Understanding a Business's True Aspirations

Today’s conversation with Mike Salguero went in a direction I really wasn’t anticipating. Initially, I was interested in talking to Mike because he’s lived multiple lives as a Founder. 

First, buying and then raising 10s of millions for a crafts persons marketplace called Custommade.com. Then, after winding down Custommade, starting what he would term a “hobby business” to recover a bit from the toll a large “venture scale” swing took on himself, his health, and his family. 

Interestingly, the big swing didn’t work. But the less ambitious “hobby business” has grown to $500M+ in revenue with zero outside funding. 

In our Indie Era of Startups talk, we theorize that:

— WE'RE ABOUT TO SEE THE BIGGEST CLASS OF SV-EDUCATED FOUNDERS IN HISTORY
— THEY'LL BUILD INDEPENDENT, INNOVATIVE BUSINESSES THAT WILL CHANGE THE WORLD
— THESE FOUNDERS WILL LOOK FOR MORE FLEXIBLE, SUSTAINABLE, AND ALIGNED FUNDING PARTNERS

Mike is a great example of those ideas personified, along with Alan from last week's video. The movement we’re building indie to support is happening, and Mike’s experiences and lessons learned are emblematic of many returning venture backed founders and early employees.

Some other takeaways from this one:

The power of constraints — Mike built a $550M empire on just $10K, proving you don’t need hoards of VC cash to disrupt an industry. The constraints he placed on the business early allowed ButcherBox to maintain control and focus on long-term growth rather than chasing short-term metrics to please investors.

Work-life balance isn’t just fluff — Mike built ButcherBox while prioritizing taking care of his body and his growing family. This approach demonstrates that success doesn’t always mean sacrificing personal well-being, and can actually lead to more sustainable growth and better decision-making.

Playing the long game — With a 25-year vision, ButcherBox is aiming for iconic brand status. This long-term perspective allows the company to focus on transforming the meat industry and building a lasting legacy rather than seeking quick exits or short-term gains.

The “barbell strategy” is pure hiring gold — Pairing fresh grads with industry vets creates a powerhouse team. As a VC backed founder, he was pushed to hire the most pedigreed and impressive over the most experienced or most hungry. This unique barbell approach combines the energy and fresh perspectives of young talent with the deep experience and mentorship capabilities of seasoned professionals.

Doing things you can’t at a VC backed Startup — When Mike said “hit our goals, we’re going to Mexico,” the team crushed it. A VC run board would have shut down the idea as not worth the significant expense but he was able to deliver on his promise even when it hurt the wallet. This commitment to following through on promises, no matter the cost, has built a culture of trust and motivation within the company.

The final, and I thought most interesting, takeaway from this conversation was Mike’s idea that companies know what they want to be. Finding and being true to that has been the key to his success and ignoring it was the foundation of his failures. 

With Custommade, he wanted it to be something it didn’t want to be — a massive marketplace for craftspeople to connect and transact. What it wanted to be was a simple listing service. 

With Butcherbox, Mike wanted it to be a hobby business so he could outsource everything and collect a check every month from a beach. But what the business wants to be is a force within the world of meat for better quality products and more humane treatment of the animals and land. 

In both cases, and in different ways, he’s fought what the company is telling him about what it wants to be. When he’s embraced his role as a steward for an idea, a business and a culture that will continue long after he’s out of the day to day grew.

That’s what I took away from this one. I’m curious about your take away from this one, too. 

Let’s try something new this week — leave a comment on the YouTube video with your takeaways or thoughts, and any experiences you’ve had that relate to what Mike shares. Don’t hesitate to call BS if there’s something you think he or I miss the mark on. 

I’ll be monitoring and responding to as many comments as I can. Hoping this will be a fun addition to our weekly tradition of sharing these conversations and artifacts with you. 

As always, I hope you enjoy listening and commenting as much as we enjoyed recording this one. 

And if you’re working on something you think could be a fit for an investment from indie, please reach out.

— Bryce