Michelle Phan on transitioning from influencer to entrepreneur: ‘Trust your instincts and learn from failure’

Stephanie Ledda, a prominent YouTube content creator with 1.1 million followers, turned her passion for scent into a business when she launched Ledda Fragrance in 2022. The brand offers unique yet wearable fragrances. 

Sivan Ayla Richards, co-founder of Lux Unfiltered, addressed a gap in luxury self-tanning when she launched her company in 2019 with one product, the N°32 Original Hydrating Self-Tanning Cream. Since then, the brand has expanded its product offerings and is available in Sephora stores as of this year.

Here are the key takeaways from their session on transitioning from influencer to brand founder.

Launching a brand: Trust your instincts and learn from failure

Michelle Phan reflected on her experiences launching brands, including Em Cosmetics and beauty membership service Ipsy, emphasizing the importance of trusting your instincts and learning from failures. “The biggest lesson for me was to identify my weak points,” Phan shared. “Not all my ventures did well, but I see them as lessons that revealed my weaknesses.” For budding founders, she highlighted the importance of building a well-rounded team and finding people who complement your skills. “If you’re young or new in entrepreneurship, know that things might not work out, and that’s OK. It’s an opportunity to grow.”

Stephanie Ledda and Sivan Ayla Richards echoed these sentiments. Letta explained how she identified a niche in the fragrance market through her YouTube content. “I noticed my fragrance videos were performing the best. My top-selling affiliate links were for fragrance. I realized, ‘I’m so passionate about someone else’s fragrance that it converts to a sale,’” she said. 

Richards discussed how a successful brand collaboration with Tan Lux in 2019 gave her the confidence to launch her own line. “It doesn’t require millions of followers; if you have a good idea, proceed [like I did] because I saw the conversion,” she said.

Building a strong team: Complementary skills and trust

Building a team with complementary skills was a key theme on the panel. Phan shared her approach. “I look for proactive people because I don’t like micromanaging,” she said. “Proactive people amplify you and become extensions of who you are.”

Richards emphasized the importance of finding a partner who complements your strengths. “My business partner is also my husband,” she said. “I handle marketing and product development, while he focuses on operations, fulfillment and legal aspects.”

Ledda highlighted the value of having a small circle of trusted advisors. “You want a small circle of trust with people as invested in the business as you are. Have a legal team from the start and be proactive to avoid backpedaling from situations.”

Content and brand identity: Humanizing the brand

The discussion also covered how content strategies differ across platforms and how to humanize the brand. Phan noted the importance of being adaptable and consuming content to understand changing trends. “On TikTok, it’s casual; just post it and never look at it again,” she said. She has 400,000 followers on the platform. “Instagram is more curated. People want to see brands more humanized, showing personality.” On Instagram, she has 2 million followers.

Ledda explained her decision to not be the face of her brand, even with 447,000 followers on her own Instagram. “I’m not the star of the show on the Ledda Fragrance feed,” she said. “Each fragrance has its own identity. I love the creative aspect, setting the mood with models and outfits.” 

Richards shared her approach of balancing personal content with brand identity. “I share my personal life, weaving in products organically,” she said. “You can see how I’m personally using it, but you don’t have to follow me to know who the brand is. I think that’s really important, to establish an identity outside of you as the founder if you want longevity.”

And for the brand, it is a separate identity on Instagram and TikTok. “We present the brand as a visual portfolio on Instagram, and on TikTok, we humanize and show behind-the-scenes content,” said Richards.

Overcoming challenges: Adapting and innovating

The entrepreneurs shared the challenges they face and their strategies for overcoming them. Ledda described the complexities of launching internationally. “Fragrance has a lot of shipping restrictions due to the higher alcohol content, so we had to set up manufacturing in France,” she said. “Balancing growth in new markets with maintaining growth in the U.S. and Canada is a challenge.”

Phan discussed the challenge of reaching a new audience in a competitive digital landscape. “Platforms like Facebook and Instagram reward those who pay for visibility,” she said. “I’m exploring TikTok livestream shopping, which converts immediately because of FOMO. People want to be seduced and told a story.”

Richards highlighted the need to adapt to new platforms. “Our biggest focus is shifting our strategy from Instagram to TikTok,” she said. “I knew what I was doing on Instagram, but TikTok is different. It’s a challenge because I felt comfortable on Instagram, but TikTok requires a different approach. We’re adapting, learning and hiring people who get it.”