Worthy cause marketing | The Barefoot Spirit

Work with Your Community to Create Advocates

Michael Houlihan & Bonnie Harvey — Thu, 12 Jul 2018 17:00:26 +0000

Every time we speak, it never fails that at least one member of the audience comes up and asks, “I’m just a start up, I’m on a very limited budget. How can I afford to advertise and get the word out about my goods and services?”

Almost everyone in the audience is looking for ways to save money in their new or developing business. They’re all looking for the most bang for their buck in every area of spending. Marketing your products and services are probably the biggest challenges new business face. It doesn’t matter how good your products and services are if your customer doesn’t know about them.

No Advertising Budget, No Entry

When we started Barefoot Wine, we were completely undercapitalized. Our first big chain buyer asked us if we were going to spend $200,000 in an advertising campaign to build our brand before he would take it in to his stores. We were so strapped, we didn’t even have one of those $200,000. He then basically turned us down and for good reason, our brand was unheard of, and he would be taking a big risk giving expensive shelf space to an unknown and unproven brand.

He told us that without a well-funded advertising campaign he wouldn’t touch it …and no other chain or box store would either, for that matter. The big chain buyer said, without advertising, we would have to focus on selling the independently owned stores one at a time. We told him, “That will take years!” He said, “You’re right! You better get started!” He did say that once we became a household word, he would put us in to his 200+ store chain. Well, it took 2 years, and yes, he did put us in. His was the first large chain store in the country to take us.

Becoming a Household Name Without Advertising

But we didn’t become a “household word” through commercial advertising. And we didn’t become a “household word” throughout the country at first. We became a household word only in California and we did it through support for the community from which our customers came. You see, the independents were no different than the chains. They didn’t want to take a chance on an unknown brand that wasn’t being commercially advertised. In fact, they threaten to discontinue Barefoot if it didn’t sell within 90 days. And we only had a handful of accounts that would even take that chance, to begin with.

It was during that first in 90 days that we got a call from a nonprofit community organization asking us to support their kids-after-school park. Once again, we had no money. But we did have wine! We donated wine to their fundraiser. The next month we noticed a big uptick in sales in the stores in that particular community. Without knowing it at the time, we had given the members of that organization a social reason to buy our product. They also felt obligated to tell their friends colleagues and families to go out and buy it as well.

We thought, “Wow! Maybe we’ve discovered something here! Maybe this is an alternative to expensive commercial advertising. Maybe it’s more effective simply because it’s more locally targeted. Members of the organization lived in the neighborhoods surrounding the stores where our products were for sale. Then we thought, let’s try this in another market, only this time we asked for a few concessions that the nonprofit could readily provide. They mentioned us in their newsletter, they thanked is from the podium, they let us put up banners, they let us put out lists of where to buy our products at their fundraiser, they let us write posts in their newsletter, they used our logo and let us use theirs.

These were not big national organizations looking for paid sponsorship. These were just little community organizations, but they were made up of potential customers. Why shouldn’t we support our potential customers?

Worthy Cause Marketing

As Ivan Meisner says, “When it comes to networking, take off the bib and put on the apron!” This approach to getting the word out, which we called Worthy Cause Marketing, was so effective that as we expanded Barefoot into other states, regions, and even countries, we got the word out by supporting local communities and their worthy causes.

Already we can hear the objection, “Well it was easy for you. You are selling wine, but how does that work for me with my product and services?” At a local Chamber of Commerce meeting, we met a gentleman who was practicing Worthy Cause Marketing to get the word out about his services. What was he selling? Gun safety! He found that he could support parent-teacher associations, as well as police and sheriffs associations by offering free classes as a silent auction item during their fundraising dinners. Association members saw his support for their cause. Some members bought and used the silent auction classes. They came back and recommended his classes to all the other members.

Targeting the Networked Market

One of the great advantages of working with community organizations is that they are already networked! They are already communicating. And they are local to where your goods and services are for sale. Offering them free goods and services to support their causes as well as helping them get the word out about their goals and fundraisers will endear you and your products to their members. You become part of their organization and a supporter of the causes they hold dear. Of course, they want to support you in the marketplace.

You will not only show the world that you stand for more than the mercantile value of your goods and services, but that you support the causes that are important to your customers. It’s not only a great contribution for your company to make to your community, but in the long run, it’s the cheapest form of advertising!

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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3 Lessons to Vitalize Your Business!

Michael Houlihan & Bonnie Harvey — Thu, 05 Jul 2018 17:08:38 +0000

We recently had the honor of the opening keynote for the Alaska Small Business Development Center’s first annual Vitalize Alaska Conference. The conference was the brainchild of Jon Bittner their new Executive Director. He wanted to encourage and inspire innovation and business development in the new frontier. Over 300 small and medium-sized business owners attended.

The conference was held in Anchorage, Alaska’s largest city, but still under 300,000. The state is much bigger in area than Texas but lacks the infrastructure we take for granted in the lower 48. As you can imagine, the winters are harsh, and the people are stalwart.

While most of the rest of the country enjoys a booming economy, Alaska suffers from a recession, brought on by the collapse of oil prices in an oil-producing state. Needless to say, they have to find a new path economically and so they are turning to entrepreneurship.

What could we possibly bring to the table that would help them in their challenge? What could we bring that would have a universal and positive impact on those folks who now face raising themselves up by their own bootstraps? We looked at our own bootstrap experience and discovered three practical lessons we could share:

1. Follow Your Opportunity …Passionately!

You often hear, “Follow your passion!” It seems to make sense on its face, since we all need that drive and tenacity that comes naturally when we follow our passion. But you can follow your passion right into the poor house if you are not fortunate enough to have a passion that is in great economic demand.

We followed our opportunity, passionately. The chances are greater that opportunities, not necessarily in your passion, will present themselves more often. We found we didn’t have to give up on our passions to seize the opportunity we were presented with. As a matter of fact, we found many creative ways to use and incorporate our passions into our mercantile business, not the least of which was Worthy Cause Marketing.

We saved a bundle on commercial advertising by supporting worthy causes we were passionate about. We wanted to give the members of those causes a social reason to discover, buy, and advocate our products. This can work in Alaska!

2. Use your Hidden Assets and Resources.

The VC’s have brainwashed most startups and small businesses into believing that the only way to success is to secure a big investment, go through a burn rate, scale fast, and fail fast. If you are playing a numbers game, then you only need one unicorn in 10 if you expect a 10X return. Forbes, the SBA, and others all agree that still, today, 9 out of 10 new businesses fail. ‘Sounds like they are indeed failing fast.

But what if you don’t get a big investor and don’t have the luxury of a big burn rate? If you are like most of us, you don’t! So now we are talking cash flow management. And the secret to cash flow management is reducing your need for cash and growing slowly, but surely!

One hidden asset we had was our top supplier. Outside of product (wine), our biggest need was packaging materials (glass, corks, closures, labels and cartons). Because we were a low priced product with high volume, we would use more of these materials than any of our supply company’s other customers. We certainly let them know this, but we didn’t stop there.

We met with them quarterly to share our growth plans and negotiated a long-term contract. We let them know ahead of time when we couldn’t make our payments. And we gave them a catch-up plan that would bring out account current. Over time, we were able to gain extended credit and terms that saved us from borrowing the money or worse, trading equity for it.

Treating your suppliers as partners to save money can work in Alaska!

3. Put Your Self in the Other Guy’s Shoes.

You hear this all the time. It basically the golden rule. But just how does that translate into practice in the business world? And why does it remove obstacles and speed the processes you rely upon?

We found 7 distinct people we had to sell in order to get our product to market. They each wanted something different. Surprisingly, most of them were interested in something else entirely beside “The best wine and the best price” (our slogan).

For instance, our own people wanted income, acknowledgment, time off, and a company that stood for more that its product. The ownership of our distributors wanted a strategic advantage with a powerful retailer who wanted our product. The distributer’s sales managers wanted to make their numbers. The salespeople wanted to make their commissions. The retailers wanted a proven product with excellent customer service. The store clerks wanted to feel important, so they would recommend and reorder our products. Only the consumer really cared about the wine or the price!

But discovering and delivering what each person in the chain wanted (and not what we thought they wanted) was the key to our success. This can work in Alaska, or, for that matter, anywhere.

We admire the spirit of Alaska, and hope these lessons help vitalize their recovery!

Who We Are

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

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2 Reasons Why Doing It Yourself Can Give You a Big Advantage

Michael Houlihan & Bonnie Harvey — Thu, 20 Oct 2016 17:00:33 +0000

The advantages of starting a business when you are undercapitalized are priceless. They can force you to be creative, resourceful, and frugal. They focus your attention on sales to achieve a positive cash flow quickly, before you go out of business. They can save you from squandering cash on expenses that don’t produce income.

But there’s another big advantage to being undercapitalized. It often requires that you do many of the jobs yourself because you simply can’t afford to hire someone to do it. Sure, there’s a big learning curve, and in many cases, the job could be done much better and faster by a pro, but sometimes you really have no choice. So what are the benefits here?

Evaluation. When you must do the job because your finances are spread too thin, you will certainly ask the question, “Is this absolutely necessary?” And, “Is there some other way that we can achieve the same results?” With big capital and a generous “burn rate,” you might just throw money at the problem thoughtlessly as if to say, “This is just the way it’s done, right?” But is the job really required, or are you just buying into what others say you must do?

At Barefoot, we were told to advertise; spend tons of money on ads to make Barefoot Wine a household word. We simply didn’t have the bucks. But still we knew we had to get the word out. It’s just that we had to do it ourselves, and inexpensively. It also had to be very targeted and effective because one way or the other it was still going to cost us. But we had only a fraction of what was necessary to get traction with conventional advertising, making that an unviable choice.

So when a local neighborhood group asked for a donation for a kids’ after-school park, we gave them product rather than cash. Sales in their immediate area took off! Because we were broke and had to do the advertising (and everything else) ourselves, we noticed everything that worked, even off the wall stuff like this. We tried it in another neighborhood. It worked there too! In fact, it worked so well, that even when we could afford to buy advertising, we stuck with what we called, “Worthy Cause Marketing.”

Experience. When you are forced to do the job yourself, later when you can afford to have someone else do it, you are less naïve. You recognize quickly when you are being taken advantage of, and are less likely to put up with excuses. You also gain the respect of the folks you hire because they understand that you know the job because you did it!

When we started Barefoot, we couldn’t afford a salesperson. So Michael did all the sales. Talk about hard knocks! It took him years to become proficient at it. But when we did hire salespeople, they quickly learned he had done it himself.

What if we had been well financed? We would have hired salespeople without really understanding their job firsthand, and without knowing if the excuses were real or not. We would have spent tons on conventional advertising and it would have been less effective than what we discovered out of necessity.

Sometimes desperation is just the advantage your start-up needs to disrupt the established patterns that can waste your precious time and money! Here’s to the glorious benefits of being underfinanced!

Who We Are

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

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4 Reasons Why Social Responsibility Is Profitable

Michael Houlihan & Bonnie Harvey — Thu, 17 Mar 2016 17:00:36 +0000

We feel compelled to weigh in on the sensationalized debate over whether or not your business needs a social mission. Entrepreneurial pundits like Kevin O’Leary are saying no, “Profit is the Mission.” Basically the argument says so much is required to keep your customers happy, you don’t have time to pursue a social mission. We think this is a very short-sighted view. Long-term profits require a social mission.

This debate is exacerbated by simplistic thinking on both sides. As much as we would like to think that companies would choose a social mission out of the goodness of their hearts simply to make the world a better place, the fact is it’s just good business! Here are 4 solid business reasons why social consciousness is profitable in the long term:

Saves on Advertising. We chose social missions for our brand because we simply couldn’t afford commercial advertising. And after some success with what we called Worthy Cause Marketing, we continued with it as our only form of advertising. It was more efficient and targeted, and created more customer loyalty than commercial advertising. It gave our customers a social reason to buy our products rather than a mercantile reason. Sure, we wanted to make the world a better place but we didn’t have the luxury of doing that unless we were selling! How much money was saved as a result of supporting worthy causes?
Creates Brand Advocates. We took an expanded view of our responsibility to our customer. We not only provided products at the price, quality, and convenience they wanted, but we supported the groups and causes important to them. We viewed our customer a not just a consumer, but as a living, thinking, reasoning, and feeling human being with real social interests. Once they witnessed our support for their social causes, an interesting effect took place. While they could choose any product in our category, they chose ours. They also became advocates for our brand because they saw us a partner for their cause. So they passed the word to friends, neighbors, and colleagues. What is the business advantage of that kind of advocacy?
Reduces the Cost of Turnover. Soon we discovered that we had reduced turnover, which is the number one hidden cost of doing business. Turnover not only costs the advertising for a replacement, but the vetting, interviews, orientation, training, false starts, and all the lost business resulting from disrupted relationships. When we began to embrace social causes, our people developed a sense of pride working with a company that stood for more than the products it produced. Now they could help make the world a better place – at work! This gave them a social reason to stay loyal to our company. How much is reducing turnover worth?
Consumers Increasingly “vote” for Socially Responsible Products. The company that mistreats its employees and the environment is being progressively exposed by the new transparency. Your competitors want to “dig the social dirt” on your practices to distinguish themselves in your customer’s mind. Today’s customers know they are “voting” with their brand choices. Don’t set yourself up to lose their vote in the future. Think of social responsibility as an insurance policy. What is the cost of losing customers?

So it’s not a simple argument of “evil” guy versus good guy as the Inc. Magazine headlines. It’s more like wasteful guy versus prudent guy. There are just plain good and profitable reasons for taking an interest in your customer’s causes. Looking at the bigger picture can go a long way to improving the bottom line.

Who We Are

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

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How to Turn Your Customers into Advocates Using the Discovery Process

Michael Houlihan & Bonnie Harvey — Thu, 03 Mar 2016 18:00:38 +0000

You love sharing a new restaurant or hiking trail with your friends, right? It’s part of human nature to want to share a new discovery with others. You not only sincerely want to improve their lives, but you also want to be appreciated for doing so. You certainly can’t enlighten them about something if you know it’s widely advertised. But if you think that there’s no other way they could find out, you will be more likely to spread the good word – and be thanked for doing so! That’s the discovery process in action.

As most of our readers know, when we first started the now famous Barefoot Wine brand we simply couldn’t afford commercial advertising. We were told that we would have to advertise over and over again before we got any traction. When we looked at the costs involved and the long-term commitment to this form of advertising, we quickly realized that we simply didn’t have the budget.

That’s when we stumbled upon a different method that really worked well for us. We began to support non-profits organizations that championed causes our customers cared about, and causes we cared about. We donated our goods for their fundraisers and took their message to the marketplace in ways they could not. In the process they discovered our products and where to get them. Our support of causes they supported gave them a social reason to buy our product, and in this way we developed advocates. We called this Worthy Cause Marketing.

We finally got to a point where we could actually afford commercial advertising. We thought about it and listened to all the arguments, but in the end we chose to continue with Worthy Cause Marketing as our sole means of advertising. What clinched it for us was the realization that we ourselves would not tell anybody about any well-advertised product. We figured others already knew, so why bother?

It takes years to build up a customer base that is actively advocating your product. Why spending tons on advertising only to take away the appreciation your customers will receive when they share their new discovery with their friends, family and colleagues?

We have actually worked with companies whose marketing people told us that their budget was based on how much they spent last year in advertising, and if they didn’t spend as much this year they would lose the difference. It would adversely affect their status and personal salary. So they wanted to advertise because “everybody was doing it” and they had a vested interest in spending all the money in their budget. Their companies where resigned to expensive ads and their marketing folks were happy to go along with it.

Many companies think they have to out advertise their competition lest they be conspicuous by their absence. New entrepreneurs don’t have the luxury to embark on this expensive slippery slope. New entrepreneurs must think about every dime and how it affects their bottom line – right now. They don’t have the funds to spend tons to “gain traction,” nor do they have the time required to see results.

The best form of advertising in our opinion for new businesses is excellent customer service with customer feedback directed to production and marketing, and support for the causes their customers are keen on. Let customers have the appreciation they deserve for being the first to turn their friends on to that great product they recently discovered, a product their friends would not have found out about otherwise.

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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Worthy Cause Marketing Makes Dollars and Sense

Michael Houlihan & Bonnie Harvey — Sat, 17 Jan 2015 19:30:31 +0000

What we dubbed Worthy Cause Marketing back in 1990 was really an outcome from a serious business problem: How could we get the word out about our products when we had no money for commercial advertising?

We discovered something very important when we got a call one day from a neighborhood non-profit looking for a donation for a kids-after-school park. We had no money for a cash donation but we did have product which we donated for their fundraiser. As a result, the membership of that non-profit was able to sample our products and saw that we supported their cause. Sales in the nearby retail account took off.

When we finally put it together that sales were up in that store because we supported the local neighborhood fundraiser, we decided to try it in another neighborhood. It worked! Then we realized that we didn’t have to give up our true passion which was conservation and civil rights just because we were in business. We realized that we could support worthy causes that were worthy of us, our brand, and our products as a way of getting the word out in lieu of costly advertising that we couldn’t afford anyway.

In fact it worked so well that even when we could afford commercial advertising we did not do it. And we discovered something else that was very important yet subtle. The members of the non-profits we supported not only selected our products when they had a choice, but they actively promoted them to friends, family, neighbors and co-workers. They also promoted our products through their networks by thanking us for our support.

We began to realize another important lesson. Part of the discovery process that makes people want to share their discovery is not only the knowledge that the product is great, but also and most importantly, that the person they are turning on to the product couldn’t have known about it any other way. They believe this precisely because they have seen no commercial advertising. They know they will be gratified when their friend says, “Thanks for the great recommendation! We tried it and you were right. It’s great!” So now we had a business reason not to advertise, because the folks who were spreading the news by word of mouth would simply stop if they saw the commercial ads!

So isn’t this just another type of cause marketing? Not quite. The biggest distinction we can make between Worthy Cause Marketing and Cause Marketing is that within Cause Marketing, the support for the cause is advertised to the general public in the hopes that the general public will chose your brand because you are doing good. In Worthy Cause Marketing however, the support for the cause is not advertised to the general public, but is only known to the non-profits’ members and their supporters.

In both cases the decision to support the cause is a sincere intent to help that cause achieve its goals, but the process differs substantially. We have found that Worthy Cause Marketing creates a loyal following when practiced year after year on a long-term basis.

We were honored to be the keynote speakers today at the prestigious Pepperdine University in Southern California at the Margaret J. Weber Distinguished Lecture Series. Given the school’s admirable commitment to social entrepreneurship, we thought no topic could be more appropriate than Worthy Cause Marketing, a driving influence behind the success of the world’s largest wine brand. We hope that our demonstrated success will encourage start-ups, growth-phase and established companies to use Worthy Cause Marketing in their own businesses. We believe they will see, just as we did, that doing good is just plain good business!

Who We Are

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

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Forbes Magazine Article

Michael Houlihan & Bonnie Harvey — Tue, 09 Dec 2014 20:13:12 +0000

The Incredible Story Of Starting The World’s Largest Wine Brand, Barefoot Wines

I was recently speaking with Michael Houlihan, co-founder of Barefoot Wines. This is the story of how two people overcame remarkable odds and built a beloved brand that transformed the wine industry. It is hard to believe that such an iconic brand as Barefoot Wines began in a laundry room of a rented farmhouse in the Sonoma County hills. Even more surprising is that the people who started it were just an average business couple, Michael Houlihan and Bonnie Harvey. From the start, with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and strategic alliances, while pioneering Worthy Cause Marketing and performance-based compensation. They successfully sold the brand to E&J Gallo in 2005 and Barefoot is now the largest wine brand in the world. (ref The Drinks BusinessJune 2014 London)

TO READ THE COMPLETE ARTICLE, PLEASE VISIT FORBES

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Norway’s University of Science and Technology at Trondheim Sparks the Entrepreneurial Spirit

Michael Houlihan & Bonnie Harvey — Sat, 08 Nov 2014 19:30:39 +0000

Every year the students at Norwegian University of Science and Technology mix it up to encourage entrepreneurship. NTNU is Norway’s largest technical institute with over 29,000 students engaged in the sciences and technology; along with a thriving entrepreneurial spirit, impressive student body and curriculum.

Many of the students start their own businesses even before they graduate. Others are set on venturing out on their own with great apps, scientific breakthroughs and consumer products right after graduation. Still others are considering becoming entrepreneurs. Where they all come together with successful entrepreneurs, faculty, and a fun party is at their annual Mixer.

The students themselves organize and run the Mixer, deciding on the theme, program, presentations and speakers. This year’s theme was networking and why it is essential for business success. We were honored to be their keynote speakers.

Over 250 students showed up in festive attire to partake in an evening of networking, socializing and inspiration. Several students took the stage to describe their own businesses and how they got them launched. Industry leaders were there to encourage the crowd.

Our focus was on how important networking was to our success. We told them to first identify the customer, then understand that everybody who touches your product is your customer. Find out what each person at every level of the distribution channel needs. Most were surprised to hear that success has less to do with their product or service, but is more about the all-important personal relationships.

We warned against “falling in love with your product” so much so that you discount the effect distribution has on your product’s success. Barefoot succeeded not just because it was a great value with a catchy label and unique positioning, we told them, but more importantly, because it made it through the legal, distribution, and retail systems which enabled it to actually get to the customer. This took extensive relationships at every level of many networks.

We did not stop at satisfying our customers’ mercantile needs. We found out what they were interested in beyond our product category and that was conservation, human rights, education and the arts. By supporting the causes our customers held dear, we gave them a social reason to choose our products.

We advised the students to similarly take a close look at their customers’ interests at every level, from their own employees to their wholesalers, the sales managers, salespeople, retailers, clerks, and all the way to their end-user and beyond, the groups to which he/she belongs. We believe in the power of seeing things from the other person’s perspective by putting yourself in the other person’s shoes.

Worthy Cause Marketing is a concept we pioneered that supports nonprofit groups in the hopes that their goals would be realized and that their members would choose to use the products and services of an ally. By working with these groups, entrepreneurs can gain access to a network that is already established and that would otherwise take years to achieve through expensive commercial advertising.

We emphasized that ultimately face time beats Facebook and high touch beats high tech when it comes to gaining and keeping the trust of your network. We encouraged them to get out from behind their screen and physically meet their distributers and customers.

Our goal was to encourage these aspiring Norwegian entrepreneurs by showing them the course our products had to take to get to market. We gave them concrete examples of how we used networking, support for worthy causes and personal relationships to become successful. One student said afterwards, “Wow! You made me feel like I can do it too!” We couldn’t have asked for more.

Who We Are

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

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A Wish for the New Year: Let’s Have More “B” Corporations

Michael Houlihan & Bonnie Harvey — Sat, 04 Jan 2014 18:46:43 +0000

As we make our wishes, resolutions and plans, we would like to suggest that we see more “B” Corporations in the New Year ahead. “B” stands for “benefit,” and this new type of corporation distinguish itself from the traditional “S” and “C” Corps because B Corps are not only for profit, but also for the public benefit.

B Corps are typically defined as “people using business as a source for good,” and are certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. They have a much wider fiduciary responsibility that includes a responsibility to their employees, the community, and the environment as well as to their shareholders.

Is it Socialism or is it smart 21^st century capitalism? Here are three good reasons for electing to create a B Corp:

1. Transparency. Today’s information revolution has created a demand for transparency. Consumer’s now know that they are voting with their money and consequently for the policies and behavior of the companies whose products they purchase. Companies that hurt the general welfare are being exposed daily, whether it’s for poor treatment of employees, disregard for the community, or environmental damage.

2. Engagement. Employees want to work for companies that stand for more than their mercantile products and services. They want to know that they are participating in a company that is making the world a better place. They want to “brag” about their employer’s higher standards to their family, friends, and followers in social media.

3. Investment. Investors increasingly are looking for companies that will make a difference while returning a profit. Investors realize that companies that have reduced turnover and engaged employees will be more profitable, and that companies that give their customers a social reason to buy their products will have greater customer loyalty.

As more B corps demonstrate profitability, sustainability, and popularity, the old paradigm that “good deeds only come at the expense of profits” is slowly but surely coming to an end.

Maryland was the first state in the country to authorize the creation of B corps. Since then, California, New Jersey, New York, Vermont, Virginia, and even “corporate haven” Delaware have joined the movement. Why? Because it’s (finally) just plain good business.

When we started Barefoot Wines in 1986, there were no B Corps, and there was no such term as Social Entrepreneurship. But as cash-strapped outsiders, we stumbled onto a way of getting the word out on our brand without paid advertising. We called it “Worthy Cause Marketing,” and years later when we finally could afford to advertise, we chose to continue our support of non-profits as our sole means of spreading the word about our product.

Not unlike today’s definition of Social Entrepreneurship, we supported social and environmental causes that were important to us and to our customers. The membership of the non-profits we supported had a social reason to buy our products. Our employees were engaged because they knew they were making the world a better place. The success of Barefoot Wine is proof positive that social entrepreneurship works!

Today’s new B Corporation is an excellent way for companies to tell the world, including their investors, employees and customers, that they are making a difference. We would like to see more states pass legislation this year to enable this new corporate structure of social entrepreneurship. We hope more companies and start-ups will elect to become B Corporations in the New Year, making it a happier New Year for all!

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