The Ramsey Show - App - EntreLeadership Small Business Theme Hour (Hour 3)

Episode Date: March 13, 2019

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Music Music Live from the headquarters of Ramsey Solutions Broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thanks for joining us. We're going to do something really special this hour. I don't know if you know this or not, but 54% of the gross domestic product in the United

States, meaning of all revenues created in our economy, are created by small businesses. Small businesses account for 66% of all job growth. Small business is about as American as anything can get, more so than apple pie, Chevrolet, and baseball. The idea that you can start, dream, and be somebody in this country is still alive and well and we know this because our entree leadership team works with small businesses every day we're going to do an entree leadership small business theme hour if you own or operate or wish you did a small business or work in one and you've got a business question about anything hiring and firing about money about business model about collecting your freaking receivables whatever it

is this is your hour small business men and women we love you. Amen. You are the economy. The phone number is 888-825-5225. That's 888-825-5225. Joining me this hour, a Ramsey personality, Ken Coleman, whoree Leadership Podcast, which is now 7 million downloads a year. Wow. It's a monster. And one of our EVPs, our Executive Vice President, sits on our operating board over all things leadership, which would be business, boutique, and entree leadership. Daniel Tardy joins us as well. Yeah.

Thanks for having me. We're going to bring in one of our EVPs, put a microphone on him, and see if he can answer a question. Oh, this will be fun. This is scary. No. He knows it. We're going to be exposed.

Well, now, that is always possible when you sit next to an icon. He is in the Hall of Fame. You and I are not. I know it happens behind the curtain. He's taking a big risk bringing me in here. It's true. But we've done this before. Yes, we have.

We've done a panel together. Yeah. And it was quite popular when we did one of the Entree Leadership events, the three of us sitting up there cutting up and answering questions. And so Blake Thompson, our producer, I don't know what we call him, C-3PO or something. Emeritus. He's in charge of all things production, says you guys are getting on there together and you're going to cut up and you're going to answer questions and help small business guys. And we can do that.

Yes, sir. So we'll take your questions. Well, welcome, all of you. Thanks for having us. All right. Sarah's in Dallas, Texas. Hi, Sarah. Your question for the panel.

Hey, guys. Thank you so much for taking my call. Okay, so my question for you is how do you work through the barrier of fear and scaling up a cash-based business? We started small. Now we are over seven figures, and everything is based in cash, which is a scary thing to do every month. So your advice, please.

When you say cash, do you mean you're physically handling a million dollars of cash a year, or you're just not borrowing money? We don't borrow money at all. So why is that scary? For us, we do behavior therapy, and we wait for insurers. So insurance payments, anything can be between 60 to 120 days in AR when we take on a new patient. So sometimes we are waiting a really long time for any sort of accounts receivable to come in, and that can kind of be a little scary when trying to plan out the business.

Absolutely. And you're already doing a million-year top line. Yeah. Last year was our first year to break seven figures. Way to go! Wow. That's proud of you. top line. Yeah, last year was our first year to break seven figures. Way to go. Wow, that's proud of you. Good job. Yeah, thank you. Sarah, you're going to have to get there incrementally, so good job.

You're in a really great spot, and it's still going to feel a little bit scary, but the difference between what you're talking about paying in cash and going as you grow and going and getting a line of credit from the bank is you're going to have to become your own bank, and so you got to start each month setting aside a little bit of your profit and build up enough where you can cover that 60 to 120 lag. And then you're not going to worry about it because you can pay the bills, you can pay your overhead, not worry about paying

your team, do some marketing, grow the business, and you're going to pull from what we call retained earnings. And then as you get paid, you're going to put back the retained earnings and cap it off, so to speak, before you bonus yourself out as the leader. So you've got to become your own bank. That's the answer. Yeah, I think Dave's right. There's nothing for you to be afraid of. Daniel's right.

That was Daniel. Yes, but you also said there's nothing. Why are you afraid? You're really asking the question, what is causing the fear? And I think in this situation, it's I'm afraid or we are afraid the money's not going to come in and you're afraid of your system isn't working you don't have a pad that there it is and so when you take the retained earnings that daniel's talking about and then you can fix your system you get a system that works it takes the fear away the fear is of the unknown so how do you

address the fear well we get a system in place we get cash in place and then there is no fear what's the minimum household budget you guys can live on, the two of you? You're both working in the business, right? No, so it's me and my business partner. We've both always taken just a really modest salary. How much? $45,000. Each?

Each, yeah. And what's your profits a year on a million? It's been at least 20 percent um 200 000 so you're taking 90 out that leaves okay perfect that's exactly what you need so run a pnl run a profit and loss statement each month and out of that pay the 45 000 to each of you right annualized okay and then with what's left we're going to call that profit after staff has been paid in your staff. Okay. Sure.

Take a percentage of that every month, the rest of your life and build retained earnings until you just got way too much cash and retained earnings. But that's probably not going to happen because what happened here is we do that and we've never been able to catch up. Right. we do that and we've never been able to catch up right you know we never no matter how much we save we can never get to the three to six months of business operating expenses and so but but we always are putting and the more money we make the more money we put in there we're always putting a percentage of our net profits the second thing i want you to think about, Daniel's exactly right. His suggestion is the answer, and it's the retained earnings issue. The second thing I want you to think about is diversifying your product line where you're not dependent on the government for all your income.

Let's have a private offering as well as a governmental offering that's cash on the barrel head, because you just do not want to have a business where people control you and they're called the federal government. If that's your only product line, that just leaves you so vulnerable to a government shutdown or to some kind of other issue. And you just need, when you've got, you control the controllables and you can't control this one. So you need to diversify your product line and have another stream of income.

Ken Coleman, Daniel Tardy, Executive Vice President of Entree Leadership, are with me this hour. We're the panel answering small business questions. The phone number for your small business questions are 888-825-5225. Entree Leadership, the podcast. Be sure you check it out. Ken Coleman is the host, and we're now at about 7 million downloads a year. It's actually growing pretty fast, probably faster than that. Big-time folks on there like Mark Cuban, Pat Lencioni, Simon Sinek, Craig Groeschel, others.

Be sure you check it out. This is The Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ

to share their major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry. A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills. It's not insurance. It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years, and our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. It's an Autry Leadership Theme Hour with a panel answering your small business questions,

your business questions. Open phones here at 888-825-5225. You can actually get through with your small business questions if you dial right this second. Dial it. 888-825-5225. Joining me is ramsey personality ken coleman host of the ken coleman show and also host of the seven million downloads a year entree leadership podcast and uh you can subscribe to that you can download it you can listen to it

and um business people listen to that every time it downloads how often do we download one of those every monday morning you're going to get a fresh episode. And what is the stuff? What do we cover on that? I know, but I'm going to ask you like I don't know. Yeah, well, we unpack the Entrez Leadership Playbook. It's good for people to know that we actually run on the principles that Dave started this company with and everything from the practical things like hiring and firing and then how do you build culture and things like developing leaders.

The entire way that we run the business, we cover that content. And then many times we'll have a guest on who we believe aligns with those values, those practices. So you're also getting best-selling authors, thought leaders, captains of industry, world championship coaches. If they're a leader or they are a high-performance person, we try to get them. And we're delivering conversations that allow you to get behind the curtain. Yeah, like Craig Groeschel leading probably, arguably, the largest church in America today at LifeChurch.tv over in Oklahoma City. He's on episode number 307 that came out on the 25th of February and talking about the no

feel do the three steps to effective communication. And he leads a large team. He's a world class leader. He teaches leadership everywhere. That's right. And they have these leaders in campuses all around the country and all throughout Oklahoma. So effective communication for a church like that that's structured that way is really, really important.

So he's giving us practical wisdom on what to do. Dustin is in Indianapolis. Dustin, your question for the panel. Yeah, thanks for taking my call. Sure. I have a question regarding, and I've heard you kind of talk around this and teach around this, but your interviews, one of them is a personal mission statement and a budget. And most recently I actually heard you talk about two weeks ago during the Entree Leadership Podcast,

the summary, and how do you ask somebody for their budget without making them feel weird about it? I've had better luck with that with single folks as opposed to married folks. I know that I try to outline it saying that with single folks as opposed to married folks. I know that I try to outline it saying that we want to serve you well by doing this, but it's always a weird thing. They feel like it's a negotiation, like we're trying to negotiate salary at that point, and we're not. We're just trying to serve them well. But what suggestions do you have for me regarding how to ask that question and ask about budgets? Yeah, Dustin, look, it's all about how you set this up. If you come out just with an email and say, send us your budget,

that's not a typical part of most hiring processes. But every step in our hiring process is asking the question, are we going to be a great fit for you, and are you going to be a great fit for us? So the more we know about you, can you live on what we're going to pay you? We want to know that before you start with us, because if you jump in here and you don't have a budget and we're paying you too little for what your lifestyle demands, you're going to be miserable.

And then you're going to quit or you're going to be mad and the team's going to be mad around you because you're mad. And we just want to know that we're compatible. And so as much as we can get to know each other in the, you think about it like dating, we're not going to get married if we haven't had a lot of dates. We get to know everything about you. You get to know everything about us

because we want a great long-term relationship. So you've got to set it up that way and let people know, hey, this is kind of unconventional. Not everybody does this. And it's confidential. We're not going to share it with anybody. But really, we're trying to figure out if what you're getting paid is going to match what you need to live on. And oh, by the way, it has absolutely nothing to do

with our offer to you. The only possibility is that you might get a little bit more out of the offer. But we're not going to offer you less than we would have just because we see you have room in your budget. It's quite the opposite. So it's our job as leaders to care for and serve our team. And we're going to do that job and if this is uncomfortable

or weird to you and you think it's intrusive then that may tell you that you're not a fit because we're not coming at it with a big brother is watching mentality we're not coming at it with a uh an intrusive mentality and you know actually I had one lady send me an email back, and she said, based on your inappropriate request for my personal financial data, I am hereby withdrawing my consideration for employment. And I'm like, well, good, because nobody that works here talks like that. You will not like us here. We don't even use sentence structure and phrases like that.

We don't talk like that here. We would have just said, you hillbillies are nuts. You ain't getting my numbers. You know, now that I could have related to. But know no you're not getting hired so that you know you're looking for clues all throughout the process that this is moving in the right direction or that this is a mistake and as and i think what dana tardy just said was very important you know if you get married to someone and you don't know their numbers, well, you're stupid. And if you go to work for somebody and you don't know their numbers,

well, you're stupid. And by the way, you can ask for our budget if you want. And we're not going to give you the entire budget, but, I mean, you can ask us what the sales are, you know, in this area. You're going to work for Entree Leadership? We'll tell you what the gross revenues of Entree Leadership are. And we can pay our bills. You're worried about that?

That's fine. It's turnabout's fair play. But it's a communication process. Yes, doing unusual things in the interview process is awkward. Absolutely. Yeah, but don't you want unusual people working for you? I mean, you don't want status quo. You want great people to work at a great company.

Well, that's what I was going to say. The leadership lesson here is that, Dustin, just because it feels weird doesn't mean it's not right. It feels weird because nobody else does it. It is weird. You know, it needs to be weird. It feels awkward. Yeah, but welcome.

That's the price of admission. Yeah. Yeah. If you want to lead and you want to lead well, there are going to be moments as leaders you've got to step into the awkward. And I think, Daniel, you nailed it. Just explain the why. And if they don't like it, they're not supposed to be there. Yeah.

And just say, you know what, this is a little awkward. Yeah, there you go. Call it out. Sometimes if you say it, you know, it's like, what was it our kids used to do? My kids, when they were teenagers, they would do like awkward turtle the awkward turtle you've seen awkward turtle oh yeah like the turtles turned upside down on its back and he's awkward and you know it's just awkward turtle moment right and here we go and so listen here's and you joke about here's why we do this here's why we do spousal interview that's right we go out if y'all don't know uh if you want to get hired on our team

the last interview after after basically you're hired i mean you got to screw it up now okay or or something's got to happen you know the holy spirit's just got to ring somebody's bell but but basically you're done and the final icing on the cake is the spousal interview and it's not that we're going to interview your spouse we're just all going out to dinner with your spouse and you know if you're going on work on daniel's team it'd be you know daniel and his wife emily and the four of you just sit down and you just talk and and you get a sense of the air and you look at the spouse and goes this is a fit and the spouse can ask you questions and you get to know the family because by god when you get married you're marrying your in-laws

when you when you bring somebody on the team, the spouse at home throwing grenades in the middle of my business from back home doesn't work. Look, if you're running a small business, you've got to quit worrying about what am I supposed to do in the hiring process. It's your freaking business. What do you want it to look like? If you want to be the best place to work like we are in Nashville, guess what? You can't do what the average companies do. You've got to have your own path. And so you're going to do stuff that's weird.

But the weird thing is you get to be the best place to work, and you've got great people, great culture. That's the best thing you can do. But I think the main thing that Dustin's saying, and I completely agree with him, and I appreciate him asking the question, is just, okay, how do I emotionally process the awkwardness of this? And if you can kind of just get comfortable with it. And here's the other thing. The more you do it, the more you'll get comfortable with it. That's right. I mean, it's like, you know, the first time somebody quit here, it almost put me in the hospital.

I couldn't handle the rejection. You don't want to work here? You don't want to work for me? What? What? What? What? You know, it's like, I can't believe it. here? You don't want to work for me? What? What? What? What? You know?

I can't believe it. I'm so rejected. I just got fired. You know? Because when you quit your job, you just fired your boss, by the way, if you didn't know that. And so, you know, I just got fired as a leader. What happened? And it killed me.

The first time I had to fire somebody, I was almost in intensive care. And it's not that people have become a commodity. I've just lived through it a bunch of times when somebody quits or when we have to let somebody go. And I'm okay now. I didn't die from it. And so it's a lot less awkward now because of reps. There you go. It's a small business theme now.

Entree Leadership. Daniel Tardy, the EVP of that area. That's a treat to have him on the air and answering your questions. This guy is one of our operating board members. Ken Coleman, Ramsey Personality. And me, we're your panel, and you can ask questions. The phone number's 888-825-5225. Jump in while you've got the chance. pay less at the dentist one dental is a company i've been telling my listeners about because i

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Around Ramsey Solutions. We love small business people. You're our kind of folk. You know how to get up, leave the cave, kill something, and drag it home. We're taking your questions this hour in an Entree Leadership Theme Hour. The phone number here is, and the phones are open, there's available lines at 888-825-5225. 888-825-5225. 888-825-5225. Joining me on the panel, Ken Coleman, Ramsey Personality, host of the Entree Leadership Podcast,

the vastly popular Entree Leadership Podcast. You can learn more about it, of course, by downloading it at iTunes or Google Play or whatever else. About 7 million downloads a year of this weekly podcast. Also coming up in just a few weeks at the end of April, April 28th through May the 1st, at the Manchester Grand Hyatt in San Diego is our annual event, the Big Dog. It's the biggest event we do of the year of all the different events we do. It's called the Entree Leadership Summit. It has been sold out for months. Peyton Manning will be speaking, Simon Sinek, Sarah Blakely, the founder of Spanx, her husband, Jesse Eitzler, CEO and entrepreneur,

Carrie Lorenz, the first female pilot of an F-14 Tomcat, Marcus Buckingham, big best-selling author, Dr. Henry Cloud, our friend and leadership consultant, author of the book Boundaries. Patrick Lencioni, founder and CEO of The Table Group. Chris Hogan, author of Everyday Millionaires. Ken Coleman, host of the Entree Leadership Podcast. And moi. Now, since it is sold out, we have an overflow hall that is going to be a first-class experience, not your chinchy overflow hall experience.

It's the grand hall experience. Tickets are much less than if you could have gotten in, but they're still pretty pricey because it's worth it. And you're going to be there in the midst of the whole event. This event is not just occurring on the stage. There's stuff all week, all through the whole Grand Hyatt there. And if you want more information about this, you need to reach out to our team immediately

because the Grand Hall is almost sold out. So text SUMMIT2019 to 44222. Try again. Text the words, no blanks, no spaces, no dashes, Summit 2019. All one phrase. Summit 2019 to this number, 44222. Brad is with us in Chicago. Hey, Brad, welcome to the Dave Ramsey Show.

Your question for the panel. Afternoon, guys. Thanks for the opportunity to run a question past you. Sure. I'm in a small family the opportunity to run a question past you. Sure. In a small family business, we're a distributorship, and we're starting to get to that point in life where we need to talk about transition from parents as owners to hopefully my wife and I as owners, trying to walk through that delicate balance of how do you do that.

There's definitely a willingness to do that, but what's the best way to kind of broach that delicate topic? So we're getting pushed from a few different angles, but how do you deal with that in the most accurate and best way? What do you mean push from a few different angles? Where you hear it from, let's say your bank or attorney or what have you, that it's time to start thinking about this. Well, you know, being all related to each other, you don't really think about it on a daily basis. I know you should, but it just hasn't really come up as a true sit-down. So what's the best way to initiate that sit-down and say, okay, we know we need to do this.

How do we do this and make sure everybody's on the same sheet of music? So it's dad started the business, you and your wife, are there other siblings? There's one other sibling, but it has nothing to do with it. Okay. Do you want to run the business?

Like if you had a choice, is this something you want to do? Yeah, enjoy it thoroughly. I mean, like any small business, it gives you headaches. How old's dad? You know, we just got to do some quick math. Just turned 64. Okay. Oh, you're late.

You're real late. What's the gross revenues of the business? Annual, we average about $2.3 to $2.4 million. 60 team members? Four at this moment. Four? We're keeping a few this year. We went through a couple days of transition.

We're in metalworking industry. What's your business model? Oh, my God. That's wonderful for that gross. What kind of business do you guys have? We're a metal fab tooling machinery distributor. Wow. You've got four people working around the clock then.

Do that much revenue. Well, they're just doing expensive items. We probably work a little harder than we should. So it's high-end custom jobs. You've got high-end custom stuff. Your per order is real high. Okay, good. Good.

Okay. We've got our info. What do you think, Daniel? I mean, you have to broach this. If dad's not initiating this conversation, you got to go out to coffee and go, Dad, this may feel awkward for you. I don't know if you have thoughts or feelings about this, but at some point, if you have in your mind that I'm going to be running this

when you're not here, we have to start this discussion. And Dave talks about this with his kids and us around here. And the idea of succession is not you're ripping this away from dad. And it's emotional for dad. But if you got, you know, the old mile relay where people are running around the track and it's four people add up to a mile and they got the baton where they hand it off. There's a lane where they're running together. And you got to be running the same speed together.

So you have a smooth handoff of that baton. And if you just go, oh, dad's gone, and now we've got to run this thing, the tax implications, legal, money, what does mom think? If you guys haven't sat down and talked through all this stuff and started working on it gradually, it creates a lot of pain, and it happens all the time. So I think you've got to bring it up with dad in a way that honors him as the founder. Hey, dad, you've got a wonderful business you've built.

You're an incredible man. If you grab your chest and as you're falling back into the grave, toss me the you built you're an incredible man if you grab your chest and as you're falling back into the grave toss me the keys you're going to screw this whole thing up now you can say that a little less blunt than that but that's basically what's happening right and that's kind of i think one of the fear is because we've gotten along so well for many years working together yep you don't want to create an abrasive situation yeah i'm not trying to i'm not trying to be ungrateful, and I'm not trying to push you out, but we've got to start talking about this.

You're freaking 64 years old. You're not immortal. Well, Brad, and you're not going to have the whole conversation in the first conversation. I think your first conversation is getting an agreement with your dad that you're going to start meeting for coffee once a month, and over the next couple of years you're going to eat through this together, okay, once a week. But your frequency is a little higher because you're starting a little later. But you can't get it all figured out in that first discussion.

Your first discussion is just to kind of break the dam and get the water flowing and then get out emotionally around the idea that this is going to be a regular discussion you guys are having. And here's you some bait, okay? All the data we have in studying family businesses, including ours, and my personal experience, too, is the most difficult transition is from Gen 1 to Gen 2 emotionally. Right. Because founders, those of us that start something from a card table in our living room, start something from your garage, founders are hardheads.

We are stubborn jerks. We will not be denied. You cannot stop us. We're a bulldozer in a china shop. And that's how we survived, and it's how we grew this. Okay? And it's often hard for a founder to turn loose because their identity is so tied up in what he's been doing all these years. And turning loose of that is very, very difficult.

I teach it, and I'm doing it, but there are moments when people around here take over, including my family, and I feel less important, and I had a strategy to be less important, but then dadgum, the strategy worked. Yeah, you've got to understand that the tension here is what Dave just outlined. He wants it to live on, but it's going to be hard to let go. And I think if you can understand that natural tension, take Daniel's advice when you sit down, Dave's advice on those weeklies, and you do honor, but you've got to understand the psychology here of what Dave's talking about. It's huge. I've got to tell you, man, you guys, you need to be in panic mode.

I don't want you to bulldoze too fast. But by Christmas, you need a plan. Yeah, there's three phases to this. The first phase is emotional. And then the next phase is the strategy and then tactics. So let the emotional thing happen for a few reps here, maybe a couple weeks, two, three weeks. Because Dave's right. It's part of his identity.

And you're changing his identity. You're messing with his baby. And then get to tactics by the end of the year so you guys have a plan and your team's starting to execute against that plan. And dad, if you die this year, what happens to the stock? Am I supposed to work for mom? Right.

You don't have any of this figured out because you guys are not talking about the elephant in the room. How do we get to the elephant part? yeah you just hey dad there's an elephant and we got to eat this elephant a bite at a time we got to figure this thing out and the you know what the good news in your conversation is you and your dad actually get along yeah we like to yeah you like each other you like each other you respect him and i gotta tell you he probably respects you more than you realize.

And so this is going to work. You're going to be able to do this. What we run into too often when we're coaching with people is the family's so freaking dysfunctional and that dysfunction rolls over into the business and you can't do nothing until you get that fixed. Hey, it's an Entree Leadership Theme Hour.

This is the Dave Ramsey Show. Our scripture of the day, Psalm 55, 22. Cast your cares on the Lord, and he will sustain you. He will never let the righteous be forsaken. John F. Kennedy said, Those who dare to fail miserably can achieve greatly. By the way, if you've not seen Apollo 11 documentary in the theater in IMAG, go see it. You will stand up and say the Pledge of Allegiance and sing the Star Spangled Banner when you're done. It's the most patriotic thing I've seen in I don't know when.

I was so proud to be an American. I'm in. It's that good. It was great. It's out right now. It was great. It's a most patriotic thing I've seen in I don't know when. I was so proud to be an American. I'm in. It's that good. It was great. It's out right now. It was great. It's a complete documentary. I've heard about it.

There's no actors. It's the real footage from the real thing. And, of course, we were little kids. You guys were tiny kids or not born or something. We're not going to talk about that. Shannon and I were little kids, and we're both sitting there going, I remember that. I remember that.

And the hairdos from the 60s and the glasses. It's just fabulous. All right. Entree Leadership Summit is coming up. We've got the Grand Hall experience. The Overflow is on sale. The thing has been sold out for almost a year. I mean, it sells out within about a month or two of us launching the next year.

Hint, hint. We're getting ready to launch another one after this. So just be ready with your ticket finger pusher thingy. And so San Diego is April the 28th through May the 1st. Peyton Manning, Simon Sinek, Sarah Blakely, and a bunch of others. I mean, we were talking at the break. This is one of the best lineups on a leadership conference in the world today. If I didn't produce this event, I would go to this event.

I would go. Yeah, this is. So text the word SUMMIT2019 to 44222. The word SUMMIT2019 to 44222. Ken Coleman, Ramsey Personality, and our EVP of the Entree Leadership and Business Boutique Brands, Daniel Tardy, one of our operating board members here, to answer your questions. This is the panel for small business this hour,

the Entree Leadership Panel. Thank you for joining us. The phone number here is 888-825-5225. Phillip is in El Paso, Texas. Hi, Phillip. How are you? I'm doing well, Dave. How about yourself?

Better than I deserve. What's up? Yeah, just really thankful to be on this call. So I work for my dad's business, and I've worked there, grew up working in the shop. I learned most of what I know from my dad. I read Entree Leadership, Profit First, How the Mighty Fall. I listened to all the Ramsey Solution podcasts and all that. And by doing so, over the past few years, I've seen the problems in my dad's business.

I've tried talking with him, inviting him to watch and listen, offering help, not in a cocky attitude, but in a humble way, saying some things need to change. And all I've gotten was a bunch of empty promises. A lot of what I say falls on deaf ears.

I know I'm the kid and the whole potter butt syndrome, but I really care about my dad and his business. How old are you? I'm 26. Okay. How old is dad? And my dad's 58. 50s. Okay.

So this is something I've been praying about long and hard. I started my own business back in December thanks to Ken Coleman. Me and him talked this past fall, and he gave me a little bit of a push, kicking the rear to get going. But I'm not self-sustaining. I guess my question being, do I stay being miserable working for my dad, go full-time on my business, or go find a job elsewhere for the time being. The timing matters, but what's your long game?

I mean, what do you want to do ultimately? Ultimately, I want to do my site business, what I started back in December, doing hand sketches and digital designs of vehicles for customers. Is that a different business than your dad is in? He is in the custom car restoration business, but what I do is sketching it out, doing full color renderings. You make a living doing that? Yeah.

Okay. I'm not doubting it. I just didn't know. Well, Phillip, here's the deal. I don't remember everything I told you that day, but I'm pretty sure that if I told you to start this side business, I also told you that you need to stay where you are until you can step into this as a full-time place. So you have to prove this. Dave's asking the right question.

You do this as a function for your dad's renovation shop, but now you want to go do this for other people. So you have to continue to prove that and do that. And I don't think that you're that miserable that you can't stay there with that. I think what's going on is mentally you're going, I'm tired of this. I'm now doing my own thing, and here's what's happening. So now it's seeping into your heart, and now it's creating a little bit of tension, maybe a slight bit of bitterness because you're going, it's only a matter of time, I believe, before I can step out of this.

And I think what you have to do is step back and say... How much money are you making on this side gig? I started back in December, and I've made about $1,000 since. Yeah, he's in the embryonic stages. Yeah, you're going to starve to death. Well, we'll see. I mean, what do you think you can do with this? I mean, if you went full-time, you'd starve to death.

Oh, yeah, that's why I'm saying stay. I mean, he has to stay. If things aren't that bad think you can do with this? I mean, if you went full-time, you'd start with it. Oh, yeah, that's why I'm saying stay. I mean, he has to stay. If things aren't that bad, you can do this. You know, I mean, I can't tell you, Daniel, Dave, we've all had moments in our lives and seasons where we were kind of putting our licks in, and we were taking the cuts at the plate, and we were preparing. And so this is a situation, if you believe in the side business, you really believe it can be what you're going to do,

then you've got to give that a run before you decide to quit. Yeah, let me tell you, the frustrations you have are not unique to you and your dad's business. Between 25 and 35, there's a lot of stuff here that I didn't really like, but it wasn't my place yet to start influencing how everything worked. And so some of that is just a few more gray hairs, a little bit more season, a little more reps under your belt. And so if your relationship with your father is good outside of work, you don't want to do something that's going to kind of mess that up, right? And if long-term you're not sure you want to work in this business, I would say slow down, be patient, learn, take your dad to coffee and get his advice on life. You got a cool opportunity to get to work with your dad. Maybe he could, I would ask him to coach you on your side gig. That's good.

The only thing I'm having a hard time with that is you know i see a lot of ways my dad is not being um not being a good steward of of the money that he's receiving and that's none of your business okay you're being so judgmental i mean you just slow down dude just slow down, dude. I mean, he's a 58-year-old guy that has raised you to this point. And I don't think your judgment is wrong, but let's pretend this wasn't your dad. It was just your leader, and they weren't handling the money properly. It's none of your business. You're an employee.

I mean, you can look at it and go i think this whole thing's going to go down the tubes i need to look for a job but other than that you don't walk into your boss and go you're handling the dadgum money wrong okay um and i understand that i'm i really do come at it with a with a humble heart because i care about my dad but well that's true but you're holding your dad up to the scorecard that we put out for all these business leaders everywhere on entree leadership and how to run debt-free. If he's not doing that, if he's not bought in, you're not going to push this rock uphill fast enough for it to impact where he's at.

How much are you making for your dad right now? Like what I get paid? Yeah, what do you make? I make net $24,000 a year. Okay, can you go do that in El Paso, Texas for somebody else, the same basic function, same basic role for somebody else? Can you make that? Mm-hmm.

Then you've got to consider that as an option. For the relationship between you and your dad, if you're getting to a point where you can't take it any longer and you can't just man up and finish out until you're ready to step into the side business then go work for somebody else but again you're you're full-time until you can make that that part-time that side hustle a full-time gig yeah i i um yeah i agree i think that and the other thing is don't surprise your dad yeah you know don't don't just walk in one day and go i'm doing the side thing so let So let him watch this side gig build and let him know that that's your dream.

And he may want you to work somewhere else while you're dreaming. That might be a thing. It might be good for everybody. That's a good discussion to have. And if you don't respect your dad as a leader, you've got to work somewhere where you respect your leader. But you're not necessarily going to get them to see the world the way you see it, especially at 26. I'm sorry. There's a lot of life.

You've got to ramp up to this before you start speaking into things like that. We've got 820 team members. A 26-year-old, we don't have anybody working, making 24K, but a 26-year-old that's making entry-level money here is not going to roll into my office and tell me how to run this. I'm 58. They'll roll back out. I would actually like to see that. That would be kind of fun. I wouldn't buy tickets to that. I'm not disrespectful to'll roll back out. Even my... I would actually like to see that. That would be kind of fun. I wouldn't buy tickets to that.

I mean, I'm not disrespectful to our team members. No. But you don't have the chops to sit at that table. That's what it comes down to. That's exactly right. And you've got to get your chops. That's right. And so go get them somewhere else or prove your business out there in the market and then move to that.

And I appreciate your humility and I appreciate that you're being kind and gentle. And I appreciate that you're learning as much as you're learning and how you're aspiring to do that. Do all of that. That's all great. That's all great. Patience. But a little patience with your dad would be an awesome thing right here, a little grace.

For the short term, anyway. That puts, hey, guys, thanks for coming by. This was fun. It was good again. It was a good hour. Really good information. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace,

and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show. This episode is over, but if you heard about a product or service and didn't have a chance to write it down, don't worry. We list everything that is mentioned during this episode in the podcast show notes section. Thanks for listening.