Bootstrapping Success: Lessons from Butcher Box's $550 Million Journey

Mike Salguero, founder and CEO of Butcher Box, has built a $550 million revenue business without any outside funding. In this in-depth interview, he shares valuable insights on bootstrapping, building a mission-driven company, and balancing entrepreneurship with personal life.

Bootstrapping to $550 Million

Salguero started Butcher Box in 2015 after taking just a long weekend off from closing down his previous venture-backed startup. He made a conscious decision to bootstrap Butcher Box, avoiding outside investment:

"When I started butcher box I decided I wasn't going to raise outside Capital. We've built a $550 million Revenue business bootstrap, no outside Capital."

He attributes much of their success to this bootstrapped approach, which allowed them to grow sustainably and maintain control. Salguero believes bootstrapping is often overlooked as a viable path for entrepreneurs:

"Bootstrapping I believe is the right way to build a company and I don't think it gets the time of day. So if anyone wants to talk to me about bootstrapping I'm like no problem, tell me where to go."

Building a Mission-Driven Company

Butcher Box was founded with a clear mission beyond just making money. Salguero explains their purpose:

"Meat is broken, meat needs to be transformed. If you look at anything, like any sort of demographic, it's more and more people are guilty about the meat that they're eating. They feel guilty about it. Why? Because meat has a huge ethical wake - the animals are treated poorly, the environment is treated poorly, farms are closing faster than they ever have. And we have a solution for that."

This mission-driven approach extends to how they treat employees, customers, and partners. Salguero advocates for a more sustainable form of capitalism:

"What if you could do well and do good at the same time? That's what gets me excited - building a company that has a mission that's beyond like 'make a lot of money'. I believe money follows passion and mission."

He emphasizes the importance of having core company values and a mission that goes beyond profits:

"I just really encourage people to find something that they can do and are good at but that has like a mission behind it, because that's really what carries you during the dark days, the hard times."

Leadership Philosophy and Company Culture

Salguero has developed a leadership philosophy centered on empowering employees and creating a positive company culture. Some key aspects include:

Core Values: Butcher Box has 5 core values that guide their culture - authentic, humble, accountable, relentless improvement, and customer obsessed. These were developed collaboratively with employees.

Hiring Strategy: They focus on hiring people with grit and something to prove, rather than just impressive resumes.

Transparency: Salguero believes in being very transparent with employees about company financials and performance.

Empowering the Team: He has eliminated regular 1-on-1 meetings to empower his team to make more decisions independently.

Work-Life Balance: Salguero prioritizes work-life balance for himself and encourages it for employees. He took Fridays off when his children were young to spend time with family.

Balancing Entrepreneurship and Personal Life

As a successful founder, Salguero has learned important lessons about balancing entrepreneurship with personal life:

Set Boundaries: He puts boundaries around work time, like not responding to emails between 5-8pm when he's with family.

Prioritize Health: "You cannot sacrifice your health for your company. It is not worth it."

Make Time to Think: Taking time away from the day-to-day, like his Fridays off, allowed for valuable strategic thinking time.

Manage Risk: Contrary to the stereotype of risk-taking entrepreneurs, Salguero advocates for carefully managing risk.

Maintain Identity: "I think entrepreneurs oftentimes lose their soul to the business and I think the best ones are ones that are able to like have their own personality and their own time and their own space."

Lessons for Entrepreneurs

Salguero shared several valuable lessons for aspiring and current entrepreneurs:

Start with a Lifestyle Plan: Before writing a business plan, envision the lifestyle you want and build a business to support that.

Be Consistent: "Consistency beats intensity." Focus on consistent effort over time rather than unsustainable bursts.

Embrace Failure: A failed venture doesn't mean you're a failed entrepreneur. Learn from setbacks.

Build for the Long-Term: Think about building a company that will outlast you as the founder.

Develop Resilience: Entrepreneurship requires pushing through many rejections and setbacks.

Stay Mission-Focused: Having a mission beyond profits helps sustain you through challenges.

Make Space for Others: As you grow, empower your team by stepping back from some responsibilities.

Conclusion

Mike Salguero's journey with Butcher Box demonstrates that it's possible to build a large, successful company through bootstrapping while maintaining a strong mission and positive culture. His insights on balancing entrepreneurship with personal life and focusing on sustainable growth offer valuable lessons for founders at all stages. By prioritizing mission, values, and long-term thinking, entrepreneurs can build companies that not only achieve financial success but also make a positive impact.

Article created from: https://www.youtube.com/watch?v=1hJQXLx1VM8