If you’re a parent of a teenager or young adult, you may be including e.l.f. Beauty products as a stocking stuffer this year. Or, if you’re a parent of an elementary school aged child, you are either loving or loathing Elf on a Shelf right now. The popularity of e.l.f. Beauty and Elf on a Shelf prove that Americans love affordability mixed with novelty, and the success of these firms demonstrates the beneficial spillover effects derived from entrepreneurs who pursue the American dream.

These companies were both dreamed up in 2004 and, over the past two decades, both have seen not only sales increase but consumer engagement soar. So, with this in mind, let’s look at why these companies should serve as an inspiration for new businesses looking to make their mark in the new year and how consumer choice determines what the market demands at the end of each day.

Let’s begin with e.l.f. beauty

The namesake of this beauty brand stands for eyes, lips, and face, and it was founded with the aim to make premium cosmetics affordable and accessible to the masses. According to e.l.f.’s Chief Marketing Officer, Kory Marchisotto, the company has a rich history of challenging the status quo, beginning on day one. In 2004, the founders of e.l.f. had “this crazy idea that they could create premium quality cosmetics and sell it for one dollar over the internet.” The idea was crazy on several levels. First off, it made no sense to price premium makeup at one dollar. Second, internet shopping was simply not commonplace at that time; social media and smart technology had yet to be part of our everyday experiences. And third, most consumers wanted to see makeup and color palettes in person, not on computer screens which distorted shades and hues. Nevertheless, the company prevailed and the “renegade spirit” of the founders continues to be embedded in the ethos of the company to this day. On e.l.f.’s website, the brand persona is stated as being “a bold disruptor with a kind heart.”

The founders not only made their idea possible, but highly profitable, which is a testament to how much consumers value the brand. And e.l.f. values its consumers. Marchisotto refers to customers as being “citizens” of an “e.l.f. community” where they can voice their interests, preferences, and recommendations for all the business has to offer. Radical ideas and consumer engagement strategies have empowered this brand to become a favorite in the cosmetics sector.

Now, let’s talk Elf on a Shelf.

Elf on a Shelf was born through the collaborative effort of Carol Aebersold, a stay-at-home mom, and her grown twin daughters, Chanda Bell and Christa Pitts. Both Aebersold and Bell penned a poem in 2004 that became a storybook which then, with the help of Pitts, launched into a business in 2005. By 2009, the company expanded into international markets and, in 2011, an Elf on a Shelf movie debuted introducing consumers to more characters and enticing more children to request an elf of their own.

Who could have ever guessed that a poem would morph into a growing product line (Elf Pets, Elf Mates, SnoBiggies, etc.) with expanding entertainment options. And the company’s recent launch of the Santaverse is proving that the brand shows no signs of slowing down or scaling back.

Aebersold’s family tradition has effectively become a tradition for many, and parents across the globe share ideas and posts of the crazy antics of mischievous elves. In fact, thanks to these little elves, some convenient stores may be experiencing a little spike in sales for random items that are needed as elf staging supplies. Country Living recently listed 97 ways for creatively displaying your elf, but for those willing to go to the extreme, getting an Elf on the Shelf tattoo or having an elf steal your car is not unheard of. And while coming up with ideas, and cleaning up after them, may be an unwanted hassle in my household (to the dismay of my kids who are stuck with an advent calendar), the Elf on a Shelf is the highlight for many during the holiday season.

And let’s finish with a bit of business praise.

The above companies demonstrate the endless opportunities available in a free market — entrepreneurs can try their hand at doing the impossible or share that which has brought them joy in their own home. t comes at a cost and there is no guarantee that success will be achieved. Sean Parker, an American entrepreneur turned venture capitalist, has conveyed that “running a start-up is like eating glass. You just start to like the taste of your own blood.” Such a statement might sound crass but it certainly gets the point across. Entrepreneurs are individuals who are not just passionate but persistent – and they aren’t afraid to work hard and risk it all to make their dreams a reality.

It is also worth remembering that cultivation and determination are not only necessary when launching a business but also for sustaining it. Indeed, plenty of competitors are on the heels of e.l.f. Beauty and some fun substitutes are trying to replace those crazy elves (hello Santa’s Lazy Gnome and Snoop on the Stoop). To remain relevant, companies must constantly work to engage with existing and prospective customers and continuously strive for being the best at serving our unmet (or unknown) needs. So, regardless of whether a business is large or small, any success achieved should be admired and entrepreneurs should be held in high regard. The value a business creates and the creativity that a brand may permeate expands our options and experiences, enabling a dynamic marketplace and vibrant consumer base – which can bring merriment all through the year.