Skolkovo is one of the top universities in the world and is associated with MIT. The students were in their 30s and many already had their own businesses. Others were either considering the prospects or just wanted a better understanding.

Introducing the Russian Students to Soft Skills

We knew they had seen a lot and heard a lot about hard tech in the Valley. Between the VCs and the auspicious examples of technical success, we figured they might appreciate a more natural environment and a talk on something entirely different, so we presented them with our course on “How Soft Skills Earn Hard Cash.”

We decided to take them through the three basic soft skills (Appreciation, Acknowledgement, and Communication), and how they apply to the three basic business relationships (Employees, Vendors, and Buyers).

Although soft skills are not the only thing you need to be a success, their absence can result in expensive and crippling turnover, higher costs, loss of credit, and loss of customers. In other words, there has to be a balance between tech skills and soft skills.

We were impressed with the students and their sincere interest in achieving business success. We started with what we had in common: a desire to have loyal and engaged employees, a need for extended credit and terms, and a need for ongoing and increasing business.

Even with the obvious cultural differences between our societies, business is business and people are people. How folks are treated makes a big difference in their discretionary decisions regarding your company’s products and services. And probably the most important consideration you can give others as a business person is respect for their concerns.

If they are employed by you, do you have their interests at heart?

Do you demonstrate it? For instance, can employees enhance their careers with your company? Do they get the compensation, recognition, education, security, and the time with their family they need to remain loyal?

If they are your vendor, do you treat their salespeople with respect?

Do you call in advance of a late payment with a plan to bring your account current? Do you consider a long-term contract so they can feel confident extending the terms and credit you need to grow your business?

If they are your buyer, do you service what you sell?

Do you honor your warranties? Do you provide the kind of support they need to stay with you, increase their purchases, and promote your products? Do you understand and address every level of buyer from your warehouse to your ultimate consumer so your products will move freely through the channels?

All of this really comes down to putting yourself in the other guy’s shoes. Know what they want, and get what you want by giving them what they want first. In other words, as our friend Ivan Misner likes to say, “Take off the bib and put on the apron!” Or, as we like to say, “If you are going to be a jerk, get out your wallet! It’s going to cost you more.”

These lessons are international and timeless. Anyone with a great idea that can change the world will have a much easier time doing so by practicing these soft skills. They can make the critical difference between success and failure.

When we first got into business, we thought that our product was so good, that it would sell itself (Gold Medal winners under $6). We couldn’t understand why the world wasn’t knocking out windows and kicking down doors to get to us. It cost us plenty of time, money, and anguish to finally learn and master these essential skills, which, ultimately, resulted in our major success.

We were thrilled to be able to share the practical benefits of soft skills in business with the impressive students of Skolkovo.  We wish them the best in their own businesses and hope they will return for  another visit to their “Outdoor Classroom in the Wine Country!”  Надеюсь увидеть тебя снова в ближайшее время!

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 Russian Students Visit the Russian River! appeared first on The Barefoot Spirit.

Right now, all over the world, young teenagers are making their voices heard. It’s hard to ignore. It’s in the news every week and you can expect to read more about them as time goes on. It’s a global youth movement that is not going away. It’s a worldwide climate strike!

Students in more than 450 countries are choosing a Friday to play hooky for a good cause – their own survival! It’s hard to believe that we as adults have kicked the can down the road so far that we now have a generation that is facing irreversible climate disaster in their own lifetime. As Howard Beale says, in the 1976 movie, Network, “I’m mad as hell and I’m not going to take it anymore!”

And why should they? They will be on the planet a lot longer than today’s adults. 15-year-old Greta Thunberg has become the figurehead for the school climate strikes that will soon be in your neighborhood. Greta sums it all up in her address to the UN Climate Conference in Poland and subsequent interview.

Climate Change and Entrepreneurship

Because we are big supporters of entrepreneurship, we’d like to examine the school climate strike movement from the standpoint of its implications to the business market. We believe real change, even mitigation of climate change, comes from the way we, as consumers, spend our money. Real change comes from the products and services we choose to buy.

Survivalist Buying Trends

It’s simple! The vendors who get our money use it to lobby to protect their investment in market share. If we don’t give them our money, and better yet, if we give our money to healthy alternatives, then those vendors will have the influence. It all starts with how you choose to spend your money.

These kids know that. They’re not just striking out of class. They’re communicating with each other on a level never seen before in the history of the world! They’re discussing this very premise and what it means regarding their own current and future purchases. According to Nielsen, these new “survivalist” buying trends are already beginning to dominate the market.

Given the fact that in about three years, these teenagers will be voting, and in just about six years, they will be considered adults, shouldn’t today’s savvy entrepreneurs be paying attention to what kind of products and services these kids are going to buy now and in the not-too-distant future?

Green Opportunity

For our own part, we have been looking for, researching, and helping just those kinds of “green” businesses. We know they will be in demand and more importantly, on the right side of history. Why not sell products and services to the student climate strikers? They are a growing market that is quickly becoming educated about the implications of their purchases. This is an opportunity for all entrepreneurs to get ahead of the curve and benefit from the new megatrend. And isn’t this what good business is all about anyway?

When Greta says she’s giving up on our generation to make the change in time, when Greta says that her generation is taking action, she’s not just talking about striking. She’s talking about a whole new generation changing their buying habits. Let’s give these kids what they want and what they need! It may help us, in some small way, to redeem our own generation for being asleep at the switch. It’s happening and it’s happening now!

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 Can a 15-Year-Old School Girl Change the World? appeared first on The Barefoot Spirit.

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 VC money. In fact, there’s an entire industry based on this premise.

We’ve seen startups who raise tons of cash tend to spend tons of cash in a “burn rate” that is often unsustainable. The cash itself seems to discourage resourcefulness. “Why scratch around for resources when you’ve got all this cash?” Never mind that you can achieve a positive cash flow before you burn it all up. Never mind that there were critical lessons you should have learned by starting out smaller and slower that would help you grow faster and bigger with a more solid understanding of the cost of sales. “Just give me the cash!”

Scaling Fast

The VCs want you to “scale fast and fail fast.” They are betting on 10 or 20 businesses just like yours. They’re playing a cold, detached, numbers game. They just need one unicorn in 20 to hit the jackpot. They expect to lose on the other 19. Why be in the other 19?

You don’t need to scale fast to be successful. You need to understand the cost of your own success. What happens if you scale fast and then find out that your products or services demand customer service that you are unaware of until you got out there? But now you’ve burned up all that cash the VC gave you and you can’t afford to service what you’ve sold.

How to Use Vendors as Bankers

Undercapitalized businesses are forced to grow slowly. In that process, they learn the true costs of sales. They also learn how to finance their expansion through cash flow management. But the most important thing they learned is how to use their vendors as bankers. These are your hidden resources.

Instead of borrowing the cash to pay your vendor, you get the vendor to buy into your integrity, your loyalty, and your growth plan, a plan that includes increased sales using their products and services. If they do, they will see you as a “partner.” This doesn’t happen overnight, but it’s a relationship that can be built by your behavior toward them.

1. Warn them before you miss a payment.

When you see that you can’t pay your bill on time, call them with advanced warning. Show them empathy for their position and the risk they’ve taken with you. This builds trust.

They have bills to pay and must use your funds to do it. Nobody likes a missed or late payment, but it’s way better to get a warning call in advance with a payment plan to become current, than to chase down a deadbeat. Put yourself in their shoes and treat your vendors the way you would like to be treated.

This behavior sends a message that you are the type of client they can trust. You have their interests at heart. They will extend credit and terms to a company like yours because you have mitigated their risk.

Extended credit and terms are the same as cash, cost less, and don’t require you to give up equity.

2. Consider a long-term contract.

Your vendors don’t want to work with you on extended terms and increased credit limits to build your business up just to have you take it away from them. They need some surety that they will see a return on their investment. A long-term contract will give them the confidence that you will stick around long enough to validate the risk they took “financing” your growth.

3. Have regular progress meetings.

Whether they ask for them or not, hold regular meetings where you update them on your immediate and long-term plans. Get them to buy into to your roadmap. Share the challenges that you face and the growth in business you both could have if you work together.

There will be times in your growth when you need more of their goods and services to take on a new big client that can result in increased income for both parties. If they see it coming, they can plan for it. They can make special allowances to help you land that big fish. They’re pulling for you!

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 3 Ways to Get Your Vendors to Reduce Your Need for Cash appeared first on The Barefoot Spirit.

For us, it’s hard to watch so many startups fail because they say they “couldn’t raise enough cash,” when, realistically, they have not yet addressed the core issue. We ask, “Did you really need all that money to start with?” At the Barefoot Startup, we believe that there are many ways to get your idea off the ground and grow your business effectively that do not require cash. One way is by being more resourceful, and yes, friendly. But you need to be genuinely sincere about your friendliness; Just acting friendly can be seen through and easily backfire!

So, what is “friendly” and how does it translate into profitable business relationships?

Here’s a clue – think about how you treat your friends. You have their best interests at heart. You demonstrate this with your actions. You would never mislead or manipulate a true friend. Think of your family members. You take a sincere interest in their lives. You know their aspirations and their challenges, and you are there to help and encourage them.

Now think about how you felt when they showed up on moving day to help you pack up your stuff, when they introduced you to that key person who helped you with your problem, or when they just listened to you when you needed a sounding board. Their interest in you and your needs made you want to treat them special, give them the benefit of the doubt, and make allowances for them.

Isn’t this what you want from your business associates? Special treatment, the benefit of the doubt, and allowances made for you are all valuable. In business, this can translate into cash. Let’s look at the 4 groups of folks most businesses have relationships with and how you can be friendly with them:

1. Employees are often seen as an expense, and therefore are an untapped resource. And yet, turn-over is the #1 hidden cost of any business. Employees are more likely to stay with you if they believe you have their best interests at heart. Demonstrate this with fair pay, time off, and an interest in them as individuals. They will be more engaged if you show them appreciation for the good work they do. They will go the extra mile if you compensate them, at least partially, on performance.
2. Vendors have the ability to extend your terms and increase your credit, but will only do so if they trust you. You will build trust by keeping them up to date on your payment status, sharing your plans for growth, and making good on your promises. When you show them your loyalty by purchasing certain items exclusively from them, they may show their appreciation by giving you breaks on warehousing, shipping, and quantity purchases. Vendors are also a wealth of information. So, treat their sales people like gold …it pays!
3. Investors are more willing to extend financing if you have demonstrated even a small positive cash flow. They want to see that you appreciate their predicament and are willing to take steps to mitigate their risk. When you demonstrate that you are being frugal and resourceful with their money, investors will be more receptive to the idea of investing more and offering you better terms.
4. Buyers require reassurance before they will carry your products and participate in your promotions. You can gain their confidence by being dependable, providing industry information, and helping them achieve their goals whether strategic, metric, or mercantile. They appreciate your kindness when you give them personalized attention and provide the help they need without being asked. They will often return your favors by opening doors previously closed to you.

When we speak at universities and technical schools, students of entrepreneurship often ask us, “What else should I be taking beside business to help my startup be a success?” We always answer, “The Liberal Arts, also known as the Humanities.” History, sociology, psychology, philosophy, literature, communications and critical thinking are great “soft skills” tools that enable you to better appreciate and communicate with the people who can make allowances for their “friend,” YOU!

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 Soft Skills Can Result in Hard Cash! appeared first on The Barefoot Spirit.

Why? Because you have inadvertently allowed your company’s structure to prevent them from doing so.

Employees, vendors and customers are loaded with good ideas to help you succeed. But are you willing to listen?

If you think you know more about your product than anyone else, or that accepting ideas from others is somehow implying that you, the product creator, don’t have all the answers, you may be losing out on a goldmine.

This mindset is counterproductive to improvement. You may be making a statement but losing a deposit.

To read the complete article, please visit The Business Journals 

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 How to Make Sure You Hear the Good Ideas That Will Improve Your Company appeared first on The Barefoot Spirit.

In today’s workplace, we see employees keeping vital information to themselves and not reporting it to others who have asked them for it …and need it to do or complete their job. This “sitting-on-it” style hurts everyone on the team.

In business, keeping your boss, your colleagues, and your customers up to date is essential. It builds trust in your relationships. It’s easy to say, “Don’t worry, I’ll take care of it,” but actions speak louder than words.

You must actually tell the person who asked for the information what you found out. Just because you know, doesn’t mean you can sit on the information. When you are asked to check into something, it is assumed that you will share what you have found.

You can get back to others with a comfort call, a timely update, or a status report. Or you can wait in silence until they call you and ask, “Hey, what’s going on?”

Nothing is more irritating than having to check up to see if someone really did what they said they would do, are still working on it, or dropped it entirely! Not knowing causes anxiety.

So why do so many people go dark after they say they’ve “got it covered”? The fact is, it leaves the requestors, guessing. It makes them wonder what’s going on, not just with the request, but what’s going on with you.

Are you deliberately going dark, hoping they will forget the request? Are you depending on them to remind you? Are you dropping it until they mention it again? Are you so late in your response that you are embarrassed to admit to your tardy status because you think you will get in trouble? Do you think they don’t need to know until the task is completed, even if weeks go by?

Do you realize that this makes the requesting party anxious? Their mind reels with the possibilities and it keeps them awake at night.

Whatever your excuse, it’s damaging to your company, your team, and your reputation as a professional businessperson!  No news is worse that bad news.

If you get a request that is a long-term, ongoing project, give the requesting party a comfort call or shoot them a memo every few days.

Timely status reporting has so many benefits. For one, even if you’ve had no progress, it puts the requesting party’s mind at ease. They don’t have to wonder about you or question your motives. It just plain shows respect. Suspense is stressful.

For another, it says, “I am keeping you up to date, so you can trust me to not drop it.”  When you demonstrate that you care about relieving their anxieties, they will see you as professional, reliable, and indispensable. When you show you care about the requesting party, they will care more about you.

In any case, do not let so much time go by that they feel compelled to ask you about it. If you keep them in the dark on a regular basis and they find themselves frequently asking you what’s up, don’t think they don’t notice. This kind of sloppiness can result in lost relationships with your vendors, customers, associates, and employers. You are jeopardizing the effectiveness of your team mates. You could even lose your job.

Show others the common courtesies you expect. Put their minds at ease. Show them you are on top of it. Earn their trust …and your own security. Get back to them on a timely basis!

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 Build Trust with Timely Status Reports appeared first on The Barefoot Spirit.

Earlier in the day, they asked us to present a workshop to their VIP members and supporters. These folks were already successful, so we had to give them something special that would help them, hopefully, in a unique way.

We shared one of our favorite business principles, which is “Make Mistakes W-R-I-T-E,” (not just right)! We had plenty of experience in making mistakes; so much in fact that we got good at it. We actually developed a process for making mistakes that greatly improved our company and caused our acquirer to remark, “Wow! This is the best documented company we’ve ever seen!”

It all starts with giving your people permission to make mistakes. They are going to make mistakes whether you give them permission or not, but without permission, they are going to deny the mistake, cover it up, or blame others. They prefer to think it never happened, and go off to the next thing.

You can’t blame them. They’ve been programmed since grade school not to make mistakes. After all, a mistake would get you marked down, give you a lower grade, and could go on your record.

Yet, by giving your people permission to make mistakes w-r-i-t-e, you encourage the improvement of your documents and your very way of doing business. How? By asking your people to identify all the documents that need to be changed, clarified, or created to make the mistake less likely to happen again. Something written must be created, changed or improved. It may involve policies, procedures, checklists, sign off sheets, or even clauses in contracts.

The next step is circulating the new document to get everyone’s sign off of understanding. Then, and this is an important part, thanking the person publicly for improving your business!

Now, everyone knows that you celebrate mistakes – when they are used to refine your business process and ultimately help with training, communication, and profitability.

Sure, you have to apologize and make any one hurt by the mistake whole again. But when you show a customer or a vendor that you are changing written materials to prevent a reoccurrence, they are more likely to not only forgive you, but give you more credibility. They saw you in action. Remember, people judge you by how well you handle a mistake. So, why not do it really well?

And what about those outside vendors, that salesperson, or that difficult customer? Surely, many of the mistakes are their fault, right? We say, “Aim, don’t blame!” When you blame the other guy, you disempower yourself. Rather, take action and clean up you own backyard. What can you do to make the mistake less likely to happen again?

We once had an executive who commented on our unrelenting campaign to tweak, write, and rewrite our documents in the face of any mistake. He complained, “You guys are trying to make everything idiot proof!” We responded, “No, we are trying to make it idiot resistant!” to which he responded, “But even now, as we speak, they’re building a better idiot!”

So, the best way to stay ahead of the “improved idiots” out there is to make mistakes write, and build your business on the back of your mistakes – like we did!

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 Small Business Creates the Most Jobs and Does Most of the Training appeared first on The Barefoot Spirit.

We see too many entrepreneurs falling in love with their products and kidding themselves into believing that their idea itself is all they need to make them a screaming success.

Warehouses are filled with great commercial products that never got to store shelves. Founders of promising start-ups wind up working for their investors, or worse, close their doors. All hopes are dashed and they are back living with mom. Why? Because they failed to master the three core competencies of any successful business.

1. Cash flow management

You’ve got to pay your bills. And when you can’t? You have two obvious choices. Go out of business, or raise more capital.

But that comes with a price; diluted stock or loss of control. So many companies try to get financing to pay for staff without sales. They may be financed and even refinanced before they make enough sales to support their overhead. In other words, they are top-heavy and reliant on multiple rounds of new investment to stay afloat.

One different solution is to make sales a priority, sell in a small territory, service the heck out of it, and use the proceeds to finance growth. Another solution is to identify and forge strategic alliances with your vendors and your buyers. Vendors who trust you will extend your credit and terms to help you make ends meet, especially when they believe their business will grow if you succeed. Buyers will pay in cash for volume discounts, which also help you pay the bills.

To read the complete article, please visit The Business Journals 

Who We Are

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

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

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

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

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

The post ​The 3 Core Competencies Entrepreneurs Must Master to Succeed appeared first on The Barefoot Spirit.

They include: the majority who voted against the current administration and its policies; the majority of religious and ethnic communities that make up the market place; and the undocumented aliens who pay taxes and spend their money here. They all are concerned that the American ideals of inclusiveness, personal freedom, and civil rights are being eroded. They are anxious about selective bans on entry and threats of deportation that can affect their families and friends. They are fearful of racism emboldened by the remarks of our highest officials. What’s worse is that they feel disempowered and vulnerable. They feel like there’s nothing they can do about it. But there is!

We often say, “Consumers vote with their purchases.” Throughout history, marginalized groups have survived by deliberately spending their money on goods and services produced and offered by other members of their community. They have gone out of their way to not patronize businesses that support their marginalization in any way, manner, or form. This has forced big companies to “come out” in support of their rights, privileges, and security. It’s kind of like a big boycott. It certainly makes companies aware of who is working for them, who is buying their products, and who is ultimately putting money in their pockets. It’s that marble cake of ethnic and religious communities we call the American consumer.

By boycotting the products and services of companies who either support marginalization or who are silent about it, you can force every business from your corner store to corporate America to take sides on these issues. And the side they are going to take is the side their bread is buttered on, their consumers’ side!

As Harvey Milk once said about the LGBT community, the only way to make change happen was to “Come out, come out where ever you are!” He wanted LGBT folks to make themselves known, as if to say, “Look how many we are. We’re part of your society, we’re part of your market, and we’re part of your income. Do you want our business or not?”

As consumers, todays marginalized communities can learn a lot from Harvey. Simply put, if you don’t like what’s going on, don’t pay for it! Don’t patronize companies that agree with turning back the clock.

It’s interesting that companies that rely on seasonal workers to harvest their crops and do other types of heavy physical labor have already come out against policies that would rob them of their labor force. Other companies that realize how dependent they are on ethnic consumers have also come out. They want to reassure their customers that they support them so those consumers will continue to buy from them.

If one minority can be marginalized, any minority can be marginalized. They all know it, and have good reason to boycott any business that supports the unraveling of all the hard-earned social progress we have made over the past 50 years.

So, if you don’t like the outcome of the last election, and if you don’t like the way top officials have emboldened racism and religious prejudice, you still have a strong card to play. It’s in your wallet! The next time you pull it out, ask yourself this question, “What am I really supporting with my purchases?” Get to know how your vendors stand on the important issues that affect your lives and those you love. Vote with your dollars!

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 Vote with Your Money – Again! appeared first on The Barefoot Spirit.

Employees, vendors, and customers are loaded with good ideas to help you succeed. But are you willing to listen? If you think you know more about your product than anyone else, or that accepting ideas from others is somehow implying that you, the product creator, don’t have all the answers, you may be losing out on a goldmine.

This mindset is counterproductive to improvement. You may be making a statement, but losing a deposit.

You may think, “Oh, that’s not me. I want every good idea I can get my hands on!” But you may have permitted subtle roadblocks that effectively block those good ideas. If you unintentionally allow your company to grow into a “know-it-all,” top-down structure, you are blocking good ideas from getting to you and your decision-makers.

When we are helping a company with positive suggestion to improve their product or service, we often hear, “Nobody ever told me that before,” to which we respond, “Well, you can’t say that anymore!” But now we know two things about this company: first, “good” ideas do not flow easily; and second, they believe customers only complain and never offer useful suggestions.

It is easy to see how this happens. Production is charged with taking raw materials and developing them into products, which they hand down to Marketing. Then, Marketing develops plans to sell the products and hands them down to Sales. Then, Sales is charged with executing those plans. And then, if there are any dissatisfied customers, they go to Customer Service who is charged with resolving their complaints.

This is the classic pyramid structure. We say, “Pyramids are for dead pharaohs – don’t bury your good ideas under one!”

To remove the roads blocks that prevent good ideas from getting through a top-down structure start with a bottom-up philosophy and let it percolate into every level in your company structure.

Start by putting the customer on top. Every company says they put the customer on top. But to do this in practice requires turning that pyramid upside down.

Every call from your customers is a golden opportunity to get good ideas. So, change Customer Service from “complaint resolution” to “customer intell.” Create a formal upward path of communication that regularly allows those ideas to get to your production and marketing people.

Salespeople become more than the folks who execute the marketing plans. They get customer feedback, they witness market dynamics, and they see competitors’ strategies. Sales must be encouraged to collect and pass on this critical info to marketing and production.

Well-meaning Compliance, HR, and even 1^st and 2^nd line Managers can discourage and even stop good ideas coming from your own people. Good ideas wane when not acted upon quickly. To speed up the process, ask you compliance people to identify parameters inside of which staff suggestions can get fast-tracked. Then, actively encourage suggestions, followed by written memos of appreciation to those with the best ideas. Copy the entire team. This acknowledgement gives your people more appreciation for what that person did, and they will all know that if they do the same, they too will also get acknowledgement. This encourages them to be engaged and creative.

Your customers, employees, and vendors have valuable suggestions that can help you succeed – if you only let them. Get out of the way and let ideas flow!

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 Don’t Block Good Ideas from Getting to You! appeared first on The Barefoot Spirit.