But here’s the insight:
Most owners started as employees — building skills and networks.
Then they used those resources to:
✅ Start or buy a business
✅ Invest in real estate or stocks
✅ Build something scalable

Examples:

• Warren Buffett started as an investment salesman — then built Berkshire Hathaway.
• Howard Schultz worked at Starbucks before buying and transforming it.
• Jay-Z started as an artist (essentially self-employed) and built an empire across music, fashion, and investments.

We must think about employment differently — it isn’t the destination or the end, it’s the launchpad.

💭 So what about you?
Are you leveraging your job to build wealth? To build ownership? To build equity?

👇🏽 Drop your thoughts or story below. Share. Repost.

The post From Participation to Power: The Next Revolution Is Ownership. appeared first on Hollines Startup Growth Strategy & Transactions.

Although founders are preoccupied with funding and product design, it’s incredibly important to focus on your team’s diversity, too. Especially in these early days before you see tremendous growth.

Early stage companies tend to lack diversity. As a founder, you likely work with people who are your friends⁠—people with a similar background to yours. As social animals, humans subconsciously choose to associate with others who are like ourselves. It’s this bias that works against you if you want to grow a healthy, profitable startup.

The link between diversity and profits

Diversity isn’t a frilly concept or a box to tick on your to-do list. It’s a philosophy that should be part of your company’s cultural fabric. Although diversity is the right thing to do ethically, it’s also a sound financial choice.

The McKinsey company did a survey and found that, globally, gender-diverse companies were 21% more profitable. A 21% boost in profits is astounding, especially if you’re trying to bootstrap your early stage tech company.

But gender diversity is only one facet of diverse companies. Ethnic and cultural diversity is also critically important. The McKinsey study found that brands were 33% more likely to have better profits if they were ethnically and culturally diverse. Studies suggest a strong correlation between diversity and fiscal performance.

This happens because diversity leads to better ideas. Better ideas lead to more innovation, and innovation equals better financial performance. If you’re looking for investors or VC funding, you can’t afford to overlook diversity.

When your early stage company is earning more, your investors get a better return. Your diversity could be a big selling point to bring investors on board.

Studies found that female-founded business generated 78 cents of revenue for every dollar of VC capital. Male-founded businesses only generated 31 cents. Including female founders is important to bring on investors and give them a better return for the long haul.

How to be more diverse as an early stage company

As an early stage technology company, you live for scaling your brand. If there were a way to boost profits by 21%, shouldn’t you do it?

But it’s one thing to acknowledge the value of diversity and another thing entirely to make diversity a reality. Follow these steps to create a diverse startup that generates bigger ideas and better profits.

1.     Bring on diverse leadership early

From day one, you should bring people to the team who are unlike yourself. It’s easy to pick your college roommate as a co-founder, but this will limit your imagination.

Choose someone who doesn’t think like you. Choose someone that comes from a different background. Choose someone that doesn’t look like you. Choose someone that is not necessarily a ‘cultural fit’ but is a ‘cultural addition’. This is not only important to create a truly diverse workforce but it avoid ‘cloning’.

Studies suggest that at least one-third of your leadership should be female – and that one-third should be racially and ethnically diverse. This gives signals to ‘all’ female applicants that they’re welcome at your company. This is important if you plan to scale a diverse team over time.

Find females to fill leadership roles as early as possible. This will not only give you a good outside perspective but will attract more diversity as you grow.

2.   Talk about diversity

Diversity isn’t a rude subject in the workplace. When you talk about a concept, you make it real for your company’s culture. When you talk about diversity, it becomes a priority in the same way sales, marketing and product is a priority. This makes it easier to bring your dreams of diversity to fruition.

3.   Be transparent

Women and minorities are famously underpaid, especially in tech industries. Be a champion for salary transparency at your company. Allow employees to discuss their salaries. Pay your female and minority employees the same as their non-diverse counterparts. Don’t just ‘Talk the Talk’ but ‘Walk the Walk’. Be transparent about your pay scales. If you notice a pay discrepancy, address it immediately.

4.   Standardize hiring practices

Startups are famous for their laissez-faire interviewing practices. However, these practices send subconscious signals to potential candidates that they aren’t welcome at your company. You don’t have to sacrifice your company culture, but you do need to standardize hiring practices to level the playing field.

Ask the same interview questions with each applicant. Adjust wording in your job ads to be gender-neutral. This is especially important if you aren’t a member of a minority group yourself. You’re subject to unconscious biases that harm diverse applicants’ chances.

5.   Avoid stereotypes

Stereotypes make your diverse employees feel disenfranchised and unwelcome. Don’t reinforce tired stereotypes in your workplace. For example, don’t seek out a woman to fill the position of executive assistant. Don’t enforce strict dress codes based on gender, such as requiring women to wear heels and skirts while men can wear whatever they want.

The bottom line

The hard numbers show that diversity isn’t a nice-to-have concept. It has a real impact on your company’s success, especially in your early days. Institute culture changes early on to build a diverse, profitable company that excels.

Don’t try to diversify your early stage company alone. Get an outside opinion from someone who has fresh eyes. Chat with Hollines Group now to get your startup on the right foot.

The post How early stage companies can leverage diversity to increase profits appeared first on Hollines Startup Growth Strategy & Transactions.

It’s important to explore, but there are dangers with expanding your revenue streams without the right strategy. Follow these methods to grow your business—safely.

1.   Limit business costs

As a small, early stage company, you need as much liquid cash on hand as possible. Cut extraneous costs to optimize expenses.

Can you work remotely to save on office costs? Can you rent equipment instead of buying it? Can you hire contractors instead of employees?

Limit costs wherever possible so you can put funds where they’ll best serve your interests.

2.   Know your options

When it comes to revenue streams, you have options. The best option for your business depends on your offerings, market, and audience.

A few revenue sources include:

• Distribution Partnerships: leveraging 3^rd party partners with scale and sales resources to expand distribution.
• Memberships: selling access to a product or service based on usage.
• Subscriptions: selling ongoing access to your product or service, usually on a monthly basis.
• Referrals: earning commissions through matching customers and third parties.

If you’re still bootstrapping your business, consider revenue streams with low costs to entry. There are significant costs associated with selling assets, for example.

You might consider a subscription-based software service, which brings in regular income without the costs of physical assets.

3.   Design with the end in mind

Customers are the ones buying your products so ask yourself if you are designing revenue streams that cater to their needs?

Understand what your audience is looking for. Get proof of concept before dedicating resources to it. Interview your potential customers, look at statistics, and know your financial numbers before pursuing a new project.

Be realistic with your resources. You can dream big, but do you have the time and funding to make the dream a reality? If not, think about how you can find the time and budget for the project. You’ll need resources not only to create the project, but to maintain it.

The bottom line

As you scale, it’s time to start thinking about new ways to make money. The startup space changes so quickly; what’s relevant right now might not be popular in two years.

Grow your revenue streams to not only stay in business but to thrive. But expansion can be saddled with risk. Choose a partner who’s been in your shoes.

Hollines Group has the expertise to grow your revenue streams while minimizing liability. Chat with us now for a free consultation.

The post 3 ways for startups to develop revenue streams — safely appeared first on Hollines Startup Growth Strategy & Transactions.

TTM is a critical metric that shows the time required to develop a product or service and commercially launch to the market. The shorter the TTM, the faster you can book and realize revenue. TTM is an indicator for efficiencies or problems with internal development, manufacturing,  and other operational processes. That’s why the most efficient companies in the world master the TTM process.

As a former C-level executive in business and legal positions, it always baffled me that lawyers, whether in-house or outside counsel, were not held to the same TTM KPI as their business and operational counterparts.

Anytime I held a dual business and legal role, I would apply the TTM KPI concept to both departments. To make it more applicable to lawyers, I referred to it as Time-to-Completion, or TTC, KPI. We implemented, a multi-step process to shorten the drafting and negotiation timeline to positively impact and improve TTC. By doing so, contracts were completed faster, products and services launched more quickly, and we shortened the path to revenue.

The TTC Playbook

While the process will be slightly different for your company, you can follow a formula to optimize TTC in your own organization. I developed a 10-point checklist to successfully implement this framework at various companies.

Leveraging this TTC process ties lawyer KPIs directly to your business performance. Measure how to optimize operational success with this important metric.

There are additional benefits to this process outside of revenue and efficiency. TTC positively changes the perception of the lawyer and legal department. By treating the legal side similar to the business departments, the lawyer and legal department are viewed as more of a business partner instead of a scary place that holds up deal progress.

Drop me an email at harry@hollinesgroup.com and I will send you a FREE copy of the 10-point checklist.

The post Increase Revenue and Fuel Startup Growth with a Business KPI for Lawyers appeared first on Hollines Startup Growth Strategy & Transactions.

We know the studies that demonstrate a strong correlation between diversity and fiscal performance. This happens because diversity leads to better ideas. Better ideas lead to more innovation and innovation equals better financial performance.

However, prior to the Covid-19 crisis, minimal progress has been made as there continues to be a lack of diversity at every rung of the ladder – from management to the C-suite. One of the reasons for such minimal progress is that as social animals, (we) humans subconsciously choose to associate with other who are like ourselves. Will this crisis change that behavior or reinforce it?

We know the studies that demonstrate a strong correlation between diversity and fiscal performance. However, minimal progress has been made as there continues to be a lack of diversity at every rung of the ladder – from management to the C-suite.

I am curious as to what, if anything, will change going forward – during and after the Covid crisis? There hasn’t been a lot of discussion about D&I during this crisis although racial disparities are being uncovered right before our eyes in this global health crisis – there is a relationship.

We are in the midst of a global war and we will not return to a pre-Covid way of life. We are at the forefront of a “new normal.” Therefore, it’s the right time to ask the question because companies are making their “business pivots” to develop strategies to grow and scale in the new post-Covid world.

We are at the forefront of a “new normal”. Therefore, it’s the right time to ask the question because companies are making their “business pivots” to develop strategies to grow and scale in the new post-Covid world.

Will there be an increased – or decreased – focus on D&I? Will there be new impactful D&I initiatives implemented or will D&I take a step back and be put on the back burner to be addressed at another time?

Diversity isn’t a frilly concept or a box to tick on your to-do list. It’s a philosophy that should be part of your company’s cultural fabric.

The post How will Covid-19 Impact Diversity & Inclusion Strategies? appeared first on Hollines Startup Growth Strategy & Transactions.

I’m not sure why, but I immediately thought about my role. At the time, I was VP of Business Development at an emerging technology company.

I was struggling to figure out how I could develop a scalable partnership distribution model.

The company had an outstanding suite of products and services. Our direct-to-consumer business was exploding.

But the indirect partnership business was sputtering along. It was easily getting lapped by the direct-to-consumer business.

I spent endless hours working with a talented group of business, marketing, and product experts to identify what would resonate with a partner. After each meeting, we listed a broader and more expansive list of partner value drivers.

We felt really good but, for reasons we couldn’t explain, partner adoption and growth was still slow.

As I left the movie, I couldn’t get Denzel’s line out of my head. Then the light bulb went off. I turned the phrase around to say, “It’s not what I think; it’s what I can prove to my partner.”

I realized that we were talking to partners about what we thought we knew or believed to be true but we did not, or could not, point to anything tangible as proof.

With this knowledge, I went back to my product and marketing colleagues. Together we revisited the list of value drivers. We even added to the list until we had a comprehensive record of every possible benefit we provide to customers.

Then, in excruciating detail, we discussed each benefit and whether we could prove it to be true. And, if so, how?

When we were done, there were only two benefits that we could prove with hard data to back it up: (1) that customers increased profits by installing our platform with (2) less than a 12-month payback.

So, if we could prove this, shouldn’t that positioning and messaging form the crux of our partnership pitch?

Yes, but for some reason, we hadn’t been using this data. Instead, we wasted time talking about how our solution would elevate the partner as a technology leader.

That is a hard data point to prove. It’s even harder to take to a CEO or CFO for approval— it’s what I refer to as a “soft value driver.”

And, better yet, even if true, it was not clear what that meant for the partner’s business. In other words, what meaningful metric did we give to the customer, if at all?

This is a critical question. A CEO or CFO will listen closely if you tell them, “I have a partner that can increase your profits. With a small investment, you can recoup your costs within 12 months.”

Who wouldn’t listen to that?

Compare that to the soft value driver I mentioned earlier: “our solution will elevate the partner as a technology leader.”

How do you prove that? What does it mean to your partner? What metric does that impact?

I’ve written about the importance of value drivers before.

Value drivers matter because it’s easy to build a list of customer benefits. But it’s another thing entirely to create a list that demonstrates real value to the customer, not drivers that make you feel good.

In reality, you often only need 1 – 2 compelling and verifiable reasons why a customer should purchase from you.

That is easier said than done, though. This requires an honest discussion about what value drivers you can truly affect for your customers. It means looking at what tangible data you have that will support that conclusion.

We often add unnecessary complexity, thinking it puts the company in a better light. In reality, complexity is both confusing and unsupportable.

The bottom line

Focus on what you can prove, even if it’s a single benefit.

Market and promote that benefit to build compelling data points around that benefit.

Do this before you start promoting a laundry list of benefits you think might be true. Remember, it’s not what you know; it’s what you can prove.

I know firsthand the implications of nailing the customer value proposition and the impacts of getting it wrong.

Get in touch with me now for a quick consultation. I’ll help you identify and tailor your pitch so you can highlight compelling value drivers that resonate with customers and partners.

Want more information? Download our free eBook at www.hollines.com now to avoid common growth roadblocks through a successful business development strategy.

The post It’s not what you know; it’s what you can prove!!! appeared first on Hollines Startup Growth Strategy & Transactions.

As an early stage company, your pricing can make or break you. Even if you’re competing against giant companies in your niche, business cost optimization can give your business an edge.

Cost optimization helps you streamline processes and increase your profitability. Unfortunately, many early stage companies neglect to optimize costs while they’re small. As businesses scale, the costs grow unchecked, increasing the likelihood of financial problems.

Don’t create problems for yourself down the road. Do cost optimization with a trusted advisor while your company grows. You can cut your operating costs as much as 20% and improve your business in the process.

What is business cost optimization?

Business cost optimization is the key to profitability for your company. It’s a process that cuts business costs without affecting your company’s performance or quality.

Essentially, cost optimization is about making smarter money choices for your business. This isn’t a frilly process, either.

In fact, many investors will expect you to have a cost optimization plan in place. If you’re trying to appeal to investors, you need a cost optimization plan.

Aside from attracting quality investors, cost optimization helps your business earn more money for less work.

How to optimize costs for early stage companies

Although you can DIY some cost optimization, it’s best left up to a neutral third-party, like a cost optimization advisor.

Here are five ways an advisor can implement cost optimization for your business.

1.   Renegotiate contracts

You likely have a few contracts in place with vendors and clients. Unfortunately, without an advisor, many early stage companies sign contracts that are unfavorable for their business.

Look over your contract terms and costs. Can you save on your manufacturer’s contract? Are there discounts available for software you use? Can you buying more units to qualify for a lower price?

Cost savings in this arena mean increased profits for you. You’ll never know how much you can save unless you ask.

2.   Standardize

Custom orders are great for customers, but they’re taxing on your business’s efficiency and costs. You can’t do custom everything in a scalable business; it just won’t work.

Instead, standardize your process. You can still offer some facets of customization, but overall, your product needs to be as standardized as possible.

For example, you can let customers white label a software platform (customization), which is created through a standardized process on your end.

3.   Outsource

When you’re founding a startup, time is literally money. How much money and time are you wasting on meaningless tasks?

You can’t check email for two hours a day and expect your business to grow efficiently. Sometimes tasks like email are a lost opportunity; in this case, your time is more valuable chasing leads or making deals.

Consider outsourcing tedious or time-consuming tasks to put your time to its best use. 

4.   It’s all about your culture

Company culture is important to your early stage company’s success. You need two components to have a culture for cost optimization.

First, frugality is important. It’s okay to give your employees and co-founders some perks, but they can’t go wild with the company credit card.

Create systems so people stay accountable. Outline what is and isn’t a valid business expense so people can be good stewards of company funds.

As a founder, you need to follow this system to a tee. Create the culture you want to see by shopping for the lowest prices and cutting out unnecessary expenses.

Second, you need a culture of improvement. You want open-minded, critical thinkers on your time. As a startup, you probably already have this, but it can be easy to succumb to burnout as you scale.

Build a culture of improvement and growth from the get-go. This mindset helps your team constantly seek out efficiencies to improve your business.

5.   Digitize manual work

Your employees’ time is so valuable. Don’t waste their salary on manual tasks. Create a process and flow for digitizing manual work.

Project management tools like Asana can lead your employees through a process so they drop fewer tasks.

If you’re savvy with code, consider AI solutions for automation. For example, you can use chatbot technology to give customers a great experience without hiring 50 sales reps. AI can also conduct data analysis and scan for anomalies.

Let the robots do the heavy lifting for you. These solutions are often cheaper and faster when a robot is at the helm.

The bottom line

Use funds wisely as you scale your early stage company. The key to growing a business is to optimize your costs as you grow. But don’t go it alone; sometimes it’s hard to optimize what’s right in front of you.

Instead, partner with a trusted, impartial advisor. The Hollines Group specializes in business cost optimization for your early stage company.

The post Bootstrapping and bucks: Business cost optimization for startup and early stage technology companies appeared first on Hollines Startup Growth Strategy & Transactions.