ButcherBox

After his first VC-backed business flopped, ButcherBox CEO and founder Mike Salguero turned lessons learned the hard way into the fuel that built his subscription meat delivery business. Salguero joined host Jeff Berman to reveal how a blend of clean ingredients, clever marketing, and hiring for grit helped him scale into a business that’s now making more than $600M a year and expanding into retail nationwide. Subscribe to the Masters of Scale weekly newsletter: https://mastersofscale.com/subscribe See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Mike Salguero

Founder and CEO

ButcherBox

Mike Salguero is the Founder and CEO @ ButcherBox, the meat delivery subscription service that he has scaled to $600M in revenue, 215 employees and the national leader in the space. All of this achieved while raising $0 of venture capital. Prior to ButcherBox, Mike was the Founder & CEO @ CustomMade, an online marketplace that, unlike ButcherBox, raised millions in venture funding from prominent VCs. In Today's Episode with Mike Salguero We Discuss: 1.) The Makings of a Great Entrepreneur: How did Mike's father not being present in his childhood impact the type of leader he is today? How does Mike's fear of abandonment show itself in his leadership style? What does Mike know now that he wishes he had known when he started? 2. Consumer Subscription is Not a VC Backabale Business Model: Why does Mike believe consumer subscription D2C businesses are not VC backable? What are the biggest challenges of running a consumer subscription business? Why did all the D2C food prep and delivery companies fail? What did they do wrong? What happens to all the heavily funded D2C subscription companies of the last 5 years? Why does Mike believe now is the hardest time ever to do D2C consumer subscription? 3. The Secret to Efficient Marketing: How did ButcherBox scale to $50M in revenue with just one marketing channel working? When should founders think about the second channel? How should they choose which one? Why does Mike not like "brand marketing"? How did ButcherBox burn $8.5M on brand marketing? What are Mike's biggest lessons from doing this? What emerging channel does Mike see as having the biggest potential over the coming years? Why does customer acquisition increase with time? Why do elections cause it to increase? 4. The Economics of a $600M Revenue ButcherBox: How much does it cost ButcherBox to acquire a customer? What is their payback period on that customer? How has this change with time? What is the single metric that drives the profitability of ButcherBox? What are the single biggest points of margin in the business? What is the lifetime value of a ButcherBox subscriber? What are the single biggest points of churn in the customer lifecycle? 5. Venture Capital: To Raise or Not to Raise: Why did Mike never raise venture capital for ButcherBox? Has Mike ever sold secondary? Why not? What would Mike most like to change about the world of venture capital? What are his biggest lessons from raising VC with CustomMade? How did that impact how he approached building ButcherBox? What does Mike believe all founders need to know about raising VC?

Mike Salguero

Founder and CEO

ButcherBox

Back in 2015, when Mike Salguero set out to buy some grass-fed beef for himself and his wife, he had to meet a farmer in a parking lot, who handed him the beef in a trash bag. Naturally, Mike figured there had to be a better way. At the time, he was running a company that was slowly cratering, and he didn’t know the first thing about sourcing or packaging meat. But he had a hunch that if he could figure it out, he could build a successful home subscription business, shipping humanely-raised meat across the country. Mike connected with farmers and packers, launched a Kickstarter campaign, and began working with food and fitness influencers to promote ButcherBox. Today, without taking on a shred of VC investment or even a bank loan, the company does roughly half a billion dollars in revenue. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Mike Salguero

Founder and CEO

ButcherBox