21 Hats Podcast

This week, in Episode 258, Laura Zander tells Mel Gravely and Jennifer Kerhin how she and her husband, Doug, managed to sell their business for precisely the price they wanted. As you may recall, Laura and Doug started Jimmy Beans Wool more than two decades ago as a tiny corner store and turned it into one of the biggest brands in the yarn industry. Years ago, the couple decided they’d be open to selling—but only if the offer was right. With that goal in mind, they made a deliberate effort to get the business sale-ready and to keep it that way. And, as Laura ran the company, she started cultivating relationships with anyone she thought might one day be a buyer. In fact, she tells us, she was never shy about saying, “Oh, hey, Bob, it's really nice to meet you. Do you want to buy my business?” Eventually, someone said yes—although getting to a signed contract, Laura says, nearly broke her. Plus: Jennifer thought she had her hands full running her business—and then her own home went up in flames.

This week, Ben Knepler returns to the podcast to explain why he and his co-founder at True Places concluded they had no choice but to suspend production of their portable, outdoor chairs and go into survival mode. Initially, they manufactured the chairs in China, where they’ve been paying tariffs since the first Trump administration. Last year, at considerable expense, they moved production to Cambodia, which at the time was subject to no tariffs. But since April 2nd, the company has been subjected to a tariff rate that has gyrated from zero to 49 percent to 10 percent to 36 percent to 19 percent as of last week. In our conversation, Ben explains why they stopped production and how they hope to survive.

David C. Barnett, a business acquisition expert, joins Jay Goltz, a Chicago-based CEO, and Lena McGuire, a remodeling innovator, to discuss the tricky world of hiring coaches. They debate the importance of coaches having industry-specific knowledge and personal success. Jay hilariously critiques unqualified coaches in his industry while Lena shares how transformative good coaching can be. The trio also laughs about Jay's whimsical idea of opening a pizza shop, blending personal anecdotes with key insights on business growth and support networks.

Peter Koehler, founder of Lumo Group, specializes in helping businesses with operations and finances. He emphasizes that small businesses are uniquely different from large corporations and suggests that the federal tax code should reflect this. Koehler advocates for tiered payroll tax rates, a startup tax credit for professional services, and changes to the qualified business income deduction to combat growing consolidation. He also highlights the importance of supporting low-margin businesses as vital community resources, calling for policies that empower small enterprises.

This week features David C. Barnett, a business broker from Canada, Kate Morgan, CEO of Boston Human Capital Partners, and Sarah Segal, a PR expert from San Francisco. They dive into their varied marketing strategies on LinkedIn, debating whether likes or actual sales matter more. David contrasts his free self-publishing approach with Kate's hefty book expense. Meanwhile, Sarah takes a different route by investing in a VP instead of a book. It’s a vibrant chat on what truly drives business success and the value of genuine connections.

Sheela Murthy, the founder and CEO of the Murthy Law Firm, shares her expertise on the intricate challenges faced by business owners during the Trump administration's immigration crackdown. She dives into what employers should consider if they suspect an employee is undocumented and explores the potential legal and moral implications of retaining such employees. Additionally, Sheela discusses the reliability of E-Verify and highlights the balance between compliance and compassion in hiring practices, underscoring the complexities of navigating the immigration landscape.

Last September, we hosted a 21 Hats Brainstorm podcast episode in which BaLeigh Waldrop told us that she was considering buying the family business from her parents. BaLeigh, who has been serving as chief financial officer of the Miller Waldrop furniture business that her great grandfather started, recognized that she was being offered a remarkable opportunity, but she had some concerns. Sales have been off of late, the business is predominantly brick-and-mortar, and most importantly, she would have to work out an ownership structure with her younger brother. The 21 Hats crew of owners and entrepreneurs who joined the brainstorm asked a lot of good questions and offered smart suggestions. “I think what's actually incredibly hard about this whole thing is that I love it,” says BaLeigh. “I love wearing the different hats. I love owning a business in a small community.” We left it that BaLeigh would get back to us once she’d figured things out. In this week’s episode, she returns to tell Jay Goltz and the rest of us what she’s decided.

Frank Rimalovski, head of the NYU Entrepreneurial Institute and the NYU Innovation Venture Fund, shares his insights on teaching entrepreneurship. He discusses the paradox of sometimes advising against starting a business, emphasizing the importance of resilience and customer discovery. Rimalovski also evaluates the double-edged sword of venture capital, stressing the need for startups to build a strong foundation before scaling. Finally, he explores how artificial intelligence is reshaping entrepreneurial programs, making market research and strategic planning more efficient.

John Abrams, a seasoned founder, author, and advocate for sustainable business practices, joins Mel Gravely and Jay Goltz, leaders in the construction industry, for an engaging discussion on employee ownership models. They explore strategies to avoid disastrous private equity sales and share insights on why there are so few employee-owned businesses. The trio dives into the nuances of ESOPs versus co-ops, addressing both potential benefits and challenges. Their candid conversation highlights the importance of succession planning while keeping business values intact.

Gene Marks, a CPA and small business advocate, dives into the recent tax changes from Trump's legislative proposal, pointing out the newfound tax certainty for business owners. He details the small business deduction and estate tax exemptions while encouraging owners to take responsibility for managing tariff complaints. Marks emphasizes understanding the nuances in economic policies that affect healthcare and inflation. The conversation balances optimism with the realities of navigating current financial uncertainties.