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Turning A Weight Snag Into A Business Sensation: Jenny Craig Inc. Is Launched

Article Overview: “Whoever heard of cholesterol when I first started in this business in 1959? People didn’t pay any attention to what they ate,” says Craig. “I noticed a need before it was a whole industry and in that sense, I was entrepreneurial.”

Turning A Weight Snag Into A Business Sensation: Jenny Craig Inc. Is Launched

“Whoever heard of cholesterol when I first started in this business in 1959? People didn’t pay any attention to what they ate,” says Craig. “I noticed a need before it was a whole industry and in that sense, I was entrepreneurial.”

Craig had lost her excess weight by working out and watching what she ate. She became so passionate about the process that in the 1960s, Craig began to work for the Silhouette gym where she had previously been a member. Craig started to not only learn the ropes, but also befriend other regular members. She listened to their stories, some successful, some not. She also shared her own story, making many friendships along the way. When the gym’s managers realized how strong her presence was becoming, they immediately promoted her.

Craig was now in charge of the entire gym. Soon thereafter, she was placed in charge of four other gyms as well. She had become a key player in the Silhouette family. All the while, however, Craig was itching to go out onto her own. She wanted to try her hand at running her own business. And so, Craig decided to mortgage her house. Using that money, Craig opened up her own gym and called it Healthetic.

With Craig’s passion and experience, the club became an overnight success. Craig had proven to both herself and others that she had what it took to start a business. She soon sold Healthetic to her former bosses at Silhouette, and went on a hunt for a new venture.

That is when she met Sid Craig. He was 38 years old, but he had a history of running a successful business. While pursuing his business degree at Fresno State University, he also worked as a dance teacher at night for Arthur Murray. After graduating, he joined Arthur Murray full time and even went on to own a few of its franchises and joining its board of directors. From there, Craig went on to be a partner with Body Contour Inc., a chain of women’s fitness salons.

Sid Craig went to New Orleans to open up a Body Contour salon and hired Jenny as its first employee. “Sid ran an ad in the paper,” Craig recalls. “I had just sold my business, and I was looking for a franchise. I thought it sounded interesting so I went in to see what it was all about.” The New Orleans franchise was performing so well that Craig was soon put in charge of all of Body Contour’s franchises in the Southern states. “Sid called me up one day and asked if I would open Chicago and I agreed to do that,” she says. “I eventually became national director of operations.”

In 1979, after both finalizing their previous divorces, the two got married. But as Body Contour became more successful, Craig thought it should be going in another direction. “I kept saying to Sid's partners that the world is changing, and we really need to start offering more nutritional guidance,” recalls Craig. “But the partners wanted to keep everything status quo. Their attitude was that if something is working, don't change it.”

Craig knew the importance of keeping up with the times. “So we gave them three options,” says Craig. “Sell to us, buy us out, or you take half the centers and we'll take half.” The partners were unreceptive to all of the offers, and so the Craig’s sold Body Contour, which was bringing in $35 million in sales by 1982.

The deal, however, carried a two-year non-compete clause in the U.S. So, the Craig’s took their idea to Australia, a country they thought was similar to America and presented no language barrier. “We were both fifty when we went to Australia in 1983 and laid everything on the line,” says Craig. After writing down twenty different names and presenting them to as many Australians as they could, everyone picked Jenny Craig. “When we asked why,” says Craig, “they said because we like dealing with a person rather than a corporation.”

By 1985, Craig’s Australian chain was earning more than $50 million through its 69 centres. The two year non-compete clause had also ended; it was time to enter the U.S. They opened 13 centres in Los Angeles, followed by an additional six in Chicago. In 1991, the company went public and generated $73.5 million in capital. Five years later, after having expanded into the U.S., New Zealand, Canada, Puerto Rico, and Guam, the Craig’s decided to sell their company to Nestle for $600 million.

Together, Jenny and Sid Craig proved that it is never too late to get started on your dreams.

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Article Tags: 1960s, arthur murray, body contour, business degree, cholesterol, contour inc, dance teacher, excess weight, franchises, fresno state university, friendships, gyms, jenny craig inc, overnight success, own business, ropes, running a successful business, sensation, silhouette, snag



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2007 Mothers Day for Women Entrepreneurs - A mom who has her own business faces an incredible challenge. Motivated by the need to put food on the table or to give herself the gift of accomplishment, she moves forward with her life and family while starting a new business. All women who start a business, have to start somewhere. Even those who purchase a franchise have to start with the education needed to run that particular franchise. The never ending juggle of Family, business and self begins. Finding balance can be a challenge. With outside input, women discover and utilize tools that will help them create the life and business that they want. One of the tools used to find things that can make business building faster and easier than they thought is the Wright Place TV Show Mother’s Day Special. The Wright Place™ TV Show is a 30 minute broadcast television talk show for women. ‘ We talk about strategies, techniques and mindset needed to grow ones business.” Says Dr. Wright, host of the show. “For the last 7 years, I have brought to the screen leaders in entrepreneurship who have talent in creating incredible businesses. They love to share and my audience gets the benefit of that.” The Mother’s Day Special evolved as a way to make women in businesses, which also happen to be mothers, feel appreciated. “ A few vendors got together and gave the audience these lovely gift bags.’ Says Dr. Wright. ‘From then on, every year, I would get requests from vendors to be a part of the show. People are interested in encouraging women who take a change to create the life and business they want. I look forward to seeing this live audience every year.” Last year’s show was presented by Jenny Craig. Jenny Craig, know for their weight loss products gave each audience member a goal setting kit created by Martha Beck. “This kit could be used for anything, not just weight loss or management. If women can use this to move themselves closer to a fulfilling life, then it’s the perfect gift.” Says Dr. Wright. Dr. Wright says she tries to look for things that are unusual yet exceptionally useful for today’s woman entrepreneur. You never know what kinds of things the audience will find in their gift bags.
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Volume/Margin Price Sensitivity Tool - Here is the tool we designed for Imperial Oil's convenience stores to determine best price point for changes in pricing impacting margins and volume. If you need further instructions on how to use it, let me know. Jenny
Re: 4 Inspirational Entrepreneur Videos - Jenny Craig's one line sums it all up "no matter what". An incredibly difficult thing to do, but they are the three words that differentiate the most successful in life, business, politics, etc etc etc.
Re: New Famous Entrepreneur - Craig Newmark - Craigslist has got both positive and negative feedbacks although I admit I've used Craigslist as also one of my good references for finding listings, jobs, etc that'll benefit my business. Well, Craig has done a great job setting up this website and it was the people around who makes the bad impressions. I hope that won't hurt the whole Craigslist reputation though.


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