From $200 To $4M: Lip Balm CEO Who Dropped Out Of College Says 'I Know My Business Better Than Anybody'

When Kobe Harris mixed his first batch of lip balm on his bedroom floor in 2019, the thought of dropping out of college wasn't part of the plan. But after racking up $15,000 in sales in a single day, Harris knew he was onto something big.

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The founder of Kobee's, a Las Vegas-based personal care brand, recently shared his journey on ABC's "Shark Tank," revealing how he turned a $200 investment into a booming business. 

His product line – lip balms, lotions, lip scrubs, cuticle butter and hand salves – stands out for its simplicity: just four ingredients (beeswax, coconut oil, sunflower oil and mango butter) and eco-friendly, compostable packaging. The company website says prices range from $5 to $42.

The idea was born from a college research project on sustainability and bees while Harris was studying at Loyola University Chicago. "I asked my mom for $200 to buy ingredients on Amazon and started experimenting on my bedroom floor," Harris told Shark Tank's judges. He juggled this early experimentation with a summer job as a lifeguard.

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By fall, Harris's small operation had gained traction and online classes allowed him to devote more time to his brand. "I told my dad I was still in school, but really, I was in the basement making lip balms," Harris joked.

Fast-forward to 2024 and Kobee's is projected to close the year with nearly $4 million in sales and about $750,000 in profit at the time of the show's recording. The products are sold primarily through Amazon and the company's website, which has a loyal customer base.

The company's eco-conscious approach is resonating with consumers: According to industry data from Maximize Market Research, the global lip balm market, valued at $892.46 million in 2023, is projected to reach $1.39 billion by 2030. The surge is fueled by growing demand for natural and organic personal care products.

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Harris's pitch on Shark Tank sought $300,000 for a 6% stake in his company, aiming to leverage the investors' expertise in scaling distribution. 

Most of the judges, however, bowed out. Lori Grenier called the natural lip balm market oversaturated while Daymond John and Mark Cuban said it wasn't the right fit for their portfolios. Guest panelist Kendra Scott admitted she didn't see how she could help.

The lone offer came from Kevin O'Leary, who proposed $300,000 for 20% equity, citing his network of retail connections. Harris countered with 10% and after a brief negotiation, O'Leary dropped to 15%. Harris stood firm, declining the offer.

"I needed to trust my gut," Harris said later, echoing advice from his mother, a seasoned entrepreneur. "I know my business better than anybody."

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