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Preface: “One reason people make bad decisions is they don’t have a good decision as one of their options.” ― Dave Ramsey, EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches

Book Report: EntreLeadership 

In EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches, personal finance expert Dave Ramsey distills two decades of entrepreneurial experience into a practical guide for business owners and leaders. The book’s title is a blend of “entrepreneur” and “leadership,” symbolizing Ramsey’s belief that successful business leaders must embrace both roles. Written in Ramsey’s signature direct and motivational style, EntreLeadership provides both philosophical insights and tangible action steps for running a business with integrity, excellence, and effectiveness.

The Leader as a Servant: At the heart of EntreLeadership is Ramsey’s conviction that leadership is about serving others. He rejects top-down, authoritarian leadership in favor of a model built on trust, responsibility, and personal example. He writes, “Your team will never grow beyond your leadership, and your leadership will never grow beyond your character.”

Ramsey illustrates how leaders must act with humility, admit when they’re wrong, and prioritize the well-being of their team. This servant-leader approach is rooted in values such as honesty, discipline, and accountability—traits Ramsey has consistently championed through his career and company, Ramsey Solutions.

Culture is Everything: Ramsey emphasizes that company culture determines long-term success more than strategy or finances. He insists that business owners are the chief architects of their culture. Through anecdotes from his own business, he explains how clear expectations, consistent feedback, and employee engagement can create an environment where people are empowered to succeed.

One key quote captures this focus: “People matter. Hire people you like and want to be around. Protect your culture like it’s gold—because it is.”

Communication and Clarity: A central pillar of Ramsey’s philosophy is the need for transparent, consistent communication. He warns that confusion breeds dysfunction and that silence breeds suspicion. Leaders must overcommunicate, clarify expectations, and encourage honest feedback.

Ramsey introduces the idea of “intentionally redundant communication”—repeating key messages across various formats and forums to ensure they stick. This concept aligns with his broader commitment to eliminating ambiguity from workplace operations.

Financial Principles for Business: No Ramsey book would be complete without discussion of financial stewardship. EntreLeadership devotes several chapters to budgeting, cash flow, debt, and strategic financial planning. Ramsey strongly opposes debt in business just as he does in personal finance. He argues that borrowing robs a business of flexibility and increases risk.

He provides a blueprint for building a business emergency fund, managing accounts receivable, and setting budgets with “every dollar assigned a mission.” His advice here is conservative but battle-tested: “If you live like no one else, later you can live—and give—like no one else.”

Decision-Making and Delegation: Ramsey insists that the best leaders make decisions based on principles, not emotion or convenience. He offers a methodical approach to problem-solving, including gathering input, evaluating options, and seeking wise counsel. But once a decision is made, leaders must own it and follow through.

He also encourages delegation—not to dump unwanted tasks, but to empower others and elevate the team. As he puts it, “You have to be willing to let go of control to grow. If you’re the bottleneck, the company suffers.”

Sales and Marketing with Integrity: Ramsey advocates ethical selling by focusing on long-term relationships rather than short-term gains. He believes in creating value, listening to customer needs, and never manipulating or deceiving clients. “Selling is not convincing,” he says. “It is serving.” He also highlights the importance of branding, visibility, and reputation. A company’s values must be reflected in its advertising, customer service, and word-of-mouth.

While Ramsey’s advice is clear and well-intentioned, it leans heavily toward small business environments and may not apply as directly to large corporations or non-profits. Additionally, his rigid stance on avoiding debt, while prudent, may not reflect the nuances required in capital-intensive industries.

Conclusion: EntreLeadership is a valuable guide for entrepreneurs, managers, and aspiring leaders who want to grow their businesses with integrity and purpose. Dave Ramsey’s blend of moral clarity, operational insight, and leadership philosophy challenges readers to lead not just with strategy, but with heart and conviction. Whether you’re starting out or scaling up, this book offers timeless principles that can help you build a thriving, value-driven business.

Preface: “It is the joy of work well done that enables us to enjoy rest” – Elisabeth Elliot

Why Diligent Business Owners Should Appreciate Pace 

“There’s never enough time.”
“How did I work 12 hours and still feel like I’m behind?”
“I just need to push harder.”

Sound familiar?

For many business owners, the faster they go, the more behind they feel. It’s a paradox that plagues entrepreneurs, especially those driven by passion, pressure, or both. But what if the answer to greater success wasn’t doing more, but doing less, better?

Let’s unpack this truth: “The faster I go, the more behind I get.”

The Trap of Speed Without Direction

In business, urgency often disguises itself as importance. Responding to every email, attending every meeting, and chasing every opportunity might feel productive, but it frequently leads to reactive leadership rather than intentional growth.

Busyness is not effectiveness. Speed can create the illusion of progress while eroding clarity, relationships, and the quality of decisions.

Burnout by Acceleration: Consider a business owner who scaled too fast, launching new services, hiring rapidly, and taking on too many clients. Within a year, revenue was up, but so were client complaints, employee turnover, and accounting errors. Growth outpaced capacity. He looked successful from the outside, but internally, he was exhausted, disconnected, and questioning the entire mission. Why? Because he confused motion with direction and purpose. 

Why Pacing Is Powerful

It Protects Your Priorities. Slowing down gives you room to ask: What matters most right now? It’s how leaders move from reactive to strategic.

It Preserves Relationships. Whether it’s team members, customers, or family, rushing through life usually means leaving people behind. Pace allows you to lead with presence.

It Improves Quality of Thought. Slower decision-making often yields better outcomes. When we breathe, pause, and reflect, we access wisdom, not just instinct.

It Avoids Waste. Rushing leads to rework. You don’t save time by moving fast if it leads to mistakes you must clean up later.

Jesus: Never in a Hurry

In the Gospels, Jesus is never described as rushing. Even when facing urgent needs—a dying child (Mark 5), a grieving family (John 11), or a desperate crowd—Jesus moved with intentional calm.

He never sprinted to meet a need, yet He was always on time. Does his pace communicate something deeper? Perhaps it conveys that peace comes from being aligned with purpose, rather than urgency.

When Lazarus was sick, Jesus waited (John 11:6). Not because He didn’t care, but because He knew that the greater miracle needed room to unfold. 

When we move too fast, we often cut short the opportunity for something greater.

Practical Tips for Pacing Your Business

Establish Margin in Your Schedule – Block time that isn’t spoken for. Use it for reflection, rest, or problem-solving. Don’t schedule every hour.

Set Weekly “No Rush” Hours – Have a day or time where nothing is urgent. Use it to think, listen, or learn. Urgency doesn’t equal importance.

Practice Sabbath Principles – Take one day per week to disconnect entirely. You’ll be more focused and grounded when you return.

Define What Enough Looks Like – Growth is good, but growth without boundaries leads to burnout. Set your targets, and know when you’ve hit “enough” for now.

Lead by Example – Your team watches your pace. If you are frantic, will they be too? If you walk in peace, they’ll learn to trust the process.

Final Thoughts

The wisdom of “slow down to move forward” isn’t just a catchy phrase—it’s a leadership strategy and a spiritual principle. The faster you go, the more likely you are to miss what truly matters.

Jesus never ran, yet He fulfilled the greatest mission in history.

As a business owner, you don’t need to run harder—you need to “walk” wisely. Clarity, not chaos, is what fuels lasting impact.

Today, consider giving yourself permission to slow down. You might find you’re actually getting ahead.

Preface: “Few of us ever test our powers of deduction, except when filling out an income tax form.” — Laurence J. Peter

Understanding the Difference Between Tax Credits & Deductions: What Every Taxpayer Should Know

When thinking about filing taxes, many people hear terms like “tax credit” and “tax deduction” and assume they mean the same thing. While both are valuable tools to reduce your tax bill, they work in different ways and have different impacts on how much you owe. Understanding the difference can help you maximize your tax savings and make informed financial decisions.

What is a Tax Deduction?

A tax deduction reduces your taxable income. In simple terms, deductions lower the amount of income that is subject to tax. The lower your taxable income, the less tax you pay.

Suppose you earn $80,000 in gross income. After itemizing deductions like mortgage interest, charitable contributions, and medical expenses, you claim $15,000 in deductions. Your taxable income would then be reduced to $65,000.

Example of Common Tax Deductions:

• • • Standard Deduction: For 2024, the IRS standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly.
    • Mortgage Interest: You can deduct interest paid on mortgage loans up to a specific limit.
    • State and Local Taxes (SALT): You can deduct up to $10,000 of combined state and local income, property, and sales taxes.
    • Student Loan Interest: Up to $2,500 in interest paid on qualified student loans can be deducted.
    • Business Expenses: Self-employed individuals can deduct ordinary and necessary business expenses.

Deductions reduce your taxable income, which indirectly reduces your tax bill based on your marginal tax rate. The higher your tax bracket, the more valuable deductions become.

What is a Tax Credit?

A tax credit directly reduces your tax liability, dollar-for-dollar. Unlike deductions, which lower your taxable income, credits subtract from the amount of tax you owe.

If you owe $5,000 in federal income tax and you qualify for a $2,000 tax credit, your tax liability drops to $3,000. Tax credits are more powerful than deductions because they apply after your tax has been calculated.

Example of Common Tax Credits:

• • • Child Tax Credit: Up to $2,000 per qualifying child under the age of 17.
    • Earned Income Tax Credit (EITC): Available for low-to-moderate-income workers and families, with credit amounts based on income and family size.
    • American Opportunity Credit: Provides up to $2,500 per eligible student for college expenses.
    • Lifetime Learning Credit: Up to $2,000 per tax return for qualified education expenses.
    • Residential Energy Credits: Credits for installing solar panels or energy-efficient improvements.

Refundable vs. Nonrefundable Credits:

• • • Nonrefundable Credits: Can reduce your tax bill to zero, but not below zero.
    • Refundable Credits: Can not only reduce your tax liability to zero but also result in a refund beyond the amount of tax you paid.

For example, if you owe $1,000 in taxes and qualify for a $1,500 refundable tax credit, you would receive a $500 refund.

Tax credits provide a dollar-for-dollar reduction in your tax bill, making them generally more valuable than deductions of the same amount.

Credits vs. Deductions: A Simple Comparison

Feature	Tax Deduction	Tax Credit
Effect	Reduces taxable income	Directly reduces tax owed
Example	$10,000 deduction reduces taxable income to a lower tax bracket	$2,000 credit reduces tax bill by $2,000
Value	Depends on your tax bracket	Full dollar-for-dollar reduction
Types	Standard, Itemized, Business Expenses	Refundable, Nonrefundable (Child Tax, EITC)

Knowing the difference between tax credits and deductions can help you plan better during tax season. For instance, a $1,000 tax deduction for someone in the 24% tax bracket reduces tax liability by $240, whereas a $1,000 tax credit reduces the tax owed by the full $1,000.

Business owners, families, and students often qualify for a mix of deductions and credits. Understanding how each one impacts your return can help you work with your CPA to strategize your tax planning.

Both tax deductions and tax credits are essential tools for lowering your tax costs, but they operate in distinct ways. Deductions reduce the amount of income you are taxed on, while credits reduce the actual tax you owe. By understanding this difference and applying it effectively, you can make smarter financial decisions and potentially save thousands on your tax return.

When in doubt, consult with a tax professional to ensure you’re taking full advantage of both deductions and credits available to you.

Preface: “A tax loophole is something that benefits the other guy. If it benefits you, it is tax reform.” – Russell B. Long

Proposed 2025 Tax Reform

As of May 2025, President Donald Trump has introduced a comprehensive tax reform package that proposes significant changes to the U.S. tax code. These changes aim to extend and modify provisions from the 2017 Tax Cuts and Jobs Act (TCJA), with implications for individuals, businesses, and the broader economy. Following is a summarized overview of the key components of the proposed legislation. The TCJA provisions affecting individual taxpayers are set to expire at the end of 2025. President Trump proposes making these provisions permanent, including:

• • • Lower individual income tax rates
    • Increased standard deductions
    • Expanded child tax credits

This extension aims to provide continued tax relief to middle-income families and simplify the tax filing process.

In a departure from traditional Republican tax policy, the proposal includes raising the top individual income tax rate from 37% to 39.6% for individuals earning over $2.5 million and joint filers over $5 million annually. This measure is intended to generate additional revenue and address concerns about income inequality. 

With good news for retirees, the plan seeks to exempt certain income types from federal taxation, including:

• • • Social Security benefits
    • Tips
    • Overtime pay

These exemptions aim to increase disposable income for retirees and hourly workers, potentially boosting consumer spending.

The proposal targets the elimination of the carried interest provision, which allows investment managers to pay capital gains tax rates on certain income instead of higher ordinary income tax rates. Removing this loophole is projected to increase tax revenues and promote fairness in the tax system. 

The $10,000 cap on state and local tax (SALT) deductions, implemented under the TCJA, has been a point of contention, particularly in high-tax states like California and New York. The new proposal considers raising or eliminating this cap to alleviate the tax burden on affected taxpayers. 

While the corporate tax rate was reduced to 21% under the TCJA, the current proposal includes further reforms, such as implementing a 28.5% deduction for domestic manufacturing activities, effectively lowering the tax rate for qualifying businesses

These measures aim to stimulate domestic production and job creation.

The proposed tax cuts are estimated to reduce federal revenue by $4.5 trillion over the next decade. To offset this, the administration suggests:

• • • Reducing spending on programs like Medicaid and nutrition assistance
    • Eliminating certain environmental tax credits

These proposed tax cuts have faced opposition from moderate Republicans concerned about the potential impact on vulnerable populations. 

The administration aims to pass the tax reform package before Memorial Day. However, internal divisions within the Republican Party and debates over spending offsets present challenges to the bill’s passage. The outcome will significantly influence the U.S. fiscal landscape and economic policy direction.

President Trump’s 2025 tax reform proposal represents a significant shift in U.S. tax policy, with potential benefits and challenges. Taxpayers, businesses, and policymakers must closely monitor developments to understand the implications and prepare for possible changes.

Preface: “The value of an idea lies in the using of it.” — Thomas Edison

What Is a Depreciation Schedule and Why Does Your Accountant Keep Insisting You Need One?

If you own a business, farm, or rental property, you probably know that you can take a significant business deduction for something called “depreciation.” You likely realize that depreciation is your recovery of the cost of business assets and that it can take a number of years to fully recover such costs. In other words, the tax code lets you deduct the cost of assets placed in service in your business, farm, or rental property, but it doesn’t always let you deduct the entire amount in a single year.

So far, so good. You may have also heard of a “depreciation schedule,” and this may have sounded a bit confusing. Have no fear, it is not really that complicated. A depreciation schedule is simply a list of your business assets that helps to explain what depreciation has already been taken on each asset and how much depreciation remains to be taken on each one.

Each line in a depreciation schedule should include five data points:

• • A description of the asset.
  • The date the asset was placed in service.
  • The cost basis, including all sales tax, fees, and other transaction costs.
  • A useful life. The IRS issues guidelines on lifetimes of depreciable assets. Your accountant should be able to determine for you the useful life of a new asset. If you are hiring a new accountant, the new accountant needs to know what life the old accountant used.
  • A method, which is to say, how much is being recovered each year over the useful life of the asset. In some cases, the entire cost may be recovered in the first year under section 179. For real estate and amortized costs, straight-line depreciation must be used, which is to say the same amount is recovered each year over the life of the asset. In most other cases, some form of accelerated depreciation is used. As with the useful life, any accountant should be able to determine this for you for any new asset, but a new accountant needs to know what method the old accountant used.

EXAMPLE: Say you spent $15,000 on an improvement to your rental property in June of this year. This bit of new information becomes a new line your depreciation schedule that says:

Renovation – July 1st, $15,000

Your accountant will know that improvements have a 15-year life and are taken using a straight line method. The amount of remaining depreciation to be recovered will then be decreased in the schedule by $1,000 each year until it reaches zero 15 years from now.

If you have a business, or multiple businesses, with a large number of assets placed in service in different years using different lifetimes and methods, this can get a little involved. But in principle, each line in the schedule is just a record of how deprecation has been taken on a particular asset.

Why Is My Accountant Asking Me for a Depreciation Schedule?

If you are starting a new business, your accountant should create a new depreciation schedule for that business and update it annually. If you are hiring a new accountant to handle an existing business, that accountant should ask you for the depreciation schedule prepared by the previous accountant. Business clients sometimes feel awkward about this kind of request, either because they are not sure what they are being asked for or because they don’t want to have to tell their old accountant they are planning to switch accountants.

There is no reason to feel at a loss. It is entirely normal for businesses to change accountants in the course of their business life. Accountants are entirely used to this. If you paid an accountant in a prior year to prepare your tax returns and you had depreciable property, then the accountant should have prepared a depreciation schedule to be able to correctly figure the depreciation in a way acceptable to the IRS. All documents prepared by the accountant, including the depreciation schedule, are then yours since you paid for them, and you are entirely within your rights to ask for copies.

The schedule tells the new accountant how much depreciation is left to be recovered in future years. You are entitled to recover the entire amount over the life of the asset, but at the same time, you do not want to invite problems by continuing to depreciate after the entire cost has already been recovered. This can be especially tricky if accelerated depreciation, bonus depreciation, or section 179 depreciation have been taken in prior years.

Having a depreciation schedule is also very important in the event that you sell any business assets. This is because the amount of depreciation taken in prior years must sometimes be added back (“recaptured”) when computing your gain on the sale.

Can’t You Just Compute Your Own Depreciation Schedule from Last Year’s Numbers?

In some simple cases, it may be possible to reconstruct a missing depreciation schedule from the previous year or several years’ worth of returns. This will still require asking you, the business owner, many questions about the descriptions of the assets and their purchase dates. The tax forms themselves only contain the annual totals or are broken down only by useful life or type of depreciation (MACRS, section 179, or bonus).

It might help to compare a depreciation schedule to a prison roster. When a group of prisoners is transferred from one prison to another, the new warden needs to be told how long a sentence each prisoner is serving, when he began serving that sentence, and other important information, such as whether the prisoner has had his sentence reduced for good behavior, etc.

Remember the States

Many state laws governing depreciation differ from federal law. So, as you can imagine, depreciation taken on state tax returns may not be the same as depreciation taken on your federal return. So it is a very good idea to keep a state depreciation schedule in addition to a federal one. Even if the numbers are the same in some cases, keeping separate federal and state schedules makes this explicit.

Preface: “The hardest thing to understand in the world is the income tax.” – Albert Einstein

Do I Owe Tax If I Sold My House, Car, or Household Items?

If you sold your home, vehicle, furniture, or maybe household items at a garage sale or on eBay, you may be wondering if any of the money you received is taxable.

The short answer is: probably not.

Please read on if you would like to sharpen your understanding of taxable gains and learn when some of the money from sales like this may be subject to tax.

Disclaimer 

The IRS treats personal-use property very differently than property used in business or for investment. In this brief article we are speaking only of personal-use property. If you purchase items for resale, keep inventory, etc., much of the following does not apply.

Understanding Basis

An important concept to understand in all computation of taxable gains is basis. Basis begins with what you originally paid for the item, including taxes and fees you paid in addition to the sticker price. Some later modifications can change the basis, but that is rarely the case for cars and smaller household items.

If you sold property for more than its basis, then you have a gain. Only the gain on a sale is taxed, not the recovery of the basis.

For example, if you paid $8 for something and sold it for $10, your gain is $2.

Once you understand this, it should be clear that you will not owe tax on most things you sell for less than you originally paid. Most personal-use property loses value through time and use and is rarely sold at a gain.

Excluding Gain on Sale of Your Home

Besides certain collector’s items, the only kind of personal-use property that is commonly sold at a gain is a home. And yet, you probably do not owe tax on the sale of your home either, as long as certain conditions are met.

The Taxpayer Relief Act of 1997 exempted from taxation the capital gains on the sale of a personal residence up to $500,000 for married couples filing jointly and up to $250,000 for everyone else. These amounts have not been adjusted for inflation.

Any amount of gain above these thresholds is taxable.

For example, a married couple that buys a house for $400,000 and sells it three years later for $950,000 will have a taxable gain of only $50,000, not $550,000. If the sale is for $900,000 or less, they will not owe any tax.

There are several requirements to check for to see if you qualify for this exclusion. Most of these requirements do not apply to most homeowners. The two most important ones are:

• • The ownership requirement. You must have owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of sale. For married couples filing jointly, it is enough that one spouse meets the ownership requirement to get the full exclusion amount.
  • The Residence Requirement. You must have used the home as your residence for at least 24 months of the previous 5 years. The 24 months of residence can fall anywhere within the 5-year period, and it doesn’t have to be a single block of time. All that is required is a total of 24 months (730 days) of residence during the 5-year period. Unlike the ownership requirement, each spouse must meet the residence requirement individually for a married couple filing jointly to get the full exclusion.

If you meet these requirements and your gain is below the threshold, not only do you not owe tax on the sale of your home, you don’t even have to report it.

For homes, consider also that certain long-term improvements such as additional structures, etc. may increase the basis beyond its original purchase price.

Dealing with Loss

If you sold property for less than its basis, then you have a loss.

One major difference between personal-use property and business or investment property is that a loss from the sale of personal-use property cannot be deducted.

If you sell stock in a number of companies and lose money on some and gain money on others, you can net your losses against your gains. If you sell several rental properties, some at a loss and some at a gain, you can net your losses against your gains. But if you sell a lot of personal effects at a yard-sale or online, some at a loss and some at a gain, then you owe tax on the gains and you cannot use the losses to offset them.

However, this is rarely an issue since it is so seldom that personal-use property is ever sold at a gain.

Gifts and Inheritances

If you sold property that you received as a gift or inheritance, you might be worried that your basis is zero, so you owe tax on the entire amount of the sale. Not so.

When you receive property as a gift, you also receive the basis in the gift that the person who gave it to you would have had.

For example, if your uncle gives you a car that he paid $50,000 for and you sell it for $5,000, you have a $45,000 non-deductible loss, not a $5,000 taxable gain.

The treatment of inherited property is even more favorable to the recipient. The basis of inherited property is “stepped up” to its fair market value on the date of death. So the gain to you when you sell inherited property will be limited to the amount it has appreciated in value since it was left to you.

For instance, say you inherit a collector’s item that your relative paid $5 for back in the day. If, on the date of your relative’s death, the item in question is worth $1,000 on the open market, then that $1,000 is the item’s stepped-up basis to you. If you sell it for $1,001, then your taxable gain is $1, not $996.

Keep good records, know the law, don’t be afraid, and don’t pay more tax than you have to.

Preface: “The value of our good is not measured by what it does, but by the amount of good it does to the one concerned.” – Milton S. Hershey

From Caramel Dreams to Chocolate Realities: Business Inspiration from a Legendary Product

Milton S. Hershey’s journey from a modest upbringing to founding one of the world’s most iconic chocolate brands is a testament to his entrepreneurial spirit, resilience, and visionary leadership. His success wasn’t merely a product of chance but the result of deliberate choices and unwavering determination, persistence, and a timeless product.

Hershey’s early ventures were fraught with challenges. After multiple failed business attempts in Philadelphia, Chicago, and New York, he didn’t succumb to defeat. Instead, he viewed these setbacks as learning opportunities towards a better future. With a buoyant attitude, refining his approach with each endeavor, this humble resilience laid the foundation for his future successes.​ 

Milton Hershey’s journey to entrepreneurial success began with the Lancaster Caramel Company, established in 1886. Recognizing the potential to make chocolate accessible to the masses, His pivotal moment came in 1893 at the World’s Columbian Exposition in Chicago, where he encountered German chocolate-making machinery. Recognizing the opportunity, he purchased the equipment and began experimenting with chocolate production. ​

In 1894, Hershey founded the Hershey Chocolate Company as a subsidiary of his caramel business. He started by coating his caramels with chocolate, gradually shifting focus as he refined his chocolate-making techniques. By 1899, Hershey had developed a process suitable for mass-producing milk chocolate, a feat previously unachieved in the United States. ​ 

Capitalizing on his innovations, Hershey sold the Lancaster Caramel Company in 1900 to concentrate solely on chocolate. Soon, he introduced the Hershey’s Milk Chocolate Bar, priced at just five cents. This made chocolate accessible to a broader audience, transforming it from a luxury item into a commonplace treat. ​ 

Hershey’s commitment to quality and efficiency led to the construction of a new factory in Derry Church, Pennsylvania, in 1903. The town, later renamed Hershey, became a model community for his employees, complete with housing, schools, and recreational facilities. 

In 1907, Hershey introduced Hershey’s Kisses, bite-sized chocolates wrapped in foil, further diversifying his product line. The company’s growth continued with the launch of products like Mr. Goodbar in 1925 and Krackel in 1938, solidifying its position in the confectionery market. ​ 

Milton Hershey’s innovations extended beyond confections. During World War II, the company produced the “Field Ration D” bar for U.S. troops, a heat-resistant chocolate bar designed for military use. ​ 

The Hershey’s Milk Chocolate Bar remains a symbol of innovation and accessibility, reflecting Milton Hershey’s vision of bringing quality chocolate to the masses.​  

Hershey’s foresight in identifying market trends, coupled with his willingness to take calculated risks, set him apart. His decision to sell his successful caramel company to focus solely on chocolate exemplifies his strategic thinking and confidence in his vision.​ 

Milton S. Hershey’s profound commitment to philanthropy was deeply rooted in his personal experiences and values. Having faced financial hardships during his youth, Hershey developed a strong empathy for those in need. This empathy, combined with his Mennonite upbringing that emphasized community and service, shaped his belief that wealth should be used to benefit others. He once remarked, “What good is money unless you use it for the benefit of the community and of humanity in general?” ​

In 1909, Hershey and his wife, Catherine, established the Hershey Industrial School (now the Milton Hershey School) to provide education and care for orphaned boys. In 1918, Hershey took the extraordinary step of transferring the majority of his wealth, including control of the Hershey Chocolate Company, to a trust dedicated to supporting the school. This act ensured the school’s longevity and underscored his dedication to philanthropy.​

Hershey’s philanthropic vision extended beyond education. He invested in building a community in Hershey, Pennsylvania, complete with housing, schools, and recreational facilities, aiming to improve the quality of life for his employees and residents. His actions reflected a holistic approach to philanthropy, focusing on creating sustainable and supportive environments.​

Four Business Lessons:

1. 1. Learn and grow from disappointment and use it as a stepping stone to future business success
   2. Invest intentional time to sightsee the marketplace and keep a sharp eye open for opportunity
   3. Use your business model to build your community
   4. Integrate philanthropy into your business strategy

In essence, Milton Hershey’s philanthropic approach was a manifestation of his life experiences, moral convictions, and unwavering belief in using wealth to uplift others. His legacy continues to inspire and impact lives through the institutions he established and the community he nurtured. In conclusion, Milton Hershey’s legacy is not just about chocolate but about the embodiment of entrepreneurial excellence, community building, and unwavering commitment to quality and philanthropy. His story serves as a timeless inspiration for aspiring entrepreneurs worldwide.​ 

Preface: “Trade wars are easy to start but hard to stop.” – Thomas Sowell

Understanding Reciprocal Tariffs

In the intricate web of international trade, tariffs play a pivotal role in shaping economic relationships between nations. Among these, reciprocal tariffs have garnered significant attention due to their potential to balance trade dynamics and protect domestic industries. 

However, while they aim to establish fairness, reciprocal tariffs can introduce a spectrum of challenges, particularly for retailers and wholesalers.​

What are Reciprocal Tariffs?

A reciprocal tariff is a duty imposed by one country on imports from another, designed to mirror the tariffs that the latter places on its imports. The primary objective is to ensure equitable trading conditions by encouraging nations to reduce or eliminate excessive tariffs. For instance, if Country A levies a 20% tariff on goods from Country B, then Country B might impose an equivalent 20% tariff on imports from Country A. This tit-for-tat approach seeks to motivate countries to engage in fair trade practices and discourage protectionist policies.​ 

Historical Context and Recent Developments

The concept of reciprocal tariffs isn’t novel. The U.S. Reciprocal Tariff Act of 1934 empowered the president to negotiate tariff reductions with other nations on a reciprocal basis, aiming to stimulate international trade during the Great Depression. ​ 

In recent times, the U.S. administration has revisited this approach. In April 2025, President Donald Trump announced the implementation of reciprocal tariffs, asserting that they would address trade imbalances and protect American industries. This move involved imposing a 10% across-the-board tariff on imports from all countries, with higher rates for specific nations deemed to have unfair trade practices. ​ 

Risks and Challenges for Retailers and Wholesalers

While the intent behind reciprocal tariffs is to cultivate fair trade, their implementation can pose several risks for retailers and wholesalers:​ 

1. Increased Operational Costs

Tariffs directly elevate the cost of imported goods. Retailers and wholesalers relying on foreign products face higher procurement expenses, which can erode profit margins. For example, the fashion industry, heavily dependent on imports, has been notably impacted. Independent fashion brands have experienced sudden cost surges, leading to financial strain and operational challenges.

2. Supply Chain Disruptions

Reciprocal tariffs can compel businesses to reevaluate and alter their supply chains. Companies might seek alternative suppliers in countries not affected by tariffs, leading to logistical complexities and potential delays. Such shifts can disrupt established relationships and affect the consistency of product quality and availability.

3. Price Inflation and Reduced Consumer Demand

To offset increased costs, retailers may raise product prices. However, higher prices can deter consumers, leading to decreased sales volumes. This price sensitivity is particularly acute in markets where consumers have numerous alternatives or where products are considered non-essential. 

4. Retaliatory Measures and Trade Wars

The imposition of reciprocal tariffs can escalate into broader trade conflicts. Affected countries might respond with their own tariffs, leading to a tit-for-tat scenario that exacerbates tensions and introduces further uncertainties. Such trade wars can have cascading effects on global supply chains and market stability. 

5.  Compliance and Regulatory Challenges

Navigating the evolving landscape of tariffs requires businesses to stay abreast of regulatory changes and ensure compliance. This necessitates additional resources dedicated to legal counsel, customs documentation, and adherence to new trade policies, adding to operational overheads. 

Strategic Responses for Businesses

To mitigate the adverse effects of reciprocal tariffs, businesses can consider the following strategies:​

• • Diversifying Supply Sources

Reducing reliance on suppliers from tariff-affected countries by exploring alternative markets can help in managing costs and ensuring supply continuity.

• • Enhancing Operational Efficiency

Streamlining operations, adopting cost-saving technologies, and improving inventory management can offset increased expenses resulting from tariffs.

• • Advocacy and Collaboration

Engaging with industry associations and policymakers to advocate for favorable trade policies can be instrumental. Collective efforts can influence negotiations and lead to more balanced outcomes.

• • Transparent Communication with Consumers

Educating consumers about the reasons behind price adjustments can foster understanding and maintain brand loyalty. Transparency can also differentiate a brand in a competitive market.

Conclusion

Reciprocal tariffs, while aimed at promoting fair trade, introduce a complex array of challenges for businesses including retailers and wholesalers. The direct impact on costs, coupled with broader economic implications, necessitates proactive and strategic responses from businesses. By understanding the nuances of effective tariffs and implementing adaptive strategies, businesses can navigate this intricate landscape, ensuring resilience and sustained growth in an ever-changing global market.

Preface: “A #2 pencil and a dream can take you anywhere.” – Joyce Meyer

The Story of the Humble Pencil and its Application in Business

The pencil — humble, reliable, and often overlooked — has been a cornerstone of writing, drawing, and creativity for centuries. While it might seem like a simple tool today, the pencil’s history is full of innovation, artistry, and even a little espionage. From ancient graphite discoveries to modern-day mechanical designs, the pencil has come a long way.

Let’s dive into the surprisingly rich history of this iconic writing instrument. The story of the pencil begins in 1564 in Borrowdale, England, when a large deposit of a strange black substance was discovered beneath a storm-felled tree. Locals found that this material — what we now call graphite — was perfect for marking sheep. Unlike charcoal, it didn’t smudge as much and was smoother to use.

People began cutting graphite into sticks and wrapping them in string or sheepskin for grip. These early versions were the forerunners of the modern pencil.

Interestingly, at the time, people thought graphite was a form of lead, which is why we still refer to the pencil’s core as “lead” today — even though it contains no actual lead.

While wrapped graphite worked well enough, it wasn’t very durable. The real breakthrough came in the 16th century when Italian artists Simonio and Lyndiana Bernacotti devised a way to encase the graphite in wooden holders. Their prototype pencil used a hollowed-out stick of juniper wood, split and glued back together around the graphite.

This concept of encasing the graphite in wood quickly caught on and laid the foundation for pencil production across Europe.
By the 18th century, pencil manufacturing was becoming more organized. In Germany, a carpenter named Kaspar Faber began making high-quality pencils that eventually evolved into the Faber-Castell company — one of the oldest pencil manufacturers still operating today.

Meanwhile, in France, the Napoleonic wars created a problem: the British controlled the best graphite supplies. To work around this, French scientist Nicolas-Jacques Conté developed a method in 1795 of mixing powdered graphite with clay and firing it in a kiln. This allowed pencil makers to control the hardness of the core — a technique still used today.

Conté’s innovation was a turning point, making pencils more consistent and scalable.

In the early 19th century, the pencil made its way to America. The first American pencil factory was founded in 1812 by William Monroe in Massachusetts. Around the same time, Henry David Thoreau — yes, the same Thoreau who wrote Walden — helped his father improve pencil production techniques, making high-quality graphite-clay cores that rivaled European imports.

The American pencil industry grew rapidly, especially with companies like Dixon Ticonderoga and Eberhard Faber leading the charge.

The familiar eraser-tipped pencil didn’t appear until 1858, when Hymen Lipman patented a version with a rubber eraser attached to the end. It was a simple but game-changing improvement that made pencils even more useful.

Colored pencils also rose in popularity in the late 1800s, especially among artists and designers. These pencils used wax or oil-based cores infused with pigments rather than graphite.

Then came the mechanical pencil — a refillable pencil with a thin graphite lead that could be extended as needed. First patented in the 1820s and refined over the following decades, mechanical pencils offered precision without the need for sharpening.

Today, pencils may no longer be the primary tool for writing in an age of keyboards and screens, but they’re far from obsolete. Artists, designers, architects, and writers still rely on them for their versatility, control, and tactile feedback. Schools around the world use pencils to teach handwriting. And for many, the scratch of graphite on paper remains deeply satisfying.

Environmental concerns have even sparked new innovations in pencil design — including recycled materials, plantable pencils, and refillable graphite cartridges.

The pencil may be simple, but its legacy is profound. It’s been used to sketch the first airplane, draft blueprints for towering skyscrapers, and jot down poems and plans in quiet moments of inspiration. It’s a tool with a rich history of thought, expression, and imagination.

From a chunk of graphite under an English tree to a sleek mechanical marvel on a designer’s desk, the pencil’s journey is a testament to human creativity — both in how we create tools and in how we use them.

 

Preface: “People don’t simply buy or pick products or services; they pull them into their lives to make progress.” – Clayton Christensen Institute

The Lode of Customer Motivations: Applying Clayton Christensen’s Jobs to Be Done Theory

Understanding why customers choose certain products or services is pivotal for any business aiming to innovate and meet market demands effectively. Clayton M. Christensen’s “Jobs to Be Done” (JTBD) theory offers a profound framework for deciphering these choices, emphasizing that customers “hire” products to fulfill specific tasks or solve particular problems in their lives. By delving into the underlying motivations behind customer decisions, businesses can tailor their offerings to align more closely with actual needs, thereby enhancing satisfaction and fostering loyalty.​

The Essence of Jobs to Be Done

Traditional marketing approaches often segment customers based on demographics or product attributes. However, the JTBD theory shifts the focus to the circumstances and objectives that prompt a customer to seek a solution. Christensen articulates this by stating, “When we buy a product, we essentially ‘hire’ something to get a job done. If it does the job well, when we are confronted with the same job, we hire that same product again.” ​

This perspective underscores that the “job” is the fundamental unit of analysis. By identifying the specific progress a customer seeks in a given situation, companies can innovate more effectively, moving beyond superficial attributes to address the core functional, social, and emotional dimensions of the customer’s needs.​

Unpacking the Milkshake Example

A quintessential illustration of the JTBD theory is Christensen’s study of a fast-food chain’s milkshake sales. The company aimed to boost sales by enhancing the product’s attributes—thickness, flavor, sweetness—but these changes yielded minimal impact. Through the JTBD lens, researchers discovered that many customers purchased milkshakes in the morning to make their long commutes more enjoyable. The milkshake served as a convenient, tidy, and engaging solution to alleviate boredom and hunger during the drive. This insight revealed that the milkshake was “hired” not merely as a beverage but as a companion for the commute, highlighting the importance of understanding the context and purpose behind customer choices. ​

Integrating JTBD into Business Strategy

Implementing the JTBD framework involves a shift from product-centric thinking to a customer-centric approach that seeks to comprehend the real-world situations prompting customer behavior. Christensen emphasizes, “Questions are places in your mind where answers fit. If you haven’t asked the question, the answer has nowhere to go.” This mindset encourages businesses to delve into the “why” behind customer actions, fostering a deeper understanding that can drive innovation.​

To effectively apply JTBD, companies should consider the following steps:​

1. Conduct In-Depth Customer Research: Engage with customers to uncover the specific jobs they are attempting to accomplish. This involves observing and interviewing customers in their natural contexts to gain authentic insights.​
2. Identify Functional, Social, and Emotional Dimensions: Recognize that jobs encompass more than just functional tasks; they also have social and emotional components. Understanding these layers enables the development of solutions that resonate on multiple levels.​
3. Align Offerings with Customer Jobs: Design products or services that directly address the identified jobs, ensuring that marketing and development efforts are aligned with the actual needs and circumstances of customers.​
4. Continuously Iterate Based on Feedback: Customer jobs may evolve over time. Regularly solicit feedback and observe changes in customer behavior to adapt offerings accordingly.​

The Impact of JTBD on Innovation

By focusing on the jobs customers need to accomplish, businesses can uncover opportunities for innovation that might be overlooked when relying solely on traditional market segmentation. This approach reduces the reliance on guesswork and increases the likelihood of developing solutions that truly resonate with customers. As Christensen notes, “Motivation is the catalyzing ingredient for every successful innovation. The same is true for learning.” Understanding the motivations behind customer choices is, therefore, essential for driving meaningful innovation.​

Conclusion

Clayton Christensen’s Jobs to Be Done theory offers a transformative perspective on understanding customer behavior. By identifying the specific jobs that customers “hire” products or services to perform, businesses can develop offerings that more precisely fulfill customer needs, leading to enhanced satisfaction and loyalty. Embracing this approach requires a commitment to deeply understanding customer motivations and continuously aligning business strategies to meet these evolving needs.