People 19 March 2018
It takes a lot of strength to go on national TV, face rejection, and then push forward despite it all. But Melissa Butler — a former Wall Street-er turned beauty entrepreneur — wasn't about to shy away from her business goals just because a few sharks told her no. Since appearing on Shark Tank's sixth season, she took the criticism about her vegan, cruelty-free makeup brand, The Lip Bar, and pushed herself, and the brand, to new heights.
From Wall Street to The Lip Bar
Before we get to the gritty details of Butler's Shark Tank experience, let's first dive into a bit of background. After all, it's not every day someone on Wall Street calls it quits to launch a niche-market makeup brand. Butler says she was completely unfulfilled, unsatisfied — un-everything. Instead of complaining, she decided to change her path. She just didn't know that path would lead to beauty.
“I've never been a makeup enthusiast, but I've always loved lipstick. There's something so feminine and powerful about it — one stroke of color can give you enough confidence to take on the day," she told SWAAY. “So here I am, a lipstick lover, hating my job while simultaneously attempting to be more kind to my body by using products that weren't chemically laden. When it came to hair and skin care, it was easy to find more natural alternatives, but that was not the case with lip colors. The only natural items I could find were boring colors or shades that didn't suit my skin tone."
And there's that identified gap in the market: vegan, cruelty makeup that caters to a broader range of skin tones.
A testament to female entrepreneurs: Melissa Butler
“I started making lipstick in my kitchen for personal use," she says. “After a year of experimenting, The Lip Bar launched in 2012 with the goal to 'Challenge the Beauty Standard' through our vegan, cruelty-free ingredients and our inclusive imagery."
The (Painful) Shark Tank Experience
“After binge watching Shark Tank one Christmas Eve, I decided to apply. My creative director and I sent in a video talking about the product while hoola hooping to show our personality. From the very beginning, our goal was to get aired. Seven million people watch the show, so even without a deal, we knew it could be a great opportunity," Butler says. “Fast forward, we go on the show and they're completely closed off to the business. They were quite cruel." Butler confesses that she considered not watching the episode and not even informing The Lip Bar customers that the brand was about to make its TV debut. Though that instinctual reaction to pretend like it never happened at all was strong, she fought through her fears and sat down in front of the television. “I watched it to see how I could have been better," she says. “Ultimately, I used it as momentum to drive the business. After it aired, we got thousands of orders, emails, you name it. If nothing else, it reinforced the fact that I had an audience."
Turning Rejection into Something Positive
After appearing on Shark Tank, Butler took a step back and thoughtfully pawed through the harsh criticism to find something constructive. “As the saying goes, 'You win some, you learn some," she remarks. “I learned to refine my message. We didn't change the focus; instead we got super laser-like in carving out our niche. It worked. We started telling the story and truly communicating with our customer. This wasn't advice from the sharks, but it reminded us of who our audience is."
The Lip Bar is set to have a pretty pivotal year. The brand has officially launched at Target, their first retail partner, where it can be found in over 140 different stores. They're also launching three new collections and the brand is projected to garner $2 million in revenue.
6 Up-And-Coming Beauty Brands to Watch
Want to shop more innovative, industry-disrupting beauty brands? Check out this list of noteworthy makeup companies.
Naked Truth Beauty: This beauty brand has made “an all-out commitment to socially responsible beauty: Good for our bodies, communities, and environment," they write on the website. They take the guesswork out of responsible beauty consumerism by formulating their products with a small, organic list of ingredients, and by using packaging that's made from recycled, 100% biodegradable material.
Chosungah: K-Beauty brand, Chosungah, is based on the principle that "makeup is a fun process of finding one's strength instead of hiding one's weakness." It was founded by Chosungah, a first-generation professional makeup artist and boasts beautifully packaged, high quality products. Fun fact — Chosungah's Chocho Lipstick was MAC Cosmetics' first collaboration with a Korean makeup artist.
Nudestix: Nudestix was launched by two teen sisters and their mother, who each felt like beauty brands were overcomplicating the makeup process. Their products are all in stick form and come packaged in a sleek tin with a mirror for easy, on-the-go application for women of all races.
Reina Rebelda (“Rebel Queens"): “Reina Rebelde was born out of something I share with you — a passion for makeup and extreme pride for my cultural identity as a Latina," Regina Merson founder of the brand, writes on the website. The collection was inspired by strong, Latina women and strives to be versatile, bold, provocative, and unapologetic.
Beauty Bakerie: The Beauty Bakerie brand lives by the words, “Better not Bitter," and strives “to sweeten the lives of others through engaging our social media followers with positive messaging and through altruistic donations via online platforms." It was founded by Cashmere Nicole, who writes, “I overcame the struggles of teenage parenting, and I overcame breast cancer and loss only to arrive at a place of peace. It is the sweetest peace I've known."
Crop Naturals: Crop Naturals is an Australian-based indie beauty brand that sources organic, sustainable, natural ingredients. “The rapid growth of the natural beauty and personal care industry has led to considerable misunderstanding around the term natural," they write. “Due to misconceptions, mislabeling and some outright deception from brands – the interpretation of what is truly natural has become misguided." Their goal is to change that by being completely transparent about their ingredients and sourcing methods.
3 Min Read
I think we can all agree that we are living in unprecedented times, and many of us are experiencing challenges in both our personal and professional lives. But it is important to remember that often, challenging moments present opportunities for change. Right now, companies and individuals are using this time to rethink how they conduct their business, the resources critical to their success, and how they go about their daily activities. And what we are seeing is that more and more people, especially women, are taking control of their lives by starting their own businesses.
While it is estimated that the number of women-owned businesses is one-quarter to one-third of all enterprises worldwide, there are still many women who aspire to make entrepreneurship a reality. A new Herbalife Nutrition survey conducted by OnePoll of 9,000 women across 15 countries, including 2,000 women in the U.S., found that globally, 72% of women want to open their own business. Of those, 50% don't yet have a business and 22% have one but would like to open another.
Women want to have more control over their future, but they are committed to helping future generations by being a role model for younger women; 80% believe this is a strong motivating factor.
The second annual survey, which explores women and entrepreneurship globally, revealed the overwhelming challenges women experience in the traditional workplace compared to their male colleagues. In fact, more than 60% of women said they would like to start a business due to unfair treatment in previous job roles. Of the women surveyed, 7 in 10 believe that women must work harder to have the same opportunities as men in the workforce. Results also revealed that 43% of women have delayed having children because they thought it would negatively affect their career, and 25% said they had faced pregnancy discrimination. 42% believe they've been unfairly overlooked for a raise or promotion because of their gender — and of those, the average respondents had it happen three separate times. These are a few of the challenges that have been a catalyst for the surge in entrepreneurship among women.
The irony is that startups founded and cofounded by women performed better than their men counterparts: on average women-owned firms generated 10% higher cumulative revenue over five years, compared with men.
With the barriers and negative experiences women cited in the workforce, it is not surprising that across the globe, the top motivation for starting a business is to run it themselves (61%). Women want to have more control over their future, but they are committed to helping future generations by being a role model for younger women; 80% believe this is a strong motivating factor.
But the women surveyed don't expect entrepreneurship to be smooth sailing: one-third of women with plans for entrepreneurship are "very worried" about their business — or future business — failing in the next five years. The top three challenges when starting a business center around finances — earning enough money to offset costs, having enough budget to grow, and financing their business. And when it comes to financing, women face stark disparities in the capital they often need to fund their business. Boston Consulting Group found that women entrepreneurs averaged $935,000 in investments, which is less than half the average of $2.1 million invested in companies founded by men entrepreneurs. The irony is that startups founded and cofounded by women performed better than their men counterparts: on average women-owned firms generated 10% higher cumulative revenue over five years, compared with men.
Women entrepreneurs create a source of income for themselves and their families. They are a vital part of our world's economic engine that society needs to support with flexible opportunities, mentorship, and access to capital. Herbalife Nutrition is proud that more than half of our independent distributors worldwide are women who set up their businesses and decide when and where they work and do so on their terms. We need to invest in women entrepreneurs, not only to help one generation, but to offer role models for the next.