21 Hats Podcast Do You Have the Stomach for This? 2025 in Review, Part 1
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Dec 23, 2025 
In this engaging discussion, Paul Downs reflects on tough staffing decisions during a sales drop, emphasizing the importance of empathetic layoff communications. Liz Piccarazzi shares her journey through tariff changes while seeking U.S. manufacturing options for her products. David Barnett offers insights into business valuation, stressing the idea that a company can hold more value for its owner than for potential buyers. Kate Morgan highlights the pitfalls of underpricing in recruiting, sparking a debate about sustainable pricing strategies.
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The Brutal Reality Of Layoffs
- Paul Downs described sleeplessness and the awful necessity of laying people off to keep the business alive.
- He framed layoffs as painful surgery done to stabilize cash and preserve the company for those who remain.
Deliver Layoffs With Dignity
- When laying people off, be clear, concise, and avoid over-sharing your anguish with those being let go.
- Offer empathy, good references, and treat departing staff respectfully to preserve future rehiring options.
Run Owner Draws, Not Bonus Payroll
- Owners of pass-through entities can take distributions without running them through payroll to avoid double taxation.
- S‑Corp owners must pay themselves a fair market salary via payroll but can take additional draws outside payroll.