Careerz  ~>  Turning Pro  ~>  Next Article  (On the Wings of a Pig)

by Tonia L. Shakespeare

Selling cold juices in frigid Minneapolis, MN may not seem like a smart business decision, but for Eric Strauss, 27, who is known for recognizing money-making opportunities, it has become a winning plan. As president and "chief carrot peeler" of the Crazy Carrot Juice Bar, he now squeezes $1 million in annual sales from his "loco" juice venture. With 65 employees, four locations in St. Paul and Minneapolis, and one in Naples, FL, his company has become a "hot" and healthy craze.

Crazy Carrot Juice Bar founders Liem Nguyen, Eric Strauss, and Tony Barranco enjoying some of their favorite Smoothies.

Smooth Business at an Early Age

Business foresight is nothing new to Eric, who bred and sold gerbils to a local pet store when he was six years old. By the time he turned 11, Eric was running multiple lemonade stands and selling thousands of cups of lemonade every summer - each stand bringing in up to $35 a day. Hiring his family and friends to work for him, Eric eventually sold stock (complete with stock certificates for investors) in his lemonade business to meet increasing sales demands. He then used the additional money to purchase supplies. Tony Barranco, 25, director of operations for the Crazy Carrot, also started early as an entrepreneur. When he was just 18 years old, he founded COYOTE (Collegiate Youth Teaching) Sports in Wisconsin, a summer sports camp for elementary and middle school youth. Hiring college athletes to oversee the kids, Tony's camp attracted over 1,000 participants and received national corporate sponsorship from companies like Coca-Cola and Powerbar.

The third partner in the Crazy Carrot, Liem Nguyen, 25, director of marketing and operations, was an early investor in the company and also a companion on one of Eric's many juice bar scouting trips.

Creative Juice Flow

Eric developed the concept for the Crazy Carrot after visiting over 120 juice bars throughout the country in search of the perfect business operation. He then concocted a number of fruit and vegetable mixes to come out with a variety of juices, and conducted numerous taste tests using family and friends as tasters. The result was a slightly zany menu listing one-of-a-kind drinks like Raspberry Crave, Mocha Madness, and Papango Smoothie.

While Eric planned Crazy Carrot's operations, Tony and Liem focused on developing relationships with vendors and suppliers. By September 1997, the trio decided the venture needed more employees. In order to get the first store running, Eric, Tony, and Liem raised $80,000 through a private stock offering. "We were definitely poor, so we had to look for money in any way we could," says Tony. About 40% of the company was made available to stockholders, with Eric, Tony, and Liem controlling 60%. These figures have now changed but, like all companies, Crazy Carrot is unable to disclose the terms of agreements with current investors.

Growing a Bigger Carrot

After success with their first juice bar, the "carrot team" knew they had to raise more capital if they wanted to expand. Through networking contacts and previous investors, they were able to find another
deep-pocketed investor. "Even though we had a willing partner, we had a lot of information to get together," says Eric. These are the steps they had to take:

Step 1: Revise their business plan and develop a growth strategy.
Step 2: Determine the best way to utilize the new investment dollars.
Step 3: Determine the effect of an enlarged financial strategy on current and future earnings.
Step 4: Estimate the potential market growth, so the company would not ask for more money than it could use.

"It took a great deal of planning," says Tony. With a cash injection of over $1 million, the Crazy Carrot team wanted to make sure:

• the investment was a good fit;
• the goals were reachable; and,
• both their team and the investors agreed on the direction in which they wanted the business to move.

And it seems that they did. "The second infusion of capital has given us the opportunity to reach our goal - to be the best juice bar in every market we enter," says Tony enthusiastically.

Proud to Be a Citizen The Crazy Carrot Juice Bar promotes environmental awareness with its "Reduce, Reuse, and Recycle" campaign. And they lead by example - sending leftover fruit and vegetable waste to a company that recycles food for livestock feed. They've also joined the Clean Rivers Team through the Minnesota Department of Natural Resources and now help keep a portion of the Mississippi River pollution-free. It's all part of Team Carrot's belief that corporations have a responsibility to also be good citizens in their communities.   Kristine Miller proudly sports a "BOP On The Head," an award given to the Crazy Carrot Juice Bar's best overall performer.

The Team Carrot Philosophy

According to Eric, "Juice bars are the hottest trend in the food business right now, and the timing is right for the Crazy Carrot to keep on expanding." There have been some growing pains. "Working with the employees and trying to serve customers with the same enthusiasm we served them when we first opened is a challenge," explains Tony. To address this problem, the three partners created a Team Carrot Philosophy that rewards employees for extra effort and gives each employee authority to solve customer service problems of any kind. "We never take our customers for granted," says Eric.

The Crazy Carrot motto is that everybody does everything and those that go the extra mile get rewards. Team members are just as likely to see Eric, Tony, and Liem meeting with an investor as they are to see them peeling carrots or scrubbing the floor. And that's the real secret to "juicing" your way to the top!