Small businesses and innovative organizations are the heartbeat of economic growth, but turning bold ideas into thriving enterprises requires more than vision. Access to capital, strategic partnerships and a strong entrepreneurial ecosystem are critical to success. “The Founders Formula” explores how to scale sustainably, attract financial backing and leverage innovation as a competitive edge. Moderated by Tracy Holland, a founder, investor, board member and entrepreneur recognized as an authority in beauty and wellness. The panel includes Halé Behzadi, U.S. vice chair of BMO in California; Jackie Aina, co-founder of Forvr Mood Fragrance and a Nigerian American beauty creator; and Lara Shortz, managing partner of Michelman & Robinson.
Tracy M. Holland, Jackie Aina, Hale Behzadi, Lara Shortz
(David Arellanes)
ON THE RIGHT PARTNERSHIP FOR GROWTH
Jackie Aina: “Doing my business with my husband is a strategic partnership. First and foremost, always have people that you can trust. You can’t put trust on a résumé. For a lot of creative people and entrepreneurs, we get stuck doing things, but you have to relinquish control, especially when you navigate having investors. You cannot control everything all the time. You’re going to be working with people who are just as vested in your business as you are. You cannot control every aspect of your business, and it’s a really good way to grow.”
Halé Behzadi: “For any strategic partnership, you have to start with your shared values. Trust and values go together. You also need a shared vision and an ability to grow and execute together. You have to think that partner is going to be someone who has your best interest at heart. It’s really important that we surround ourselves with people and with organizations who can bring other ideas to us and other suggestions and roadmaps so that we can either find the blind spots that we’re not thinking about or thinking about other growth areas that we might not be considering today.”
Lara Shortz: “I think it’s super important to understand the businesses that you’re advising. When you’re working with a founder, you need to understand the vision and the actual financial capital. Particularly when you’re talking about startups or emerging companies, there’s limited capital. Understanding what areas that can really get them in trouble and hinder the growth of the business. Look at a long-term strategy to make sure that the compliance element is in line with the overall vision of the company and financially what is sustainable.”
ON WHAT ENTREPRENEURS OVERLOOK
Shortz: “I deal with companies where, particularly when I’m working with smaller companies, compliance can really impact the business and its ability to grow. Sometimes it can be the death of the business. It’s an operational issue but also an employment issue in terms of how you classify employees. Get those baseline operational matters handled early and quickly. Insurance is a critical piece, because one wage and hour lawsuit or class action can put your company out of business. The cost of litigating these matters or even defending these matters in California is so extreme. Investors may not provide additional capital if there is a case outstanding. That’s a major question that they ask about any threatened or pending litigation matters against you. Having the types of advisors that can help guide you are really important.”
Behzadi: “From the point of view of attracting capital or getting a bank loan, you need to think about having an ironclad business plan. Is the business founded on data as well as your creative instinct? Data is very important. You need to know the market and the competition. Do you have any matters outstanding against you from employees or vendors? It’s important to choose partners who get to know you as a person as well as the business.”
Aina: “Early on, there were things that I immediately knew that I would let my husband handle. It was an idea for me, but he was the person who put pen to paper and made starting the business a reality. I’ve learned so much in this process, and I’m still grateful that we make decisions together. Even though I don’t have a finance background, when you’re a creator, you start off as the lawyer, the editor and you’re the talent at the same time. You don’t need to be an expert in the field to know when something just doesn’t feel right.”
ON GROWTH
Shortz: “As lawyers, we don’t give actual business advice, but we can help you understand what you’re trying to achieve and some of the pitfalls. There are major challenges to running a business, particularly for small business owners. As an entrepreneur, you want to surround yourself with people that can help you thrive. It’s a full team effort.”
Behzadi: “Think through what you do versus what you outsource. If you don’t have the expertise in-house to do something, like marketing, or you have to hire too many people that you can’t afford, you can contract that out. My own company is a very large firm, but we have strategic partnerships all of the time with other firms or vendors that add value to us. What can you do to add value, and what can you get externally that gives you even better outcomes than if you did it yourself.”
Aina: “Given the small business economy right now, we always want to make decisions that will actually support our goals. If you don’t have the financials or the team to support something, then what’s the point? We’re fully self-funded, so we have to make sure that we don’t take on too much too soon. We’re learning the art of crawling before we walk.”
ON SCALING
Shortz: “Depending on the type of business that you have, that could be putting some pretty basic things in place, such as arbitration agreements. Make sure that you’ve got your IP agreements locked tight. If you are outsourcing and that’s a big part of your business, make sure vendor agreements cover you on indemnity and things like that. Have a lawyer review multimillion-dollar contracts. And the reason is we live in a state in particular where wage and hour litigation is a hot area.”
Aina: “As an entrepreneur, what keeps me up at night is being told no. I want to know why. If there’s something I can learn and grow from, then I’ll take it.”
Behzadi: “I’ll answer that from the point of view of our clients. This current environment has economic uncertainty, the tariffs, the geopolitical situation, and, of course, the disruptive technologies like AI. A lot of companies and their boards are very concerned about AI and what that means for their companies.”
Moderator: Tracy M. Holland
CEO & Founder | GOODWILL BRANDS
Tracy Holland is a founder, investor, board member and entrepreneur with a global track record of incubating and launching beauty and wellness brands. She is also CEO of Goodwill Brands, a multi-brand, multi-category investor and operating model making both minority and majority investments into influencer- and creator-led brands. Formerly, Holland was co-founder and CEO of HATCHBEAUTY Brands. She built HATCHBEAUTY Brands, which generated more than $750 million in cumulative revenue before selling her position. Her awards and honors include 2019 Fashion and Beauty Award for Beauty Service Provider of the Year, EY Entrepreneur of the Year 2017 and election to The Committee of 200, an organization of the most successful women business leaders globally.
Jackie Aina
CEO & Co-Founder | FORVR MOOD
Jackie Aina is a Nigerian-American beauty content creator considered the “most influential voice in beauty today” by Harper’s Bazaar. Her engaging videos, which teach, inspire and give confidence to people of every color, have cultivated a loyal fanbase of over 7.3 million. Aina has launched inclusive product collaborations with top brands such as Anastasia Beverly Hills, e.l.f. Cosmetics, Too Faced, Sigma Beauty and more. In 2020, she launched FORVR MOOD, featuring candles and accessories. She further expanded her lifestyle offerings in 2021 with the launch of “Lavishly Jackie,’’ a self-care, home and luxury content vertical. Aina continues to advocate for inclusivity, due to the fact that people of color are poorly represented and often ignored within the beauty industry. For her advocacy efforts, she was deemed the NAACP’s first-ever “YouTuber of the Year” at the 49th NAACP Image Awards.
Halé Behzadi
U.S. Vice Chair, California | BMO
Halé Behzadi is vice chair, California for BMO U.S. She is responsible for advancing BMO’s market presence in California, working closely with business leaders company wide. Behzadi is a proven leader with four decades of experience driving exceptional growth and organizational excellence in the financial services industry. Before joining BMO, Halé served as North American Head of Private Banking for Citi Global Wealth. An active and deeply connected community member, Behzadi most recently served as chair of the Los Angeles Economic Development Corporation’s executive committee and board of governors. She has received numerous awards, including the Women in Wealth Investment Award by Family Wealth Report and Woman of the Year Award by Women in Asset Management.
Lara Shortz
Los Angeles Office Managing Partner & Employment Advice, Counsel & Executive Disputes Chair | MICHELMAN ROBINSON, LLP
Lara Shortz is the managing partner of Michelman & Robinson, LLP’s Los Angeles office and one of the most influential women attorneys in the city. Formerly the head of M&R’s Labor & Employment Practice Group, Shortz is sought after by management to handle a full spectrum of employment-related issues. She is particularly known for her work advising domestic and international companies on major growth and hiring initiatives as well as workforce reductions. She is also relied upon to negotiate complex employment agreements, navigate restrictive covenant issues and litigate executive disputes.
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