Building a Billion-Dollar Business: Insights from Siete Foods’ Journey

KEY POINTS

• Siete Foods' success began with solving a personal problem, creating a grain-free tortilla to address the founder's dietary needs, which resonated with a broader audience in the growing health food market.

• The Garza family leveraged small-scale testing and early champions, such as a local co-op, to validate their product before expanding into national distribution.

• Siete's relentless hustle, staying true to their family values, and knowing when to scale or seek strategic partnerships, such as their sale to PepsiCo, were crucial to their billion-dollar success.

👉 Bonus: Below you will find five ChatGPT prompts that you can use to develop your expertise in this area.

Siete Foods, a billion-dollar business born from humble beginnings, offers a compelling roadmap for entrepreneurs aiming to scale their ventures to new heights. From a homemade tortilla business to a leading player in the health food sector, Siete’s story delivers critical insights that transcend industries. Veronica Garza and her brother Miguel, the founders, called it Siete Foods—siete as in the seven members of the Garza family.

For athlete entrepreneurs looking to translate their competitive spirit from the field to the business world, the journey of Siete Foods offers a powerful playbook. Much like achieving success in sports, building a billion-dollar company requires discipline, adaptability, and relentless effort. The Garza family, who built Siete from a small side hustle into a health food empire, demonstrates that the same traits that drive athletes—focus, teamwork, resilience, and the ability to seize opportunities—are crucial in business. By learning from their strategic moves and staying true to your values, you too can build a winning venture.

Below are key lessons for entrepreneurs aiming to build their own billion-dollar companies, distilled from Siete’s remarkable journey.

1. Start with a Problem That Matters

The genesis of Siete Foods lies in a personal and genuine need. Veronica Garza, one of the co-founders, was driven by her struggle with autoimmune conditions, which forced her to adopt a paleo diet. This meant avoiding grains—a significant sacrifice for someone who grew up in a Mexican-American family where tortillas were a staple. Instead of merely accepting the limitations of her diet, Veronica began experimenting in her kitchen, creating a grain-free tortilla that met her dietary needs—and her family members enjoyed it so much that they didn't even notice that her tortillas weren’t made of wheat or corn flour.

Entrepreneurs often start with a lofty vision, but the most successful ventures typically solve real, pressing problems. Siete Foods was not the result of a grand market analysis but of a founder solving a personal problem that resonated with a larger audience. This organic origin allowed them to build a product that addressed a niche but rapidly growing market: consumers looking for healthier, grain-free alternatives.

Takeaway: Start by identifying a real problem—whether it's personal or observed—that affects a meaningful group of people. Solving that problem in a unique way is often the key to uncovering a market opportunity that others might have overlooked.

2. Leverage Humble Beginnings

Before Siete became a brand known in every major supermarket, it began as a side hustle. By now, the Garzas had opened their own CrossFit gym. Veronica began selling her grain-free tortillas there and couldn’t keep up with demand. Her brother Miguel was a law student at the University of Texas, and her grain-free tortillas were hugely popular at his gym, too. This approach allowed the family to test their product on a small scale, learn quickly, and iterate without the pressure of managing large-scale distribution.

A key principle here is to start small, gather customer feedback, and improve based on real-world responses. Many entrepreneurs rush to scale without thoroughly validating their product, but Siete’s gradual approach helped ensure their tortillas were genuinely solving a problem before expanding their reach.

Takeaway: Don’t be afraid to start small. The first phase of your business should be about learning, not growing. Focus on perfecting your product or service and understanding your audience deeply.

A discussion between Frida AI Fridason (Entrepreneur & Advisor, former S(ai)lor) & Tom AI Tomson (Entrepreneur & Investor, former Mount(ai)n Biker) on the topic:

Be aware that this is one of our AI experiments, so Frida and Tom don’t really exist.

3. Find Champions Early On

Every successful entrepreneur has a story about someone who took a chance on them early in their journey. For Siete, that person was Chris Moore, a “chill coordinator” at Wheatsville Co-op in Austin, Texas. When Miguel Garza, Veronica’s brother and co-founder, presented him with a bag of homemade tortillas, Moore was impressed enough to offer shelf space. This initial opportunity helped them gain early traction, and their tortillas quickly became one of Wheatsville’s top-selling items.

Entrepreneurs must be prepared to find their early champions—whether they are retailers, investors, or influencers. These individuals or organizations will not only provide access to a larger audience but will also help build credibility. A single endorsement or sale from the right partner can be transformative, as it was for Siete.

Takeaway: Identify potential champions who can help validate your product early on. These are the people who can provide the first crucial opportunity to get your business off the ground.

4. Hustle Relentlessly and Seize Opportunities

Siete’s growth was marked by relentless hustle. Veronica worked evenings and weekends, driving hours to press tortillas in a gluten-free commercial kitchen while maintaining her full-time job. The family pooled their resources, asking for help from friends, family, and even strangers. They later applied for a local startup accelerator and raised $1 million from angel investors to buy specialized equipment to scale up manufacturing. However, in the early days, they didn’t pay themselves, reinvesting every dollar back into the business.

Entrepreneurs must recognize that the early stages of building a company often require personal sacrifices and a level of hustle that goes beyond the 9-to-5 workday. Siete’s founders embodied this spirit, constantly seeking out new opportunities, whether it was applying to startup accelerators or pitching directly to Whole Foods after their initial success at Wheatsville.

Takeaway: Building a business requires relentless effort, especially in the early stages. Be prepared to put in the hours, seek out help, and capitalize on every opportunity that comes your way.

5. Be Persistent but Prepared for Luck

While persistence is a key ingredient for entrepreneurial success, there’s also an element of serendipity involved in scaling a business. For Siete, a fortuitous connection helped them break into Whole Foods. A Wheatsville shopper who was a fan of their tortillas happened to mention them to John Mackey, the co-founder and CEO of Whole Foods. That connection eventually led to Siete landing a coveted spot on Whole Foods’ shelves—a pivotal moment in their growth.

While luck played a role, it was Siete’s persistence and groundwork that put them in a position to seize the opportunity when it arose. Entrepreneurs should understand that while they can’t control every aspect of their business, they can put themselves in the best possible position to capitalize on unexpected opportunities.

At the time, tortillas were Siete's only product. To ensure the brand didn't remain a one-hit wonder, Whole Foods wanted to know their future plans. Yes, they were impressed by the company's focus on a niche market that was becoming increasingly valuable—whether it was tortillas or tortilla chips. In the end, Whole Foods was won over by Veronica and Miguel's vision to expand their product portfolio so that today it has expanded into other aisles of the grocery store.

Takeaway: You can’t plan for luck, but you can position yourself to take advantage of it. Stay persistent, network widely, and be prepared to act when a stroke of good fortune comes your way.

6. Stay True to Your Values as You Scale

One of the most remarkable aspects of Siete’s growth is how the Garza family remained true to their values and culture even as they scaled. Every package of Siete’s products includes a family photo, and all seven members of the Garza family continue to work full-time for the company. This authenticity resonated with both customers and investors.

As they sought external investment, the Garzas were careful to choose partners who understood and appreciated their family culture and business vision. When the growth-equity firm Stripes invested $90 million in 2018, the Garzas spent a lot of time building a relationship with them to ensure their values aligned.

Takeaway: As your business grows, it’s essential to stay grounded in your core values. This authenticity not only strengthens your brand but also attracts like-minded investors and customers who believe in your mission.

5 PROMPTS THAT ATHLETES CAN USE TO DEVELOP AND BUILD EXPERTISE

• How can I identify a meaningful problem to solve in my business that resonates with a broad audience, similar to how Siete Foods addressed dietary needs?

• Small-scale validation, customer feedback, and iterative improvements: What strategies can I use to test and validate my business idea on a small scale before expanding, as Siete Foods did with their grain-free tortillas?

• Networking with key influencers, retailers, or investors to gain early traction: What are effective ways to find early champions or partners who can help accelerate my business growth, and how can I make a compelling pitch?

• What are the key elements of relentless hustle and perseverance in business, and how can I apply my athletic discipline to entrepreneurial challenges?

• How can I maintain authenticity and core values while scaling my business, and what should I look for when considering strategic partnerships or investment offers?

👉 Check ChampionsChat GPT for your prompts.

7. Know When to Scale and When to Cash In

Finally, Siete’s story offers a valuable lesson about knowing when to scale and when to cash in. The company had scaled to a national brand by the time PepsiCo came knocking with a $1.2 billion offer. The Garzas had successfully navigated the challenges of scaling their family business, building a brand that resonated with consumers nationwide.

By the time they sold to PepsiCo, they had built a sustainable business with a clear identity and a solid foundation. But even after the sale, the Garzas maintained control over their brand and continued to run the company. Their decision to cash in was not an exit, but rather a strategic partnership that allowed them to take the company to the next level.

Takeaway: Timing is crucial in entrepreneurship. Know when to scale, but also know when to take advantage of opportunities that can propel your business even further.

Bottom Line

What started as a side hustle has become one of America’s most successful food startups. Siete Foods’ rise from a small, family-run operation to a billion-dollar brand holds invaluable lessons for entrepreneurs everywhere. At its core, Siete’s success story is one of perseverance, authenticity, and smart business decisions. For those dreaming of building their own billion-dollar company, Siete offers a reminder that the road to success starts small, demands relentless hustle, and is best navigated with integrity and a clear vision.

For athlete entrepreneurs, the lessons from Siete Foods reinforce the idea that the skills honed in sports—grit, resilience, and teamwork—are just as valuable in business. Just like training for a championship, building a billion-dollar company requires setting goals, staying disciplined, and pushing through setbacks. As you transition from the arena of sports to the business world, remember that success comes from a mix of strategy, persistence, and adaptability. Keep your competitive edge sharp, surround yourself with the right team, and seize opportunities when they come your way. The game may be different, but the winning mindset remains the same.

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I really appreciate you reading my note today.

Peace,

Irg

Irg’s work is provided for informational purposes only and should not be construed as legal, business, investment, or tax advice. You should always do your own research and consult advisors on these subjects. This work may feature assets and entities in which the author has invested.

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