ABOUT 

O'HARA BUSINESS STRATEGIES, LLC.!

O'Hara Business Strategies, LLC. aims "to help clients strategically succeed". The term strategically refers to maintaining attention on the critical issues and trends that impact your business, along with the long-term prosperity of your organization. You can visit our website at:   https://oharabiz.com .

O'Hara Business Strategies, LLC. leverages a multitude of POWERFUL, PROVEN, AND PROPRIETARY STRATEGIES, SYSTEMS, AND SOLUTIONS to transform your business into a "Franchise-Ready Model," as well as becoming the place to fulfill your dreams!

The late Stephen R. Covey, in his classic book, "The 7 Habits of Highly Effective People" captured the strategic mindset with his "Begin with the End in Mind" and "Put First Things First" habits. 

Daniel D. O'Hara, along with his network of associated professionals, is here to assist you in making the right choices for your organization. Choices that sidestep the pitfalls and allow you to stride confidently forward. Choices that enhance your company's stability and facilitate consistent progress toward your goals.

Therefore, we invite you to explore this blog (just scroll down) for concise articles on business subjects and trends, useful internet resources, timeless quotes, suggested readings, and details about O'Hara Business Strategies, LLC.--including the services provided, Daniel D. O'Hara's credentials, and more.

IS YOUR EMPLOYEE TRAINING LIKE A FRATERNITY HELL WEEK?

Reflecting on my college days, I think back to my fraternity's Hell Week and the shared experiences with friends in different fraternities. While it wasn't exactly "hell," it certainly posed its challenges, mixed with some fun, and a fair share of verbal abuse and hazing. I remember how the older members would reminisce about it afterward, boasting comments like, "It made a man out of me!" or "You guys had it easy compared to what I went through." It's reminiscent of those classic tales from parents and grandparents, claiming they walked five miles to school in a blizzard just to get an education. You know the drill!

I thought about this in the context of new employee training in many companies I've advised and experienced.....and some of the comments hearken back to some of those fraternity Hell Week observations! Here is a sample:

• A supervisor overseeing Food Sample Demonstrators chuckled condescendingly and dismissively, claiming she never received any training herself.

• Similarly, another supervisor in charge of tax preparers lamented about the challenges of the past, insisting that their learning curve was steeper and more demanding. 'We had it much tougher and there was much less time to learn it..."

• While modern training methods, including online resources and Zoom sessions, are available, they often lack opportunities for interaction, leaving new hires with unanswered questions. Managers may promise a chance for inquiries during onboarding, but they frequently focus on checklist items instead, dismissing concerns with a casual, "You'll be fine," and a reminder to rely on soft skills, which often translates to a "...fake it, till ya' make it" approach.

• In fast-paced jobs, required online training courses often go uncompleted due to time constraints, leaving newcomers unprepared and frustrated when they struggle with tasks.

• Lastly, organizations that skip formal one-on-one coaching tend to correct mistakes harshly, leading to a culture of fear rather than constructive feedback, as new employees face criticism instead of supportive guidance.

So what is the result?

Yes, a lack of training significantly contributes to high employee turnover. Multiple studies and HR reports consistently show that inadequate, poor-quality, or absent training leads to frustration, disengagement, lower performance, and ultimately, employees leaving for better opportunities.
Additionally, more malicious employees or just highly hen-pecked and frustrated staffers may engage in forms of silent sabotage, if quitting is not an option! Doing just enough to get by, not offering helpful suggestions or insight, having a lethargic or lackadaisical attitude and /or not raising information about critical errors or engaging in pilferage!
Employees who feel ill-equipped for their roles due to insufficient training often experience stress, reduced confidence, and a sense that their employer doesn't invest in their success. This frequently results in them seeking positions elsewhere where growth and development are prioritized.
Key evidence includes:

• Research indicates that 40% of employees who receive poor or inadequate job training leave their positions within the first year.
• 94% of employees report they would stay longer at a company that invests in their learning and development (commonly cited from LinkedIn Workplace Learning Reports).
• Organizations with strong training see higher retention; conversely, poor onboarding or skill development is linked to higher turnover rates (e.g., in manufacturing or general workforce studies).
• Career development and professional growth opportunities (which include training) rank as the top driver of turnover in recent analyses (e.g., Work Institute reports for 2024–2025), often outranking pay or other factors.
• SHRM and Gallup findings reinforce that employees are more likely to stay when offered continuous, relevant training—76% of workers say they're more likely to remain with companies providing it.

So, the bottom line is.......do you want to share tales of "how tough I had it" or do you want employees to add value to your business, provide excellent, well-informed, and hosptiable customer service to your customers, and ultimately making your business more profitable. Treat well-trained employees to be part of your strategic advantage!

*Some content used under Fair Use Rules of the US Copyright Law from Grok AI.

 

7 BENEFITS OF A BUSINESS STRATEGY! 

 

Having a clear business strategy is one of the most powerful advantages any company -- particularly small or medium-sized ones — can have. Think of it as your GPS in a world full of distractions, detours, and dead ends. Without strategy, you're basically driving with no destination in mind, burning fuel on whatever looks interesting in the moment. With strategy? You're moving with purpose, efficiency, and a much higher chance of reaching (or exceeding) your goals.

The alternative to having a clear strategy or mission for your business reminds me of a client I had during my early days as a self-employed CPA, who stated:

"My mission is to make a lot of money..." That sounds appealing, but it is fundamentally flawed on several levels. Essentially, it translates to working hard and accepting whatever comes your way! Sure, that might work for a while, but what happens when it doesn't? I also remember a relative who owned a construction company for many years. His goal was to build homes and undertake remodeling projects! Yet, he found himself doing a lot of concrete work instead, primarily because he had experience in that area and it was easier to secure jobs due to lower competition, among other factors. I firmly believe that a strategic approach would have made a significant difference in reaching his preferred goal!

Being strategic means being pro-active, thoughtful, and disciplined to stick with your strategy! The payoff is doing what you like and are best at...for greater profits, and fulfillment. 

Here are the key benefits that make having a strategy worth the effort:

 

1. Provides Clarity, Focus, and Direction. A strategy answers the big questions:

• Where are we going?
• What matters most?
• What should we stop doing?

This prevents you from getting pulled in 17 different directions. Research shows that companies with clear strategic direction are far less likely to waste time and resources on low-value activities.

 

2. Dramatically Improves Decision-Making. 

Every day brings choices: should we hire this person? Should we launch this product? Should we invest in this marketing channel?

A good strategy acts as a filter — if the decision doesn't move you toward your strategic goals, it's easier to say no (or not now).
This alone saves enormous time, money, and stress.

 

3. Better Resource Allocation (You Get More Bang for Your Buck) Resources (time, money, people, energy) are always limited — especially in smaller businesses.

Strategy helps you put them where they create the most value instead of spreading them thin across too many "good ideas."

 

4. Increases the Odds of Actually Achieving Your Goals. Statistics paint a clear picture:

• Businesses with a written plan/strategy have roughly double the chance of success compared to those without
• Many organizations fail to hit even half their strategic targets — usually because they lack clear execution focus or never created a real strategy in the first place

Having a strategy doesn't guarantee success, but it massively tilts the odds in your favor.

5. Helps You Adapt and Stay Competitive. A good strategy isn't a 50-page rigid document that gathers dust — it's a living framework.

It helps you:

• Spot opportunities faster
• Recognize threats and problems earlier
• Pivot when the market changes (which it always does)

Companies that regularly review and adjust their strategy tend to weather economic storms better and capture growth when others are still reacting.  Strategy is intelligent and wise planning. 

The legendary ancient battle of Cannae exemplifies how strategy can triumph over overwhelming odds. Carthaginian general Hannibal's tactical brilliance enabled the vastly outnumbered Carthaginians to defeat a more powerful Roman force. He devised a plan that featured a vulnerable center flanked by strong sides, utilizing the terrain to create natural barriers against Roman advances. By exploiting the Romans' eagerness, Hannibal lured them into a trap through an envelopment maneuver. This tactic neutralized the Roman numerical superiority by reducing the battlefield size. With their escape routes blocked, the Romans faced annihilation. Hannibal's strategic victory was a masterclass in leveraging terrain and the Romans' own enthusiasm.

 

6. Aligns Your Team and Builds Momentum. When everyone understands the big picture and how their work contributes:

• Morale improves
• Accountability increases
• Internal politics decrease
• Progress feels meaningful instead of chaotic
• Often, increases employee satisfaction, motivation, and morale.

 

7. More profitable.  Last but not least, for business owners, research has shown that businesses using strategic management principles have more profits, sales, and productivity than those without. 

A big reason this is true is because the wise planning associated with developing a business strategy, allows a business/organization to develop competitive advantages compared to competition, focus on work that is most enjoyable to its owners and staff which often is where a unique competence is found. 

Consider the example of a small construction firm that excels in craftsmanship and builds strong relationships with customers, or a quaint family-run Italian restaurant serving authentic recipes from the Old Country in a traditional setting, both may adopt market penetration strategies through aggressive marketing or product development. This approach can help establish business systems that further enhance efficiency and quality, ultimately demonstrating a clear positive effect on profits.

Moreover, being strategic often leads to cost savings, as resources are not overly stretched. Instead, they are concentrated on products and services that align closely with the strategy. For instance, a diverse array of services might be provided by utilizing contractors and consultants rather than employing full-time staff.

 

In short:  A strategic business perspective allows a business to initiate and influence its planning instead of reacting and responding to the market and competition. The bottom line?

In today's fast-moving world, not having a strategy is itself a strategy — usually the "hope and hustle" one. It works... until it doesn't. The companies that thrive long-term treat strategy as a competitive advantage, not a nice-to-have paperwork exercise. At O'Hara Business Strategies, LLC, this is literally our wheelhouse — helping other businesses get this clarity and advantage is incredibly valuable. The businesses that invest in strategy early and consistently usually look back and say: "That was the decision that changed everything."

  

 

Sources used under Fair Use Rules of US Copyright Law:

Grok AI

Concepts of Strategic Management, 2nd Edition

Wikipedia.

 

 

  THE POWER OF THE SECTION 351 TRANSFER WHEN STARTING A NEW C CORPORATION!

In the world of tax planning, a Section 351 transfer is often considered the "Golden Ticket" for entrepreneurs. It allows you to move assets into a new corporation without immediately handing a chunk of change to the IRS.

What is a Section 351 Transfer?

Ordinarily, if you "sell" or exchange an asset (like intellectual property, equipment, or real estate) for something else (like stock), the IRS views that as a taxable event. You'd owe capital gains tax on the difference between the asset's value and what you paid for it.

Section 351 of the Internal Revenue Code provides an exception. It allows you to transfer property to a corporation in exchange for stock without recognizing gain or loss, provided you meet three specific criteria:

1. Property: You must transfer "property" (cash, physical assets, or IP). Note: Services rendered do not count as property.

2. Stock Only: You must receive only stock in exchange for that property. If you receive "boot" (cash or bonds), that portion may be taxable.

3. Control: Immediately after the exchange, the person (or group of people) who transferred the property must "control" the corporation. This is defined as owning at least 80% of the total voting power and 80% of all other classes of stock.

---

Why It’s a Great Technique

• Liquidity Preservation: When you're starting a business, cash is king. Section 351 lets you fund the company with valuable assets without needing to find extra cash to pay a tax bill on the transfer.

• Asset Protection: By moving assets into the C Corp structure early, you're shielding them behind the corporate veil while maintaining their full value for business operations.

• Step-in-the-Shoes Basis: The corporation takes over your "basis" (the original cost) in the assets. This keeps the tax math consistent and predictable.

Why does the IRS allow this tax benefit?

The rationale behind Section 351 is rooted in a very practical "common sense" approach to business. The IRS essentially views a qualifying transfer not as a sale that ends an investment, but as a mere change in the form of that investment.

Here is the breakdown of why the government allows this "tax-free" (technically tax-deferred) handoff:

1. Continuity of Investment

The core philosophy is that you haven't actually "cashed out." Before the transfer, you owned a piece of equipment or a patent directly; after the transfer, you own it indirectly through stock.

2. Removing Barriers to Incorporation

The government generally wants to encourage business growth and the formalization of the economy. Section 351 acts as a "lubricant" for the economy, ensuring that taxes don't prevent assets from being moved to where they can be most productive (inside a corporate structure).

3. The "Wherewithal to Pay" Principle

This is a fundamental concept in tax policy. The IRS prefers to tax you when you have the cash in hand to pay the bill. In a Section 351 exchange, you are receiving stock, not cash.

---

The "Gotchas" to Watch Out For

While it's a powerful tool, it isn't a "get out of jail free" card. You need to be aware of:

• The Services Trap: If a co-founder receives stock purely for "future services" (sweat equity) rather than property, they will be taxed on the value of that stock as ordinary income. Furthermore, if they receive too much stock, it could drop the other founders below the 80% control threshold, disqualifying the entire transaction from being tax-free for everyone.

• Liabilities: If you transfer a property that has a mortgage or debt higher than its tax basis, the difference might be treated as a taxable gain under Section 357(c).

• Double Taxation: Remember that a C Corp is a separate taxable entity. While the transfer in is tax-free, the corporation will be taxed on its profits, and you’ll be taxed again on any dividends.

Summary Table: Section 351 at a Glance

Feature	Tax Implication
Transfer of Assets	Tax-deferred (not taxed now)
Receipt of Stock	Basis in stock = Basis of property given up
Receipt of Cash (Boot)	Taxable to the extent of the cash received
Control Requirement	Must be $\ge$ 80% control post-transfer

An example of the 351 Transfer in reality:

Jim transfers property worth $35,000 to a new C Corporation and also renders services valued at $3,000 to the corporation in exchange for stock valued at $38,000. Right after the exchange, he owns 85% of the outstanding stock. No gain is recognized on the exchange of the property under section 351. However, Alex recognizes ordinary income of $3,000 as payment for services he rendered to the corporation.

In short: The Section 351 Transfer is arguably the most essential tax planning tool for a new C Corp. However, the 80% control rule and the "services vs. property" distinction require very careful documentation.

Source: 

Google Gemini AI under the Fair Use Rules of U.S. Copyright Law BUT reviewed by O'Hara Business Strategies, LLC. for technical accuracy.

ENERGY INDUSTRY SPOTLIGHT: 

A CONTRARIAN VIEW ON THE COST-EFFECTIVENESS OF RENEWABLE ENERGY... 

In the interest of discerning the truth, amidst a prevailing propaganda narrative on given topics, I present "the other side of the story" about the alleged narrative that renewal energy (wind and solar) are cheaper than fossil fuel sources like coal and natural gas in this post....

The 2017 Trump Dept. of Energy Staff Report to the Secretary on Electricity Markets and Reliability, commissioned under Secretary Rick Perry during the Trump administration, provides several key reasons why variable renewable energy (VRE) sources like wind and solar are not considered competitive with fossil fuel-based energy (such as coal and natural gas). The report emphasizes that while VRE has seen cost reductions and growth, this is largely driven by subsidies and policies that distort markets, and inherent technical limitations make VRE reliant on fossil fuels for reliable grid operation. Below is a structured summary of the main arguments from the report.

1. Intermittency and Variability

• Wind and solar generation depends on weather conditions (e.g., wind speed or sunlight), leading to fluctuating and unpredictable output. This results in low capacity factors (e.g., wind typically 25-41%, far below fossil plants' steady baseload performance).
• Unlike fossil fuels, which provide consistent, dispatchable power, VRE creates challenges like the "duck curve" (sharp ramps in net load demand, midday oversupply, and evening shortfalls), over-generation, curtailments, and risks during high-penetration scenarios (e.g., 10-60% VRE share).
• This intermittency necessitates backup from flexible fossil resources (e.g., natural gas combined-cycle plants) for balancing, ramping, and essential reliability services like frequency and voltage support, increasing overall system complexity and costs.

2. Reliability and Resilience Shortcomings

• VRE is non-synchronous (inverter-based), reducing grid inertia and heightening risks of instability, frequency deviations, and blackouts (e.g., references to events like South Australia's 2016 blackout or ERCOT's low wind output periods).
• Fossil fuels offer inherent advantages, such as onsite fuel storage (e.g., coal stockpiles or natural gas pipelines), making them more resilient to severe weather or supply disruptions. VRE lacks this fuel assurance and is location-specific, often requiring remote siting that adds transmission challenges.
• High VRE penetration can lead to capacity deficiencies and operational risks, as noted in NERC assessments integrated into the report, without the steady baseload that fossils provide.

3. Higher System and Integration Costs

• While VRE has near-zero marginal costs and declining capital costs (e.g., solar PV dropped 60-70% since 2009), these are offset by high integration expenses, including expanded transmission lines (e.g., 24,000 miles added in recent years), grid modernization, storage needs, and increased reserves.
• VRE forces more cycling of fossil plants (starting/stopping to compensate for variability), raising maintenance costs ($1.50–$4.80/MWh for gas, higher for coal) and reducing plant lifespans.
• Levelized cost of energy (LCOE) comparisons show regional disadvantages for VRE, especially when factoring in full system costs; fossil fuels like natural gas are often lower-cost in key areas due to shale abundance and easier siting near demand centers.

4. Dependence on Subsidies and Market Distortions

• VRE growth (e.g., 60% since 2000) is heavily subsidized through federal incentives like the Production Tax Credit (PTC) for wind and Investment Tax Credit (ITC) for solar, plus state Renewable Portfolio Standards (RPS) covering 55% of U.S. electricity sales and mandatory purchases under PURPA.
• These subsidies suppress wholesale prices (sometimes to negative levels, e.g., -$22/MWh bids), displace fossil generation, and cause revenue shortfalls for baseload plants, leading to premature retirements of coal and nuclear facilities.
• Without these distortions, VRE would not be economically viable in competitive markets, as it shifts costs to consumers (e.g., RPS adds ~$12/MWh or 1.3% to retail bills) and undermines fuel diversity. Fossil fuels, by contrast, compete on merit without equivalent mandates, benefiting from low natural gas prices rather than policy favoritism.

Aspect	VRE Drawbacks	Fossil Fuel Advantages	Report Implications
Output Reliability	Variable, weather-dependent, low capacity factors	Steady baseload, dispatchable	VRE requires fossil backups, raising total costs
Grid Impacts	Intermittency causes ramps, curtailments, instability	Provides inertia, frequency support, resilience	High VRE risks blackouts without fossil integration
Economic Factors	Subsidy-reliant, high integration/transmission costs	Lower LCOE in many regions, no policy distortions	Subsidies mask VRE's true uncompetitiveness
Market Effects	Price suppression, revenue loss for others	Viable in flat demand environment	Policies accelerate fossil retirements, harming diversity

The report concludes that while VRE can hedge against fossil fuel price volatility, its deployment often increases overall supply costs and reliance on natural gas, without delivering the affordability and reliability of a fossil-dominant system. It recommends policy reforms to value baseload attributes and reduce distortions favoring VRE.

Sources: energy.gov and Grok AI