Entrepreneurs are a different breed of people. Where others squirm at the thought of making self-managed business endeavors a sole source of income, we see an opportunity for uncapped riches and prosperity. It takes a certain mind to be willing to ignore what society says about breaking the mold and pursue big ideas against difficult odds. Yet folks like John Mackey prove that a defiant spirit can indeed lead to abundant success.
I’m excited to have the 44-year CEO of Whole Foods back on the podcast once again. In this episode, our discussion focuses on the spiritual journey of entrepreneurs – that doesn’t get talked about nearly as much as it should – and explores his first-hand experience traveling it as the founder of one of America’s most iconic grocery chains.
Incorporating Personal Values Into Work
John’s personal values were deeply influential in shaping the development of Whole Foods Market from its early days. He believed strongly in the importance of staying true to one’s principles and letting them guide decision-making and actions as an entrepreneur. It’s a smart strategy – you aren’t going to get very far with a business idea unless you genuinely believe in it and are willing to put in the work to bring it to life.
For John, that meant committing to a business model centered around natural, organic foods and products at a time when the concept was far from mainstream. He saw an opportunity to create something truly unique that aligned with his own personal philosophy around health, wellness, and sustainability.
Remembering That Resilience Is Key
Whole Foods’ journey to its current status was far from easy. The business was conceived in unlikely circumstances to begin with and then had to learn how to deal with major challenges as it grew over the years. John cites a flood on Memorial Day of 1981 that nearly wiped out the Austin store. It was rather unexpected – the first flood to affect the city in over 70 years – and left a path of what most considered to be game-ending damage for staff to clean up.
In a matter of days, the entire store’s inventory and most of its equipment were either wiped out by six-foot-high flood waters or damaged. Whole Foods had no insurance at the time, which meant that roughly $400,000 in losses would need to come out of pocket.
But they didn’t quit John says, because quitters never win. “Entrepreneurs need to be resilient and they need to have thick skins. It’s not a smooth path all the time. You get stormy seas out there and, and sometimes you lose control of the boat… you have to be able to trim your sails and get the boat on track to calmer waters when there’s hard times.”
If you’re easily frightened by a bit of water, well, the entrepreneur’s life isn’t for you. Decades later and Whole Foods is now helping other businesses recover from unexpected disasters – it issued no-interest loans of up to one million dollars after Austin experienced another devastating flood in 2016.
Chasing a Big Vision for the Future
Some might be surprised to learn that in spite of its massive popularity today, Whole Foods wasn’t originally considered a great idea by most people.
“You have to understand how different Whole Foods Market was from what was available in conventional supermarkets back in the 80s and 90s… supermarkets were very sterile. They were mostly just selling processed foods,” John says. “The America I grew up in, what my parents believed in, was so thrilled about processed foods.”
John knew the market for his idea of a holistic, all-natural grocery store was there, but virtually no major stores existed to serve it. It’s hard to sell people on a business without much tangible evidence of its viability. To add a bit more context to the kind of investor’s environment he got started in, this was decades ago when America’s dietary guidelines were only beginning to consider sugar, saturated fat, cholesterol, and sodium as risk factors for certain chronic diseases.
“It just seemed like it was just hippie food for hippies and how big a market could that be?” John recalls. “But we needed to raise money.”
So that’s exactly what they did. The Whole Foods team went to work drawing up support from people who didn’t shy away from ambitious visions. Northern California ended up being the perfect runway. There, John and his partners sold 34 percent of the company, raised tens of millions of dollars, and launched an Initial Public Offering (IPO) by 1992. Their first West Coast location in Palo Alto was one of many stores that would eventually spring up across the Golden State and throughout America.
Using Love as a Guiding Principle
Whole Foods stands out from other grocery stores not only in the organicness of its products but also in the ethos of its business practices. Culture is a big deal over there, while love is a guiding principle.
John’s wife of 34 years, Deborah, played a big role in shaping the brand into what it is today. She challenged the company to adopt a set of core values that would guide its operations and decision-making. These values, which include caring about team member happiness and excellence, satisfying and delighting customers, supporting local communities, and promoting environmental stewardship, have been instrumental in shaping Whole Foods’ unique culture and brand identity.
Embracing Personal Growth and Development
The biggest lesson learned during John’s decades-long experience with Whole Foods has unironically been the importance of growth. Not just the growth of organic produce – personal and spiritual development as well.
Both he and the world at large have evolved significantly since 1980. And that’s a good thing. A confluence of people, lessons, and personal discoveries now shapes the way he sees things for the better. Business and life, he says, can benefit from a willingness to awaken.
“There are business awakenings, there are personal awakenings, there are spiritual awakenings… In this 45 year period, I’m, I’m very frank and candid about a lot of mistakes that I made… But I guess I’m proud that I did awake, I did learn, I did become a better leader and a better human being.”
What we’ve covered today is only a sliver of the many profound insights John Mackey has to share. You can discover the rest by picking up a copy of his new book, ‘The Whole Story: Adventures in Love, Life, and Capitalism‘, which was just released in May.
Enjoy!
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