To hear social media tell it, the beauty industry is filled with success stories. From TikTok-viral product launches turning up every day to multimillion-dollar brand acquisitions, it often seems like superstardom happens overnight for beauty entrepreneurs. After all, what’s more guaranteed than having a product that consumers need and love, right? Well, not so fast.
Behind the aesthetically pleasing marketing campaigns and influencer cosigns lies a far less glamorous reality. For every beauty brand that becomes a household name, there are countless others struggling to survive in one of the most competitive industries in the world—and Black-owned brands struggle most of all.
Becoming a beauty founder has never been easier—or harder, depending on how you look at it. Thanks to platforms like Shopify, TikTok and Instagram, launching a product has become possible for many. Yet the seemingly low barriers hide the immense costs of creating, marketing and scaling a brand. Founders often pour tens of thousands of dollars, if not more, into formulations, packaging, branding and manufacturing, long before they see a single cent in profit. For many, particularly founders of color, the challenges start with financing. Those required steps we’ve mentioned come at a premium. And if you’re Black? Add some tax. Black female founders receive less than 1 percent of all venture capital funding—a sobering reminder of the structural barriers that persist.
For those who do manage to launch, the bigger challenge comes with scaling. Growth isn’t just about selling more; it’s about navigating the logistical, operational and emotional demands of running a business. Alicia Scott, founder and CEO of Range Beauty, has built her brand on a skin-first approach to inclusive makeup, and her products have resonated with a particular underserved audience. But even with Scott’s distinct niche, scaling came with its own set of hurdles; and this was true despite Scott’s enterprise being the first Black woman–owned beauty company to receive an investment on Shark Tank.
“The beauty industry is highly competitive, and new brands and players are constantly emerging—especially celebrity-led ones, which can pour many more dollars into activations, outreach, innovation and brand-building,” Scott says when discussing the realities of entrepreneurship. “I’ve had to be very scrappy and creative to maintain a strong brand identity, reach our customers and effectively target our audience to stay ahead of the curve.”
While social media offers a powerful, cost-effective tool for gaining visibility, it also creates pressure for brands to perform at a relentless pace. Consumers consistently want fresh content, because in the “swipe up” of a screen, a moment can be forgotten. That often means that viral campaigns and influencer collaborations can feel overwhelming, especially for small teams. And while many indie brands dream of landing in major retailers like Sephora, Ulta Beauty or Target, those partnerships often come with their own set of hurdles.
Retail distribution might look like the cash cow, but it can quickly become a financial gamble. The upfront costs of producing enough inventory, coupled with the fees and strict sales benchmarks imposed by retailers, can drain resources. And if products don’t sell quickly, brands are the ones who shoulder the loss. “Retail is an extremely expensive sales channel, and it should only be approached if and when you’ve given time to learn your target audience and create a true demand for your products,” Scott explains. “As a small brand, it’s easy to get excited about a new retail partner and want to jump at the opportunity, without effectively assessing if it aligns with your business needs. You must consider how wholesale will affect your margins, the investment into packaging and inventory, a robust digital and out-of-home marketing plan, the need for new hires, spending on shelving and fixtures, ads and so on.”
This constant push to scale and meet expectations takes a toll not only on finances but on founders’ well-being. Burnout is a recurring theme in conversations with beauty entrepreneurs—really, with entrepreneurs in general, but the beauty industry is a different beast. The joy of creating often gets overshadowed by the stress of running a business. And the weight of constant decision-making, coupled with the fear of failure, is a heavy burden to carry.
For some, the only option is to pivot, get acquired or exit the industry altogether. Exits and acquisitions are not always the multimillion-dollar scenarios we read about in the headlines. Sometimes they’re quieter decisions—closing a business or moving into consulting to gain financial stability. “Mented’s acquisition came at the exact right time, and I’m incredibly grateful that the West Lane team understood the value of our brand and of our community,” says KJ Miller, cofounder of Mented Cosmetics. “To be honest, the creative aspects of building and running the business haven’t changed much post-acquisition. What has changed is our focus on profitability over growth. When we were on the venture capital hamster wheel, growth mattered more than anything. Now I get to refocus on providing our community with the highest-quality products and customer service, and doing so profitably.”
Those who choose to pivot often emphasize the importance of adaptability—whether it’s rethinking product offerings, exploring new revenue streams or scaling back operations to maintain sustainability.
And amid the challenges, there’s a growing push for transparency in the beauty industry, especially as entrepreneurs are speaking out more about the realities of running a business, shattering the illusion of effortless success. Miller, for example, has built a community on TikTok, sharing her journey of entrepreneurship while also responding and providing commentary to other conversations happening in the space. These types of stories serve as a reminder that while the beauty industry might seem glamorous, the path to success is rarely smooth.
And yet for those who persist, the rewards go beyond profits or prestige. Building something meaningful—a product that resonates, a brand that fills a gap—is what drives many entrepreneurs. Success might look different for everyone, but the shared experience of navigating one of the most unforgiving industries is what connects those who are brave—or, in some instances, crazy—enough to try.
This article first appeared in the March/April 2025 issue of ESSENCE Magazine.
