Summary

The Innovators and Investors Podcast hosted by Kristian Marquez features an insightful conversation with Justin Henshaw, the founder and CEO of Gage. Henshaw, a former U.S. Marine Corps infantry member, transitioned into entrepreneurship and identified a significant issue facing the shift and hourly workforce—an underserved segment of approximately 80 million American workers that contribute immensely to the economy. Gage is presented as a solution: a universal employment scoring and recognition platform for this demographic, enabling employees to own their data and tallies. Henshaw emphasizes that unlike traditional managerial tools, which are often forgotten when employees leave a job, Gage’s model allows workers to carry their achievements with them. Gage has experienced notable uptake, evidenced by its progress during the beta phase, and aims to enhance its platform with upcoming improvements that cater to both businesses and employees. Key to Gage’s future growth will be its ability to penetrate larger businesses that care about employee culture, as well as harnessing organic growth through employee advocacy. Henshaw’s journey illustrates resilience amid challenges in fundraising and product development, ultimately underscoring a commitment to building a more empowering work environment.

Highlights

• Inspiration from Service: Justin Henshaw’s military background inspires his commitment to valuing hourly workers in the economy.
• Solving Workforce Issues: Gage tackles the issue of workers feeling valued by allowing them to take their personal achievements with them when they change jobs.
• Early Success: During the beta phase, Gage grew from zero to 3,000 users and generated $60,000 in revenue, demonstrating initial product-market fit.
• Two-Pronged Strategy: Gage’s approach combines targeting mid to large enterprises and promoting organic user growth driven by employees themselves.
• Community Impact: The system creates a sense of community and accountability among employees, driving retention and workplace culture.
• Continuous Improvement: Henshaw focuses on building out Gage Gen2, which will enhance user engagement through added messaging functionality.
• Resilience in Fundraising: Henshaw acknowledges the challenges faced in securing funding, emphasizing the importance of persistence and adaptability.

Key Insights

• The Importance of Value in the Workplace: Henshaw underlines a critical shift needed in how hourly workers are treated. They need platforms that help display their worth clearly, thus improving the workplace environment. Gage addresses this by allowing employees to carry their recognition and achievement data, which not only improves morale but enhances their job prospects.
• Sustainability in Business Models: Gage’s model offers insight into sustainable business practices in the tech sector. By ensuring that employees own their achievement data, Gage promotes a shift from disposable employee roles to valued contributions, benefitting both employees and employers in the long run.
• Harnessing Feedback for Product Development: Henshaw emphasizes the value of real user feedback during beta testing. This continuous dialogue is essential for refining the product, ensuring that Gage meets the actual needs of its users, rather than assuming what they want.
• Effective Go-To-Market Strategy: Henshaw’s conclusion that targeting larger multi-unit operators allows Gage to penetrate markets with greater efficiency is critical. These organizations require systems to engage their workforce meaningfully, presenting an ideal initial customer segment.
• The Power of Community in Adoption: By cultivating a community-driven approach, where employees advocate for Gage in their networks, Gage can achieve organic growth. This word-of-mouth marketing can accelerate adoption without heavy initial investment in marketing.
• Investing Beyond Capital: Henshaw highlights the significance of investor involvement. He seeks partners who share his values regarding employee welfare, suggesting that companies will prosper when their stakeholders also align with their mission. This perspective can lead to more fruitful and supportive investor-founder relationships.
• Navigating Challenges with Perseverance: The story illustrates that hurdles—in this case, challenges in fundraising and product scaling—are inherent to entrepreneurship. Henshaw’s experiences embody the determination required to succeed in the startup landscape, reinforcing the importance of resilience and adaptability in business.

Through this conversation, listeners gain a deeper understanding of the practical challenges and innovations present in the startup ecosystem, particularly those that seek to serve the often-overlooked hourly workforce, setting an example for future entrepreneurs in similar domains. Justin Henshaw’s journey with Gage not only informs about new technological advancements but also emphasizes the human aspect of business, where recognition and personal growth play pivotal roles in fostering a thriving workplace.

Stay in touch with the Founder and CEO of GAGE, Justin Henshaw.

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