How Peter Rahal Built RXBAR from $10K to a $600M Exit in Just 5 Years

Peter Rahal, co-founder of RXBAR, sold his company for $600M just 5 years after starting it with a $10,000 investment.

In a recent interview on My First Million, Peter shared his strategies for identifying and exploiting uncompetitive markets—insights that every entrepreneur should take note of.

1️⃣ Look beyond the surface
Some markets seem competitive, but they may have low barriers to entry. Peter used the protein bar industry as an example—many brands, but only a few major players.

2️⃣ Target consumer dissatisfaction
Find categories where customers are unhappy, whether it’s with taste, price, texture, or something else. These pain points are opportunities waiting to be addressed.

3️⃣ Differentiate with ‘valuable novelty’
Even in “competitive” markets, introducing something fresh—like new positioning or marketing to a different audience—can give you a unique advantage.

4️⃣ Embrace contrarian products
Sometimes, categories that are viewed negatively (like kombucha, collagen, or creatine) have benefits supported by science. This can be a goldmine if you market it right.

5️⃣ Solve unmet needs in key moments (White spaces in daily routines)
Look for occasions with no clear product solutions. Peter highlighted the “night occasion,” where there’s no equivalent to coffee for winding down after a long day.

6️⃣ Draw inspiration globally
By observing trends in different countries or industries, you can bring innovative ideas to your own market.

7️⃣ Be first with controversial products
If you can launch a product that’s controversial or disagreeable early on, you can gain significant market share and profits.

Peter also talked about the importance of understanding your consumer, studying history for market patterns, being self-aware, and having a “hardcore” approach to business—taking risks and working hard.

His experience with RXBAR and his new venture, David, show that these strategies are not only theoretical—they work in the real world.