Services-to-Products Model

Sean Frank discusses his business strategy for Ridge Wallet and his future plans, focusing on how to build and exit successful e-commerce brands.

Current valuation and exit strategy for Ridge

• Ridge's current market clearing price is around $300 million despite market being at "all-time low"
• Projects Ridge will reach $500-600 million in annual revenue by the end of the decade
• Growth strategy includes tech product expansion (power banks, phone cases, cables)
• Already established in Best Buy with plans to enter Apple and Verizon stores
• Difficult timing to sell currently due to market conditions
  • Cites Solo Stove as example - peaked at $2.1 billion valuation but now worth around $100 million despite $400+ million in revenue
• Waiting for interest rates to drop so companies can be taken private

Personal exit and future business goals

• Not planning to be "the long-term shepherd" of Ridge
• Exit path likely through acquisition by one of "10 strategics that end up buying brands like ours"
• Personal goal to net $100 million from Ridge exit
• Plans to start a portfolio of brands and services after exit
• Would launch "weird little e-commerce brands" focused on trends
• Would hire service providers to run these businesses

Strategy for trend-based businesses

• Believes in creating products within growing trends for faster growth
• "You can be average in a growing market and grow very fast"
• Admits he was "an average operator when Facebook ads were growing" which helped his business grow
• Emphasizes pivoting once you achieve success in one trend
• Example strategy for bone broth business:
  • Start with bone broth
  • Pivot to protein-focused bone broths or bone bars
  • Further expand to bone supplements
• Constantly looking to disrupt and expand within the category

Philosophy on market timing and growth

• Values riding growing markets over building evergreen businesses
• Believes in leveraging "trend surface area" to maximize growth potential
• Focuses on being adaptable and pivoting as markets evolve
• Recognizes the exhausting nature of trend-chasing but sees it as fitting his skillset