Scaling to $100M/yr with Ryan Niddel

Read Time: 3 minutes

GM! It's Tuesday, April 18th - Today, we're covering:

• Feature 💡: How this CEO scaled his business from $5M to $100M/yr in revenue.

• Playbook 📒: The MOSS Method- an operating system to 10x your business.

• Investing💰: Ryan investing playbook - how he invests his 9-figure PE fund.

• Trend 📈: Elon Launches AI Startup called "TruthGPT"

- Callum

FEATURE

From Getting His Car Repossessed To Scaling His Business To $100M/yr

11 years ago, Ryan was broke - he'd just shut down his business, his 2 rental properties were on the edge of foreclosure, and his car was in the process of getting repossessed.

Today, he runs a business about to break $100M/yr in revenue and leads a 9-figure Private Equity firm.

Meet - Ryan Niddel

Ryan is the CEO at MIT45 and Principal at a 9-figure Private Equity firm. Let's unpack his businesses:

MIT45

MIT45 distributes kratom, a leaf in the same family as a coffee leaf that can be used as a healthy alternative to caffeine. This lesser-known plant was greenlit by the DEA in 2017 and has since become a $2-5B domestic industry.

In 2019, Ryan Niddel was a consultant for MIT45 – a kratom brand with $5-10M in annual revenue.

It wasn’t long until Niddel became MIT45’s CEO, bringing the company’s annual revenue to $70M in 2022 and is set to do north of $100M at the end of this year.

PE Fund

Between 2018 and 2020, Niddel guided ~20 entrepreneurs through lucrative acquisition deals for their companies.

Because he had the playbook fine-tuned, Niddel set up a private equity fund.

His PE fund now has 9-figures assets under management and trains operators who can take over businesses and bring out their potential through Niddel’s MOSS method.

As CEO, Niddel used a repeatable model for success that he developed through years of consulting entrepreneurs – let’s break down his model.

The MOSS Method Playbook - How He 10x'd MIT45

Ryan understands that simplicity scales businesses, so he works on companies at a foundational level– streamlining Marketing, Operations, Sales, and Services (MOSS).

• Marketing: When you are purchasing a Coca-Cola product, whether that’s original, Coke Zero or Diet Coke, it’s obviously all made by the same company. With MIT45’s capsules, liquids, and raw products, it wasn’t obvious to consumers that this was all the same brand. Niddell repackaged MIT45 products to standardize market branding.

• Operations: MIT45 used to be on backorder for 3 different products multiple times a year despite having storage space and capital to drive deeper in inventory. To avoid backorders and drive down costs, Niddell reached out to vendors and worked out low-cost, high-quantity deals.

• Sales: The sales team at MIT45 was overly focused on quick turnaround times and would bypass accounting, immediately taking orders to fulfillment for shipping, which resulted in $2M in uncollected receivables with an average age of 100+ days. Now, it takes sales orders, accounting has 6 hours to perform reconciliation, then the order goes to fulfillment.

• Services: For a B2BC business model, it’s all about helping stores get your product off the shelves. To help educate store-goers on kratom and MIT45’s superior product, Niddel developed an in-depth onboarding experience.

The operations and sales changes alone brought MIT45 from an annual revenue of $5-10M to $25M in 2020. And through continued iterations and refinement, they'll cross the $100M mark this year.

Ryans Investment Playbook

Here’s what Niddel and his 9-figure PE firm look for when investing:

• Don’t buy startups: Startups are the riskiest investment as they do not yet have an established market/message match. Instead, look for a business that is already turning a profit but has the potential for 20% YOY growth.

• Zone of genius match: Niddel’s zone of genius is in marketing and sales, so he looks for businesses that make up for his deficiencies in operations and services but lack his expertise in marketing and sales.

• Invest in what you understand: If a business is in the NFT industry and you can’t wrap your head around it, don’t invest in it. Only put your money and time into things you can fully understand and bring growth to.

Niddel has scaled his PE firm by training a team of operators with specific zones of genius that are prepared to take over a company when he invests.

For more from Ryan, check out his website at RyanNiddel.com

Listen to our conversation here 🔊

TOGETHER WITH MONOGRAM

100,000 Knee Replacements Fail Every Year...This Company Wants to Change That

Monogram’s unique surgical robotics and coming 3D printed, personalized implants are hoping to bring much-needed precision to knee replacements.

And you can invest before their planned Nasdaq listing.

Monogram’s $19.4B Market Opportunity

Joint replacement surgery has stayed relatively the same for the last 40 years. That means surgeons still rely on tools like hacksaws, jigsaws, and generic-sized replacement joints.

It’s no surprise that thousands of people need revision surgery every year due to poor alignment. The reason is common sense: a joint that doesn’t fit properly can lead to even more joint erosion in the future.

Monogram is trying to change this and hoping to provide more precision and personalization in joint replacement.

50% of all joint replacements are expected to be robotic by 2030.

And Monogram hopes to lead the way with:

• First active cutting robotic arm on the market

• 3D-printed joint replacements

• 19,000+ passionate investors

Plus, 5,000+ people have watched their robotics perform a knee replacement on a cadaver during livestream events.

This is an opportunity to invest in a patient-first mission to try to add an unprecedented level of precision and personalization to the joint replacement market.

Invest in Monogram before the opportunity ends on 5/10.

Disclosure: This is a paid advertisement for Monogram Orthopedics’ Regulation A+ offering. Learn more at invest.monogramorthopedics.com/disclosures

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ON TREND

Elon Launches AI Startup Called "TruthGPT"

You should know:

• Elon Musk plans to create an AI startup to rival ChatGPT

• The startup, called "TruthGPT," is an AI designed to better understand the universe

• Musk previously cofounded OpenAI, but left in 2018 due to potential conflicts with Tesla

• Since leaving OpenAI, Musk has been critical of the company and signed a letter to pause AI development.