President, Smoothie Factory, USA

Evolve: How did you come up with the idea of starting the Smoothie Factory?

James Villasana: As a former Olympic athlete, I have always been interested in health and wellness. I was curious to understand the relation between balanced food and performance as an athlete.

When I came upon the concept of smoothies, I was extremely excited knowing that the product was a wonderful way of enjoying fruits.

However, when I looked into the market, I realized that most brands were using fruit concentrates and purees and fillers such as flavored sherbet or sorbets. I felt that I could create much healthier smoothies without concentrates, purees, syrups and other ingredients that had relatively no nutritional value. So the motivation was a combination of my love for sports, health and fitness.

Evolve: Were there monetary challenges? How did you mobilize funds?

James Villasana: When I started Smoothie Factory, I was only 24. I did not have a lot of capital. So, I solicited two of my friends who had additional capital to be equal partners in the new business venture. As we became successful, we reinvested a portion of our profits back into the company and boot strapped our way financially.

Evolve: Were there any problems in getting employees to work with you?

James Villasana:  Initially, at store level operations, finding employees was very easy. Many employees would rather work at a Smoothie Factory store than a fast food restaurant for they loved being around healthy products. However, many of our employees were in high school and college which by its nature lends itself to turnover as they progress and move forward in their studies or careers. While we enjoyed lower labor costs from hiring younger team members, we had to spend more time and expense for ongoing training.

Later, as the brand developed and our offices moved from a store location to an office setting, it was fairly easy to find professionals in different fields such as accounting, marketing, operations, etc. Often, we would hire from within our franchise community for certain positions so that our team would have a working understanding of store operations and relationships with the existing franchise community.

Evolve:  Did you have any business background before starting up?

James Villasana:  Yes, I worked for my family's restaurant business in Houston, Texas for several years and operated a Taekwondo school as well.

The experience, family network and my degree in Hotel and Restaurant Management from Conrad N. Hilton College allowed me to feel comfortable about launching the Smoothie Factory brand in 1996.

Evolve: How do you look at the industry and its trends?

James Villasana: The smoothie and juice industry continues to grow impressively.

In the past five years, smoothie sales have increased to more than 80% in the United States. In the past year, Americans spent over $2.5 billion on made-to-order smoothies. In the past month, one in two 18 to 34 years old persons are likely to have enjoyed a smoothie.

Smoothie and juice companies are continuing to develop new flavors and additives to keep their guests engaged. They are also expanding core offerings on the menu to include a variety of light foods, coffees and frozen yogurt. I believe smoothies are seen as a pleasant, health treat.

Evolve:  What are your future plans for this business?

James Villasana: Our future plans are to grow the brand by seeking master franchises around the globe in new and diverse markets where there is a demand for healthy products that meet our demographic threshold for market entry. Our goal is to continue to be an enduring company and to become the most recognized and respected smoothie brand in the world, known for inspiring nutrition and promoting health and wellness.

Evolve: What is the motivational force in your life?

James Villasana: Health and wellness motivate me. The Smoothie Factory is the vehicle for sharing and allowing people around the world to experience the sensational taste and remarkable benefits of Smoothie Factory. It is motivating to see new guests discovering the message in our smoothies - a message of health and vitality.

Evolve: How do you come up with new ideas?

James Villasana: New ideas are generated by our guests that simply tell us what they want, collectively through our team members and franchise community and the marketplace. However, no matter the idea, it is always reviewed and discussed with all stakeholders with varying perspectives. It allows for a well-thought and deliberate process so that at the end of the day we have an idea or product that is as best as it can be and is owned by all. None of us is as good as all of us.

Evolve:  How would you define success?

James Villasana: Our organization defines success in terms of our guests. I learned it through the founder of McDonald's Ray Kroc's, wisdom:

If you work just for money, you'll never make it but if you love what you're doing and you always put the guest first, success will be yours. This applies to our franchise community as well. If our franchises and master franchises are not successful then our brand can never be successful.

Evolve:  What is the best way to achieve long-term success?

James Villasana: The best way to achieve long term success is to have a strong positive vision that is relevant and that others want to genuinely share in and be a part of. It also means having principles and ensuring that the quality of leaders in the organization is reflected in the standards they set for themselves. The first two most important requirements for ongoing success is: to be in the right place at the right time and doing something about it.

Evolve: How do you build a successful customer base?

James Villasana: Smoothie Factory successfully builds its guest base smoothie by smoothie, guest by guest, and through the positive guest experience our store owners and team members provide. We provide our guests with reasonably-priced smoothies, juices, yogurts and light foods served quickly in attractive, clean and pleasant surroundings. Our guests just want more of it.

guests just want more or it

Evolve: Have you found some sort of pattern or formula in becoming a successful entrepreneur?

James Villasana: Absolutely. In my experience, it doesn't matter if you're an Olympic athlete or a successful businessman, the fundamental formula to succeed is the same. It is having a dream, being positive, genuinely helping others, perseverance and hard work. There is absolutely no substitute for hard work but if you enjoy and like what you are doing, it really doesn't seem like work. So you have 1o sincerely love what you are doing. I would also point out that success doesn't always come to the most talented individuals or organizations if they don't have perseverance.

Evolve: If you could talk to one person from history, who would it be and why?

James Villasana:  It would be one of our founding fathers, Thomas efferson and George Washingion because they were extremely gifted gentlemen who believed in freedom and risked their lives providing this to others including myself, my father, my grandfather.

Evolve:  Name your favorite book.

James Villasana: E-Myth by Michael Gerber bas inspired me because it connected the dots for me regarding franchising and system of operations in a way that made sense and was easily digestible.

Evolve: What are the three key elements for starting and running a successful business?

James Villasana:  A strong vision that is relevant, perseverance and hard work.

Evolve:  What has been your most satisfying moment in business?

James Villasana:  The realization that the Smoothie Factory had become larger than myself and took on a life of its own.

Evolve:  Brief us about your marketing strategies.

James Villasana: We marketed primarily through word of mouth, referrals, a network of brokers and google ad. By far, the brand's most successful form of marketing has simply been satisfied guests telling friends and family about their delicious adventures.

Evolve: What kind of culture is promoted in your organization?

James Villasana: The culture that exists in our organization can be summed up by our mantras Whatever it takes, Guests Always First, and Everything Matters. Whether it is developing a new market, operating without our corporate offices, or serving guests at our store, we believe in retaining our priorities. These are reflected in the habits and mindset of our top management who lead by example, by practicing what they preach.

Evolve:  How would you define your professional life in one word?

James Villasana:  Exciting!

Evolve:  How do you prevent mistakes or control damage?

James Villasana: We can often prevent mistakes by getting all stakeholders involved with new ideas so they can contribute their suggestions or/and reservations. Often a good idea is made better through this process or a flaw discovered and corrected before it gets out of hand.

Evolve: What makes you happy?

James Villasana: Being a father of a two and a half year old daughter and a six months old son. My wife and my children are my source of happiness.

Evolve:  Have you made any sacrifices to be a successful entrepreneur?

James Villasana:  Most of the time. But I have greatly enjoyed it along the way.

Evolve:  Where do you see your business in the next 5 years?

James Villasana: Our goal is to be the largest international smoothie brand, operating more successful stores in more countries than any other brand.