To listen to social media inform it, the wonder trade is crammed with success tales. From TikTok-viral product launches turning up every single day to multimillion-dollar model acquisitions, it typically looks as if superstardom occurs in a single day for magnificence entrepreneurs. In spite of everything, what’s extra assured than having a product that buyers want and love, proper? Properly, not so quick.
Behind the aesthetically pleasing advertising campaigns and influencer cosigns lies a far much less glamorous actuality. For each magnificence model that turns into a family identify, there are numerous others struggling to outlive in one of the vital aggressive industries on this planet—and Black-owned manufacturers battle most of all.
Turning into a magnificence founder has by no means been simpler—or more durable, relying on the way you have a look at it. Due to platforms like Shopify, TikTok and Instagram, launching a product has turn into potential for a lot of. But the seemingly low limitations cover the immense prices of making, advertising and scaling a model. Founders typically pour tens of hundreds of {dollars}, if no more, into formulations, packaging, branding and manufacturing, lengthy earlier than they see a single cent in revenue. For a lot of, significantly founders of shade, the challenges begin with financing. These required steps we’ve talked about come at a premium. And in the event you’re Black? Add some tax. Black feminine founders obtain lower than 1 p.c of all enterprise capital funding—a sobering reminder of the structural limitations that persist.
For many who do handle to launch, the larger problem comes with scaling. Development isn’t nearly promoting extra; it’s about navigating the logistical, operational and emotional calls for of operating a enterprise. Alicia Scott, founder and CEO of Vary Magnificence, has constructed her model on a skin-first method to inclusive make-up, and her merchandise have resonated with a selected underserved viewers. However even with Scott’s distinct area of interest, scaling got here with its personal set of hurdles; and this was true regardless of Scott’s enterprise being the primary Black girl–owned magnificence firm to obtain an funding on Shark Tank.
“The wonder trade is extremely aggressive, and new manufacturers and gamers are continually rising—particularly celebrity-led ones, which may pour many extra {dollars} into activations, outreach, innovation and brand-building,” Scott says when discussing the realities of entrepreneurship. “I’ve needed to be very scrappy and inventive to take care of a robust model identification, attain our prospects and successfully goal our viewers to remain forward of the curve.”
Whereas social media affords a strong, cost-effective software for gaining visibility, it additionally creates strain for manufacturers to carry out at a relentless tempo. Shoppers constantly need recent content material, as a result of within the “swipe up” of a display screen, a second might be forgotten. That usually signifies that viral campaigns and influencer collaborations can really feel overwhelming, particularly for small groups. And whereas many indie manufacturers dream of touchdown in main retailers like Sephora, Ulta Magnificence or Goal, these partnerships typically include their very own set of hurdles.
Retail distribution would possibly seem like the money cow, however it may possibly rapidly turn into a monetary gamble. The upfront prices of manufacturing sufficient stock, coupled with the charges and strict gross sales benchmarks imposed by retailers, can drain sources. And if merchandise don’t promote rapidly, manufacturers are those who shoulder the loss. “Retail is an especially costly gross sales channel, and it ought to solely be approached if and whenever you’ve given time to be taught your audience and create a real demand in your merchandise,” Scott explains. “As a small model, it’s simple to get excited a couple of new retail companion and need to leap on the alternative, with out successfully assessing if it aligns with your small business wants. It’s essential to take into account how wholesale will have an effect on your margins, the funding into packaging and stock, a strong digital and out-of-home advertising plan, the necessity for brand new hires, spending on shelving and fixtures, adverts and so forth.”
This fixed push to scale and meet expectations takes a toll not solely on funds however on founders’ well-being. Burnout is a recurring theme in conversations with magnificence entrepreneurs—actually, with entrepreneurs typically, however the magnificence trade is a distinct beast. The enjoyment of making typically will get overshadowed by the stress of operating a enterprise. And the burden of fixed decision-making, coupled with the concern of failure, is a heavy burden to hold.
For some, the one choice is to pivot, get acquired or exit the trade altogether. Exits and acquisitions will not be all the time the multimillion-dollar eventualities we examine within the headlines. Typically they’re quieter selections—closing a enterprise or transferring into consulting to achieve monetary stability. “Mented’s acquisition got here on the precise proper time, and I’m extremely grateful that the West Lane staff understood the worth of our model and of our group,” says KJ Miller, cofounder of Mented Cosmetics. “To be trustworthy, the artistic elements of constructing and operating the enterprise haven’t modified a lot post-acquisition. What has modified is our give attention to profitability over development. After we had been on the enterprise capital hamster wheel, development mattered greater than something. Now I get to refocus on offering our group with the highest-quality merchandise and customer support, and doing so profitably.”
Those that select to pivot typically emphasize the significance of adaptability—whether or not it’s rethinking product choices, exploring new income streams or scaling again operations to take care of sustainability.
And amid the challenges, there’s a rising push for transparency within the magnificence trade, particularly as entrepreneurs are talking out extra concerning the realities of operating a enterprise, shattering the phantasm of easy success. Miller, for instance, has constructed a group on TikTok, sharing her journey of entrepreneurship whereas additionally responding and offering commentary to different conversations occurring within the house. These kind of tales function a reminder that whereas the wonder trade may appear glamorous, the trail to success isn’t clean.
And but for individuals who persist, the rewards transcend earnings or status. Constructing one thing significant—a product that resonates, a model that fills a spot—is what drives many entrepreneurs. Success would possibly look totally different for everybody, however the shared expertise of navigating one of the vital unforgiving industries is what connects those that are courageous—or, in some situations, loopy—sufficient to attempt.
This text first appeared within the March/April 2025 concern of ESSENCE Journal.
