He Makes $600,000,000/Yr Selling Bacon

Summary

• Starting a business often involves learning from failures. My first business, custommade.com, taught me the importance of being realistic about business models and not straying from what works just to attract investors.
• Raising money isn't always the best route. We raised up to $10 million on a $30 million valuation, but with ButcherBox, I decided against taking outside funding to maintain control and integrity.
• Focus on profitability from day one. With ButcherBox, I aimed for a $20 profit per box to ensure the business would sustain itself without external capital.
• Partner with industry experts. Hiring the former head of operations from Omaha Steaks was crucial for sourcing and operational efficiency.
• Utilize pre-sales to test the market. Our Kickstarter campaign helped us gauge interest and demand without significant upfront investment.
• Innovation can grow from unexpected ideas. Our popular "bacon for life" offer was a result of a tech error that we turned into a cornerstone of our marketing strategy.
• You don’t need to do everything yourself. Find partners who can do their part better than you might be able to—focus on your strengths.
• Be open to pivoting your business model based on customer feedback. Initially, our boxes were solely beef, but customer input led us to add chicken and pork, which broadened our market appeal.
• Emphasize core values and culture. Learning from custommade.com's downfall, I ensured ButcherBox had clearly-defined values that guided hiring and operations.
• Consider a long-term vision over short-term gains. Instead of selling or IPOing, I aim to build a multi-generational business that can have a lasting impact.

Video

How To Take Action

I would suggest starting by learning from past mistakes. Like my experience with custommade.com, focusing on a proven business model can save time and effort. Always prioritize what's already working before trying to impress others, like investors. It's also smart to keep control of your business, much like how I chose for ButcherBox to not take outside funding.

A good way to ensure sustainability is by focusing on profitability right from the beginning. Set a clear profit target, like I did with a $20 profit per box at ButcherBox. This foundation keeps your business sturdy without relying on extra funds.

Consider partnering with experts early on. By bringing in seasoned professionals (like the operations head from Omaha Steaks for ButcherBox), you can leverage their experience to enhance efficiency.

Testing the market before diving in can save resources. You could use strategies similar to our Kickstarter campaign to gauge interest without heavy upfront costs. This approach reduces risks and helps understand consumer demand.

Additionally, think creatively about marketing—unexpected opportunities can pop up anywhere. Our idea for "bacon for life" was a tech glitch we turned into a successful strategy. Don't hesitate to pivot or adjust based on customer feedback; it can open new doors, like adding chicken and pork to our offerings.

Lastly, always emphasize your core values, and consider a long-term vision over short-term wins. Businesses grounded in strong values and clear goals can thrive for generations.

Quotes

"Switch sides of the table and ask what you would fix about your business today"

– Alex Hormozi

"There's always a permeating level of baseline stress that doesn't really go away"

– Alex Hormozi

"If I bought everything today, it's like a different lens at least"

– Alex Hormozi

"Don't listen to investors when I started Butcher Box"

– Alex Hormozi

"Every business I've had has been bootstrapped"

– Alex Hormozi