A 27 year old dyslexic ADHD deadbeat turns $10k into $600,000,000
Here’s the incredible story of how he went from his parents basement to building a massive CPG startup in less than 5 years 👇🏽👇🏽👇🏽
Here’s the incredible story of how he went from his parents basement to building a massive CPG startup in less than 5 years 👇🏽👇🏽👇🏽
1) Peter Rahal was born outside Chicago in 1986.
He was the classic 3rd born child: everything handed down to him, no respect from his siblings, and a fearless risk taker.
To make matters worse, he was a dyslexic D student.
But there was one thing that set him apart…
He was the classic 3rd born child: everything handed down to him, no respect from his siblings, and a fearless risk taker.
To make matters worse, he was a dyslexic D student.
But there was one thing that set him apart…
2) His work ethic.
From a young age, he watched his father grind and hustle in the juice business.
He started to hustle too: selling anything he could. Beanie babies, baseball cards and even… weed.
After barely graduating college, he joined the family biz.
It was a disaster!
From a young age, he watched his father grind and hustle in the juice business.
He started to hustle too: selling anything he could. Beanie babies, baseball cards and even… weed.
After barely graduating college, he joined the family biz.
It was a disaster!
3) Constant arguing with his siblings. Never being heard. He quickly had enough.
His dad helped him get a job in Belgium. He barely lasted a year.
Then he had an idea: Gourmet Donuts!
When that business failed it taught him an important lesson...
His dad helped him get a job in Belgium. He barely lasted a year.
Then he had an idea: Gourmet Donuts!
When that business failed it taught him an important lesson...
4) Business partners matter. Aligned vision matters.
While “entrepreneuring” he and his best friend Jared had become obsessed with CrossFit.
They wanted a high protein post workout snack, but the options were either too expensive or highly processed.
Lightning struck.
While “entrepreneuring” he and his best friend Jared had become obsessed with CrossFit.
They wanted a high protein post workout snack, but the options were either too expensive or highly processed.
Lightning struck.
5) Peter asked Jared "Why are protein bars so full of shit?"
What if there could be a high protein, all natural bar for CrossFitters everywhere?
They got to work…
What if there could be a high protein, all natural bar for CrossFitters everywhere?
They got to work…
6) Most CrossFitters went Paleo so affordable whey protein wasn't an option.
Egg whites were the go to choice, but the plain protein tasted nasty.
They needed something natural to bind them and cover the taste.
Dates, the sweet and sticky fruit, turned out to be perfect.
Egg whites were the go to choice, but the plain protein tasted nasty.
They needed something natural to bind them and cover the taste.
Dates, the sweet and sticky fruit, turned out to be perfect.
7) Peter and Jared went to Papa Rahal, asking for introductions to rich guys or manufacturers.
His answer?
"You need to shut up and sell 1,000 bars"
They put in $5,000 each, quit their jobs, and went off to do just that...
His answer?
"You need to shut up and sell 1,000 bars"
They put in $5,000 each, quit their jobs, and went off to do just that...
8) Bootstrapping on a tiny budget, they saved wherever they could.
No Kitchen → Parent's Basement
No Professional Printer → Staples
No Web Designer → Shopify
No Product Designer → Powerpoint
For the first 2 years, they spent 16hrs/day mixing bars and selling door-to-door...
No Kitchen → Parent's Basement
No Professional Printer → Staples
No Web Designer → Shopify
No Product Designer → Powerpoint
For the first 2 years, they spent 16hrs/day mixing bars and selling door-to-door...
9) The cofounders did everything they could to get in front of their perfect customers.
As Peter put it: "A Crossfitter in California was a better customer for us than a whole grocery store in Chicago"
It was the first retail product at most of the Crossfit gyms...
As Peter put it: "A Crossfitter in California was a better customer for us than a whole grocery store in Chicago"
It was the first retail product at most of the Crossfit gyms...
10) They did $2MM in 2014 by pounding the pavement and selling DTC online.
By 2015 they tripled to $6.5MM, but knew it was time to upgrade the packaging.
The iconic clear cut wrapper now known worldwide rolled that November.
They were ready to go BIG!
By 2015 they tripled to $6.5MM, but knew it was time to upgrade the packaging.
The iconic clear cut wrapper now known worldwide rolled that November.
They were ready to go BIG!
11) At a trade show in Jan 2016, a hungry Trader Joe's rep grabbed a bar from their "booth" AKA a pile of bars on a table...
By June 2016, TJs rolled them out nationally.
That year closed with $36MM in sales, over 2x their most ambitious projections.
By June 2016, TJs rolled them out nationally.
That year closed with $36MM in sales, over 2x their most ambitious projections.
12) Word spread about their ~20% profit margins and plan to break $100MM+
Acquisition offers rolled in.
By March 2017 they had 10 on the table!
Peter grew up in a family business, and didn't want one long term. Jared was burning out.
It was time to sell.
Acquisition offers rolled in.
By March 2017 they had 10 on the table!
Peter grew up in a family business, and didn't want one long term. Jared was burning out.
It was time to sell.
13) The buyer had to meet their 4 musts:
1. Standalone Operator (No PE)
2. Expand the brand beyond bars
3. 100% Sales Only (No Investments)
4. Pay the most money
In Oct 2017, Kellogg announced the $600MM acquisition. RX bar ended the year at $24MM profit on $131MM in sales.
1. Standalone Operator (No PE)
2. Expand the brand beyond bars
3. 100% Sales Only (No Investments)
4. Pay the most money
In Oct 2017, Kellogg announced the $600MM acquisition. RX bar ended the year at $24MM profit on $131MM in sales.
14) Sources:
chicagotribune.com/business/ct-bi…
chicagotribune.com/business/ct-bi…
inc.com/emily-canal/rx…
bizjournals.com/chicago/inno/s…
npr.org/2018/08/10/637…
rxbar.com/our-story
And for a look back at 2013 RX bar, check out Jared's interview:
chicagotribune.com/business/ct-bi…
chicagotribune.com/business/ct-bi…
inc.com/emily-canal/rx…
bizjournals.com/chicago/inno/s…
npr.org/2018/08/10/637…
rxbar.com/our-story
And for a look back at 2013 RX bar, check out Jared's interview:
15) This story is a reminder that:
1) Sales are the real proof of business success
2) Don't hire family (Rahal had to fire his mom from labeling)
3) Adversity creates motivation
4) Dominate a niche first, then grow beyond it
5) Thank your customers
And that anyone can do it...
1) Sales are the real proof of business success
2) Don't hire family (Rahal had to fire his mom from labeling)
3) Adversity creates motivation
4) Dominate a niche first, then grow beyond it
5) Thank your customers
And that anyone can do it...
16) If you enjoyed this thread, follow me @jspujji
I tweet Bootstrapped Giants stories like this every week.
And RT the whole thread to share this amazing story!!
I tweet Bootstrapped Giants stories like this every week.
And RT the whole thread to share this amazing story!!
17) In honor of the bars I eat daily, a few extra learnings from the founding story of RXbar:
1) You need to be a passionate consumer of your product
2) Selling on a 1-1 basis teaches you a lot about your customers
3) Find/build a community that obsesses over your product
1) You need to be a passionate consumer of your product
2) Selling on a 1-1 basis teaches you a lot about your customers
3) Find/build a community that obsesses over your product
• • •
Missing some Tweet in this thread? You can try to
force a refresh
