If you’ve been a part of the business world for the past decade, you’ll notice that celebrity founded businesses have sky-rocketed onto the scene.
They span across industries ranging from food and beverage, to fitness, to CPG, to hair care. Pick any category and you will find a successful celebrity business. For example, Skinnygirl was founded by Bethenny Frankel in 2011, beginning with a focus on low-calorie cocktails before expanding into skincare, hair care, salad dressings, and others. Now the brand is involved in multiple categories but all which ladder back to the core mission of Skinnygirl: being able to live in the moment without guilt, whether that’s through low-calorie drinks or responsibly sourced skincare.
But, you may begin to wonder why some celebrities choose to establish new businesses. While there are endless reasons, I have found a few that always ring true. Celebrity entrepreneurs can leverage their narratives, flex their business acumen, diversify revenue streams, or explore new creative outlets when creating a business.
The Unique Aspects of Celeb Founded Startups
Businesses with a strong founder narrative are successful in their efforts. Celebrities just so happen to have a vast platform to share those narratives. More often than not, these types of businesses are founded to meet an unfulfilled need in the market, based on personal experience. And it’s becoming apparent that the business landscape has drastically changed from a detached relationship with the consumer to a personalized one. By sharing those stories from celeb founders, their audiences will resonate more with the brand overall and can build connections with consumers early.
Additionally, business credibility has been on the rise within the entertainment and sports industry. Celebrities within those industries are vying for ripe opportunities to demonstrate their business acuity amongst peers. It gives them a chance to gain respect as a boss and leader with an influential voice in a new industry their peers have yet to tap into.
Starting a business is also a financially strategic play, as it diversifies a celebrity’s revenue stream, outside of their core career. On the other hand, some celebrities are simply discovering new creative outlets to share their passions with the world. Beginning new projects outside of their primary income source allows them to exercise their additional talents, hobbies and passions.
They can also help fill gaps in the market with ideas that cater to specific audiences that may have been left out. Such is the case with Pattern Beauty. Founded in 2019 by Tracee Ellis Ross, star of the hit show Black-ish, Pattern Beauty is all about helping people with curly, coily, and textured hair achieve their best hair day. But it goes beyond great formulations – she also focuses on making products affordable and in sizes that make sense. Through her brand, Ross has identified a gap in the market and offered solutions for those who often have to “make do” with what’s there.
Whatever the reason may be, celebrity-founded businesses occupy a unique place in the startup community. They bring a variety of actionable assets into the business, but may also face challenges other founders may never encounter.
Challenges a Celebrity Entrepreneur May Face
Celebrities carry an existing reputation with them at all times, which also comes attached to the businesses they create. Successful celebs ensure their business values are aligned with their philosophies and public image. They also understand the wants and needs of their fans and deliver accordingly. Where the two intersect, magic happens. A successful celebrity entrepreneur is aware that their star power can’t be the only selling point of their brand. Celebrities are held to a higher standard of doing the utmost best. If they’re a passionate advocate for the environment, but their products are shipped with packaging waste, it creates a contradicting image. Having a strong reputation can be used to the brand’s advantage, but it can also feel limiting. While they may feel “typecast” into an image, identifying what they have in common with their audience can be an extremely significant business value add.
One celeb who has leaned into his image to create a successful brand is Chris Hemsworth. Known for his superhero physique, he’s leveraged that image to start a fitness and wellness app called Centr, to bring his workouts and meal plans to a larger audience. Through the app, you are not only getting an inside look into his own workouts, you’re getting advice from the same people he is. It’s both a personal experience while offering advice that many in his audience find worthwhile. After all, who doesn’t want to look like Chris Hemsworth?
Furthermore, the business world is very different from the entertainment and sports industries. Each industry has their own rules, procedures, and best practices that vary greatly from the business world. When a celebrity is brought into the mix, their image still matters. As difficult as it may be to detach from that image, the focus is often on their philosophies more than the product they’ve created. Forbes writer Steve Olenski proclaimed, “Today’s celebrities realize it’s not about them. It’s what they stand for and bring to the brand. They must reflect what the target audience really wants.” Developing a deep understanding of the brand’s main mission and its alignment with the celebrity will lead to an honest connection with the consumer audience.
Celeb Startups Are Here To Stay
Celebrity startups bring with them distinctive challenges, but also unique benefits to those brands. By working together to make a great product that builds on a celebrity’s known passions, brands can achieve great success. These businesses are not just momentary fads or one-off passion projects. They are businesses looking to disrupt, change, and challenge the existing consumer landscape.
Want to know more about Celebrity founders and startups? Reach out to me on social media, either through LinkedIn and Instagram. You can also check out other aspects of celebrity deals and negotiations on our podcast – you can listen on Spotify, Apple Podcasts, and SoundCloud.