Photo: Create & Cultivate
Before COVID-19 hit, the beauty industry was valued at $532 billion and on a rapid upward trajectory. Now, however, in the midst of a global health crisis, experts predict that global beauty-industry revenues could fall by as much as 20 to 30% in 2020. But despite these discouraging stats, the beauty industry is resilient. During the 2008 financial crisis, spending in the industry only fell slightly and fully bounced back within two years.
To gain insight into the current state of small business, specifically within the beauty industry, and to find out what the future holds for the category post-COVID-19, we partnered with Mastercard as the presenting sponsor to bring together four powerhouse founders who are at the helm of next-generation brands and disrupting beauty and wellness verticals at our recent Digital Beauty & Self-Care Summit on Saturday, July 25th. Mastercard recently surveyed the small business community with an eye toward championing diversity and learned that 41% of respondents started their business to set a positive example for other aspiring entrepreneurs.
Ginger Siegel, the North America Small Business Lead at Mastercard, led a conversation with Shontay Lundy, founder of Black Girl Sunscreen,Tai Beauchamp, co-founder and CBO of Brown Girl Jane, Rochelle Graham-Campbell, CEO and co-founder of Alikay Naturals Africa Miranda, author, host, and founder of Beauty by Africa Miranda, to dive into the topic. Scroll on for the most memorable real-talk moments from the conversation, and prepare to write these down because you’re going to want to add them to your vision board, stat.
On disrupting an outdated industry…
“A cosmetic product is supposed to make you feel good and look good.” - Shontay Lundy
“There is a myth that Black people don’t need sunscreen and we’re here to bust that myth.” - Shontay Lundy
On finding whitespace in a market…
“Pivoting is never easy, but oftentimes it’s about recognizing a void in the market and an opportunity to have an impact.” - Tai Beauchamp
On finding your purpose…
“Passion is not enough. Passion is necessary. Passion helps fuel the energy that you need to go at times when you don’t have the resources, capacity, or bandwidth. However, what should inspire you is finding your purpose and being clear about your intention.” - Tai Beauchamp
“The same way that a business has a manifesto and a mission statement, you should have your own personal mission statement, you should have your own personal manifesto, and then align that as you’re looking for opportunities in the market to build.” - Tai Beauchamp
On building a community…
“If you remain authentic with your audience and take them along on the journey with you, I believe that it builds loyalty that cannot be broken.” - Rochelle Graham-Campbell
“I’ve shared my wins, I’ve shared my pitfalls. We’ve cried together, we’ve celebrated together. It’s a “we.” It really is a community.” - Rochelle Graham-Campbell
“If you are a business owner or a brand owner, you have to figure out if you want the responsibility of a community because you owe them more. You have more of a social responsibility to them and you have more of a responsibility to make sure that the actions that your brand is taking are not just a reflection of your own beliefs but also the beliefs of the community as well.” - Rochelle Graham-Campbell
On finding whitespace in the market…
“Create something with your story and your approach. That does not exist. There will always be a space for that if you stay true to that.” - Africa Miranda
On learning along the way…
“Respecting the process is a big part of the entrepreneurial journey. If you don’t respect the process, then being an entrepreneur may not be for you.” - Shontay Lundy
On breaking into a controversial category…
“Being a Black-owned business focused on centering Black and Brown women, there are so many stigmas that exist within our community around CBD and a lack of knowledge and education.” - Tai Beauchamp
“A part of our business model is that a portion of all our proceeds goes to support nonprofit and for-purpose organizations that center women of color around their mental health and wellness and the over-criminalization of Black and Brown people who have been incarcerated because of cannabis and marijuana.” - Tai Beauchamp
On running a business…
“There’s a big difference between starting a business and running a business.” - Africa Miranda
On raising money for your business from your network...
“Utilize your network. There may be someone in your circle of family and friends who has been watching your journey and may be very willing to give you a small loan or a small gift to help you get started.” - Africa Miranda
“We think that we need $10,000 or $100,000 to get started, but sometimes $1,000 or $500 can be the difference between an idea and actually starting a business. Be open to nontraditional sources of support.” - Africa Miranda
On just going for it…
“I didn’t overthink the process and I didn't focus on my launch needing to go the perfect or traditional route, I just went for it.” - Rochelle Graham-Campbell
On running a self-funded business…
“We decided that, instead of focusing on what we couldn’t have, let’s focus on what we were making and just make sure that we manage our business finances just as strictly as we do our personal finances.” - Rochelle Graham-Campbell
“For every dollar that we spend, we have an ROI.” - Rochelle Graham-Campbell
“Every dollar I spend, I need it back.” - Rochelle Graham-Campbell
“If anyone is considering starting a business and self-funding, understanding your cash flow management is something that is extremely important. As early as you possibly can, hire an accountant or a CFO.” - Rochelle Graham-Campbell
On prioritizing e-commerce and DTC channels…
“A mistake that a lot of product-owned businesses make is they focus more on the retail channels and then they neglect their e-commerce. Your e-commerce is your direct connection to your people—to your customers and to your tribe—and you have to make sure that you’re nurturing that because retail can disappear at any time.” - Rochelle Graham-Campbell
On their Priceless money tip for small business owners…
“The first hire is a bookkeeper, accountant, or CFO.” - Tai Beauchamp
“Know what you’re spending and be very intentional about it even as you’re building a business.” - Tai Beauchamp
“You should be very dangerous in every department, so know a little bit about a lot of things.” - Shontay Lundy
“Fire yourself from every position other than CEO. Once you get your company to the point that you’re able to, it’s really important to take a step back and delegate to other people on your team.” - Rochelle Graham-Campbell
“As CEO you need to focus on money-making or brand-building and driving activities and not answering an email or filling out a form.” - Rochelle Graham-Campbell
“Prioritize. If you know you don’t have a large pot to pull from, then really look at where your dollars can go the furthest.” - Africa Miranda
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