Podcast Summary
From CrossFit to Mexican-American food: Pivoting from initial business idea and staying determined can lead to unexpected success in creating innovative products.
Taking calculated risks and being open to pivots can lead to unexpected success. The Garza family's initial business idea of opening a CrossFit gym in Laredo, Texas, eventually evolved into Siette Foods, a fast-growing Mexican-American food brand specializing in grain-free tortillas. The family's shared commitment to the Paleo diet and Veronica Garza's determination to create authentic Mexican-style tortillas without grains led to the creation of a product that filled a niche in the market. The story serves as a reminder that our first business ideas may not be the ones that succeed, but with perseverance and a willingness to adapt, we can build something meaningful and innovative.
Growing up in a multicultural community influenced Siete Foods' founders: Siete Foods was founded by siblings inspired by their multicultural upbringing and personal health challenges, offering grain-free, Mexican-inspired products.
The founders of Siete Foods, Miguel Garza and his sister Veronica, grew up in a multicultural community in Laredo, Texas, surrounded by a large extended family and friends. Their upbringing was influenced by a mix of Mexican and American cultures, with food playing a significant role. Miguel's mother cooked simple yet diverse meals, including Mexican dishes like tacos and tortillas, as well as Italian food like spaghetti and pizza. However, Miguel's life took a turn when he was diagnosed with an autoimmune condition called ITP at the age of 17, which led him to explore healthier food options. Despite the challenges, the siblings' shared experiences and cultural background influenced their decision to start Siete Foods, which offers grain-free, paleo-friendly tortilla chips and other Mexican-inspired products. Their personal stories and community connections continue to shape the company's mission and identity.
A family's health transformation through paleo diet and CrossFit: Adopting a paleo diet and CrossFit exercise regimen helped a family manage multiple autoimmune conditions, leading to improved health and well-being.
A change in lifestyle, specifically adopting a paleo diet and CrossFit exercise regimen, helped a family cope with multiple autoimmune conditions. The speaker, who was diagnosed with Lupus and Hashimoto's in 2004, was initially put on medication and advised against strenuous exercise. However, she went on to graduate from college and later teach at her hometown university. Her brother, Rob, discovered CrossFit around 2008 and suggested the family try the paleo diet to manage their autoimmune conditions. The entire family adopted the diet, and the speaker's mother became particularly creative in the kitchen to keep everyone eating together. This collective decision led to a significant improvement in their health and well-being.
The Paleo diet and CrossFit brought a family closer and led to a community gym: The Paleo diet helped alleviate Miguel's knee pain and brought his family together, leading to the discovery of CrossFit and eventually the creation of a community gym, G7 Athletics.
The Paleo diet not only helped Miguel alleviate his knee pain but also brought his family closer together. They adopted the diet to enjoy their favorite foods while following a grain-free lifestyle. As they all worked out together, they discovered CrossFit and started doing it in their backyard. Miguel's initial reluctance to work out in front of others led him and his mom to start their version of CrossFit workouts at home. Eventually, they joined the rest of the family in the backyard, and Miguel's mom became a fitness enthusiast. When they realized there were 20 people regularly working out in their backyard, they decided to open a CrossFit gym, G7 Athletics, in Laredo, despite Miguel's initial plans to attend law school. His sisters were the driving force behind the gym's opening, and they became the certified trainers. This family's journey shows how the Paleo diet and CrossFit brought them closer and led to the creation of a community gym.
Building a family-run CrossFit gym from scratch: Starting a small business, especially a family-owned one, demands significant investment and effort. Prioritize community and family bonds over large profits to sustain operations.
Starting and running a small business, especially a service-based one like a CrossFit gym, can be incredibly challenging. The interviewee's experience involved a family effort, with everyone working after their full-time jobs to coach classes and manage the gym. The business required significant investment, including equipment and ongoing expenses such as paying coaches and covering overhead. Despite the financial challenges, the family continued to operate the gym as a labor of love, prioritizing the community and family bonding it facilitated over making a large profit. The business model was sustainable as long as it didn't incur significant losses and the general manager could support himself.
Creating a grain-free alternative for Mexican traditions: Veronica overcame challenges in her Mexican heritage by experimenting with almond flour to create a chewy, delicious grain-free tortilla, allowing her family to continue enjoying a significant aspect of their cultural heritage while staying true to their dietary restrictions.
Veronica and her family faced challenges adhering to their paleo diet while maintaining their Mexican heritage and traditions, particularly in regards to tortillas. Growing up in Laredo, they were accustomed to flour tortillas and found it difficult to give them up. Veronica began experimenting with almond flour to create a grain-free alternative, starting with breads and pizza crusts, and eventually developing a tortilla recipe. Initially, the tortillas were more like tostadas, but through experimentation and research, she was able to improve the recipe and create a chewy, delicious grain-free tortilla that her family and friends enjoyed. This allowed them to continue enjoying a significant aspect of their cultural heritage while staying true to their dietary restrictions.
Overcoming self-doubt to create something valuable: Passion and persistence can lead to creating something valuable despite self-doubt and uncertainty. Veronica's journey to perfecting her tortilla recipe and Atlassian's creation of team collaboration software demonstrate this principle.
Passion and persistence can lead to creating something that brings joy to others, even if the creator feels uncertain or inadequate during the process. Veronica's journey to perfecting her tortilla recipe involved many failed attempts and a lack of confidence in her abilities. However, her determination to create a product that lived up to her grandma's legacy paid off when her mom shared her creations with her grandmother, who praised them. This validation and success gave Veronica the confidence to continue improving her recipe and eventually bring it to market. Similarly, companies and individuals can face challenges and self-doubt, but with grit and determination, they can create something valuable and successful. Atlassian, for example, has spent over 20 years creating software that powers collaboration for teams around the world, and now they're using AI to help teams make faster, more informed decisions and eliminate menial tasks. By trusting in their abilities and staying focused on their goals, they've transformed teamwork and made the impossible possible.
Creating a strong company culture and nurturing talent: Focusing on the right people, processes, and values can help companies realize their full potential. Starting small and having courage to pursue dreams can lead to business success.
Building a strong company culture and nurturing talent are crucial for business growth. Veronica, the founder of Veronica's Kitchen, showcased this when she started selling her grain-free tortillas based on trust and word of mouth. Her success came from creating a product that met people's needs and tapping into the local community. Similarly, Insparity, a leading HR provider, emphasizes the importance of a positive company culture to achieve business goals. By focusing on the right people, processes, and values, companies can realize their full potential. Additionally, Veronica's story highlights the power of starting small and having the courage to pursue your dreams, even if it seems unimaginable at first.
The Power of Belief and Support in Entrepreneurship: Believing in the potential of an idea, overcoming personal obstacles, and having the support of loved ones are crucial in the pursuit of entrepreneurship.
The desire to pursue a business opportunity can be fueled by various factors, including observing others' success and recognizing the potential in a product or service. However, personal circumstances, such as health concerns and fear, can act as barriers to taking the leap. In this story, Veronica's homemade tortillas sparked Miguel's entrepreneurial interest, but her health insurance and fear of starting the business alone kept her from taking action. It wasn't until Miguel encouraged her to consider the potential regret of not trying that she decided to take a chance and start the business with his support. This story illustrates the importance of believing in the potential of an idea, overcoming personal obstacles, and having the support of loved ones in the pursuit of entrepreneurship.
Securing first retailer and overcoming challenges: Securing a retailer's validation is a crucial first step. Overcoming challenges like finding a commercial kitchen, obtaining packaging, and investing in equipment can lead to a successful business.
Securing a customer and gaining validation from a retailer can be a crucial first step in starting a business. The speaker and his sister approached a local food co-op, Weetsville, with their almond flour and tapioca tortillas. They managed to secure a meeting with the buyer, Chris Moore, and convinced him to try the tortillas on the spot. After receiving positive feedback, they were accepted as vendors, but this was just the beginning. They then had to figure out how to start a food business, which involved finding a gluten-free commercial kitchen, obtaining packaging and labels, and potentially investing around $10,000 to get started. Despite the challenges, their persistence paid off, and they were able to turn their idea into a successful business.
From humble beginnings to success: Must Be Nutty's journey: A team of graduates started Must Be Nutty with limited resources and an uncertain brand name, but their determination and hard work led to success, growing beyond weekend production.
The founders of Must Be Nutty, a tortilla brand, started their business with limited resources and no clear brand name. They chose the name based on the letter "B" for easier trademarking, despite initial hesitation. The team consisted of four individuals with graduate degrees, and they started producing tortillas in a commercial kitchen rented from a guardian angel figure named Leah Lopez. The team, which included the founders' future spouse and family members, made tortillas every weekend for a year to meet demand. Their first sale of 300 tortillas at Weetsville in May 2014 was a success, leading the founder to leave her teaching job and fully commit to the business. The team's determination and hard work paid off, and they eventually grew the business beyond weekend production.
Staying committed and embracing serendipity: Persistence and unexpected opportunities can lead to business success. Recruit creatively, network effectively, and stay dedicated to your goals.
Persistence and serendipity played crucial roles in the early success of the tortilla business. The team worked tirelessly to become the top-selling item at a local co-op, but they needed more help to keep up with demand. They recruited employees in creative ways, including approaching a woman in a grocery store. Despite their hard work, they struggled to gain the attention of major retailers like Whole Foods. However, a fortunate encounter with a filmmaker who was a fan of their product led to a connection with the company's founder, ultimately resulting in a deal to sell their tortillas in Whole Foods stores. This story illustrates the importance of staying committed to your goals, but also the value of unexpected opportunities and the power of networking.
Embrace your authenticity for a successful brand: Authentic branding, rooted in personal values and heritage, can help differentiate and resonate with consumers, allowing for premium pricing and business growth.
Understanding your authenticity and leveraging it in the marketplace can lead to a successful business name and identity. Veronica and Miguel, founders of Siete Foods, faced challenges in getting their grain-free tortillas into Whole Foods with their initial name, "must be nutty." However, during an accelerator program, they realized the importance of embodying their family values in their brand. They renamed their company, Siete, which represents the seven members of their family and their Spanish heritage. This authentic name resonated with consumers and helped them differentiate in the market. Additionally, their high-quality, expensive ingredients allowed them to charge a premium price, despite initial pushback. Through their unique identity and product offering, they were able to secure investment and expand their business.
Landing a retail deal and facing unexpected challenges: Landing a major retail deal can be both exciting and costly due to unforeseen issues like improper storage, but staying adaptable and resilient can help mitigate the damage.
Securing a major retail deal can be both exhilarating and devastating in the blink of an eye. Our startup, which made handmade tortillas, had landed a deal with Whole Foods' national buyer at the Natural Products Expo East. We were thrilled, but our excitement was short-lived when we learned that a pallet of our tortillas had gone bad due to improper storage. This setback cost us around $20,000 to $30,000 and half a month's production. Despite this setback, we rallied and got back to work, with the help of our team and even our parents, to produce more tortillas to meet the demand from other Whole Foods regions. This experience taught us the importance of being adaptable and resilient in the face of unexpected challenges.
Protecting an innovative product with a strong brand: Building a strong brand is essential to safeguard an innovative product from being copied. Focusing on brand development is a more effective defense than worrying about theft.
Building a strong brand is crucial for protecting an innovative product from being copied. In 2015, a team launched an almond flour tortilla company and faced the challenge of finding a manufacturer. Despite their concerns, they reached out to a friend's family-owned manufacturing facility in Austin. The team was worried about their idea being stolen, but the reality is that starting a brand from scratch is difficult. The team took John Foraker's advice from Annie's CEO and focused on building their brand as their best defense. They ended up working with the manufacturer and installed a tortilla-making machine to produce their product. The process was faster than their previous setup, but they worked tirelessly to ensure the product was ready for shipping to four regions of Whole Foods. In 2016, their tortillas rolled out to other Whole Foods around the country, and they also started developing tortilla chips. The experience highlights the importance of building a strong brand to protect an innovative product in the face of competition.
Starting small and focusing on product innovation leads to growth opportunities: Staying true to your vision, focusing on product innovation, and being open to opportunities can lead to significant investment and expansion for small businesses.
Starting small and focusing on product innovation can lead to significant growth and investment opportunities. The founder of this Mexican American food brand started making homemade tortilla chips due to personal dietary preferences and a surplus of tortillas. When presented with the opportunity to supply Whole Foods, they quickly adapted and refined their recipe. The business was already profitable at this stage, but saw the potential for exponential growth with the right investment. Stripe Group recognized this opportunity and invested $90 million, allowing the brand to expand into major retailers like Costco and Walmart. The company's commitment to Mexican American food and its status as a family business were also key factors in securing this investment. This story highlights the importance of staying true to your vision, focusing on product innovation, and being open to opportunities for growth.
Core values of family and unity drive Siete Foods' success: Siete Foods co-founders Veronica and Miguel Garza attribute their business success to their core values of family and unity, hard work, smarts, and luck, and the support and guidance of their team. They became mentors to inspire others, especially people of color, in the food industry.
For the co-founders of Siete Foods, Veronica and Miguel Garza, their core values of family and unity have been instrumental in their business success. Despite the challenges and tension that come with running a business, they prioritize their relationship and their shared goal of building a Mexican-American food brand. They attribute their success to a combination of hard work, smarts, and luck, but also credit the support and guidance of the team they've built along the way. When starting out, they found it difficult to find mentors in their industry, so they decided to become mentors themselves and be an example for others, especially for people of color starting businesses. Siete Foods, which hit $200 million in total retail sales in the US in 2020, is a testament to their perseverance and the power of their core values.
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