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Mike Salguero
@mikesalguero
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CEO & Founder. Scaled @butcherbox to $600M Traveler, believer & maker changing the world one steak at a time. Insights on meat, business & bootstrapping
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Joined February 2009
If you plan to hold your company for the long term, granting equity can backfire on you. A long term 3 year incentive plan or near term 1 year bonus plan is much better.
Real profits, shared. One of the most rewarding things about running a profitable business is rewarding others with a share of the profits. For years we've had a profit share system in place where we take 10% of our annual profits and distribute them to our employees based on their tenure. For years we've been knocked by the valley/VC crew for not offering equity. We think we offer something better: Real cash, every year, directly to our employees, when we show a profit. And given that we've been profitable for 25 years, it's not a maybe-one-day-dream, it's been an annual reality. Never a guarantee, but far more reliable than equity that runs at the whim of a public or illiquid private market, rounds of dilution, preferred vs. common, etc. And this year, I'm especially proud to say that we've been able to distribute 6-figure profit shares to 20 employees. That's over a third of our company, including folks in customer service, design, programming, ops/SIP, HR. The rest who were eligible received 5-digit shares, with a few employees new to the pool earning 4-digit shares. Real cash people can spend today on real things today. Not fantasy maybe money later. Last year was an especially great year for us. Both on the revenue side and cost side. We saw a double-digit boost on the top line, and cut our costs significantly at the same time. The result: more money to our profit-share eligible employees. And a lot of it. Independent, self-funded, profitable, 25-years and running. We wouldn't have it any other way.
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@JaredxDubey We have dabbled in cattle ownership. But really would prefer to work with experts in their field rather than thinking we can do it better.
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When we first raised venture capital at CustomMade, we went on 75 meetings before we got to a "yes"... you must have the stomach to be told "no" and "this idea won't work" repeatedly. Every "no" is closer to your "yes". Part of the process Is rejection. Keep pushing! PS ... it gets easier in later rounds.
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@TaylorHoliday @ArtiKenCEO @AaronJNosbisch @mikebeckhamsm I dont know much about your biz, but I always say to find a supplier who will give you terms and have that be almost the #1 reason to work with a supplier. The longer the terms the better.. 30 or 45 days from delivery to your dock can make all the difference..
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Lots of people look at me and think about the success we've had... and they dont know the failures. Failure is part of the process. I have: -gotten rejected by all my choices for school in college -gone on 70+ interviews to find a job after school -been rejected by dozens of VCs -had trouble being the weight I have wanted -mistreated employees, failed to unlock great people and many many others.. Failure is part of the learning process. Instead of asking successful people "how did you get so successful" ask, "when was the last time you failed... you might find you learn a lot more!
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