How I Built This with Guy Raz – The Lip Bar (TLB): Melissa Butler (2020)

Intro

In this episode of “How I Built This with Guy Raz,” Melissa Butler, the founder and CEO of The Lip Bar, shares her journey of building a successful beauty brand that challenges traditional beauty standards. From starting her business in her apartment to appearing on Shark Tank and partnering with major retailers, Melissa’s story is one of determination, innovation, and a commitment to inclusivity in the beauty industry.

Main Takeaways

Challenging Beauty Standards and Serving Underrepresented Markets

• Melissa Butler founded The Lip Bar to serve a market of black and brown women who felt neglected by the beauty industry.
• The Lip Bar stands out by challenging the idea of what beauty is and who it’s meant to apply to, with bold and fresh colors like black, gold, and purple.
• The global beauty industry is worth half a trillion dollars, with lipstick alone being a 9 billion dollar market.

From Soap-Making to Lipstick-Making

• Melissa started making soap as a hobby and eventually transitioned to making lipstick due to the difficulty of finding unique lipstick colors.
• The process of making lipstick involves balancing the proportions of wax, oil, and pigment to create the perfect formula.
• The Lip Bar named their lipsticks after drinks, like Margarita Bar, to add a fun and unique touch.

Building a Brand and Overcoming Challenges

• The Lip Bar initially faced challenges such as finding affordable packaging suppliers and dealing with high minimum order quantities.
• Melissa’s appearance on Shark Tank helped with visibility and fast-tracked the hiring process.
• The Lip Bar successfully launched in Target, leveraging their unique value proposition and innovative marketing strategies.

Navigating the Beauty Industry and Overcoming Funding Challenges

• Black beauty businesses are not well-funded, hindering growth and reducing the wealth gap.
• The Lip Bar received funding from a fund started by Richelieu Dennis for black women founders.
• The Lip Bar aims to create a world-renowned brand that makes makeup more inclusive and easier to use.

Summary

Challenging Beauty Standards and Serving Underrepresented Markets

Melissa Butler founded The Lip Bar with the mission to challenge traditional beauty standards and provide bold and fresh colors for black and brown women who felt neglected by the beauty industry. By offering unique lipstick shades like black, gold, and purple, The Lip Bar stands out in the market. The global beauty industry, particularly the lipstick segment, presents a massive opportunity for growth.

From Soap-Making to Lipstick-Making

Melissa’s journey from soap-making to lipstick-making was driven by her desire to provide more options for self-expression through makeup. She learned the art of making lipstick from scratch, experimenting with different proportions of wax, oil, and pigment to create the perfect formula. The Lip Bar’s lipsticks, named after drinks, add a fun and unique touch to the brand.

Building a Brand and Overcoming Challenges

The Lip Bar faced various challenges along the way, including finding affordable packaging suppliers and dealing with high minimum order quantities. However, Melissa’s appearance on Shark Tank provided valuable visibility and helped accelerate the growth of the business. The Lip Bar successfully launched in Target, leveraging their unique value proposition and innovative marketing strategies.

Navigating the Beauty Industry and Overcoming Funding Challenges

The beauty industry presents both opportunities and challenges. While black consumers spend significantly on beauty products, black beauty businesses often struggle to secure funding, hindering their growth potential. The Lip Bar received funding from a fund specifically designed to support black women founders. Melissa aims to create a world-renowned brand that promotes inclusivity and ease of use in the makeup industry.

Conclusion

Melissa Butler’s journey with The Lip Bar showcases the power of challenging traditional beauty standards and serving underrepresented markets. By offering bold and fresh colors, The Lip Bar has carved a niche in the beauty industry. Melissa’s determination, innovation, and commitment to inclusivity have propelled the brand’s success. With a focus on creating a world-renowned brand, The Lip Bar continues to redefine beauty and make makeup more accessible for all.