Joining forces with a celebrity or other high-profile individual to help promote
products or services is an attractive choice for small business owners looking to
break into new markets or dig deeper into their existing niches. Celebrity is, in fact,
a very powerful currency. Being famous for fame’s sake has value in today’s
society. Even if a small business owner teams up with a local celebrity such as a
news anchor, that association can still have local star power. But like anything,
fame can be fleeting and business owners need to do their homework before
collaborating with outside parties. Business owners should ask themselves if the
celebrity will add value to the product and to the business itself. Also, consider
why you’re choosing this person over anyone else and look at the person’s
reputation in his or her own industry.
Additionally, business owners should consider payment arrangements with the
celebrity and whether those arrangements are amenable to their business. Many
celebrities will want equity arrangements. This means the celebrity will get equity
in your company in exchange for using their name or likeness. And don’t look for
the celebrity to help you make payroll or pore over financials. Unfortunately, that
is not included in the arrangement. However, small business owners should seek
out collaborators who share their passion and vision and who are approachable and
open to working with them. Star power can go a long way in bringing the business
owner’s vision to fruition!
