Students | The Barefoot Spirit

Solve Business Problems with What You Have at Hand

Michael Houlihan & Bonnie Harvey — Thu, 11 Oct 2018 17:00:59 +0000

We recently had the opportunity to speak to the Aalto Fellows, a group of the top students from Aalto University in Finland. They were in Silicon Valley for the entrepreneurial tour and we caught up with them at Stanford University. What was most impressive about this group was that it was organized and financed by the students themselves! What better way to get a taste of true entrepreneurship?

We knew that by the time we spoke to them they had heard many entrepreneurial stories from some of the top companies in Silicon Valley. We knew that they had heard from many of the entrepreneurial academics about what it takes. And we also knew that they had heard from the VCs who “built” the Valley about what they look for in fundable projects. So, what were we going to tell them that was new and different, valuable and practical, memorable and applicable?

Most of the businesses they visited were wildly successful “unicorns” financed by VCs. They had plenty of assets and resources right from the start. Of course, they had to give up quite a bit of their equity to get their financing in the first place. And, of course, for every unicorn there were 19 failures that nobody ever talks about.

Is it possible to bootstrap your business when you’re under financed? Is that, in itself, a proving ground to learn how to solve business problems without tons of resources? We believe it is. It’s what happened to us and it can happen to anyone.

When you’re undercapitalized and running out of runway, you have no choice but to get creative, and you have no choice but to get resourceful. You must learn quickly how to communicate with your creditors in such a way that they will extend your credit and terms instead of putting you on a cash basis.

Sure, you can be resourceful, use a laundry room for an office and a door for a desk as we did. Sure, you can hire your family and make trades for goods and services as we did. But that only goes so far. Sooner or later you’re going to need some financial help. We found that help in our three key relationships.

Vendors

We looked at our accounts payables, and it didn’t take long to realize that in our business, the glass company had the most at stake. The more wine we sold, the more glass bottles they would get to sell us. That’s right, they would get to sell …and make more money! So they were a natural strategic ally …if we could just convince them that we were trustworthy.

We decided to meet with them on a quarterly basis and share our plans and challenges. We showed empathy for their concern that we would pay our bills on time. When our cash flow projection indicated that we were going to be late, we called them way in advance and alerted them. We offered a payment plan based on our receivables to bring our account current, and we always did!

They felt comfortable extending our credit and terms. They enabled us to expand nationally without having to raise outside funds. This is a clear example of how soft skills can earn you hard cash!

Employees

We looked to our employees to solve problems, develop innovations, and remain excited and loyal to our company. Rather than putting them on a need-to-know basis, we did just the opposite. We put them on a know-the-need basis. We figured they couldn’t help us if they didn’t know what our needs were.

Once we had a serious problem. The good news was that we had been authorized in a giant chain store in Florida. The bad news was that they put us, like all new products, on the bottom shelf (nobody looks down there). The scary news was that if we didn’t sell a hundred cases in 90 days, we would be out of the chain … FOREVER!

One of our people joked and said, “Well, we’re ’Barefoot,’ we’ll just go after the foot traffic!” “HaHa!” we laughed. But then somebody else said, “Wait a minute, that’s not such a crazy idea, why don’t we just put decal footprints down the wine aisle and turn them into our position on the bottom shelf?” We used those footprints all over the country. And that idea came from the receptionist!

Buyers

In our business, our buyers where the distributors and the retailers. The distributors wouldn’t buy unless the retailers would buy. The retailers wouldn’t buy unless their customers would buy. Most VC financed companies would earmark a large chunk of money for advertising to get the word out to bring the customers into the retailer stores.

We had no money for advertising. At first, we were scared that our product wouldn’t move fast enough for the retailers because nobody had ever heard of a brand called “Barefoot.” But then we got a call from a neighborhood group looking for cash donations for kids’ after-school park. We had no money, so we gave them product. We told them we hoped they would use it at their fundraiser and perhaps it would loosen up some checkbooks or they can auction it off for some slides and swings. Sales took off in their neighborhood.

We tried it in another neighborhood. It worked. We tried it in another city. It worked. In fact it worked so well, we took Barefoot Wines across the country without commercial advertising. Because we showed empathy for our customer, we gave them a social reason to buy our products.

Conclusion:

These techniques might not work for everybody. Every business is different. But there is a golden thread that weaves its way through all these examples and you can use it in your business. It can reduce your need for cash. It can reduce turnover and engage and empower your people. And it can bring you the customers you need to achieve a positive cash flow and beyond. That golden thread is empathy. The more you use it, the less money you’ll need!

We’re excited to announce that our new business audio book on this subject is soon to be released.

It will be unlike most business books that focus on companies that have a lot of resources. Instead, it will focus on the true story of the building of the Barefoot Wine brand which is a testimony to empathy and resourcefulness.
It will be unlike most business books that give you list after list in prescriptive text: the three things to do, the five things to never do, and the seven things your customer wants from you. Instead it, will be a series of stories designed to entertain and educate.
And it will be unlike most business audiobooks that have a narrator droning the story in your earbuds. Instead, the characters in the stories will be played by real actors, dramatically bringing the scenes to life as you jog or commute.

If this sounds like fun, you can find out more at www.barefootaudiobook.com

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

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

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Has Life Become De-Valued in America?

Michael Houlihan & Bonnie Harvey — Thu, 24 May 2018 17:00:36 +0000

We are set up to answer questions on Quora. It may not be a good match for us because our experience is in a relatively narrow niche, entrepreneurial brand building in the CPG space. Most of the questions have to do with things like, “How much money does Elon Musk have,” and “Why do they call it duct tape?” But recently, there was a question that caught our attention, “How do you protect yourself from a school shooting?”

The answers were well thought out, professional, and involved the tactical and practical actions that students could take to avoid harm. We were reading the list of suggested tactics which included: drop everything and run; get into a classroom and block the door; and hide. But there was at least one thing that we think should’ve been added to the list: “Vote!”

We admire the students for refusing to be silenced about violence. But there are issues beyond gun-control that can make a difference. They have to do with the not-so-subtle ways that our children are influenced about the value of life itself.

Whether it’s the old time western shoot-em’-ups or gangster movies of the ‘40s and ‘50s, American movies have always been violent. People are shown being shot without a care.

But in the 80’s and 90’s things got even more bloody with a fascination for violence against teenagers in chain saw massacres and horror movies. Now the victims were innocent and young, not just the old “bad guys.”

Imagine being young and impressionable and being submitted to that kind of “entertainment.” How can movie actors walk with the student in protest, and then take money to perform in movies that cheapen life?

But wait! Then comes the video games that quickly go from Pac-Man to you-are-the-shooter. The games have become wildly popular with teenagers. This experience of easily blowing people away is now becoming available in virtual reality. Should we be surprised about the increased instances of violence when “reality” is in the name of the experience?

We were in our friendly neighborhood pizza parlor last week. It’s just a couple blocks from our local high school. Video games were screening and screaming. They were vying for teenage attention, shooting one person after another, without consequence, and the player was pulling the trigger.

Then comes the constant news feeds that are deliberately designed to get our attention with headlines that feature death and destruction and other threats to our lives. This comes to us daily on all platforms and inundates our young people with messages that de-value life.

We’ve all heard that most young people know that this is all “fantasy” and that they can easily distinguish this from “reality.” But what about the mentally depressed, isolated, and psychologically imbalanced? They are constantly and visually exposed to this violent avenue to demonstrate their frustration.

What about the impressionable, unstable, and risk tolerant aspects of the still -developing teenage brain? And what about the reduction in mental health funding? Now let’s add to that the “copycat factor,” and you have a real “hot mess!”

Certainly, reducing easy access to firearms is a big part of the answer. Invoking parental responsibility can significantly reduce the instances of school shootings and other atrocities.

But don’t we have a responsibility to hold the entertainment and video game industry to task as well? We’re not advocating censorship, just good judgement and sensitivity. When entertainment producers deliberately go after teenage dollars with violence that diminishes the value of life, shouldn’t their actions be subject to public scrutiny? We think it’s hypocritical to stand with the students while making money depicting violence and devaluing life.

We work with students every day. Many of our events are in schools. We owe it to them to speak out against this ominous trend in teenage “entertainment.” Let’s show them why life is precious. Let’s get them into the parks. Let’s show them the wonders of nature. And let’s teach the values of empathy over enmity. Let’s all agree to set good examples for others to follow, especially our youth whom we know emulate what they see.

Who We Are

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

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Prepare for the Unexpected!

Michael Houlihan & Bonnie Harvey — Thu, 03 Aug 2017 17:00:29 +0000

“How do you handle the unknown?” This is the #1 question we hear from students. They come from over 50 schools of entrepreneurship in the US and elsewhere who have heard us speak about what it is like to start a business and become a successful entrepreneur. Many of these students are considering taking the big leap into entrepreneurship. They are naturally anxious about the uncertainties, risks, and challenges of life without a paycheck. They want to know how we overcame the fear of the unknown.

Is there some formula, procedure, or process you can just cut and paste that will protect you? Is there a failsafe way to survive the dangers of entrepreneurship? Is there just “the one thing” you need to know? In spite of the daily hype, pandering, and outrageous claims to the contrary, the answer is a flat “No!”

After we monetized our equity in the Barefoot Wine brand, we were encouraged by colleagues to write about how we did it; specifically, how we handled the unknown. The answer, in retrospect, was a set of guiding principles; some we had previously learned and applied from day one; some we learned by asking questions of others; and some we learned the hard way. There is no “just one thing!” It is a multifaceted approach to doing business we call “the Barefoot Spirit.”

A big part of the Barefoot Spirit is the Guiding Principles for Success, GPS for short. These are critical and learnable standards, attitudes and soft skills that we used to minimize risk, prepare for the unknown, improve the quality of our decisions, and reduce our need for capital.

With the information revolution and the advance of technology, we saw a whole new generation with a whole new approach to business. We saw new platforms, and new products and services. We saw the disruption of so many old ways of doing things that in the process, we may have inadvertently thrown out some classic business principles. A big mistake!

With an accelerating failure rate, loss of investor capital, and increasing inability for startups to achieve positive cashflow, it’s finally time to bring back those classic principles. When it comes to the past, take the best and leave the rest. The best of the past is a big part of the Barefoot Spirit.

When you start a business, prepare yourself for the adventure! Just like a seasoned sea captain, you wouldn’t dare go out to sea without being prepared for the unknown. You need radar, sonar, weather satellites, charts, a GPS and a sextant to back it up.

Being the captain of your “entrepreneur-ship” is no different. It doesn’t really matter how good your idea is if you run out of capital, lose your people, or lose your buyers. Just like the sea captain, you need a set of guiding principles and standards to hold your decisions up against to make better ones. You need to know how to gain the confidence of your investors, employees, vendors, and buyers.

We have identified 20 Guiding Principles for Success that, if applied, will mitigate your risks, and better prepare you for the unknown. They worked for us and they can work for you. Interested? Stay tuned as we explore them in the coming months. Like our audiences, you too may be saying, “I can’t wait to get back to my business and try the GPS out!”

Who We Are

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

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3 Reasons Why Budding Entrepreneurs Should Finish College

Michael Houlihan & Bonnie Harvey — Thu, 12 Jan 2017 18:00:32 +0000

About this time of year, many students are questioning the value of staying in school. There’s an increasing chorus of proponents urging them to drop out. They say, “You don’t need a formal education any more, especially if you are planning on being an entrepreneur.” They say, “Just get started, the real-world experience will be more effective than the abstract and theoretical education you get in college.” They are quick to support this advice with an impressive list of some hugely successful people who dropped out of college and made gazillions!

Our advice: “Don’t do it!”

Here’s why, if you are truly planning on becoming an entrepreneur, you should stay in school:

Learn How to Learn. College teaches you much more than the subjects offered. Due to the course load, the number of classes you must take per day, and the limited amount of time you have to study, you simply won’t pass unless you develop a systematic approach to learning. You must make some assumptions about the material on a very general level, fill in the blanks and make adjustments to your assumption as you go. All the while you must outline the materials in a way that you can recall and use them – even if it’s only for an exam. You must learn how to learn. And that skill is essential for successful entrepreneurship in the real world.
Learn How to Juggle. College requires that you master another essential skill of entrepreneurship – juggling. You must juggle your time between classes, work, and social activities. You must remain healthy and get enough sleep. Most have to juggle their finances to be able to afford college. This means you must learn how to budget your time and your money. You must prioritize, sometimes going without and deferring gratification, all critical skills in the real world of entrepreneurship.
Learn How to Stick to It. Seeing things through is crucial in the world of entrepreneurship. Completing college demonstrates that you can finish what you start. Commitment and tenacity require practice and reap rewards. In the business world, if you pivot too often you will get the reputation of a quitter, someone not to be taken seriously when they say they are going to do something. As an entrepreneur, your customers buy from you because they believe you will do what you say. Your reputation is on the line.

If you are still are in doubt, then here’s two things you can do:

Take Some Humanities Courses. They are also known as the Liberal Arts or Liberal Studies. Successful entrepreneurs understand and properly use skills they have learned about communication, critical thinking, philosophy, psychology, history, and sociology. Those studies will give you an appreciation for others that will come in handy when selling your ideas to others and communicating leadership skills.
Work Part-Time for an Entrepreneur. Yes, get a job working for someone who is already doing what you want to do. It will give you insight and respect for what is involved. Watching a real entrepreneur face challenges, decide on priorities, and make tough decisions will prepare you for the road ahead.

You’ll notice we did not defend the content of formal education, but did defend the rigor and challenges necessary to see it through. The college experience itself forces discipline, focus and frugality at a time in your life when you need to develop these attributes. They will play a significant part in your future as an entrepreneur. So, stay in school and learn the skills successful entrepreneurs have before you hit the bricks!

Who We Are

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

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Sales Should Be Taught In School

Michael Houlihan & Bonnie Harvey — Thu, 05 Jan 2017 18:00:21 +0000

In the past few years we’ve spoken at over 40 schools that teach entrepreneurship. Only one of them teaches Sales – not sales forecasting, not sales management, and not sales analysis, but real, “get out of my office,” to “I’ll take two truckloads,” Sales!

As a society, have we gotten so focused on technology, engineering, production, and the next shiny ball that we have forgotten how all the goods and services that give us such a great standard of living get to us? It’s through sales!

Without sales, nothing happens: no engineering, no tech, no production, no salaries. Nothing. Zilch. So how did we get to a place where we think we can teach, of all things, Entrepreneurship, without teaching Sales?

We think it’s because, as a society, we look down on salespeople, and anything that seems ‘salesy.’ From the classic Music Man to a myriad of films like “Used Cars,” salespeople are depicted as devious, cut throat, sleazy types who will take advantage of you, trick you, and saddle you with something you don’t need and can’t afford. They are regularly portrayed as low lifers who couldn’t get a decent job. So why teach Sales to an entrepreneur? Certainly, they can find someone else, less educated, to tend to that tawdry task.

The one school we visited that did teach Sales including prospecting, qualifying, communications, opening and closing, was the University of Wisconsin at Whitewater. When we asked why they taught Sales, they responded, “One of our benefactors, a very successful entrepreneur, asked in a curriculum meeting on entrepreneurship classes, why they didn’t teach Sales?” They couldn’t give a good reason, so they began teaching Sales.

Like that benefactor, we also believe you can’t teach Entrepreneurship without a providing a solid foundation in Sales. More than 80% of the great ideas that fail do so because their startup companies could not achieve a positive cash flow before the investors pulled the plug! In other words, they couldn’t make more in sales than it cost them to be in business.

We like to say, “The day after the launch, the business plan takes a back seat to the cash flow report.”

We also believe that all companies are made up of just two divisions: Sales and Sales Support – where everybody, and we mean everybody, who is not in Sales, is working to support Sales. Sales is your paycheck, your security, and your reputation. Who wants to hire someone from a bankrupt company? So, let’s rethink where sales should rank in the scheme of things. Any successful entrepreneur will put it near the top.

A couple years ago we spoke at the Norwegian Technological Institute in Trondheim to predominantly Engineering students with dreams of starting their own businesses. The main question we got from them was, “What other courses should I take to prepare myself to sell my products and innovations?” Our answer would have been Sales – if they taught it, but they did not. So instead, we recommended the basis for excellent Sale skills – the Liberal Arts, also known as Liberal Studies or The Humanities. You know, communications, social studies, cultural studies, critical thinking, psychology, philosophy, history and literature. Sure, you can teach the tactical skills of Sales, but first you have to master the art of relationship building.

Now does this sound like a low-lifer’s profession? On the contrary, this sounds like a profession that requires a high level of education, plus respect and understanding for fellow human beings. Let’s put Sales back on the pedestal where it rightly belongs. And let’s teach Sales in our schools. When it comes to entrepreneurial success, Sales cure all ills.

Who We Are

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

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Bring Back the Trades!

Michael Houlihan & Bonnie Harvey — Thu, 03 Nov 2016 17:00:37 +0000

Within the last few decades we have seen the increasingly rapid demise of the teaching of the trades in high schools and community colleges. The “shiny ball” seems to be technology. Courses in the physical trades – also known as vocational education – seem to have been traded out for anything high tech. But is this really beneficial to our students and our economy?

We have several friends in the trades. They have established businesses in everything from cabinet making to auto repair, from construction to upholstery. Their common challenge is they can’t find good help anymore! Apparently educators think we don’t need auto shop and woodworking classes any longer. The trades today are dominated by aging Boomers. But where are their replacements?

Most students who don’t complete a 4-year college will wind up in the trades. But how are they prepared to go out into the workforce? We used to teach trades education. Now the high schools and 2-year colleges are abandoning this practical education for coding, programming, and software engineering, all based on the premise that the tech boom will continue forever.

No doubt we need these techies, but how many of them do we really need before they begin to reduce their own demand, flood the market, and reduce their own income? And what happens when the next tech bubble bursts? Do we face another huge unemployment crisis that affects real estate values and ultimately the whole economy?

Meanwhile, there’s a demand for the trades, whether you want to improve your home, or reupholster your couch. In the last recession, we saw a reduced demand for the trades because of the hiatus in construction. At the same time, we saw an increase in demand for coders. That sent a relatively short-sighted message to the schools to dump the trades in favor of tech. Now we’re faced with a serious shortage of qualified tradesmen, and all the while the specter of automated coding and programming is looming on the horizon.

Vocational training will also reduce the dropout rate by providing skills that are in demand now. But who decides what will be taught in high schools and 2-year colleges? Local governments. Don’t they have a responsibility to the community, the students and the economy to bring back vocational training? Sure, it’s not as glamorous as tech training, or academic courses, but what does the rest of the world know that we have forgotten?

According to Marc Tucker of the National Center on Education and the Economy, writing back in 2012, “Japan, Singapore, the Netherlands, Denmark and other leading industrial countries lived in the midst of the same global economic forces we did, but they did not do what we did in response. They doubled down to improve both their academic and their vocational programs. They built education systems designed to support the middle class as well as an elite. They built vocational education programs that require high academic skills. And they designed programs that could deliver those skills. They did not sever the connections between employers and their high schools; they strengthened them. They made sure their high school vocational students had first-rate instructors and equipment. Their reward is a work force that is balanced between managers and workers, scientists and technicians.” He goes on to explain how democracy itself is dependent on a strong middle class and vocational education is essential to providing a balanced economy.

For a real eye-opener, read his entire article and send it to your local high school and community college board members. The demise of vocational education he warned about in 2012 is a reality in 2016. It’s time to bring back the trades!

Who We Are

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

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Student Debt is Everyone’s Problem

Michael Houlihan & Bonnie Harvey — Thu, 08 Sep 2016 17:00:56 +0000

What if you gave a back-to-school sale and nobody came? That’s what retailers are facing this year as many college students and grads face the frugal realities of their college debt. In the last recession we saw how interrelated the various elements of the economy are. Remember when they said, “Don’t worry, the recession will be contained in one sector,” but as time progressed, sector after sector collapsed like a line of falling dominos? The first domino to fall this time may be the $80 billion student loan debt.

Some Boomers are quick to point out how they were able to work their way through college without relying on the easy-to-get college loans available to the new generation. Some ask, “Why didn’t they realize that the money would have to be paid back?” as if somehow shifting the blame will make it their problem? This is not their problem. This is our problem!

Just like the stock market and housing sector collapse in the last recession, a major segment of the economy is beginning to buckle. 20 and 30-year-olds, saddled with high levels of student debt, have already begun to cut back on their retail spending. This should be their most productive and strongest time to contribute to our economy. Retailers are already seeing the hit. This will affect jobs, commerce, finances, – everything.

We all need these new buyers to spend to support the future of our economy. Their contribution is essential to our standard of living. None of us can afford to lose the buying power of this generation. Our economy has always been driven by retail sales. It has always been the canary in the coal mine. How can we save the canary? And by “we,” we are talking about retailers, lenders, the government, and the general public.

Perhaps we can reverse engineer a solution by starting with the goals that would work to everyone’s advantage? The folks with student debt get a reprieve. The retailers make the sales they need to keep the economy going, the lenders get paid, the government avoids a catastrophe, and the general public side-steps another recession.

We think a possible solution has to involve a large-scale refinancing program, interest forgiveness, and in some cases, where grad businesses create jobs, actual loan forgiveness. What is the cost of another recession? Can we avoid it with timely, and ultimately less costly, measures designed to free up the productivity and financial contribution of current student debtors? What is the value to the economy of increased sales, new jobs, and increased tax revenue? What is the value of a stronger and more wealthy generation that can ultimately be in a better position to pay those loans off? Are those values greater than the cost of a solution? We think so.

In the meantime, what can retailers do beside further reducing prices and extending payment terms? Retailers have the credibility and the influence to advise their elected officials on the solutions to this pending new recession. They can warn about its attendant tax and financial implications to the government and overall economy. And they can call for immediate action before the next domino falls.

A quote from this post appeared in a recent article recent article in AMEX Open Forum.

Michael Houlihan and Bonnie Harvey are the Founders of Barefoot Wines, New York Times Bestselling Authors of The Barefoot Spirit, How Hardship, Hustle, and Heart Built America’s #1 Wine Brand and The Entrepreneurial Culture, 23 Ways to Engage and Empower your People.

Who We Are

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

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Ask the Right Questions to Get the Right Answers

Michael Houlihan & Bonnie Harvey — Thu, 07 Jan 2016 18:00:41 +0000

Last week we had the honor of hosting 21 undergraduate students from the Minor in Entrepreneurship (MiE) program at Nanyang Technological University in Singapore. For most of them, this was their first time in the US. They went on to visit the great entrepreneurships in Silicon Valley, but our home was their first stop.

This would be their first impression of America and American entrepreneurship, so we had to set the tone for their visit and lay the foundation to interpret the keys to successful entrepreneurship.

We decided to start with the basics by asking key questions and giving them the three core competencies necessary for success. We examine these critical issues in depth with plenty of examples and stories in our new full length course (The Entrepreneur’s GPS) designed for aspiring, startup, and growth-phase entrepreneurs.

Here’s a brief summary of some of the questions we posed in the live, in person seminar we put on for the Nanyang students:

Why are you starting a business anyway? Are you looking for a lifestyle, a legacy, or are you building a brand that you will one day sell? If it’s the later, that goal will have a great bearing on how you organize, strategize, and grow your business. It will greatly influence your decision-making process.

How will you pay your bills? Cash flow management is absolutely crucial to the survival of any successful business. You simply must make more than it costs to stay in business. Not only that, but you must find ways to reduce your need for cash through resourcefulness, strategic alliances, and fostering critical relationships that build trust.

How do you engage your people? The hiring process is the most important part of this process. We shared what to look for in selecting new hires and how to orient them to understand exactly how their job makes a difference in sales, the overall security of the company, and ultimately the security of their own job. We discussed how to pay them, acknowledge them, and get their insight to solve problems.

How do you get your product to market – and keep it there? In reality, this is the biggest single challenge a new entrepreneur will face. A popular misconception is that price, quality, and value alone will do the trick. It’s just not so! What does each person who touches your product really want? It may not be what you think. And are you ready to do their job if necessary? Who are the real owners of your brand?

All these questions and more must be answered correctly by every successful entrepreneur. When you see a big, successful company, remember, they weren’t always this way.

We tasked the Nanyang students to look for how each of the successful companies they would visit actually answered these questions. We did not give them all the answers, but we did give them most of the important questions. We hope they enjoy and learn from their exposure to successful American Entrepreneurship.

Who We Are

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

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4 Tips to Avoid Drowning in Startup Expenses

Michael Houlihan & Bonnie Harvey — Thu, 19 Nov 2015 18:00:36 +0000

Worcester Polytechnic Institute near Boston may not be a familiar name. However, many major tech and engineering companies regularly recruit WPI grads. They appreciate the well-rounded education of many of their students who also take classes in business, management, and entrepreneurship.

We recently spoke as part of their executive speakers series about the three core competencies of entrepreneurship: Cash Flow Management, Personnel Management and Distribution Management. We shared with the WPI students and faculty lessons we learned from our experience building the Barefoot Wine brand that we believe all businesses must master in order to survive and thrive.

Many wanna-be entrepreneurs fear failure or loss of control of their companies due to lack of funds. They know many startups fail because they have made too many financial commitments before achieving positive cash flow.

Actually, what they really need is sales! Sales earn investments in real estate, equipment, and personnel, and not the other way around.

In our talk about Cash Flow Management, we offered these tips designed to avoid unnecessary expenses and lengthen the runway until sales take off:

Use Your Hidden Assets. Maybe you have a garage or an unused room you can use as an office to get started. We used our laundry room for the first two years. Maybe you have family members who can do some of the work. Bonnie’s mother and nephew came to live and work with us. What can you repurpose for your workspace? We used an old door on two sawhorses for our desk. This allowed us more funds for the surprising cost of sales required to get our business off the ground, as you too will soon discover

Outsource to Local Producers and Service Providers. Right in your own region are companies that can provide you with many of the goods and services you need. You can pay as you use them, eliminating the need to tie up capital in manufacturing, hardware, or office space. In fact, if you write your contracts properly, you don’t have to take delivery of any products not up to you strict quality control guidelines. We succeeded without ever owning an office, a vineyard, or a winery.

Hold Minimum Inventory. Strive for just-in-time production. Although it’s tempting to go for the quantity purchases to reduce your cost per unit, sitting on unsold inventory can be costly and get your business in trouble. Sales volume must justify quantity purchases. Instead, find suppliers who will warehouse goods for you until you need them. And offer buyers quantity discounts for cash to help your cash flow. We found when buyers buy big, they sell big – and reorder quickly!

Extend Your Credit and Terms. Treat your vendors as strategic allies. Grow together, each benefiting from the growth of the other. Gain you supplies trust by monthly or quarterly meetings where you share your goals, opportunities, and challenges. Show them empathy when you can’t pay your bill on time by giving your vendors advance notice and payment plans. Give them a long-term contract so they see your loyalty. Be patient. Your positive performance over time will win you the higher credit limits and terms you need to save your cash flow.

There’s more than one way to achieve a positive cash flow in the early days. These are some that worked very well for us. And, if you are lucky enough to have investors, they will be more comfortable working with you when you demonstrate resourcefulness by reducing your need for cash.

Who We Are

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

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Griffith University Stays True to its Founders’ Progressive Ideals

Michael Houlihan & Bonnie Harvey — Thu, 17 Sep 2015 17:00:14 +0000

Earlier this month we were the guests of the Student Guild at Griffith Gold Coast University in Queensland, Australia. The University was originally founded by Sir Samuel Walker Griffith, the principal author of the Australian Constitution. He was also the first Chief Justice of the High Court of Australia and served twice as the Premier of Queensland. He would be very proud to know that the progressive institution he established in 1971, offering degrees in Asian studies and environmental science, has expanded to offer a comprehensive and research-oriented curriculum, and is now rated in the top 5% of the world’s universities.

When we visited the Gold Coast campus, one of five Griffith campuses in Southern Queensland, we were very impressed. The campus itself was mostly new, state of the art, and much larger than we expected. The architecture and grounds are as progressive as its heritage. The student body is international, and the vibes are exuberant. Everyone we met was truly excited about the future, itching to get out there and make a difference. What a great culture for a big university!

We spoke at one of the regular Student Guild events for grad students. It started with an hour of networking, complete with delicious appetizers and beverages. Then we all went into the new amphitheatrically-designed auditorium for our talk.

What would be best for us to share with these young Australian and international students that they could take with them into their careers? Some were keen on starting their own businesses. Others were studying medical research or other technical sciences and would wind up working for others. But we knew that they all faced challenges in their futures. So we focused on challenges and how to meet them using our Guiding Principles for Success (GPS).

Our #1 principle for success is to put yourself in the other person’s shoes. Find out what others want, and help them to get it, and in the process you will get what you want. We gave several examples from our own history starting what is now the world’s #1 wine brand.

Another principle we shared is the concept of making mistakes “write,” not just “right.” We all make mistakes, so what do we do about them? Do we see them as an opportunity to improve our processes or do we try to hide them? If we fix them as fast as we can, move on and pretend like they never happened, the business does not improve. We write them down, and then change our procedures and processes so the mistake will be less likely to reoccur.

We also shared another secret to our success. We didn’t follow our passion. We followed our opportunity – passionately! Opportunities present themselves more often than the perfect job or business that suits your passion. But, if you take advantage of an opportunity that presents itself, even if it is not your “passion,” you may find, as we did, ways to employ your passion in that opportunity.

We, for instance, were not looking to go into the wine business, but it was the opportunity that was presented to us. Our passion was conservation and human rights. We found a way to use Worthy Cause Marketing (supporting local non-profits that were focused on those conservation and human rights issues) in the hopes that the members of those non-profits would buy our products. It worked very well for everyone!

We salute the Griffith Gold Coast University Student Guild for all they do to create and nurture a culture of positive enthusiasm among the students by providing a fun, educational, recreational, and inspirational university experience. This is a great place to study and learn!

Who We Are

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

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