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	<title>Start-up | The Barefoot Spirit</title>
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	<link>https://thebarefootspirit.com</link>
	<description>Founders of Barefoot, a Top Global Brand New York Times Bestselling Authors International Keynote Speakers, Entrepreneurial Coaches.</description>
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		<title>3 Ways to Get Your Vendors to Reduce Your Need for Cash</title>
		<link>https://thebarefootspirit.com/3-ways-to-get-your-vendors-to-reduce-your-need-for-cash-2/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Wed, 05 Sep 2018 23:05:22 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[Contributed Article]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[Cash]]></category>
		<category><![CDATA[Hidden]]></category>
		<category><![CDATA[Industry]]></category>
		<category><![CDATA[resources]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[startups]]></category>
		<category><![CDATA[VC]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=15067</guid>

					<description><![CDATA[<p>When we talk to young startups these days, we repeatedly hear them asking for the same thing — cash. It’s true that a certain amount of cash is necessary for any startup. But when we press them and ask if they have taken full advantage of their hidden resources, they look back with vacant stares. [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/3-ways-to-get-your-vendors-to-reduce-your-need-for-cash-2/">3 Ways to Get Your Vendors to Reduce Your Need for Cash</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="alignleft wp-image-12888 size-medium" title="The Business Journals" src="https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals-300x300.png" alt="reduce the need for cash" width="300" height="300" srcset="https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals-300x300.png 300w, https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals-150x150.png 150w, https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals.png 400w" sizes="(max-width: 300px) 100vw, 300px" />When we talk to young <a href="/entrepreneur-startups-that-overlook-the-cost-of-sales-fail/">startups</a> these days, we repeatedly hear them asking for the same thing — cash.</p>
<p class="content__segment combx">It’s true that a certain amount of cash is necessary for any startup. But when we press them and ask if they have taken full advantage of their hidden resources, they look back with vacant stares. Most have never thought about using their hidden resources. Or worse, many don’t even know what their hidden resources might be or where to look for them.</p>
<p class="content__segment combx">Sure, we refer to them as “hidden” resources because they are not necessarily taught in school nor are they heralded by the entrepreneurial press. On the contrary, young people today are inundated with the idea that they can’t start a business unless they raise tons of cash. They are being told that they must borrow huge sums, take in large investors, or trade their equity for <a href="/think-you-need-a-vc-to-start-your-business-try-the-barefoot-spirit-instead/">VC money</a>. In fact, there’s an entire industry based on this premise.</p>
<h3>To read the complete article, please visit <strong><span style="color: #0000ff;"><a style="color: #0000ff;" href="https://www.bizjournals.com/bizjournals/news/2018/09/05/3-ways-to-get-your-vendors-to-reduce-your-need-for.html" target="_blank" rel="noopener">The Business Journals </a></span></strong></h3>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/3-ways-to-get-your-vendors-to-reduce-your-need-for-cash-2/">3 Ways to Get Your Vendors to Reduce Your Need for Cash</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<item>
		<title>Entrepreneur &#8211; The Top 4 Reasons Startups Fail, According to 14 International Accelerators</title>
		<link>https://thebarefootspirit.com/entrepreneur-the-top-4-reasons-startups-fail-according-to-14-international-accelerators/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Tue, 01 May 2018 15:00:40 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[Contributed Article]]></category>
		<category><![CDATA[Advisers]]></category>
		<category><![CDATA[CEO]]></category>
		<category><![CDATA[Da Primus Consulting]]></category>
		<category><![CDATA[Danger Fort Labs]]></category>
		<category><![CDATA[Entrepreneur]]></category>
		<category><![CDATA[Entrepreneurial]]></category>
		<category><![CDATA[Factor]]></category>
		<category><![CDATA[Fail]]></category>
		<category><![CDATA[failure]]></category>
		<category><![CDATA[Greg Wright]]></category>
		<category><![CDATA[HATCH pitch]]></category>
		<category><![CDATA[Jason Cole]]></category>
		<category><![CDATA[Keith Hopper]]></category>
		<category><![CDATA[speakers]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[Success]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=14560</guid>

					<description><![CDATA[<p>As speakers, advisers and trainers in the entrepreneurial space, we’ve been particularly excited by our December survey of the principles of 14 international accelerators. We wanted to know, from their point of view, what were the key factors in startup success … and failure. As far as we know, this is the most recent study conducted on [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/entrepreneur-the-top-4-reasons-startups-fail-according-to-14-international-accelerators/">Entrepreneur &#8211; The Top 4 Reasons Startups Fail, According to 14 International Accelerators</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p style="text-align: left;"><img class="alignleft size-medium wp-image-13717" src="https://thebarefootspirit.com/wp-content/uploads/2017/07/1413842503-entrepreneur-logo-300x114.png" alt="" width="300" height="114" srcset="https://thebarefootspirit.com/wp-content/uploads/2017/07/1413842503-entrepreneur-logo-300x114.png 300w, https://thebarefootspirit.com/wp-content/uploads/2017/07/1413842503-entrepreneur-logo-30x11.png 30w, https://thebarefootspirit.com/wp-content/uploads/2017/07/1413842503-entrepreneur-logo.png 576w" sizes="(max-width: 300px) 100vw, 300px" />As speakers, advisers and trainers in the entrepreneurial space, we’ve been particularly excited by our December survey of the principles of 14 international accelerators. We wanted to know, from their point of view, what were the key factors in startup success … and failure. As far as we know, this is the most recent study conducted on this subject. Although these folks are from all over the world, it’s amazing how much they agree when it comes to why startups fail.</p>
<h2 style="text-align: left;"><b>Inadequate Testing</b></h2>
<p>Inadequate Testing was by far the most mentioned reason for startup failure. This factor is identified by several other terms like not getting started, not understanding how to access the market, and not understanding the barriers to entry. But Greg Wright, founder of <a href="http://www.hatchpitch.com/" rel="nofollow">HATCH pitch</a>, put it quite succinctly: “Failure to test and validate hypotheses and assumptions,” and its corollary, “Premature scaling (seeking/obtaining funding too early, ramping production/team/advertising before achieving product market fit).”</p>
<p>Keith Hopper, CEO of <a href="http://www.dangerfort.com/" rel="nofollow">Danger Fort Labs</a>, adds, “Not addressing an important enough need that customers are willing to pay for.” Ben Hsieh, program manager of <a href="https://nest.vc/" rel="nofollow">Nest</a> and Jason Cole, CEO of <a href="http://www.daprimus.com/" rel="nofollow">Da Primus Consulting</a>, both agree that “not finding product market fit” is a main cause of failure.</p>
<h3 style="text-align: left;"><strong>To read the complete article, please visit <span style="color: #0000ff;"><a style="color: #0000ff;" href="https://www.entrepreneur.com/article/311064" target="_blank" rel="noopener">Entrepreneur </a></span></strong></h3>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/entrepreneur-the-top-4-reasons-startups-fail-according-to-14-international-accelerators/">Entrepreneur &#8211; The Top 4 Reasons Startups Fail, According to 14 International Accelerators</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<title>5 Ways to Tell If You Are You Persistent or Just Stuck in a Rut</title>
		<link>https://thebarefootspirit.com/5-ways-to-tell-if-you-are-you-persistent-or-just-stuck-in-a-rut/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Thu, 08 Feb 2018 18:00:59 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[Barefoot Wine]]></category>
		<category><![CDATA[Buyer]]></category>
		<category><![CDATA[decision]]></category>
		<category><![CDATA[determination]]></category>
		<category><![CDATA[Founders]]></category>
		<category><![CDATA[Product]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[successes]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=14422</guid>

					<description><![CDATA[<p>Most successful startup founders will tell you that it’s going to take a lot of tenacity to succeed. They will all generally tell you that persistence is the better part of valor when it comes to winning. We agree. It takes a great degree of resolve and patience to see the results you are looking [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/5-ways-to-tell-if-you-are-you-persistent-or-just-stuck-in-a-rut/">5 Ways to Tell If You Are You Persistent or Just Stuck in a Rut</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="alignleft  wp-image-14424" src="https://thebarefootspirit.com/wp-content/uploads/2018/02/TBS.020818-300x200.jpg" alt="" width="272" height="181" srcset="https://thebarefootspirit.com/wp-content/uploads/2018/02/TBS.020818-300x200.jpg 300w, https://thebarefootspirit.com/wp-content/uploads/2018/02/TBS.020818-768x512.jpg 768w, https://thebarefootspirit.com/wp-content/uploads/2018/02/TBS.020818.jpg 1000w" sizes="(max-width: 272px) 100vw, 272px" />Most successful startup founders will tell you that it’s going to take a lot of tenacity to succeed. They will all generally tell you that persistence is the better part of valor when it comes to winning. We agree. It takes a great degree of resolve and patience to see the results you are looking for.</p>
<p>Sometimes you must persevere against the odds, struggle along until the time is right, and hold out for that big break. Perhaps the market will change, the buyer will change, or finally the amount of time you put in begins to result in traction.</p>
<p>Getting things started is difficult enough, but what about getting something <em>new</em> started, something the market hasn’t seen before, or doesn’t know it needs?</p>
<p>That happened to us. Our product was disruptive, broke all the rules, and identified a market no one was addressing. We had to spend several years doing missionary work just to convince buyers that they could make a profit on our product. What if we got tired of the uphill battle and quit? There would be no Barefoot Wine today!</p>
<p>Disruptive startups require founders who doggedly push on in the face of adversity and predisposition. But at what point does persistence become narrow-mindedness? At what point does priming the pump become beating a dead horse? How do you <em>really</em> know when it’s time to give up, pivot, or “rethink your drink?”</p>
<p>Here are 5 indicators to help you recognize the difference between determination and getting stuck in a rut.</p>
<ol>
<li><strong> Small Successes.</strong> Are you having ANY success at all? Is there a direct relationship between the amount of time, energy, and money you put into an initiative and the rate of success? If you see increased sales each day, week or month, you may be justified in sticking to it. If not, move forward on another approach.</li>
<li><strong> Leapfrog Successes.</strong> Can you see customer demand beyond a nay-saying gatekeeper? In spite of what you are being told, do you have evidence that there is a need for your offering? Is it your offering itself that needs alteration? Or is it your approach to market penetration that needs a revamp?</li>
<li><strong> Time and Money.</strong> Sometimes the decision to pull the plug will be made for you. You simply can’t afford to continue to stick to the path you’ve chosen. You run out of time and money. If you can’t establish an increasing cash flow within a year, you may be forced to change your course. There are a ton of great ideas out there that never made it to the market because the founder simply ran out of runway.</li>
<li><strong> Blinded by Determination.</strong> Are you missing easier ways of succeeding because you are so dedicated to your course that you are narrowly focused on the path you’ve chosen? If an alternative presented itself, would you recognize it? Yes, most times sheer persistence is required, but keep your eyes open for more efficient ways of achieving your goals.</li>
<li><strong> Outside Opinions.</strong> Entrepreneurship is lonely, especially when you know your idea will fly and few others see it. Sometimes you just need some support to keep you going. Find a supporter you respect to help you shore up the path towards your end game. Share your approach to identifying and accessing the market. Ask for their suggestions. They may see something you don’t. They can give you an objective view.</li>
</ol>
<p>Knowing when persistence has led you to being stuck in a rut is difficult especially when you keep hearing stories of other startups that finally got traction. What if they gave up right before that happened? After some amount of time though, there is a point of diminishing returns. The sales just aren’t there to support the enterprise. Do you stubbornly continue because you want to justify all the time, money, and energy you have put in so far? Or do you recognize that channel vision may be blinding you to alternatives?</p>
<p>We hope these indicators can help you make that difficult decision to push on or shove off.</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/5-ways-to-tell-if-you-are-you-persistent-or-just-stuck-in-a-rut/">5 Ways to Tell If You Are You Persistent or Just Stuck in a Rut</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<title>The 7 Tenets of The Barefoot Startup</title>
		<link>https://thebarefootspirit.com/the-7-tenets-of-the-barefoot-startup/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Thu, 31 Aug 2017 17:00:24 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[businesses]]></category>
		<category><![CDATA[Challenges]]></category>
		<category><![CDATA[Customer]]></category>
		<category><![CDATA[Industry]]></category>
		<category><![CDATA[Leadership]]></category>
		<category><![CDATA[monetization]]></category>
		<category><![CDATA[Sales]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[Strategic Alliances]]></category>
		<category><![CDATA[Success]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=13881</guid>

					<description><![CDATA[<p>According to Forbes, 90% of all new businesses fail. Why is the rate so high with so many great ideas? Is something missing? Something basic? According to the Small Business Administration, businesses that survive over 5 years tend to survive over 10 years. Do they finally learn something that saved them? What if they knew [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/the-7-tenets-of-the-barefoot-startup/">The 7 Tenets of The Barefoot Startup</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="alignleft size-medium wp-image-13885" src="https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.083117-300x199.jpg" alt="" width="300" height="199" srcset="https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.083117-300x199.jpg 300w, https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.083117-768x510.jpg 768w, https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.083117.jpg 1024w" sizes="(max-width: 300px) 100vw, 300px" />According to Forbes, 90% of all new businesses fail. Why is the rate so high with so many great ideas? Is something missing? Something basic? According to the Small Business Administration, businesses that survive over 5 years tend to survive over 10 years. Do they finally learn something that saved them? What if they knew those things right from the beginning?</p>
<p>We are often accused of being Monday morning quarterbacks with 20-20 vision. Well, guilty as charged! And lucky for <em>you</em>!  Having been through it from ideation to monetization, we are in a unique position to offer help. After years of wrong assumptions, and actions based on those wrong assumptions, it ultimately became clear to us what we were doing right and what we were doing wrong. Our experience and success in the real world can save you a ton of time, money, and anxiety.</p>
<p>Like the man says, “If you had it to do all over again, what would you do differently?” Well, some things we would do just the same, but others, we would have started doing a whole lot sooner. Starting with no money and no knowledge of our industry, you can bet we had a lot to learn. You can bet we made plenty of mistakes.</p>
<p>These are the same challenges startups face today, like being undercapitalized, finding and keeping the right people, providing effective leadership, and getting the word out, just to name a few. But the biggest mistakes startups make may be in their own heads! They tend to accept popular assumptions about business that are just, well, wrong! We want to change all that.</p>
<p>There’s a new movement afoot. We call it <em>“The Barefoot Startup.”</em> Why “Barefoot”? Because it’s a great analogy for a feet-on-the-ground, step-by-step approach to starting and growing your business.  It’s beyond “bootstrap” because it’s sensitive to the terrain, its well-grounded in principle, and clears the path for success.</p>
<p><em>The Barefoot Startup</em> incorporates the proven strategies we used successfully and the lessons we learned over 20 years building the Barefoot Wine brand. These key tenets made the biggest difference in our success. They can work well for any business. The tenets of <em>The Barefoot Startup</em>  (#BarefootStartup) will give you a big head start, mitigate your risk, and reduce your need for capital.</p>
<p>It’s not another set of tactics. It’s not another cut-and-paste process for 6 figures in 6 months. But it is a fundamental understand, and application, of the basic principles of long-term business success.  Think of it as an insurance policy for your start-up.</p>
<p>The 7 tenets of <em>The Barefoot Startup</em> spell S-U-C-C-E-S-S:</p>
<ol>
<li><strong> <u>S</u>trategic Alliances.</strong> <em>Who</em> wins if you win? How can you help <em>them</em> win? How can you work with your <em>community</em> to get the word out?</li>
<li><strong> <u>U</u>nderstandings.</strong> How does <em>your</em> distribution system work? What are the <em>challenges</em> you face gaining acceptance in your market?</li>
<li><strong> <u>C</u>ustomer.</strong> Who are your customers? What does each of them <em>really</em> want? How should your company be <em>structured</em> to gain their loyalty? How do you turn your customers into <em>advocates</em>?</li>
<li><strong> <u>C</u>ompassion.</strong> What does everyone who <em>touches</em> your product want? How can you show empathy for <em>their</em> needs? How do you gain their respect and cooperation?</li>
<li><strong> <u>E</u>mpowerment.</strong> How can you get the <em>most</em> out of your people, your suppliers, and your buyers? What do they need from <em>you</em> to do their job better for you?</li>
<li><strong> <u>S</u>ales.</strong> What is the <em>fastest</em> way to create a positive cash flow? Where is your low-hanging fruit? What is the quickest way to gain a “Hot Mover” reputation?</li>
<li><strong> <u>S</u>low Down!</strong> How can you reduce your need for capital by being more resourceful? How can starting small show you the true <em>cost</em> of sales? How can you get your act together <em>before</em> you take your show on the road?</li>
</ol>
<p><em>The Barefoot Startup</em> offers detailed answers with real world examples. How do <em>you</em> spell success?  Join the movement at <a href="http://www.thebarefootstartup.com" target="_blank" rel="noopener">www.thebarefootstartup.com</a>!</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/the-7-tenets-of-the-barefoot-startup/">The 7 Tenets of The Barefoot Startup</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<title>When Can I Quit My Day Job?</title>
		<link>https://thebarefootspirit.com/when-can-i-quit-my-day-job/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Thu, 17 Aug 2017 17:00:39 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[Customers]]></category>
		<category><![CDATA[expenses]]></category>
		<category><![CDATA[funding]]></category>
		<category><![CDATA[Income]]></category>
		<category><![CDATA[Job]]></category>
		<category><![CDATA[projections]]></category>
		<category><![CDATA[Revenue]]></category>
		<category><![CDATA[Sales]]></category>
		<category><![CDATA[Start-up]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=13833</guid>

					<description><![CDATA[<p>Whether you are thinking about starting your business, you have already taken the plunge but are still pre-revenue, or your new business, struggling to make ends meet, one of the most important questions you need an answer to is, “When can I quit my job?” You know that the time devoted to your job is [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/when-can-i-quit-my-day-job/">When Can I Quit My Day Job?</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="alignleft size-medium wp-image-13835" src="https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.081717-300x211.jpg" alt="" width="300" height="211" srcset="https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.081717-300x211.jpg 300w, https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.081717-768x541.jpg 768w, https://thebarefootspirit.com/wp-content/uploads/2017/08/TBS.081717.jpg 1000w" sizes="(max-width: 300px) 100vw, 300px" />Whether you are thinking about starting your business, you have already taken the plunge but are still pre-revenue, or your new business, struggling to make ends meet, one of the most important questions you need an answer to is, “When can I quit my job?”</p>
<p>You know that the time devoted to your job is taking you away from the attention your startup needs. The longer you keep your job, the longer it takes your startup to achieve positive cash flow. On the other hand, you need the income from your job just to cover food, clothing and shelter, never mind the capital that is required for the startup itself.  It’s quite a dilemma.</p>
<p>But let’s look at it from another angle and perhaps the right answer will become clear. For one thing, when you quit is not a date. It’s a series of metrics. So, let’s rephrase the question(s) based on those metrics:</p>
<ul>
<li><em>How many loyal customers do I need?</em></li>
<li><em>How much do I need to sell each of them to pay my bills for three months minimum? </em></li>
</ul>
<p>These are sales-based questions and should be the primary indicators of <em>when </em>you can afford to quit your job.</p>
<p>Many startups, unfortunately, rely on the same “hockey stick” sale projections they used in their business plan – developed <em>before</em> they actually got into the nitty gritty of sales. Did it take into account the <em>cost </em>of sales (i.e., the expense of making sales happen and the costs of servicing what you sell)?  Many regret quitting their jobs before they found out it’s the cash flow projection, and not the business plan, that indicates their business’s sustainability.</p>
<p>You might say, “I’ll just borrow the funds to start my business,” or “I’ll just sell some of my equity to some investors,” or even, “My partner will keep working while I start the business.” Any of these might lead you to believe you don’t need to think about continued sales from loyal customers <em>before</em> you get started. But you do! Once you burn through your funds on research and overhead, you’ll have to go back and beg for more. Only this time, without adequate sales, your investors are much less likely give you more money to “burn.” And that’s when you wish you hadn’t quit your job quite that early in the game.</p>
<p>The fact is, you need to have funds on hand to cover at least three months’ worth of expenses before you even think about quitting your job. You cannot rely on all your funds coming solely from sales.</p>
<p>This means that before you even start, you have to identify the “low hanging fruit.” These are the customers that you have <em>presold</em> on your idea. They have made at least a verbal commitment to buy your products. More importantly, you have learned exactly how they want to buy your products and for how much.</p>
<p>Whether you get the three months’ worth of funding from savings, trades, prepays, loans, investors, your partner, or a combination, you still have to establish an early sales pipeline. Even if your investors are so enamored with your idea that they themselves assume smooth sailing on the revenue side, for your own sake you had better make this job #1.</p>
<p>Once you quit your job, there’s usually no going back. And even if you do everything right and establish a sales pipeline that will cover your bills, starting a business is still a big risk. So, as Clint Eastwood said in his 1971 classic movie, <em>Dirty Harry, “</em>Are ya feelin’ lucky?” You will feel a lot more “lucky” if you have the customers <em>before</em> you quit your job!</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/when-can-i-quit-my-day-job/">When Can I Quit My Day Job?</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<title>The 4 Stages of Business Growth Each Present Their Own Challenges</title>
		<link>https://thebarefootspirit.com/4-stages-business-growth-present-challenges1/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Wed, 07 Jun 2017 07:00:10 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[Business Growth]]></category>
		<category><![CDATA[Challenges]]></category>
		<category><![CDATA[consumer]]></category>
		<category><![CDATA[Jim Canfield]]></category>
		<category><![CDATA[market]]></category>
		<category><![CDATA[Renaissance Executive Forums]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[The Business Journals]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=13430</guid>

					<description><![CDATA[<p>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: 1. Start-up This is the exciting [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/4-stages-business-growth-present-challenges1/">The 4 Stages of Business Growth Each Present Their Own Challenges</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p class="content__segment"><img class="alignleft size-medium wp-image-12888" src="https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals-300x300.png" alt="" width="300" height="300" srcset="https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals-300x300.png 300w, https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals-150x150.png 150w, https://thebarefootspirit.com/wp-content/uploads/2016/12/The-Biz-Journals.png 400w" sizes="(max-width: 300px) 100vw, 300px" />We like the way Jim Canfield of <a href="http://www.executiveforums.com/%22%20%5Ct%20%22_blank">Renaissance Executive Forums</a> 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.</p>
<p class="content__segment">Here we apply his staging definitions to the physical consumer product business:</p>
<h4 class="content__segment"><strong>1. Start-up</strong></h4>
<p class="content__segment">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 <span class="s2"><i>real</i></span> market.</p>
<p class="content__segment">Here you discover the misconceptions you had regarding what your customer <span class="s2"><i>really</i></span> 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.</p>
<p class="content__segment">Most studies put the start-up success rate at less than one in seven. 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.</p>
<h3 class="content__segment">To read the complete article, please visit <span style="color: #0000ff;"><a style="color: #0000ff;" href="http://www.bizjournals.com/bizjournals/how-to/growth-strategies/2017/06/the-4-stages-of-business-growth-each-present.html" target="_blank" rel="noopener noreferrer">The Business Journals </a></span></h3>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/4-stages-business-growth-present-challenges1/">The 4 Stages of Business Growth Each Present Their Own Challenges</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<item>
		<title>The 4 Stages of Business Growth Face Their Own Challenges</title>
		<link>https://thebarefootspirit.com/13129/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Thu, 02 Mar 2017 18:00:29 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[Acquisition]]></category>
		<category><![CDATA[Brand]]></category>
		<category><![CDATA[Build]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[Cash flow]]></category>
		<category><![CDATA[Enterprise]]></category>
		<category><![CDATA[Jim Canfield]]></category>
		<category><![CDATA[Profitability]]></category>
		<category><![CDATA[Renaissance Executive Forums]]></category>
		<category><![CDATA[Start-up]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=13129</guid>

					<description><![CDATA[<p>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 [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/13129/">The 4 Stages of Business Growth Face Their Own Challenges</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="alignleft size-medium wp-image-13132" src="https://thebarefootspirit.com/wp-content/uploads/2017/03/TBS.030217-300x300.jpg" alt="" width="300" height="300" srcset="https://thebarefootspirit.com/wp-content/uploads/2017/03/TBS.030217-300x300.jpg 300w, https://thebarefootspirit.com/wp-content/uploads/2017/03/TBS.030217-150x150.jpg 150w, https://thebarefootspirit.com/wp-content/uploads/2017/03/TBS.030217.jpg 768w" sizes="(max-width: 300px) 100vw, 300px" />We like the way Jim Canfield of <a href="http://www.executiveforums.com/" target="_blank">Renaissance Executive Forums</a> 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:</p>
<p><strong>Start Up.</strong> 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 <em><u>real</u></em> market. Here you discover the misconceptions you had regarding what your customer <em><u>really</u></em> 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 &#8211; or losing control of the company through subsequent rounds of financing.</p>
<p><strong>Build Up. </strong>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 &#8211; 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.</p>
<p><strong>Build Out. </strong>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 &#8211; 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.</p>
<p><strong>Enterprise. </strong>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.</p>
<p>If you make it this far, you have gained great insights into business, as well as our heart-felt respect!</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/13129/">The 4 Stages of Business Growth Face Their Own Challenges</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<title>As Businesses Grow, They Risk Losing Their Entrepreneurial Spirit</title>
		<link>https://thebarefootspirit.com/11251-2/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Thu, 01 Sep 2016 17:00:12 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[businesses]]></category>
		<category><![CDATA[compliance]]></category>
		<category><![CDATA[Customer service]]></category>
		<category><![CDATA[Enterprise]]></category>
		<category><![CDATA[Entrepreneurial]]></category>
		<category><![CDATA[Procedures]]></category>
		<category><![CDATA[professionalism]]></category>
		<category><![CDATA[spirit]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[Successful]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=11251</guid>

					<description><![CDATA[<p>It’s not how you get the entrepreneurial spirit. It’s how you lose it! Every garage startup must have the entrepreneurial spirit to survive. Many successful businesses were once garage startups, and they once had that spirit. But somewhere between the four stages of businesses growth, our friend Jim Canfield of Renaissance Executive Forums calls “startup, [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/11251-2/">As Businesses Grow, They Risk Losing Their Entrepreneurial Spirit</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="size-medium wp-image-12936 alignleft" src="https://thebarefootspirit.com/wp-content/uploads/2016/09/0x600-300x210.jpg" alt="" width="300" height="210" srcset="https://thebarefootspirit.com/wp-content/uploads/2016/09/0x600-300x210.jpg 300w, https://thebarefootspirit.com/wp-content/uploads/2016/09/0x600-768x538.jpg 768w, https://thebarefootspirit.com/wp-content/uploads/2016/09/0x600.jpg 857w" sizes="(max-width: 300px) 100vw, 300px" />It’s not how you <em>get</em> the entrepreneurial spirit. It’s how you <em>lose</em> it! Every garage startup must have the entrepreneurial spirit to survive. Many successful businesses were once garage startups, and they once had that spirit. But somewhere between the four stages of businesses growth, our friend Jim Canfield of <a href="http://www.executiveforums.com/">Renaissance Executive Forums</a> calls “startup, buildup, buildout, and enterprise,” the entrepreneurial spirit can  lose its luster.</p>
<p>The entrepreneurial spirit is the spirit of the entire team, and is represented by their commitment to customer service, resourcefulness, and going the extra mile to make sales happen. There is no question in the minds of start -up entrepreneurs, in a garage, undercapitalized, and having to make do with less, that they <em>must</em> make sales happen no matter what or they <em>will</em> be out of business &#8211; fast! They all know the customer comes first.</p>
<p>Then, if they are fortunate, dedicated, and diligent, they progress beyond the startup phase and into the buildup phase. Now they have a few solid customers that keep them going. Their volume picks up. They begin to see some pressure on production, customer service, and supply chain management. In an effort to satisfy these demands, and in the name of efficiency, they begin to specialize their use of human resources.  Thus begins the degradation of the entrepreneurial spirit.</p>
<p>With a few more big customers, they enter the buildout stage. Now they are expanding their offerings and their markets. Division of labor is now a must. One of the divisions is called “sales” and another is called “customer service.”  But even though the customer feedback necessary to keep the company’s products and service relevant comes almost exclusively through these two divisions, they are now being relegated to the bottom of the pyramid, which is quietly and quickly growing on top of them. The focus is now on production rather than sales. Sales begins to be taken for granted by the other divisions of labor who no longer feel responsible for sales. In fact, they are convinced that what they do is as, or more important, than sales, even though their very paychecks come from sales! Now, when referring to sales, you hear, “That’s not my job!” The entrepreneurial spirit begins to fade further.</p>
<p>Now comes the enterprise phase where professionalism, compliance, status, tenure and structural procedures become more important than sales and customer service. Salespeople are “outside” in the field, and everyone else is “inside” in the office.  Inside office people have greater access to the decision makers and become even more removed from sales. “What’s the matter with those salespeople? Why can’t they just do their job?” is the common refrain when sales are down. But everybody in the office is taking a bow when sales are up! And who is the <em>first</em> to get laid off when sales are ‘bad’? Yup, it‘s the salespeople! What’s wrong with this picture? The entrepreneurial spirit is lost, a victim of its own success!</p>
<p>But by understanding how and why this happens, companies can begin to reverse engineer the entrepreneurial spirit <em>back</em> into their companies. They must start by returning to the backbone of the entrepreneurial spirit, <em>sales</em>. Put sales back on top! Think of the company as having only <em>two</em> divisions; sales and sales support. Sales support is everybody who is not in sales – accounting, production, marketing, HR, legal, admin, the receptionist, <em>everybody</em>! Enforce this relationship by providing quarterly bonuses to sales support staff based on sales, growth, and profitability. Acknowledge their contributions to these three essentials. And create official lines of communication between sales and customer service on the one hand, and sales support, on the other. Make sales <em>everybody’s</em> job – <em>again!</em></p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/11251-2/">As Businesses Grow, They Risk Losing Their Entrepreneurial Spirit</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<title>How to Find Your Ideal Investor</title>
		<link>https://thebarefootspirit.com/11189/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Thu, 04 Aug 2016 17:00:47 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[Bankruptcy]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[Customer service]]></category>
		<category><![CDATA[equity]]></category>
		<category><![CDATA[investor]]></category>
		<category><![CDATA[Money]]></category>
		<category><![CDATA[motives]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[Suppliers]]></category>
		<category><![CDATA[Vendors]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=11189</guid>

					<description><![CDATA[<p>One of the wisest questions any startup could ask is, “What should I be looking for in an investor?” Wise startups assume they have some say over whom they will accept money from, rather than being in the desperate position of being lucky to get any investor. When you choose your investor carefully consider their [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/11189/">How to Find Your Ideal Investor</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="alignleft  wp-image-11191" src="https://thebarefootspirit.com/wp-content/uploads/2016/08/TBS.08.04.16.jpg" alt="TBS.08.04.16" width="420" height="256" />One of the wisest questions any startup could ask is, “What should I be looking for in an investor?” Wise startups assume they have some say over whom they will <em>accept</em> money from, rather than being in the desperate position of being lucky to get <em>any</em> investor.</p>
<p>When you choose your investor carefully consider their motives and what they can add to your business besides funding. Sometimes the “perfect” investor is not bringing hard money to the table! Sometimes what they bring can be of greater value to you in the short term and protect your equity position in the long term.</p>
<p>For years we could not get an investor in Barefoot Wine, now the world’s largest brand. The banks wanted nothing to do with us because we didn’t have a “secondary means of collateralizing the debt.” Those are big words for owning real estate. They wanted us to own property they could take if things went south. Ironically, when we tried to buy a house they said we were self-employed and ipso facto “unstable.” When we complained that they had floated mortgages to four of our employees, they said, “Well, that’s different. They have a good solid job!”</p>
<p>So were forced to go it alone, undercapitalized and on the verge of bankruptcy for years! But that was a <em>good </em>thing! That forced us to be resourceful, frugal, and practical. We never had a bunch of money to “burn” through, so we had to come up with alternatives to get the word out about our product. We had to come up with other ways of financing our growth. We were forced to grow slowly.</p>
<p>Yes, it was a good thing because we learned how to get our vendors, suppliers and retail buyers to “finance” our business and we never lost control. They had an interest in seeing us succeed and we learned quick enough what we had to do to gain their trust. They were, in retrospect, our ideal investors.</p>
<p>Had we gotten the Shark Tank variety of investors, we would have been forced to sell as soon as we achieved the equity return majority owners wanted to see on their investment. Not necessarily the most opportune time for a sale, but the shortest turn around for investors!</p>
<p>With access to capital we would have approached marketing in a much more conventional, expensive, and less efficient way that we did – which was to use Worthy Cause Marketing. Because we were broke, we chose to support local fundraisers in the neighborhoods around the stores where our brand was for sale. We hoped the non-profit’s members would choose our product over our competitor’s. This turned out to be a targeted, highly efficient, and effective way to build a loyal base of advocates.</p>
<p>Our “investors” who were suppliers and vendors stood to gain by our success, so they granted us extended terms, higher credit limits, and free warehousing. In the case of “investors” who were our retail buyers, they gave us cash for volume discounts, store-wide ads resulting in higher volume, and they gave us their loyalty. In other words, they helped us build our brand.</p>
<p>These “investors” wanted long-term contracts, quick resolution to customer service issues, and empathy for their position. They never pressured us to sell our brand. On the contrary, they wanted us to continue to enrich them with ongoing growth and success!</p>
<p>So what is the bottom line? Your ideal investor is someone who is in your industry and stands to gain by your success in more ways than just a return on their hard capital investment. They will be more supportive, more forgiving, and more respectful of your long-range goals. Cash is not necessarily king.  It takes more than money!</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/11189/">How to Find Your Ideal Investor</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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		<title>Crowd Sourcing Can Give Startups a False Sense of Security</title>
		<link>https://thebarefootspirit.com/10711/</link>
		
		<dc:creator><![CDATA[Michael Houlihan &#38; Bonnie Harvey]]></dc:creator>
		<pubDate>Thu, 28 Apr 2016 17:00:30 +0000</pubDate>
				<category><![CDATA[Business Blog]]></category>
		<category><![CDATA[businesses]]></category>
		<category><![CDATA[Cash flow]]></category>
		<category><![CDATA[Crowd Funding]]></category>
		<category><![CDATA[delivery]]></category>
		<category><![CDATA[Experience]]></category>
		<category><![CDATA[false security]]></category>
		<category><![CDATA[Funds]]></category>
		<category><![CDATA[Management]]></category>
		<category><![CDATA[misconceptions]]></category>
		<category><![CDATA[Start-up]]></category>
		<category><![CDATA[timing]]></category>
		<guid isPermaLink="false">https://thebarefootspirit.com/?p=10711</guid>

					<description><![CDATA[<p>A day doesn’t pass without news of a new startup that has raised more than they asked for. Yes, Crowd Funding is a viable alternative to Banks and VC’s, but it comes with some subtle dangers! Some businesses can’t raise funds any other way. The Banks and VC’s won’t touch them. But if the Crowd [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://thebarefootspirit.com/10711/">Crowd Sourcing Can Give Startups a False Sense of Security</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><img class="alignleft  wp-image-10713" src="https://thebarefootspirit.com/wp-content/uploads/2016/04/TBS.04.28.16-300x181.jpg" alt="TBS.04.28.16" width="302" height="182" srcset="https://thebarefootspirit.com/wp-content/uploads/2016/04/TBS.04.28.16-300x181.jpg 300w, https://thebarefootspirit.com/wp-content/uploads/2016/04/TBS.04.28.16-768x464.jpg 768w, https://thebarefootspirit.com/wp-content/uploads/2016/04/TBS.04.28.16.jpg 1000w" sizes="(max-width: 302px) 100vw, 302px" />A day doesn’t pass without news of a new startup that has raised more than they asked for. Yes, Crowd Funding is a viable alternative to Banks and VC’s, but it comes with some subtle dangers!</p>
<p>Some businesses can’t raise funds any other way. The Banks and VC’s won’t touch them. But if the Crowd likes their idea, Bam! &#8211; they get funded.  It seems so democratic, so what’s the problem?</p>
<p>Here are some hidden dangers to Crowd Funding that are becoming more apparent to the startups and the Crowd alike:</p>
<ol>
<li><strong> Experience.</strong> The Crowd lacks the sales and distribution experience that the Banks and the VC’s have painfully learned from poor investments in great ideas. The Crowd may love the concept, and envision one in every household, but the Crowd generally doesn’t know how to get it to market, run the business, or achieve positive cash flow. Typically, inexperienced startups will write a business plan and get the Crowd to fund it, while experienced business owners know that it’s the cash flow report that leads the business, not the business plan.</li>
<li><strong> False Security.</strong> The Bank and the VC’s will grill the startup about exactly how the product will get to market and stay there. They will demand a cash flow plan that takes into consideration much more than the merits of the concept itself. Because of the sheer numbers of the Crowd, both the startup and the Crowd itself believe a great idea will be sought out by the market and sales become an afterthought.</li>
<li><strong> Management. </strong>The Crowd tends to focus on the product and not so much the management of the company. When the Crowd is provided with a sample product in return for their investment, they believe that the startup will be able to manufacture and distribute the product in the future. In reality, it’s the management of the startup that will determine the success or failure of the product.</li>
<li><strong> Popular Misconceptions. </strong>The Crowd tends to simplify the sales process. They go online or to the store and “everything” is there every day. Their judgement about success in the marketplace is based on what they see from <em>their</em> side of the screen and <em>their</em> side of the retail shelf – as consumers, not as producers. If they don’t see it, they think it hasn’t been done. It may have been done but never made it to their store. This simplistic and popular misconception is reinforced when the Crowd has a positive response to the startup’s offering.</li>
<li><strong> Timing. </strong>The time between the offering and the actual availability of the product is almost always much longer than expected. The startup discovers the hard way that the costs and time of production and distribution are much greater than they anticipated. This tends to slow them down. Meanwhile, because of all the publicity, companies with more resources and better access to the market can jump on their great idea and be first to market, leaving the startup in the dust. In some cases the startup’s idea becomes outdated by the time it hits the market.</li>
</ol>
<p>Startups can get a false sense of security after a successful Crowd Funding. It can deaden their ears to unwelcomed news – such as, it’s not so much about the <em>idea</em>, as it is about the <em>management</em>, <em>delivery</em>, and achieving a positive <em>cash flow</em>. It’s not about launching the business or how much is raised. It’s about whether the startup did the homework required for the time to market and true cost of sales &#8211; even if the Crowd gives you twice what you asked.</p>
<div class="whoweare">
<h3>Who We Are</h3>
<img class="alignleft size-medium wp-image-4564" src="https://consumerbrandbuilders.com/wp-content/uploads/2017/12/Michael-Bonnie-at-Bloomberg-2-300x253.jpg" alt="Michael Houlihan and Bonnie Harvey Barefoot Wine Founders" width="300" height="253" />
<p>Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Barefoot-Spirit" target="_blank" rel="noopener"><em>The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand</em></a>. 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&amp;J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.</p>

<p>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 <a href="https://thebarefootspirit.com/?s=worthy+cause+marketing">Worthy Cause Marketing</a> and <a href="https://thebarefootspirit.com/?s=performance+based+compensation">performance-based compensation</a>. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.</p>

<p>They offer their <a href="https://xk208.infusionsoft.com/app/orderForms/Entrepreneurs-GPS">Guiding Principles for Success (GPS)</a> to help entrepreneurs become successful. Their book, <a href="https://xk208.infusionsoft.com/app/orderForms/The-Entrepreneurial-Culture" target="_blank" rel="noopener"><em>The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People</em></a><em>, </em>helps corporations maximize the value of their human resources.</p>

<p>Currently they travel the world leading workshops, trainings, &amp; keynoting at <a href="https://thebarefootspirit.com/business-school-speaking-testimonials/">business schools</a>, <a href="https://thebarefootspirit.com/conference-speaking-testimonials/">corporations, conferences</a>. They are regular media guests and <a href="https://thebarefootspirit.com/contributed-articles/">contributors</a> to international publications and professional journals. They are <a href="http://c-suitenetworkadvisors.com/advisor/michael-houlihan-and-bonnie-harvey/">C-Suite Network Advisors &amp; Contributing Editors</a>. Visit their popular brand building site at <a href="http://www.consumerbrandbuilders.com" target="_blank" rel="noopener">www.consumerbrandbuilders.com</a>.</p>

<p>To make inquiries for keynote speaking, trainings or consulting, please contact <a href="mailto:sales@thebarefootspirit.com">sales@thebarefootspirit.com</a>.</p>
</div><p>The post <a rel="nofollow" href="https://thebarefootspirit.com/10711/">Crowd Sourcing Can Give Startups a False Sense of Security</a> appeared first on <a rel="nofollow" href="https://thebarefootspirit.com">The Barefoot Spirit</a>.</p>
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