How I Built This Advice Line: Steve Holmes on tariffs, branding, and building resilience

Executive overview

Founders face constant pressure from external forces — tariffs, seasonality, viral spikes — that they cannot control. The playbook from Steve Holmes (founder of Springfree Trampoline): generate cash, preserve cash, invest cash. Then focus relentlessly on what you can control: values, customer relationships, and honest self-assessment.

The core insight: nothing outside your control should get in your way — but only if you've built the cash reserves and relationships to weather the storm.

Tariffs and supply chain risk

• Load inventory pre-tariff when signals appear early enough — Holmes stockpiled US product before tariff hikes hit.
• Don't try to relocate manufacturing overnight; deep supplier relationships take years to build.
• Founders without cash reserves will become casualties; those with reserves can absorb and adapt.
• Connect with peers across industries — now is a time for competitors to share intelligence, not compete in isolation.

Caller 1: Ve Apparel — building a brand beyond a core audience

• Ve Apparel targets African-American men and women with premium athletic wear; $250K revenue, 100% YoY growth since 2019.
• Anchor the brand in universal values — resilience, strength, excellence — not demographic identity alone.
• Values-driven imagery already on the website; lean further into it to transcend race, class, and gender.
• NFL connection (Buffalo Bills player Ty Johnson) is an underused asset; structured pop-ups and collaborations can unlock a passionate fanbase.
• Consignment with Gold's Gym carries hidden risk — consider giving up some margin to eliminate consignment exposure.
• Identify distinct customer segments, then decide for each: direct relationship or channel partner?

Caller 2: Grand Tongo — sustaining growth with a seasonal product

• Grand Tongo is a DEET-alternative bug spray (picaridin-based) that launched in 1,180 Target stores.
• Seasonality is not a problem to fix — plan 12 months for 4 months of profit, as many successful seasonal businesses do.
• An "always on" low-spend presence maintains algorithm optimization through off-season.
• Airport retail (Hudson, Relay) suits the product perfectly: impulse purchase, low price sensitivity, travel context.
• Early January campaigns ("beat the swarm before mosquitoes hatch") can extend the effective season.
• New product lines under the Grand Tongo brand should extend the core — bug bite relief, sun protection — not diverge into new manufacturing processes.
• Target as an anchor retail partner is leverage: use it to open doors with airport chains and other channel partners.

Caller 3: One More Coco — converting a viral moment into lasting growth

• One More Coco is a gourmet chocolate brand in Whitby, Ontario, inspired by Jamaican heritage; featured on Oprah's Favorite Things in 2023.
• Viral moments produce joy, not durable revenue — the Oprah spike arrived a full year after the feature.
• Email and SMS capture is the long game: own the customer relationship rather than rent it via social platforms.
• Incentivize in-store email capture (e.g., 5% off for sign-up); add a QR code to packaging tied to a promotion.
• Geo-target marketing — chocolate spoils in transit; focus on the local and regional audience who can shop repeatedly.
• Repeat customers are more valuable than new ones at this stage; a monthly or quarterly chocolate club gives committed buyers early access to new flavors.
• Explore adjacent placement: Scotch bonnet bars at Caribbean restaurant checkouts reach a pre-qualified audience.

Founder mindset and personal resilience

• Holmes has lived with cancer for over a decade, including a recent lobectomy; he frames each day as the best of the rest of his life.
• Write everything down — lessons, observations, decisions; memory is unreliable and a black book compounds over decades.
• Be honest with yourself and others, regardless of perceived consequences; most feared consequences never materialise.
• Entrepreneurs often hide problems (inventory shortfalls, cash issues) too long — transparency earlier almost always leads to better outcomes.
• Take care of yourself; the business depends on the founder being well.