#.=.##" #"#erpr:ses Ltd. First NA Seria! Rights

----##ge 1 - DCO

Approximate|y 700 words

DIET-CARRY-OUT, LTD.

Written by June Grayson, Photographed by Richard Grayson

When Dr. Sutton asked his wife to he!p him motivate ####i.!#.#..#i##obese#patients to lose weight, he didn't rea1ize that she

would start a business that has the potentia! for going nationa!.

If one corporation in the fami!y is good, can two be better?

It is if you are H. Ke!!y Sutton, M.D., and Seatt!e Sutton, R.N., BSN, who have "his" and "her" corporations - the Marsei!!es Medica! C!inic and Diet-Carry-Out, Ltd., of Marsei!!es, I!linois.

Diet-Carry-Out, Ltd. (DCO) uti!izes a new concept to promote health and fitness. Instead of a diet !ist and advice, DCO provides the actua! 21 meals a week. C!ients pick up their comp!ete mea!s, refrigerated and packaged in disposab!e p!astic containers, from !ocal distributors. The meals are fresh!y prepared at a centra! location and transported by refrigerated trucks throughout northern I!!inois.

No more temptation. No more choices. No more forbidden foods.

#EL, DCO - paqe Z

Every doctor knows how hard it is to get patients to lose weight, even when their !ives depend upon it. "You can ta!k until you are blue in the face and they never !ose a pound," explains Dr. Sutton.

Dr. Sutton is a specialist in family practice 100 mi!es southwest of Chicago. Mrs. Sutton is a nurse who assists him in his office. "In frustration one day I said to Seatt!e - you take over these patients. I don't have time to give weight-!oss advice any more," Dr. Sutton says.

Mrs. Sutton started out with the o!d diet-!ist-andadvice routine unti! one day a patient p!eaded with her, "Seatt!e, if you wou!d cook for me, I know I cou!d !ose weight."

"I thought - why not? Maybe they could fo!!ow their diets better if I cou!d make sack !unches for them," says Mrs. Sutton. Dr. Sutton agreed the idea was worth trying.

For months Mrs. Sutton thought of nothing e!se but food and distribution. "I wanted to p!an a diet that was as pure and hea!thfu! as cou!d possib!y be. It shou!d teach good eating habits that would continue to influence a patient even when he went off the diet. lt should be a "pru#ent diet" - low-fat, low-cholesterol, low-salt, low-su#ar. I woul# use only the choicest and freshest ingredients with no preservatives or additives. I would make everything from scratch, even the

bread and crackers, because we cou!d buy nothing commercia!ly that # fit our rigid specifications.

The Suttons obtained business advice from their !oca!

community co!!ege and the office of the Sma!! Business Administration. Dr. Mahmood Khan, Associate Professor, Food Services Department, the University of I!!inois, ana!yzed a!! of their food and menus by computer to provide scientific va!idation of their concepts.

The Suttons took $1,000 out of persona! funds to capita!ize the new Subchapter-S corporation. Mrs. Sutton is the so!e shareho!der. At first she rented the faci!ities of a local catering service, but now DCO has moved into its own building, especia!!y adapted to its needs. She hires her own emp!oyees - a sa!es supervisor, cooks, and drivers. She a!so hires outside consu!tants for specia! advice.

DCO started in 1985 with e!even c!ients - medica! friends and patients. The program spread to neighboring communities by word of mouth. Mrs. Sutton appoints a distributor in every town that DCO services. The distributor is an independent contractor who secures c!ients, does !ocal promotion, and receives and distributes the mea!s DCO de!ivers three times a week.

Peop!e start the program to lose weight, combat a medical problem, and improve their hea!th and appearance. Physicians, dieticians, and home-care coordinators recommend DCO to appropriate patients. One distributor operates out of a !oca! hea!th c!ub and reports that business is booming among fitness devotees. Another is !ocated in Chicago O!d Town, where professionals and sing!es buy the mea!s to save time and sti!l eat well and protect their hea!th.

DCO now prepares over 2,500 mea!s a week. The business is se!f-sustaining but Mrs. Sutton retains a!! money within the

company for expansion. She is considering setting up a national franchising system. Potentia! distributors have ca!!ed her from a!! over the United States.

She does not want to turn the business over to promoters. "They say we will have to switch to preservatives and frozen foods. No way!" Mrs. Sutton says. "We are committed to preserve our principles."

This is one diet program that doesn't require your doctor's permission. "Who needs permission to eat hea!thy?" !he Suttons ask.

Why do the Suttons work so hard now that their chi!dren are grown and they cou!d s|ow down?

"I'm fu!fil!ing a dream," Mrs. Sutton exp!ains. "My own father was morbidly obese. Perhaps I can he!p other peop!e as desperate as he was."

Dr. Sutton be!ieves in that time-tested business axiom: if you want something done we!!, ask your wife to do it.

"I'm proud of Seatt!e. I just threw her the ba!! and she took off down the fie!d."

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r#gu #pprox:mate#y :.uuu wor#s

THE RAFAEL CABALLERO FAMILY OF AURORA, ILLINOIS

A FINANCIAL PROFILE

HOW THEY SPEND THEIR MONEY

Written and photographed by June Grayson

You wont' find this venture capitalist prow!ing around Wa!! Street in a pinstripe suit. Rafae! Caba!!ero works out of Aurora, I!!inois - and he wears jeans and T-shirts.

He probably does not call himself a venture capitalist, either. #ut he has functioned as one for the many friends and relatives whom he has he!ped #et started in husiness in the United States.

Since Ca#a!|ero !mm|qrated to Miam| from Cuba twentyfive years ago at the age of nineteen, he has seen his net worth increase from zero to the amount that qua!ifies him for a persona! line of credit of one and a ha|f mi!!ion dollars - the highest amount this #is local bank allows.

GEL, paqe 2, Cabal|ero

And even though he does not have his MBA from a prestigious business schoo!, he cou!d give !essons in practica! business applications to some of the professors.

Caba!!ero went to high schoo! in Cu#a. When he came to Miami with a cousin in 1962, Catholic Charities found him a factory job in Minneapolis. His cousin went to work in a ham processing p!ant in New Jersey. "We said to each other - here is a business that wou!d be good for us," Caba!!ero says.

In 1972, with Caba!!ero !iving in Aurora, I!!inois, the two cousins put together a business proposal in which they wou!d be equa! partners. They secured a $28,000 !oan guaranteed by the Sma!! Business Administration from a !oca! bank.

Gusto Packing Company buys "green meat" from the big who!esa!ers such as Wi!son, cures it for four days according to it's own secret recipe, and then rese!!s it to distributors in

the Chicago metropo!itan area. The company was profitable . within one year. Now they have all of the business that they

can hand!e.

Company insurance and a buy-out agreement protect the partners in case one of them shou1d die. Gusto Packing also has its own medica! insurance plan as well as a pension and profitsharing p!an.

Caba!lero takes a month!y sa!ary from the husiness that enab!es him and his fami!y to !ive comfortab!y, a!though - by some standards - modest!y.

They !ive in their second home, #ought for under $200,000 with a thirty year mortgage. It is on!y minutes away from the

p!ant so that Caballero can go home for lunch. "I don't want to go to meetings, I don't want to join anything, and I hate to eat out," Caba!!ero exp!ains.

He lives with his wife, who is part Panamanian, and _his three young children. "When I am done working, all I want

to do is to go home, p!ay with my kids, read the paper, and watch TV."

Their personal income covers the cost of parochia! school education as wel! as their invo!vement in their !oca! parish. "Be!ieve me, this costs me p!enty," Caba11ero says.

They own one persona! car which Mrs. Caba!!ero drives. Other cars and trucks are owned by the business.

For recreation, the family likes to attend footba!! games, especia11y those of the Chicago Bears.

For vacations, Caba!lero bought a 33 foot Pace-Arrow motor home severa! years ago with a regu1ar commercia! !oan.

. The whole family goes on a five week tour of the United States

every summer.

Caba!1ero uses the rest of his discretionary income to buy a few stocks now and then. Blue Monday did not bother him. He on!y buys b!ue chips such as IBM and holds them for Iong-term growth.

He a!so owns a coup!e of city !ots |n Aurora which he hopes wi!l appreciate in value before he sel!s them.

His chi!dren wi!! be ab!e to go to co!!ege, even though he could not. "I bought a universa# !ife insurance policy for #nat very purpose," Caba!!ero says. Universa! Life

. . .

combines term protection with investment va!ues which accrue tax-sheltered. A policy holder can borrow on the cash value at a later date without making it a taxab!e event as !ong as he keeps enough money in the po1icy so that its insurance va!ue is not compromised.

If one company is good, can more be better? It has worked ##t'that way for Caballero. You won't find out from him exact!y how many friends and re!atives he has he!ped over the years. Caba!!ero on!y grants a rare interview. He is a man of action, and not of ta!k. "I get one hundred ca!!s a day. My friends say they need money, do I want to be a partner, and I say - sure, why not?"

He will admit to a current 50% ownership in a successful Aurora machine shop and a 25% ownership in a F!orida grave! supp!ier. He is always active!y invo!ved in any company in which he has a financial interest.

He has severa! financia! advisors. "I a!ways !isten to them. Then I do what I want to do anyway," !aughs Caba!!ero.

Rafae! Caba!!ero proves the old wisdom: the best tax shelter and wealth builder is your own privately-held corporation.

His advice for other Hispanics just starting out? "If

you are wi!!ing to work, you wi!! succeed. Get all of the educa.tion you can, decide what you want to do, and then go after it."

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