Just went through this same challenge. Common sense try's to tell you that with no hole shot you're obviously not low enough and need more bite. Wrong!
Josh moved my jack plate up almost 2 inches. Problem solved... Go see him.
This is a very common misconception. Most boats will come out of the hole better with the motor higher on the transom because it encourages propeller slippage.
Two stroke outboards, even the Mighty Merc 300XS have very little low end torque unless the RPM's get up above 3,500 or so. The prop needs to be able to ventilate (slip) in order to let the motor spin up into its sweet spot for making power. This is a case where prop slippage is welcomed. That's why the Merc props all have vent holes drilled in them. It allows the exhaust gases to escape across the barrel of the prop so it will slip to allow the RPM's to come up to help with holeshot.
There used to be a prop company called Predator. They made a prop that had a slightly smaller barrel than the diameter of the lower unit. This allowed about 15% of the exhaust gases to come across the prop barrel as you hit the gas to get out of the hole. That was the most awesome prop for holeshot ever made IMO. It ran pretty good on topend as well. I think they are out of business now.