Meet James Peisker and Chris Carter, co-founders who embarked on their entrepreneurial journey after meeting in a popular Nashville kitchen. Frustrated by the challenges of sourcing 100% pasture-raised, antibiotic-free meat, they decided to open Porter Road Butcher, an end-to-end meat company aimed at supporting local farmers and providing customers with the quality meat they desired.
Through strategic solutions such as owning the process from pasture to table in partnership with select farmers, offering à la carte shopping options, and investing in marketing and customer service, Porter Road successfully differentiated themselves from competitors. Funding through Shopify Capital's funding played a pivotal role in supporting their growth, covering marketing efforts, operational expenses, and more.
This case study delves into Porter Road's key results, including their marketing return on investment, repeat customer rate, and readiness for further growth.
Challenge: Porter Road's Quest for Funding
Since 2017, Porter Road has faced increasing challenges in securing the necessary funding to support their business growth. They describe their fundraising efforts as a repetitive cycle, constantly searching for funding opportunities.
While they recognize the need for funding to continue growing their business, they are also committed to ensuring that their farmers are not negatively impacted or receive reduced compensation as a result. They strive to find capital sources that can support their business growth while still allowing them to take care of their farmers and never compromise the quality of their products.
Initially, Porter Road relied on traditional banking for funding, but they proactively sought out new opportunities to fuel their growth. Their exploration led them to venture capital opportunities in New York, where they embraced a different funding avenue. Along their journey, they discovered unique financing opportunities like Shopify Capital, which proved to be extremely helpful and beneficial in building their business.
Porter Road found Shopify Capital to be a convenient and efficient funding solution. They appreciated the ease of running everything through the Shopify platform, allowing for seamless integration with their revenue and cash flow management. The repayment structure of Shopify Capital also aligned well with their cash conversion cycle, making it one of the most useful sources of capital they have encountered. Each time they have accessed Shopify Capital, it has come at the perfect time for their business needs.
Shopify Capital was a convenient and timely funding solution that has played an important role in their business growth by enabling them to continue operations, support farmers, and maintain a positive cash flow.
Solution: How Shopify Capital Played a Role in Porter Road's Growth Journey
Shopify Capital proved to be a game-changer for Porter Road. Already familiar with the Shopify platform, their team discovered Shopify Capital through an email and quickly realized its convenience and alignment with their existing operations. They received $1.3M over three funding rounds through Shopify Capital. This capital injection enabled them to fuel their growth, invest in marketing campaigns, improve customer service, and continue to support their farmers.
Porter Road used funding through Shopify Capital funding for various purposes, including photographing new cuts, running marketing campaigns, setting up affiliate programs, and engaging with influencers. They focused on enhancing customer experience and building brand loyalty. Marketing partnerships with well-known brands like Pappy & Co., Jacobsen Salt Co., ThermoWorks, NOMAD Grills, and many others have proven to be very successful. Their $1M marketing spent in 2020 generated impressive returns, with $11 million worth of sales today.
“Shopify Capital allows us to spend on everything our business needs, from costs of goods to operational expenses and marketing. And it's extremely convenient.” - Chris Carter, CEO of Porter Road
- Shopify Capital provided Porter Road with a convenient and easy-to-access funding solution.
- Porter Road accessed over $1.3 million in funding through Shopify Capital, enabling them to fuel their growth.
- A million dollars of marketing spend in 2020 has driven 11 million worth of sales today.
- The speed and ease of accessing capital through Shopify Capital allowed Porter Road to scale their operations, expand their customer base, and increase sales.
- Funding through Shopify Capital supported Porter Road's commitment to supporting local farmers and paying fair compensation, aligning with their mission of sustainability and ethical practices.
- Porter Road sees Shopify Capital as a continuous funding option and is ready to tap into more capital to further scale their operations.
Thanks to the support of Shopify Capital, Porter Road experienced significant growth and success. The funding allowed them to scale their operations, expand their customer base, and increase sales. They invested in effective marketing initiatives that generated substantial returns. Additionally, their focus on customer service and product quality contributed to a very high rate of customer retention.
With Shopify Capital's convenient and easy-to-use platform, Porter Road fulfilled their mission of providing high-quality, sustainably sourced meat to consumers while supporting local farmers. The partnership with Shopify Capital played a crucial role in their growth and enabled them to thrive and grow.
All loans through Shopify Capital in the United States are issued by WebBank.