EntreLeadership - Financial Problems Small Business Owners Must Navigate

Episode Date: July 3, 2023

Today, we’ll hear about: •       A guy who can’t agree with his spouse on what his salary should be from their business •       How you should balance personal investing and paying off business debt •       What to do when you have a team member in a leadership position who doesn’t communicate well with the people they lead •       How The EntreLeadership Podcast has improved the business of a listener in California •       How to decide when it’s worth it to move locations to be in a high traffic area to increase walk-in clients Links mentioned in this episode: •       The EntreLeadership Podcast •       EntreLeadership Elite •       Have a question for The EntreLeadership Podcast? Leave a voicemail at 844.944.1070 or submit your question for a chance to be on the show with Dave Ramsey: https://www.entreleadership.com/ask Start growing in business and leadership with the EntreLeadership Newsletter. Sign up to receive tactical tools, advice and resources in your inbox every week: https://bit.ly/3IRWnsL   Support our sponsors: •       NetSuite •       BELAY •       Payority •       Staples Learn more about EntreLeadership Events: •       EntreLeadership Summit •       EntreLeadership Master Series Learn more about EntreLeadership Coaching: •       Elite •       Advisory Groups •       Executive Coaching •       Workshops Listen to all the Ramsey Network podcasts anytime, anywhere in our Ramsey Network app: https://apple.co/3eN8jNq Learn more about your ad choices: https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy: https://www.ramseysolutions.com/company/policies/privacy-policy Learn more about your ad choices. Visit megaphone.fm/adchoices

From the headquarters of Ramsey Solutions, this is the Entree Leadership podcast, where I take calls from leaders like you about what it takes to win in any stage of business and leadership. I'm Dave Ramsey, your host with over 30 years of experience leading in the trenches right alongside you. If you've got a question you want to ask on this show, you can call and leave a voicemail. We'll make you a caller by calling you back and setting up the call. We don't tell you what to say, but we have to schedule it. phone numbers 844-944-1070, 844-944-1070. Or if you prefer to just leave your question on the form, we'll call you from that and make you a caller at entrell leadership.com slash ask. KJ starts this segment off with Indianapolis, Indiana.

Hi, KJ, welcome to the Entree Leadership podcast. Hey, Dave, it's a pleasure to be on here. Good to have you. What's up? Hey, so I've got a question for you. So my wife and I are struggling to get on the same page financially about how much I should be paying myself. And in a quick little context of this, so started a business seven years ago while in college. First year after graduation, running it, we did $125,000. And my pay was a whopping $12,000 a year. In 2020, found product market fit. And then in 2021, we did $1.1 million. And then

last year just did right over $3 million. We have 12 employees, and we're completely debt-free, and about a fourth of that $3 million was profit last year. But the question revolves around just in the biggest blessing season that we're in. My wife and I are in the biggest financial arguments we've ever had. So she now stays at home with our daughter. I'm a W-2 employee and pay myself around $100,000 a year. What do you do with the other $650,000?

profit. We reinvest it back into the business. Who's we? Our company. You own the company? I own the company, you're correct. Okay. So I reinvest it back in my company.

Yeah. Okay. Why such a heavy reinvestment? I think one of my fears, too, is just like, you know, we caught fire a little bit last year and to ever have to go down and pay. whereas the more cash that we have, the more we're able to take risks. Okay, so last year you made a $750,000 taxable income. That's correct. The year before you made a taxable income of what?

I was about 150. Sorry, about, it's still about a fourth of that, so it would have been $250,000. Yeah. And the year before that was more like $100? Yes, correct. Okay. All right. So why do you not think that a reasonable growth rate, maybe not meteoric, but a growth rate continuing to take what you've got and at least adding something to it every year is not a reasonable assumption?

No, I think that is reasonable. I just don't know what is reasonable. I mean, to me, make $100,000 a year, like running business that I started at 28 years old, I think that's like a dream. Like, I'm surprised that we've done. is making 750. You're not like my life. That's where I have mentors of mine that I said I should be paying myself more, but I just don't know what.

Well, I mean, I don't think what the core of it is, if I'm in your shoes, the only reason I don't want to pay myself more is I don't believe it's going to, it's sustainable. Oh, I think it is sustainable. I think we've found something. Okay. What do you do? What kind of business?

We're in apparel manufacturing, and we manufacture for other brands and retailers, and we work with about 250-O-th-com cross-country. So you've got a really diverse customer base, so one customer is not going to turn this thing upside down? That's correct. Yeah, so a lot of different customers ranging from pretty small volume to – we've got customers that are – I would say probably 40 accounts account for maybe 60% of our business. Okay. One of the things that all of us that love our business and are passionate about being an entrepreneur have the potential to struggle with is our business can, in our wives' eyes, become a mistress. She's probably, I've seen it happen a lot. It actually happened to me as a young guy, too, probably a little jealous that this business not only gets a lot of your love,

and attention, but it also gets a lot of your money. It's almost like a girlfriend. Yeah. It's an obsession. Yeah. And so I think that, you know, there's probably a couple of areas that you need to bring more home. You need to bring more of you home and more money home. And then you've got a sustainable situation.

Because if you, if the home fires aren't burning hot, the business is going to die. Mm-hmm. It just doesn't work. So you don't want to be the guy who has a hugely successful business, and you turn this into a $100 million top line, making $25 million a year profit, and she's gone. You don't want that.

And I'm not suggesting that's happening today, and she's not either. But what we are dealing with is the balance between our ambition and passion and love for what we do and who we do it for. And so I have to look up occasionally and go, oh, yeah, by the way, I do this so I can go be with that wife for 41 years. And that's why we've been doing this for 41 years, because we keep that stuff in check. So, yeah, I think you need to at least double, if not triple your take-home pay. That would be my advice to you.

And I think you need to be careful that you don't look at your phone when you're on a date with your wife. And you need to be careful that the only things you discuss with her don't have to do with the business that you actually have other things that you have in common that you love other than just the business. Because it takes a Herculean amount of energy and emotional and spiritual focus to start and take a business that like you have done. You're amazing.

What you've done with this is very cool. I'm very proud of you. But the amount of focus that it takes is not sustainable. So you have to broaden and go, I've got other parts of my life. I have to take care of my physical body. I have to take care of my spiritual walk. I have to take care of my relationships. And that's the wife in this case that we're talking about.

So, yeah, make sure you're leaving bandwidth away from just business and money to do that. And an indication of that is you're going to take more home of yourself and your paycheck. And I'm not saying stop doing what you're doing. I'm just saying dial it back about three notches. Click, click, click, click. Turn the, turn the knob. Click, click three times. Take home 300K instead of 100K. Have a budget. Take her on a really nice vacation. She has a very successful husband. She's earned it. This is the Entree Leadership Podcast. Thanks for joining us on the Entree Leadership Podcast. We're so glad you're here. We talk about the stages of business all the time, from treadmill operator to pathfinder to trailblazer

to peak performer, all the way to Legacy Builder, where we start talking about succession planning and that kind of stuff. Hey, that's the roadmap, and it's going to help you grow your business. And the six drivers that drive that, this is the Entree Leadership System. If you want to attend Entree Leadership Master Series, we're going to get down in the weeds. We're going to get down in the meat and potatoes and show you every little little. detail of what it takes to level up. This is not theory. We're going to talk about delegation in detail, hiring and firing, in detail, strategic planning, in detail, gathering up all the issues

around culture in your organization, in detail. This is not theory. This is stuff we actually do, and we've actually trained tens of thousands of businesses to do. And there's so much talk about this that we've even added an extra day of the conference. It's going to be the treadmill operator stage. All of these lessons are directly there. So to the legacy builder stage. We've even added an extra day to the conference this year. So it's happening November 5th to the 10th at our headquarters here in Nashville, Tennessee,

Franklin, Tennessee, just south of Nashville, at the Ramsey brand new Ramsey Event Center, the Entree Leadership Master Series. Get your tickets today. Entreeleadership.com slash Master Series. This is the Entree Leadership Podcast. Annie is next in Connecticut.

Hi, Annie. Welcome. Hi, Dave. Thank you so much for taking my call. I appreciate it. Certainly. What's up? So my husband and I operate a car audio business together along with two amazing team

members. Last year, our revenue was around 800,000 with a net profit of about 150,000 before owner's salary. And when we started a program in 2015, the numbers we were dealing with were so massive and hard to wrap my head around that we did two simultaneous debt snowballs, one for the personal consumer side and one for the business side. During that time, we paid off about $680,000 in debt and we've done zero retirement investing. We also put off some pricing medical procedures that we're going to have to deal with soon. Our only remaining debt

at this point is in the business. We have $120,000 left on an SBA loan. And now that we have a personal emergency fund saved up, I'm wondering, do we continue on the baby steps and start investing while balancing, paying off the business debt and building retained earnings, or do we go back to being gazelle intense and just throw a bunch of retained earnings at this and live off nothing to get it finished as quickly as possible? What we teach folks to do in Ontario leadership is to take a living wage out of the business, not to live on, not opulently, but also not starvation. What is that amount for you all?

Um, we need to take home about $6,000 a month, due before tax is probably about $100,000. So your profit is what? Uh, $150. Okay. For last year, I think this year will probably be more like $170 to $200. Okay. So if you pull $100 out, do you still have $170 or the $100 comes out of the $170? The $100 comes out of the $170, so you have $70 left.

Okay. Yeah. I would put you on $100,000 salary then. Okay. And you all run your budget on that. and you do your baby steps at home on that. And if I understood you correctly, at home, you're debt-free. Right.

And at home, you have an emergency fund. Yeah. So at home, you would start saving 15% of your income into your company 401K if you have one or into Roth IRA. Okay. Out of the $100,000. Should include enough to do those basics. That's $100,000. You should be able to do it on that.

Oh, yeah. Okay. So you start paying yourself $100,000. and you work the baby steps on $100,000, and you're at baby step four, 15% of your income going into retirement, some towards kids' college, and any extra towards paying off the house. Have you got a home mortgage, too? We do.

Okay. And then if I understood you're right, you got $120,000 on the business on the SBA. Yes. Okay. So after the $100,000 comes out, that profit, I would split among two things. I would take a percentage of all profits above $100,000 coming to you and put it towards retained earnings and another percentage, a large percentage, towards the SBA. And so that might be like 80-20.

Mm-hmm. That's what we were thinking. Yeah, like 20% of that 70,000, 14,000 would be growing retained earnings. Meanwhile, we put like 50 grand or more towards the 120. When the debt is cleared, then you're 100% debt-free except your mortgage. then I would take everything home after I put the percentage towards retained earnings. Okay. And throw it at the mortgage.

Can I throw another variable in there? Sure. So since we've been paying off debt for eight years, we put off two medical procedures, which are going to be kind of pricey. One is dental work that we've been told ballpark minimum $25,000. And then my husband, who's a technician here, have to get a knee replacement. He's going to have some downtime that's going to affect our revenue. Should I factor that into the equation or just, you know, try to.

Yeah, I think you just factor that in. The knee, I'm more concerned about than the dental. On dental, I mean, we've gotten off a business here for a second on the personal, but what I would tell you there is get at least three different opinions. Okay. Because the dental world is varied in their approaches and costs. to things. Sure.

That's a nice way of saying some of them have lost their dead gum minds. So, yeah, that's, I've run into this before, and there's something emotional about dental, you know, because it's such a, there's pain and there's cosmetics and there's everything else, and so people don't often shop that, and they just take whatever the person told them as gospel. And, you know, I think if you get three people telling you 20, then I'll go with the 20 number. But I bet you don't. I bet you get a very, series of answers. Well, there's more ways. It's one, the skin a cat. You know, and that's, you know, there's a lot of

different angles. Because dentistry has, the technology in that world has evolved, and the ways that they can do repairs and changes to different things has shifted dramatically in the last decade. So, yeah, I'm going to continue to shop that one and then work it into the program. Yeah, work on both into the program. I don't care. But yeah, you obviously need to take care of yourself. And if he doesn't fix this knee, he's going to go down anyway. Right, right. So, yeah, that's the whole process. But, Annie, you guys are doing really well. What kind of business is this?

Car audio. Oh, very cool. That's fun. That's fun. So you feel like it's growing, though. It is. The car market's been really wacky the past three years, so that's actually helped our business. Yeah.

Yeah, it is. Well, I mean, and now that the used car market is recovered, it's going to really help your business. Yeah. Yeah. Yeah, because people don't want to pay, it gets sick of shock with the new car prices. Yeah, again, like they used to. Yeah. We had sticker price for a few minutes there with used car prices. But yeah. Yes. Yeah. So very cool. Well, that's a great business to be in and just stay out there on the cutting edge of the technologies in that world. And you'll continue to grow this. And you guys are smart very well. How many team members?

We have two. Okay. And you've been open how long? 16 years. Wow. Good for you. Good for you. Thank you. Well, good. Keep scrapping. And yeah, get the knee and the teeth fixed as part of your program. I don't care. just, but again, the whole trick and all this stuff is just have a plan and be intentional and execute the plan

rather than feeling like all this stuff happens to you. Right. And you're already ahead of that before you called me. So you're going to be just fine. You're going to be just fine. You're amazing. Very, very well done, Annie. I'm proud of you. Excellent. Excellent. Excellent. Excellent. Excellent work. Good stuff. Good stuff.

Hey, it's businesses like that that are called the American economy. That's a real business right there. Small business is 54% of the gross domestic product in America. People with 200 or less team members. You can talk about your big companies all you want to, but they don't amount to spit to this out of people like her. This is the Entree Leadership podcast.

Hey gang, I'm Dave Ramsey, your host. This is America's best small business podcast. Is it the only one? I don't know. I'm just sure it's the best. It's because it's just covered in humility. That's why. Hey, Entree leadership is all about being an entrepreneur and a leader,

getting up leaving the cave, killing something and dragging it home, making things happen. Nothing moves unless it's shoved, and baby, when things are shoved, you can expect friction. People aren't always going to like what you do. Oh, well, I'm not taking a poll. This is how this works. This is how the people with backbone stand up and run businesses in a crazy butt world like we live in today, in spite of all the weirdness that's out there.

So, thanks for joining us. We're really glad you're here. If you'd like to be a caller on the show, call and leave a voicemail at 844-944-1070. 844-944-1070 or go to Entreeleadership.com slash ask. Okay, we've got a question of the day coming in from Lori at the Entree Leadership, elite team. She is a member of Entree Leadership Elite, which you should be too. You need to check that out. Dave, I got an issue with my general manager. She's a great person with a big heart, but her delivery in speaking to the employees is often not good. She and I have discussed it's not what

she is saying. It's how she's saying it. She can be abrupt and aggressive when she's frustrated. It improves when we talk, but seems to slip back to an unacceptable level. over time. Any suggestions on how to better coach her on her delivery? She's loyal and trustworthy and has been with me for 15 years. Well, I think you lay all that out exactly that way. You've been loyal and trustworthy and been with me for 15 years and I love you and I know you have a big heart. But sometimes you come off like a butt because you're gruff and you're aggressive and you know you do and you take a little bit of pride in it and you need to stop taking pride in it. You think you look tough or mean or something, and you don't.

You just look like you don't have people's skills. And you're going to limit our ability to move forward as an organization, and you're going to limit my ability to leave you in this role. So we've got to work on this. You're going to have to polish it up. And so, you know, number one, what's interesting is, like, I'm pretty gruff and abrupt and right straight at you. But I've earned the right with the relationship to do that.

People already know most of the time that I love them, and I care deeply about them. I'll do anything to help them in their family. And then I can afford to, I've earned the right, I've made the deposits to make the withdrawal of calling them out on their stuff. And the problem is she's doing this and her big heart has not attached to the relationships. If she builds high-quality relationships through the whole place, she can probably be a little bit direct and gruff because they go, well, that's just her style, and she really does love me.

She really does care about me because she's got a big heart. But if they don't know that, then all they gets a butt. And nobody understands that. So that's exactly what I would tell her. That's what's going on. You're limiting our effectiveness. you're limiting the production of the people under you because your communication style has

not matched up with the depth of the relationships you've got. You have the ability to build those relationships because you have a big heart. I know you. It doesn't bother me a bit. But it does bother me that I've talked to you about this and you can't seem to fix it because you're smart enough to fix it. You just didn't care enough. So we're going to work on this together.

I'm going to help you. And every time it comes up, we're going to talk about it. And eventually, both of us are going to get tired of talking about it. So it'll change. Something will change. So let's get on this. I'll help you with it. And every time I hear it, I'll bring it up.

We'll talk about it. I'm not going to ride you, but I'm not going to nag you. But we're going to make a correction here. And we're going to retrain everyone in this place that you love them and that you're going to have a little bit smoother delivery. Yeah. And then if she doesn't, eventually this is going to be a deal breaker because this is a person that's not going to limit the organization's growth

and the retention of your talent, because talent's not going to put up with somebody just being a butt. They leave. They don't tolerate it. It's called a toxic work environment. Hello. Mani is in Modesto, California. Hi, Manny.

Welcome to the Entree Leadership Podcast. Hey, what's going on, Dave? Making it. How can I help? Hey, so my name is Mani, and me and my wife are a owner of a battery company called Modesto Battery, Company of Supplies, and Modesto, California. Cool, like car batteries? Yeah, car batteries, tractor batteries, farm batteries. Cool. ATV batteries.

Yeah, you're in a big farming community there, right? Yeah, we sure are. Yep, we sure are. Yep. Very neat. Yeah, so we did about 2.1 in revenue last year. in the battery industry. And one of the biggest things that really helped me out grow the company

and do what we're doing is you guys, man, on your leadership. What you guys do, what you guys provide, and just practical principles that you talk about. One of the biggest things you say, Dave, I love what you say now, is this is not your regular professor in a college who doesn't have to make payroll.

And guess what, Dave? I got to make payroll every two weeks, man. I got to make sure it's there, and I bust my butt for the team, and I get it back in return from these guys. and I love them all, man. We're juiced over here. Man, well, it's good to be juiced if you're in the battery business.

Mani, I love you, man. You're exactly why we do this show. People like you make this whole economy run, and I'm honored that you listen to this, and I'm honored that we've been a help to you. You're amazing. How many team members did you say? We've got six team members right now.

Okay, and 2.1 million revenue. Yes. That's a lot of battery. man, that's awesome. Yeah, I know it is, man. We have to do a lot with recycling also, so we do a lot of recycling here with batteries to turn them back over and send them back to the smelters

to break them down and break all new bags, make all brand new bags all over again. Yeah. So it's a lot going on. Very good. But yeah, at the end of the day, man, it's just you guys. And I guess one of my biggest things for you, Dave, is when you come back to the West Coast, man,

that's what I want to know. When you're coming back on this side of town? Well, we were over there in Anaheim about three, three weeks ago, four weeks ago, doing one of the wealth building events, but we haven't had an entree event over there in a while. We need to get over there and do one of these entree events over there. Yeah. I went to a 2019 event.

Yeah. You guys dropped in San Diego. I went out there. That was a good event. It was awesome. Up on the aircraft carrier and the whole thing, right? Yeah, that was a, yes, yes. That was a big, big surprise for everybody that attended.

Yeah, over the top. The opening night at Entree Summit is always an over-the-top experience. Well, Mani, thank you for calling in, man. We look forward to having you at one of these events soon, and hopefully I can bump into you in the process, and I love you. I appreciate you being out there. Appreciate you taking care of those six team members loving them,

running a good business there and agricultural part of California making things happen, man. Beautiful, beautiful stuff. Well done. Thanks for calling in. Very cool. This is the Entree Leadership Podcast. This is the Entree Leadership Podcast.

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And we don't need that, but the algorithms need that. But thank you. We appreciate you telling people that very much. And, of course, you can share the show. Click a link, share it to your friend. Go, hey, you got to listen to this leadership podcast. It's a little different. This guy's, he gets straight to it.

So, hey, we're answering questions for real business people. This is not a bunch of freaking theory, as many said. So thanks. Thanks for being with us. Share the show, follow, subscribe the show, leave a five-star review on the Ontario Leadership Podcast. We appreciate it. Jimmy's in Charlotte, North Carolina. Hi, Jimmy. How are you? Dave, I'm fantastic. Fantastic. Thanks for having me on. Certainly. What's up? So we are a flooring sales and insulation company out of the Charlotte area.

This is our third year in business. First year we did about $900,000 in revenue. Last year we did $1.2.2. and we are growing pretty quickly. I've got one W-2 employee that I just brought on, and we've got about anywhere between 9 to 12, 1099 labor periods at any given time. Where I am right now is trying to figure out, do we take the leap and add about $8,000 to $10,000 a month to our monthly overhead and get a nice showroom,

you know, in the middle of town where it's going to get a lot of visibility, a lot of foot traffic, Or do we stay content with where we're at right now? We've got a small showroom, you know, attached to our warehouse, but it's in an industrial setting. So nobody's just happening upon us at that location. Most of the stuff we do is in the client's homes, but I'm thinking we could really add quite a bit of revenue if we were more out in front and people were seeing us driving by. So your business is direct to consumer. You're not working with contractors.

That is correct. Yes, sir. Okay. Most of our work is coming from, you know, realtor referrals, word of mouth referrals, or people just finding us on Google at this point. Yeah. Okay. So you're doing tile, hardwood, and carpet? Actually, everything but tile, but yeah, a lot of laminar, LVP, carpet, hardwood refs. Yeah, the new vinyl. Yeah, okay. Yes, sir. All right. Yep.

Realtors and rehabbers. Realtors, rehabitors, project managers, but then a lot of people, you know, once they're in the home for a while, they're telling her family about it. What is the average price range home you're in? $700,000 to $700,000. Okay, so this is not ultra high end. It's pretty much middle class. Pretty much middle class. We're starting to move kind of closer to that high end range.

We've got a couple homes right now that we're in this month that are between two and $3.5 million homes. Well, the reason I'm asking is if you're going to do. do a showroom, you need to locate it in the neighborhood that you're doing your business in. Yes, sir. Not in the neighborhood you wish you were doing business in. I got you. Yes, sir. So essentially, what I'm struggling with, and I'm just noodling it while we're talking and I'm stalling, is,

here's the quandary, is I'm not sure. Your current model is you have virtually no showroom, and you've gotten it to $1.2 million in two years, and you're going to do probably what? two this year, right? Yes, sir. Yeah, based on this trajectory anyway. And you're doing that in people's homes. I'm not sure you add walk-in traffic or add volume due to a retail location that you add

revenue because of that. I'm not sure it's justified. It feels like the natural next step. I'm with you on that, but I'm not sure we can look up and go, okay, let's say you do two million this year and then you did three million the next year. I don't know how much of that we're going to point and go, oh, it was the showroom. I don't think it is. So a couple of the other flooring guys in towns that I know, or in town that I know, you know, they're saying they're doing anywhere from 15 to 25 extra projects a month from their showroom that are in good locations. And so,

you know, realistically, that's going to bring in another two to three million dollars a year. Well, if it did that, we're there. Yeah. And that's just walk-in traffic. Yes. Just people driving by every day on their way to work and eventually stopping by when they got 10 minutes to take a look. All right. So I guess, you know, my concern, and I've heard of my whole life, there's always been some big event coming up, right?

So I try not to pay too much attention. Oh, crap. I'm not worried about any of that. You're in control. None of that. That's what I figured you'd say. And so that's fantastic. We don't have an apocalypse plan.

No, it wouldn't be in business if you're doing that. But I'll tell you what I would do. I would, I like trying to figure out of way to get this to prove itself. So here's the ideal spot. A quality center with good traffic count in front of it so that you get the eyeballs on the location, which is your goal. with an empty bay next door that you have the first route of refusal on. Okay. And you don't do $8,000 a month.

You do $4,000 a month. And let's try this out. And if you do 10 extra projects, well, yeah, we'll take the other bay down. And you're leasing, you're not buying for sure. And you want to do a 100% accurate. For sure, want to do a shorter-term lease with options for renew. And that's the other obstacle that, I've been running into us. People want you on crazy leases. Five years, I had one on a seven year.

No, I'm not doing a seven year on an experiment. So three to five years, you think it's kind of a three. Now, what they're going to want, they're going to want the tenant buildout amateurized over a shorter period of time. It's going to jack your rent up, but that's okay. Yes. Yeah. And you can, and you can do your own tenant buildout if you can work that out because you're in the business. Right. I think, I think that's the route to go. But, Um, yeah, I, you know, if somebody wants a seven-year lease, they're not a player. That's not your location. Okay.

I wouldn't do that. That was my thoughts. I'll do seven-year leases after I'm already doing 20 extra projects a year because I got this location. Now I'll check that up. Sure, I'll take that risk. Right. Because, you know, I can, I can shut the thing down and pay the rent out of what I made

the first year. Right. Now, 20 extra, you know, project a month is tip is what I would be wanting to look for. Yeah, I mean, whatever, but you see what I'm saying. So it's, you would get there. And I have to be running into this the same way as personal finance with a six-month emergency fund is going to cover everything. Yeah. If we get nothing coming through, correct?

Well, you can cover the whole thing. I mean, you've got enough cash flow into cash flow this rent. If it's just standing there looking at you, you're really not taking on any more overhead than just the rent. Maybe a staff person to staff it. That's right. You know, you got to have somebody watching the floor. But, you know, your overhead here is not substantial unless you tie yourself up into a long-term play. instead of giving yourself an out after the experiment.

But I'd love a three-year with two five-year renewals, options. Okay. And an option on the bay next door. And so I can expand or a first ride of refusal or something like that. And I've done those kinds of things in Growing Ramsey, and they've worked really, really well. So I try to wade into these things and break it down into bite size so I can swallow it if it goes bad. I got you. If it goes bad.

And that's the whole thing. So you're doing really good. But congratulations, by the way. What a great hockey stick revenue chart, man. Up and to the right, baby. Woo! That's how that works. I gotta love it, man.

Very, very well done. Hey, guys, that puts this episode in the books. Remember, better a weary warrior than a quivering critic. Leaders serve. Leaders are active, not passive. Leaders act on principle, not appearances. This world needs more high-quality leaders. So choose to lead.

I'm Dave Ramsey, your host. Thanks for listening. for the Entree Leadership Podcast.