Seven Different Reasons Why Celebrity-owned Businesses Fail

business, people, stress, fail and technology concept - angry businessman with laptop computer shouting over blue background and falling papers

Many celebrities use their star power to launch businesses. Of course, some are more successful than others, but all have found ways to leverage their name and image to make money outside their traditional entertainment careers.

Like Jessica Alba and Gwyneth Paltrow, some celebrities have found success with lifestyle brands. Alba’s The Honest Company sells eco-friendly household goods, while Paltrow’s Goop is a wellness brand that offers advice and products related to health and fitness.

Like Justin Timberlake and Ryan Reynolds, other celebrities have used their earnings from their entertainment careers to investing in other businesses. For example, Timberlake has a stake in Bose’s audio company, while Reynolds has invested in Aviation American Gin.

Some of these businesses succeed and grow as big as some of the largest companies in the world. For example, Kylie Jenner’s company, Kylie’s Cosmetics, is well-worth over one billion dollars, making it one of the largest cosmetic businesses in the world. However, despite how famous their owners are, not all celebrity-owned businesses succeed. Here are some of the reasons why celebrity-owned companies fail.

Lack of Passion or Understanding

Many celebrities jump into the business world without really understanding what they’re getting themselves into. They might be passionate about a particular product or service, but they don’t have the first-hand knowledge or experience to make their business successful. This can lead to problems down the road when things get tough, and the celebrity is forced to make decisions they’re not prepared to make.

Hiring the Wrong People

Celebrities often surround themselves with yes-men and people who are more interested in advancing their careers than helping the celebrity build a successful business. Unfortunately, these people might not have the expertise or experience needed to support the business grow. As a result, they might make decisions not in their best interest.

Lack of Involvement

Some celebrities start businesses but then fail to take an active role in running them. This can be a problem because the celebrity is not there to provide guidance and direction. As a result, the people running the business might not be making decisions in line with the celebrity’s vision.

Moreover, some celebrities can also be too involved with their business. Some celebrities have been known to be control freaks, and only very few truly understand what they’re doing. This can lead to huge problems when it comes to management, damaging the company’s reputation and efficiency.

woman having a problem

Not Paying Attention to Trends

Many celebrities build businesses based on their interests, but they don’t always pay attention to what’s trending in the marketplace. This can lead to companies being out of touch with what consumers want, making it difficult for the business to compete against other companies.

Failing to Change With the Times

The world is constantly changing, and businesses need to change with it. However, some celebrities are resistant to change, and they try to keep their businesses the same, even when it’s no longer working. This can lead to companies that are outdated and not relevant anymore, which can be detrimental to both the celebrity and the business itself.


Celebrity divorce is some of the most expensive in the world. For example, Dr. Dre and Nicole Young’s divorce cost over a hundred million dollars. This can be a big problem for businesses because the couple might have to sell off assets to pay for the divorce, damaging the business.

These divorces can easily be avoided if it doesn’t lead to court. By using a divorce mediation service, divorces can be more affordable, especially for business owners. Through this, business owners can continue running their businesses without much concern.


The death of a celebrity owner can also be a huge blow to a business. Not only does it mean that the celebrity is no longer there to provide guidance and direction, but it also means that the business might have to change its name or branding. This can be a difficult transition for a business to make, and it might not be successful in the end.

Celebrity-owned businesses often fail because the celebrities themselves are not interested in or passionate about the companies, they hire the wrong people, they’re not involved enough (or too involved), and they don’t pay attention to trends. They’re resistant to change, or they get divorced. While some of these problems can be avoided, others are just a part of the business world. The best thing that a celebrity can do is to try to avoid as many of these problems as possible and make sure they’re truly passionate about their businesses.

Share On:
About the Author:
Scroll to Top