an HR department, lots of people with lots of titles. Why? Because, they say, “That’s just how it’s done.” It isn’t, really! The way it’s “done” is to achieve positive cash flow first and then earn all the other corporate luxuries. You really can’t afford to load yourself up with tons of bricks, mortar, structure, administration, employees and employee benefits until your company is solvent.

The big advantage of focusing on cash flow as your first and only goal is that you will have a better chance of being around long enough to have the luxury of arguing about pie in the sky. By focusing on achieving positive cash flow in the beginning, everyone’s mindshare will be free of office politics, communication issues, and turf wars. Also, and probably most importantly, you won’t be using up precious startup capital on premature overhead.

We like to say, “The day after launch, it’s the cash flow report and not the business plan that runs the business.” Stick to the inglorious task of making sales happen – all of you. Everyone in the company must focus on sales, either making them or supporting them.

We actually blame this “pie in the sky” phenomenon on the funders as much as the proponents. The proponents may have gotten the idea that other things were more important than achieving cash flow from the movies, the entrepreneurial success stories, and the press.

That’s dangerous enough, but now add to that misconception VCs who should know better. Many seem to be overly impressed with the business plan, the structure, and administrative staff.  Maybe that is why so many VCs try to hedge their bet by investing in 14 or more businesses hoping one will ROI.

We think the ROI would be much better if everyone focused on sales. Then the VCs wouldn’t have to bet on so many startups hoping just one would succeed. More would!

Oh, and as far as the prelaunch, pie-in-the-sky infighting is concerned, a focus on sales would provide the sobering realization that the divvy may have to be based on commissions, and other costs of sales like programming, representation, and allowances just to get off the ground.

The idea that, “Oh well, if we don’t achieve positive cash flow, we’ll just ask for more money” is not only counterproductive, it encourages a negative and unproductive mindset. This kind of thinking diminishes the value of quick, sustained, and growing sales. It also gives a false sense of security in the short term, and winds up costing more of the proponents equity in the long run.

So let’s get some peas on the plate before we talk about divvying up the pie in the sky. Bon appetite!

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 Premature Infighting Over the Divvy Can Result in Nothing to Divvy 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.