Today, Website Closers’ Alex Matos joins host Izach Porter to talk with the co-founder of Rari Nutrition, Sean Kelly, about his exit in the super competitive supplement space. Izach Porter hosts this episode of Deal Closers, brought to you by WebsiteClosers.com, and produced by Earfluence. You know, every dollar you can bring to the bottom line is another four times or five times or six times that dollar that you can earn at the exit. You could spend two years perfecting the perfect product and business model, as well as what you think is the perfect product and business model. Go to market and learn that somebody’s already beat you to market a year ago, and the customers don’t like anything about what you have to offer.
You’re listening to the Deal Closers Podcast brought to you by websiteclosers.com, a show about how to build your e-commerce business to be profitable, scalable, and one day even sellable. I’m Izach Porter. On the show today, Website Closers, Alex Matos joins me to talk with co-founder of RARI Nutrition, Sean Kelly, about his exit in the super competitive supplement space. At Website Closers, we’ve brokered several deals and supplements, including one you heard about on this podcast a few months back. It always amazes me how these companies have been able to carve out a niche for themselves in this $150 billion industry when it feels like every parcel of the supplement space has already been taken. But for Rari Nutrition back in 2015, Sean and his co-founder, Chris Bosco, had always been into fitness and involved in the industry, and they noticed something about supplements.
Starting a supplement business is a journey filled with both challenges and opportunities. With a growing focus on health and wellness, consumers are becoming more selective about the products they use, particularly in the supplement market. Here’s a look at how one brand, RARI Supplements, navigated the complexities of the industry to create a successful, health-conscious supplement company.
In the supplement industry, transparency and natural ingredients are becoming increasingly important. Many products today contain synthetic ingredients, artificial dyes, and sweeteners that may not align with consumers’ health-conscious goals. As a founder, if I have the choice between a product with natural ingredients and one without, I will choose the natural option every time. This philosophy was central to the creation of RARI Supplements.
When starting RARI Supplements, we wanted a name that conveyed quality and speed reminiscent of a Ferrari. The name “RARI” also stands for “Rise Above with Real Ingredients,” reflecting our commitment to clean-label trends and high-quality supplements. Our first product, the Infinity Pre-Workout Performance Supplement in Strawberry Lemonade, was a result of extensive research and trial and error. We knew the importance of ingredients like L-Citrulline Malate and Beta-Alanine, and it was about finding the right combination that worked best for us.
Launching a supplement brand isn’t without its hurdles. Our initial foray into creatine capsules was a learning experience—unfortunately, a failed one. The capsules clumped together, making them unsellable. This setback cost us $15,000, a significant amount when starting with limited capital. However, we learned quickly about the importance of vetting manufacturers and ensuring they met GMP compliance standards.
After overcoming early challenges, we turned to Amazon to scale our supplement business. Amazon’s platform provided a way to reach a broader audience and validate our brand. Although we also explored retail channels like Vitamin Shop and CVS, Amazon remained our primary focus due to its scalability and the valuable customer feedback we received through reviews.
One of the most pivotal moments for us was when we were approached by a Special Acquisition Company that wanted to take RARI Supplements public. While the plan seemed promising, it taught us the importance of due diligence. The experience was challenging, but it ultimately led to us regaining control of our brand and continuing to grow independently.
Starting a supplement business requires more than just a good product; it demands a solid business plan, a clear brand identity, and a deep understanding of the market. With a focus on natural ingredients and transparency, RARI Supplements has carved out a niche in the competitive supplement industry, proving that a commitment to quality can lead to long-term success.
Sean’s entrepreneurial journey offers valuable insights for anyone looking to start, scale, or sell a business. His experiences highlight critical lessons that can guide other founders through the challenging yet rewarding process of building and exiting a business.
Sean emphasizes the importance of getting to market quickly rather than waiting for perfection. In the fast-paced world of business, speed can be a decisive factor. Launching quickly allows you to gather real market feedback and make necessary adjustments rather than spending years perfecting something that might not resonate with customers.
For entrepreneurs considering an exit, understanding how businesses are valued is crucial. Sean learned the significance of lean operations and maximizing the bottom line. Every dollar saved or earned can significantly increase the value of your business, especially when it comes time to sell.
Subscription models or other forms of recurring revenue streams are highly attractive to buyers. Predictable cash flows can drive up the value of your business and make it a more appealing acquisition target. In Sean’s case, the “Subscribe and Save” model was a key factor in the successful sale of his business.
One of the challenges Sean faced was ensuring that his finances were in order before listing the business for sale. Accurate and up-to-date financial records are essential for a smooth sale process. Prospective buyers need to see a clear and honest financial picture to make informed decisions.
As Sean moves into the next phase of his career, focusing on the buy-side of e-commerce private equity, he highlights the value of acquiring existing brands with a proven track record. His strategy involves leveraging operational expertise to scale these businesses, ultimately aiming for higher multiples upon exit.
Finally, Sean reflects on his experience working with Website Closers, noting how seamless and headache-free the process was. For entrepreneurs looking to sell their business, working with a broker who understands the complexities of running a successful company can make all the difference. Sean’s positive experience is a testament to the value of partnering with a knowledgeable team when navigating the sale of a business.
All right, that was Sean Kelly with Rari Nutrition. You can find them at rarinutrition.com. That’s rarinutrition.com. Thanks everyone for listening to this episode of the Deal Closers Podcast brought to you by websiteclosers.com. If you like this show, be sure to rate us, write a review, press the follow button and share it with your network. And of course, if you’re looking for help selling your e-commerce business, be sure to visit websiteclosers.com. This episode was edited
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