We often hear business owners say, “I don’t need to think about an exit strategy because I’m not going to sell my business anyway.” But they do! And here’s why: Your potential acquirer’s due diligence is the perfect way to organize your files. Period.

What kind of documents would you want to see if you were buying a business? Certainly, you’d want to make sure you didn’t get sued by any undisclosed or unsettled disputes. You’d want to know that you wouldn’t be closed down because you didn’t have the correct licenses and permits, or that they weren’t up to date. You’d want to protect your self from buyers who might claim better pricing and terms from the former owner.

What kind of records would you want to see? How about the monthly and annual sales history from the beginning? How about the chart of accounts? What about the individual sales history for every customer? How about any and all sales contracts and agreements, formal or in correspondence? And how about all of their personnel records and all their vendor and supplier contracts just to name a few? You must protect yourself!

For Your Legal Protection

As you can see, you need all this stuff to operate your own business anyway, but there’s more! When we sold our business, we were surprised by a few requests that caught us off guard. And, if we had thought about it, we really should have had those items at the ready.

Perhaps the biggest surprise was the acquirer’s request for legal sign-offs for any and all art work, like logos, labels, advertising materials, trade dress, and any other custom art to help sell our business or our products. We thought that the fact that we had hired the artists and paid them was enough. No. They wanted to protect themselves, and rightfully so, from any artist coming back and claiming ownership and exacting a big payment later. This was especially true of the label design.

Another big surprise was the disclosures. Ironically, these were to protect us from anything that could come up later that we hadn’t divulged. Well, in 20 years of business, lots of issues come up! But they are settled, solved, or satisfied, and you move on, right? No need to keep track, right? Wrong! If any of that stuff raises its ugly head later, your acquirer has grounds to come back on you. We should have been keeping some kind of a journal or file or at least tagged these kinds of correspondences and settlements, so they could be pulled out later. As it was, we had to spend 17 hrs-a-day for over a week to get them all written down.

To Help You Run Your Business

Preparing your filing system for an eventual acquisition is just good business because you need to have this stuff too. It will help you run your business, reflect on the past, and keep track of your mistakes, challenges, and solutions. It will remind you to ask for those signoffs when any art job is done. Preparing your files will remind you to keep your entitlements up to date.

Besides, you may just want to sell your business someday.

And when you do, you’ll be ready! The longer the deal takes, the less money you will make. Why? Because the word will leak out, your sales manager will quit (and may take your key buyers with them). Your staff will quit (and take their key vendors’ relationships with them), your customers will want to wait to see what the new owner will charge, and what the quality of goods and services will be. And your suppliers will reign in your credit because you are a “short timer”.

In other words, when it comes to a business sale, be prepared from day one. Make it quick and quiet! Time is Money!

Who We Are

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

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

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

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

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

The post Why You Need to be Thinking About Exiting Your Business (Even If You’re Never Going to Sell) appeared first on The Barefoot Spirit.

Today there is more concern over what the subject line should be on your promotional email than what to wear at a business meeting. Sure, if you send the wrong subject line folks won’t open it. And whatever works today is obsolete tomorrow. The idea seems to be to distinguish your email and use a subject word that captures people’s attention.  Your email must offer a good and effective first impression.

Well, how ’bout how you look? Don’t those same folks make the same snap judgements about you and what you’re offering based on their first impression? Of course they do! But what do they see? Do you look like you’re on your way to a ball game? Great, except that if what you’re selling is dependability, quality, and service-oriented, you just struck out.

You should look like what you’re selling because you are being judged – even before you open your mouth, or your sample case. They make an assumption about you in that first split-second. Then they try to justify that first impression every second, every minute and every hour thereafter. We like to say, “When the cement is wet, you can move it with a trowel. But when it’s dry, you need a jackhammer!” So why handicap yourself just to fit in and look “cool”? Do you want to make a statement? Or do you want to make a deposit? If you want to make a deposit, set the stage to give yourself every advantage you can right out of the gate.

How would you feel if your pilot was dressed like a baseball fan? What about your doctor? Your attorney? Your investment broker? Clothes speak volumes especially when you want something from someone else. Think of your apparel as the subject line in a sales email. Does it send the message you want? Does it give your prospect the confidence you want them to have?

Want to be different, stand out,  and get noticed today? Dress sharp! In today’s world, you’ll stand out!

At Barefoot Wines, everyone thought we were running around in cut-offs, sandals, and tee-shirts. Actually, we were dressed in business attire, except for Fridays, when we dressed business casual, not free dress. Were we old fashion stuff shirts? With a foot for a logo? Hardly! We were dressed to send a message to every supplier, every buyer, and every investor that walked in our door. That message was serious, dependable, and professional. And it worked! More than a few big chain buyers wandered into our offices unannounced. And more than a few suppliers extended us credit after a visit, and more than a few of our vendors took us seriously when they came to our offices.

We have a friend who always dresses in top style. He usually wears, yes, a tie. But he is the top sales manager in his industry, and he is respected by all the buyers and salespeople. When you see him, you think, “Now that’s somebody important. That’s somebody who has something to say.” And after all, isn’t that what you want your prospects, associates, and superiors to think of you? Isn’t it time to be different and dress for success?

Who We Are

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

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

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

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

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

The post Time to Dress For Success – Again! appeared first on The Barefoot Spirit.

How do you approach a problem? What is the best way to discover the solution? By knowing what questions to ask you are more likely to find an elegant solution – one that simplifies the situation and benefits all parties. We don’t have all the answers, but we do have most of the questions.

1. Define It. What is the problem anyway? Not just what it appears to be, but why it exists, and what is the outcome you want? We’ve found that many times the solution is the best definition of the problem. Open it up for others to define the problem. You may be surprised at how different people perceive the same problem. These different perceptions can give you some helpful insight leading to a solution.
2. Look it from All Angles. How does the problem look from a timing standpoint? Will it go away on its own? How does it look from the customer’s stand point? What about your distributer, or your supplier? Compare and contrast this problem with other problems. We actually solved several problems by realizing they were merely symptoms of a larger problem, which when corrected, solved the symptoms.
3. Take Inventory. List your assets. What leverage do you have? What things can change and what cannot? How much time is required to fix the problem? Is there a temporary fix? Who are the people, places and things involved? What kind of a budget is available? How many people can you put on the problem? What does the ideal solution do? Does it or can it solve other problems? Is it a tangible solution like a sign, package or price, or is it a process that requires a checklist, signoff sheet, job description, or clause in a contract?
4. Get Above It All. Straight up is the fastest way out of the box and may be the fastest way to the solution. If you get up high enough, you begin to see the relationships involved in the problem. And you begin to see how others solved similar problems in other spaces. You can borrow and apply parts of their fixes. By taking the 10,000-foot view, you can see other parts of the problem you may have missed and other resources you may have overlooked.
5. Who Wins? Does the problem hurt more than just your company? What other people benefit when you solve the problem? They also have a vested interest, so bring them on as strategic partners to solve your collective problem. We often brought market problems up with to our suppliers and vendors who were more likely to make allowances, enabling us to continue and even increase buying their products and services.
6. Let It Simmer! Don’t panic and rush to the first solution that presents itself. The hasty solution may cause even more problems down the line. Take some time after you have completed the 5 steps above to just chill. Then when you least expect it, Bang! All the pieces fall together! The elegant solution presents itself. We usually say, “Wow! That’s so simple, why didn’t we see that before?” It was because we were too anxious to let our minds crunch the data and spit out the answer.

Of course, believing there is a solution will open your eyes to seeing it!

Who We Are

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

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

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

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

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

The post Give Your Problems the Deep Six! appeared first on The Barefoot Spirit.

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

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

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

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

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

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

Who We Are

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

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

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

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

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

The post 5 Key Elements of Productive Business Relationships appeared first on The Barefoot Spirit.