The Ramsey Show - App - The 3 Rules of Business (Hour 1)

Episode Date: May 5, 2020

Daniel Tardy, EntreLeadership Theme Hour Tools to get you started:  Debt Calculator: http://bit.ly/2QIoSPV Insurance Coverage Checkup: http://bit.ly/2BrqEuo Complete Guide to Budgeting: http://bit.ly/2QEyonc Interview Guide: http://bit.ly/2BuGnZE Check out other podcasts in the Ramsey Network: http://bit.ly/2JgzaQR 

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. This hour, we're going to talk to business people, small business people, people that want to be small business people. We call you Entree Leaders, Entrepreneurs and Leadership Combined, Entree Leadership. If you're an Entree Leader or want to be and you've got questions about business, call in. Daniel Tardy, Executive Vice President of the Entree Leadership Area of Ramsey and Operating Board Member as well,

sits here with me today during this hour to answer your questions. So small business questions are open right now. We are big fans of small business. We are small business. Daniel grew up in one. I grew up in one. We both run one that has grown slightly larger than a small business, but still relatively small compared to the big dogs out there.

And we have been working with small businesses now for decades helping them and in the middle of this coronavirus suppression the shutdown of the economy many of you are facing some unique opportunities and some unique challenges and sometimes they're somewhat the same so we're taking questions from business people this hour. Leadership questions, business questions, startup questions, close down questions. The phone number is 888-825-5225. That's 888-825-5225. You know, Daniel, what's interesting is under our listening audience with 600 to 7 radio stations and about right at 10 million people, just between 9 and 10 million on podcast, some of those around the world, obviously, and another million on YouTube, under those signals, there's several different things going on.

I mean, we're in Tennesseeessee and we're back to work our office opened up on monday our thousand people are back in here from uh the work at home to do that now and um and uh in in most areas of tennessee the restaurants are starting to open at 50 capacity and today the bar tomorrow the barber open, which doesn't bother you or me. You and I are in great shape on that. But we are tired of looking at our shaggy coworkers. We have some shaggy coworkers, James. But anyway, in other areas, it's still completely shut down. So we're talking to business people out here right now that are in varying degrees or varying phases of how this thing is playing out in their lives.

And they're in different industries. Some industries are booming. Well, here's what I'll say about this, Dave. It is right that everybody has a different experience and are in different phases of how they're experiencing this. But I've been reflecting on what it is that causes us to feel angry or sad or upset with how all of this is going. And, you know, the difference between our expectations and our experience is what causes all of that.

You know, we didn't expect all this to happen coming into this year. But what's cool about business owners as a, you know, as a stereotype and a positive, I say that in a positive way, business owners don't have a new experience that's hard and then lower their expectations to live inside that experience. They figure out how to create a new, better experience in spite of the odds. Yeah. And so across the board, small business owners in this country right now, whether they're coming back online in a physical sense or they're trying to still adapt and get scrappy,

they are solving problems and they are showing up for their customers however they can do that right now. And that's inspiring. Yeah, it's everything from a restaurant selling, you know, meat. We've been buying from a local restaurant meat out the back door that's perfectly legal to do that. That was not black market. But they've never done that before.

A great local steakhouse. And this week they quit because they're going to need it when they reopen, right, as they're reopening. So the $10 fillets are gone. I can't get them anymore. But I sure have been buying a bunch of them and eating a bunch of them. And so help support them and plus it's a great deal and we you know we've been we've been at home cooking and uh you know the ramsey's gathering and those kinds of things so it's a different you know we at ramsey at our company we've gone through the the first month of the

whole process where we are 45 days where we working from home but also where everyone else was at home universally and we had to figure out ways to serve them in that situation and we've launched a bunch of products this month that we did not intend to launch this month to offset the losses in revenue in areas that just disappeared and and it's worked well what's cool about that is we've shown up with a lot of those launches just not trying to figure out how to make money, but just how to serve our customers and doing a lot of free things. But what's happening is there's so much engagement on that stuff. We're going to look up in a year from now and go, whoa, that's a line of business. Now we innovated something we invented, we gave birth to a new thing. And, you know, that's the nature of business. You, you experiment

with something, you get it out in the marketplace and let people chew on it and they like it. And you keep doing more of it and you figure out how to kind of monetize that over time. And that becomes an entire line of business. And you also figured out what doesn't work. A lot of you are trying to make debt payments on your business. It's killing you. And a lot of you had absolutely no cash position at all. And it's killing you. And you figured out those things don't work. And so you've got to pivot away from that as you come out, and you go, never again will I be caught deeply in debt and no money. Well, Dave, talk about this a little bit, because we don't want to rub it in your face

and say, told you so. No. But we have been preaching and living this for years, not just in personal finance, but in business. When we teach business owners, it's not special debt because it's business debt. The same principle of the borrower is slave to the lender applies in business. And it's a wake-up call. And we've been talking with our leadership team about how our message has been validated in this. Again, we're not trying to put ourselves up and say, look what we, but in a sense, if you haven't been listening to this, this is the time to lean in

and apply these principles. Well, even if you, you know, it's not a told you. When I went broke, the people that said, I told you so to me, they weren't helpful. Right. But the ones that said, okay, what'd you learn? So that you don't never go back. Do a CSI on this. Do an autopsy on the patient here. Okay.

Why'd you go broke? What did you learn? What's your takeaway? And my takeaway was the people that were telling me that I was crazy for going that deeply in debt were right uh that was my takeaway and i and it wasn't that they said i told you so but it was like yeah i get it now a man with an experience is not at the mercy of a man with an opinion i got it i'm gonna do this and game on so open phones for businesses this hour daniel tardy joins me from the Entrez Leadership team. And listen up, guys. We're doing something new. Speaking of the new things we're doing, we're hosting a free digital event series called Entrez Leadership Summit Unlocked.

Entrez Leadership is one of the premier business events in the world, premier leadership events in the world. It's going to help you stay fueled up. Each Thursday during the month of May, we're going to release an Entree Leadership Summit talk for you for free. This Thursday is a talk I did a year and a half ago, prophetically, called Market Disruptors. How you're either going to disrupt the market, you're going to ride the wave of disruption, or you're going to be crushed by disruption. We are sitting square in the middle of a market disruption. We're going to have Marcus Buckingham on next week. Henry Cloud on the next week.

Pat Lencioni on the next week. Completely free. Make this a priority. It kicks off May 7th. Along with the videos, we're going to send you a free discussion guide that you can download completely free to RSVP and get the team discussion guide for you and your team each Thursday. You can text the word right now, UNLOCKED, to 44222. That's UNLOCKED to 44222.

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Joining me is Executive Vice President of the Entree Leadership area of Ramsey, Daniel Tardy, also Operating Board Member. And in addition to the Entree Leadership Summit Unlocked events, the next four Thursday nights, or Thursdays, rather, which you can get free completely, we are having the Entree Leadership Summit. It will be July the 15th in Orlando. And if you want to come, we would love to have you. There are still a few tickets available. And, yes, it is on uh just in case you're wondering it's on it was originally scheduled for may and we pushed it out to july at

the request of gaylord and still at the exact same place it was gaylord and all the tickets transferred but we still have a few tickets available we did at the point before he even before the transfers and so um love to have you come out. It's going to be an incredible, incredible event. It's got Dr. Benjamin Sander, famous YouTube talk. He is the conductor and director of the Boston Philharmonic and an incredible talk. Chris Hogan, of course, Christy Wright, King Coleman, Carly Fiorina,

and Mike Rowe is going to be there, and Coach Holtz. Coach Lou Holtz, everybody's favorite. And Damon John from Shark Tank. And Damon's going to make it. Yes. I didn't know if he made the transfer. Yes, he did. Good, good.

Damon John from Shark Tank as well. So it's going to be quite a lineup, and it's going to be at the Gaylord Resort there in Orlando. And, man, these events are very important. It's a lot more than just sitting and talking at you for a few days. You get really, really involved with other business owners, and lifelong friendships evolve, and questions are answered. And if you want information on that, just give us a holler here at Ramsey or click on EntreeLeadership.com, either one.

Just call 888-22-PIECE, and our guys will hook you up. 888-227-3223. Scott's going to start us this hour in California. Hey, Scott, your question for Daniel and I. So my wife has an idea to go around to different child care centers and preschools doing enrichment classes as sort of a side hustle, I guess. And so I think we just don't know what we don't know about how to set that up. She does have the business boutique book, but I think we're just looking for some guidance about how to not assume

that it's all going to work out and not assume that it can't work out. That's a good starting point. That's fun. Have you guys done any type of business ventures before? Is this kind of your first little on-the-side thing? This will be the first thing. Okay. And it sounds like the goal is just to maybe generate a little extra cash at this point.

Are you guys wanting to start a business that grows up into a big business, or is this just, like you said, a side hustle? Just a side hustle. Okay. Yeah. Well, I would just say you guys are on a great path there. When you say enrichment, I assume your wife has some expertise or background in the type of stuff she would be bringing in in the service? Yes, that's correct.

Okay. Give me a little more on what that looks like. Well, so she's been a preschool teacher for more than a decade, and we're having our second child so she just wants some more flexibility with schedule what would she be teaching the kids at the daycare art classes music classes um things like that okay all right cool do you have any do you know anybody else that's done this uh kind of we're new to the area so i i suppose we're trying to use the proximity principle, but since we don't know that many people.

Yeah, I'm saying anywhere. You're in California. You know anybody in Kansas that did it. So you get some pricing models. I'm sure I could find somebody. Yeah, we've got to figure out how to price it, and then we've got to figure out how to get them to buy it, and then we've got to figure out how to deliver it, right?

Yeah. Yeah, Scott, the things that Dave's asking you about right now are, they're benchmarks in the stage that we would just call validation. You want to validate that the market's there. You want to validate that the product or service, the way you guys would offer that is going to resonate with that marketplace. And then you want to be able to sell it and hit your financial goals and do it in a way that's a win for you guys. It's a win for your customers. So absolutely validate this through. Is anyone else doing this or something like this? Get online and look around the country and you can kind of steal like an artist, if you will,

on a business model and go, oh, look, someone over there in Kansas, like Dave said, is doing that. Maybe we could look at that and set up our pricing structure similar and our services, because you don't have to start from scratch. If somebody else is doing it, you're going to do it in your way, but you can borrow in that sense. And then I would just start calling around directors of these programs and see if your wife can come in and try it. We're going to do a free trial and just get your wife in the daycare and give them an experience and get them raving about it and then follow up with ways that you guys can charge for that service ongoing. But I would get a lot of phone calls to a lot of facilities and get their directors on the phone and get just activity going and maybe spend a month doing that beating the

streets and then you figure out how you start making an ask after you've kind of worked out the content and the model. Yeah, the very first one, I would just do a free trial and get in there because whatever you think you're going to do is not going to work that way uh your prototype is always just that it always gets broken and remolded and redone so when she goes in and the way she interfaces with the director she may discover oh it's not the director of the room makes the decisions on these things it's the so and so okay uh and here's the way the kids are reacting to this and i've got to do this at this time of day i can't do it after lunch i I've got to do it before lunch or whatever.

You're going to learn a whole bunch of things that you thought you knew and they were wrong. And that happens every single time we launch a product line here at Ramsey. And then you do remember the three rules of business. It always takes twice as long as you think it's going to. It costs twice as much as you think it's going to. And you're not the exception. Those are the three rules of business. That's all there is?

Only those three? Those three right there. You're making it too hard. It's not too bad a launch scenario, because I always think I can do it faster, and I've done it a thousand times. I always think I can do it faster than I can, and I always think it's going to make more money or be more profitable or cost less or whatever than it does, and it never works out the way I think I'm going to, and I think i can beat the system and i'm i can't and so i've just kind of relaxed

into the rhythm of activity go out there bust into the door hit something you'll learn something yeah you just shake it up but you don't assume it's going to take longer and be less productive and then get apathetic and go well let's just slow slow play this thing no no no intensity no but my point is don't be disappointed my point is don't think it's going to work the and then get apathetic and go, well, let's just slow play this thing. No, no, no. You bring the intensity. No, but my point is don't be disappointed. My point is don't think it's going to work the first time the way you think it's going to work. It never comes out exactly the way you think it's going to. Michael is with us.

Michael's in Tennessee. Hey, Michael, welcome to the Dave Ramsey Show. Hey, thank you, oh guru of finances. I so wished I had been on your plan when this epidemic hit, but I was not. I have a question about purchasing a turnkey business that is a food truck. I'm doing a catering truck. I have been doing that for six years, like a coffee wagon, or some people call them a gut truck. I've got a chance to buy a real productive, top-notch food truck here in town, the guy's in his mid-70s and retiring,

would you suggest going to a private bank or trying to do one of these small business government loans? Neither. Yeah, I would suggest paying cash for it. Cash would be great. Okay. If I had it, I would. I mean, it would put me in debt about 90 grand. Yeah, for a truck.

No, I'm not doing that. For a turnkey business that's doing about six digits every year. Okay. Profit or top? That's the top line. That's the top line. You haven't taken food costs and labor out, and you haven't taken risk out, and you haven't taken out the fact that this guy's an entrepreneur,

and so his numbers are blown up. Right. Well, and the fact that there's nothing. Well, yeah, he showed me the actual documentation on that. Mike, his numbers may be great, but it's a truck with a grill in it, and he's making food that he can buy from the same place that you buy your food from. You're not getting anything in this brand. It may be a good brand.

In fact, if it's in Nashville, I might have eaten there, and I might have a little bit of a gut from the – what did you call it, a gut truck? A gut truck, yeah. Dude, pay – This is a hot food truck, right? Like, it goes to carnivals and fires. Yeah, yeah. Okay, well, look.

There's food trucks all over every town. You can do that. You can buy a – save up the cash, buy your next truck. If you want to launch a new brand or a new style of food or whatever, you already have all the intellectual competency that you need to run a business like that. There's nothing that special, especially worth going $90,000 in debt to acquire a business like that. Michael, you started the call with, oh, guru, I wish I had listened to you. Remember that part of the call? I remember that part of the call. Please don't go into debt to buy a business.

Just take your time, save up, and pay cash for it. If he wants to do a deal with you where he finances the business for you and you pay him a percentage of the profits, nothing else, until his money gets out. In other words, if he wants 90 grand, I'll give him 50, 60% of the profit until I get to 90 grand. I would do that deal, but I'm not going to sign a note. I'm not going to borrow money for a food truck. It's a really good way to go broke. Ask the people that are sitting on the sidelines right now, broke. This is the Dave Ramsey Show. Folks, since you're spending more time at home these days, why not make the most of it? Now, I know not everyone has the means to do a full renovation,

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Go to Blinds.com to take advantage of this week's special offer rules and restrictions apply It's an Entree Leadership Theme Hour. We're talking with and for and to small business owners. Fifty-four percent of the U.S. economy is based on the GDP. The gross domestic product is based on small business production. And they've been particularly hard hit during the coronavirus crisis, the coronavirus shutdown, the coronavirus suppression. The good news is they will be some of the easiest and first to come back. Small business people float like a butterfly, sting like a bee.

They get her done. And so we're big fans, always have been. We are one of you. We are entrepreneurs. Daniel Tardy joins me this hour, Entree Leadership Executive Vice President and Operating Board member here at Ramsey, as we take your questions about small business. The phone number, 888-825-5225. Santana is with us in Tennessee.

Hi, Santana. Hi. Thank you for taking my call. Sure. I have, okay, we have three businesses, three small businesses, and they kind of go hand in hand with each other. We have a diesel repair shop. We have a trucking company that does over-the-road trucking. And then we have several rental properties.

So we have three different businesses. Each one of those businesses has debt. So there's loans that go along with each one of them. And then my husband and I have personal debt as well. I just started listening to you in February and then I just finished the financial piece just here recently with the hope offer that y'all are offering. My question is, we don't, I don't know whether to do a budget for each business because those loans are tied to those businesses. And then also we don't, we don't have a steady amount that we pay ourselves. I don't even know if we're supposed to be paying ourselves,

but for those personal debts as well, I want very badly to make a budget and stick to the budget so that we can get out of debt. I just don't know how. Okay, that's cool. This is great. Well, the thing is... It's a mess.

Yeah, yeah. The thing is you don't have any business debt. 100% of your debt is signed for personally. So as far as the law is concerned, it's all personal debt. You've got it categorized as business debt in the way you're treating it, and that's fine. But there's no rule that says that the trucking couldn't pay off the repair place or vice versa okay now what i would do is i take your rental properties and i would make them a baby step six if you've been studying our stuff those are just personal rental properties you have debt on those i would treat

those in baby step six the other debts how much debt on the repair shop a lot how much uh i don't know i just i just started listening in february and i've been trying to write down everything i don't i don't have all the numbers together okay who runs the shop um i do the bookkeeping um but i i don't have a degree or anything like that my husband wanted to start the shop. He worked on the road for 13 years. So if you were going to guess, how much would you guess on the shop? Probably property in all, $400,000. How much of that is property?

About $250,000. Okay, I'd put that $250,000 with your rental properties. That's real estate debt over in Baby Step 6. And so you've got $150,000 in miscellaneous debt on the shop, roughly. Okay, how much on the, I guess you got a truck debt on the over-the-road trucking, right? Yes. How much debt is that? It is $67,000. Okay, so you've got $200-something thousand roughly in debt, not counting your real estate and not counting what you've got at home. Does that sound right? Yeah.

Okay. And how much debt have you got at home, not counting your home? It's probably about $25,000. Okay. All right. And what did you pay taxes on? What was your income on your tax return last year? The income was actually a loss. Okay. Then how did you guys pay bills at home

if your businesses were a loss and didn't make a profit? I don't know. It came out to be like $4,000 of loss. Loss. What was your revenue on the businesses before you paid your expenses? How much income between all three businesses? On the shop, it was about $600,000 gross. The trucking actually was just started here recently, so that was not on last year's tax return.

Here's what you need to do. You need to sit down with one of our endorsed local providers and get the books straight. Because if you're the bookkeeper and you don't know the numbers, that's a problem. Yes. Okay. So we need to be able to take each of these situations and say, okay, the business, even if you combine them all, you look at them as separate departments. We've got the trucking department. We've got the repair shop department.

We've got the trucking department, we've got the repair shop department, we've got the real estate department. And out of each of those departments, the reason you were showing a loss on your tax return is the depreciation on the trucks, on the equipment, and on all the real estate, plus some of your expenses. So you really did take some cash home, and I'm going to guess and say it's under $100,000, though, that you actually had available to take home. But you really need to get straight on what cash these businesses are producing, real cash profit, not counting depreciation, in other words. Okay. In other words, the repair shop runs and it pays its bills. What's left? Okay. And then the trucking business runs and pays its bills.

What's left? You may find that you want to close the trucking business and run the repair shop. You may find that. If it's the trucking business and run the repair shop you may find that if it's if it's not profitable you need to do that because you need to concentrate on where the money is coming from and then make that money then you can start to run once you've got good a good set of books then you can start to determine what is reasonable to try to take home to pay my bills at home and to um pay pay out begin to pay off that 25 000 but you got 200 something thousand to pay off that $25,000. But you've got $200,000 to pay on these other two things.

There's plenty of money to throw that direction at the business. Well, and there's a lot of money coming in. One of the nuances in business is you don't want to sell everything just to get out of debt if selling the thing causes your business to shut down because that's your source of revenue. So Dave's exactly right. You want to get real numbers so that you know what you're working with. Then you want to work on getting your profit margins up. Okay. So if you operate at a loss, we don't want to stay there. We want to get your margins up and you guys are going to pay yourself a modest salary for a while until your profit margins are

really rocking. And you can pay yourselves $80,000 a year and apply everything we teach in personal finance and start paying off the personal debt through that $80,000. And then over here in the business, while you're getting your profit to increase, you're not paying yourself a bonus. You start paying off the debt, you get the healthy margins, and then you can pay yourself the $80,000 plus a bonus based on the profit. And that's where your gravy can come from as a business owner later down the road. Here's what I want you to be looking for. I want you to be looking for what in the shop is most profitable and try to grow that area of business what has the best margins and uh because

over the years of coaching santana i don't think this is the case with the numbers you're giving me they don't i don't believe so but i have run into people who, if they paid themselves rent on the shop, because you own the building, enough to cover the mortgage, or what market rent was if you were just to be a renter, that the shop actually ends up not being profitable, meaning the only thing that's profitable is a piece of real estate. I've run into that situation. I don't think that's the numbers in your case though i think you're running too much top line unless you're just mismanaging

your expenses to no end to not have good profit coming to the bottom on 600k i'm going to guess and say you're probably making 100 but um minus depreciation could get you down to a four thousand dollar loss because you got a truck to depreciate that you bought and well you bought that this year so that wasn't in there but yeah but your point is revenue is coming in so something's working in there yeah and you just need to maximize that thing that's working. Well, you bought that this year, so that wasn't in there. Yeah, but your point is revenue is coming in, so something's working in there. Yeah. And you just need to maximize that thing that's working. Well, as long as you're not bringing in $600 and spending $700 to do it. So you need to cut expenses or maybe raise your prices a little bit and get that margin up.

That's the thing. Find the sweet spots in the business, and then let's work on growing that area of the business. Or every time that type of business rolls in the front door, then you're smiling because you know it's got good margin. And it's a way you can serve your customers well, obviously. So that's what I'd check on. That's what I would do. You're really going to have to get on top of your numbers, and that's going to help you solve a whole bunch of these issues.

You need to know what your debts are, what your assets are worth, what the income is, what the expenses are, what the net cash flow is, and then what the net profit is. This is the Dave Ramsey Show. Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts. I don't know about you, but I'm not a fan of traditional belts. They never fit right, and they're uncomfortable. Grip6 belts are unique.

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It's an Entree Leadership Theme Hour here on the Dave Ramsey Show. Daniel Tardy, Executive Vice President of Entree Leadership, joins me this hour answering your questions. If you haven't heard, we have an event this coming July called Entree Leadership Summit. It is a massive event, 2,000 to 3,000 people. It is one of the premier leadership events. Some of the premier teachers and speakers on leadership in the world are there. Mike Rowe will be with us this year. Damon John from Shark Tank.

Ramsey Personalities, Ken Coleman, Christy Wright, Chris Hogan, me. Carly Fiorino will be with us. There will be several others speaking. All kinds of breakouts, all kinds of opportunities to interface with other leaders from around the world, literally. There are some tickets available if you'd like to come. It's July 15th in Orlando. It is absolutely going to be a blowout. And truthfully, some of you are going to need some, you're going to need your tank filled back up after going through this.

You're going to need some emotional support. You need church after this and uh we're going to be uh from a business perspective laughingly saying we're holding church right uh don't be confused if you're a christian like me don't get all offended you get offended about too many things so well dave you bring up a good point you know if you're not a event person or a conference person and you're thinking i can just read another book or I'll just watch everything on YouTube. Here's the thing. There's so much great content out there for free, but content does not cause transformation. It's the teaching, it's the experience, and it's the community with like-minded people who are dealing with the same challenges you have,

the same fears you have. When you can get kneecap to kneecap, maybe six feet apart this time, but you can sit down with people who think like you, act like you, and have the same desires that you have in life, and you're wrestling through some of the same content from these world-class teachers, you become a different person. You become the type of leader that your team deserves that builds the type of company that impacts your entire marketplace in a whole new way. Yep. And tickets are available on trereeLeadership.com. Check them out. The other thing we're doing is free.

We're taking some of the speakers from past Entree Leadership Summits, and we're going to give you one a week on Thursday for the next four Thursdays. This coming Thursday is the first one. I'll be the first one. A talk I did on marketplace disruption, and boy, are we in the middle of that. Then Marcus Buckingham, nine lies about work the next week. Henry Cloud, desired future the next week. Pat Lencioni, the advantage of organizational health the next week.

And he's not talking about medical health. He's talking about mental health. And each of these you make this a priority it kicks off may the 7th you and your team can watch these we've cleared this with these this with these speakers these are usually our contract doesn't allow us to do this but we've checked with each of them they've given us permission to play this for free uh entree leadership summit unlocked what you do is you text the word unlocked to 44222. There's already 15,000 people signed up for this. So it's going to 15,000 businesses. So this is a timely thing. It's

information you're going to need, and it's completely free. Well, I'm glad you said this, because if you own a business, this is the kind of thing you should have the day cleared and sit down with your leaders and maybe your whole team and watch this stuff together because it's going to be, you know, better than a staff meeting at a box. I mean, it's these guys teaching to you and your entire team. So plan for the whole team to attend. Text the word unlocked to 44222. Jessica's in Ohio. Hi, Jessica. Welcome to the Dave Ramsey Show. Hi, Dave. Thanks for taking my call. Sure. What's up? So I own an aesthetic salon, so it's lots of waxing and eyelash extensions. And my question for you is, at what point do I just stop the bleeding and close my doors permanently?

When there is no hope that it will turn around using logical, critical thinking skills. Okay. So how was business before the corona shutdown? It was doing well. This is my busy season. I'm getting a little concerned. My busy time is typically between right around spring break through June. That's when I'm the busiest.

That's when I make the most of my money. Okay. Do you think that people will come and do that, they just are going to do it later, or you think you just missed it? Maybe eventually. I'm not sure. I'm just afraid to keep hemorrhaging money. And we have no back-to-work day in Ohio.

And God forbid this were to happen again. Everyone rolled over so easily. I don't suppose that's going to happen again. I, you know, the finger, the pulse that we have, uh, on the nation with our contacts and the people we're working with all over the nation, I don't think the government will be able to get us to do this again. Um, and so I, I'm not worried about that part of it. What I am worried about is how quickly you can get back to work and how far you're hemorrhaging. So how, how much are you losing now a month?

I just cut everything that I could when he didn't put us back to work. So I had to get rid of all my marketing team and all that. So right now it's right around $1,000 a month, you know, just rent and utilities. Are you single? Yes. Okay. So what are you living on? I had a little bit of savings. I'm also working 40 or 60 hours a week just at an essential job that I've had to take on.

Great. You are a rock star. I'm inspired. So how much are you making at the essential job that's temporary? Like nothing. $12 an hour. So it's barely getting me by. But you're getting 40 to 60 hours. Can you feed the $1,000 and feed yourself?

Kind of. Well, yeah. If kind of works for a month or two. I mean, what's great about, you know, and Dave was asking you how was business before, your business model has not been broken. You still have a great business. You still have a great reputation. You have a great customer base.

I think Dave and I would not be included in this kind of customer base, but it sounds like you're providing a great service. You're not the target market? I don't feel like. You know what she's talking about. She's talking about waxing before you go to the beach. When's the last time you waxed before you went to the beach, Dave? But the point is, all the ingredients of your business are still sitting right here.

And if you can hang on, and you're holding your breath underwater, and you're doing a great job doing it by getting a side job and everything else, I think in six to eight weeks, you're going to be back in business and rebuilding. There was nothing wrong with your business when this happened. See, if your business had symptoms of its own, right, it was already struggling, then that's a different thing. And so the only question is when Ohio opens up and then how quickly your customers will return after that. And I honestly think they're probably going to return fairly quickly. As soon as they can get comfortable without the fear issue, if they get comfortable in coming into your building and having the procedures done and so forth, then I think it's going to come back.

Here's an example, okay, similar to your business. We talked to several people that own barbershops or beauty salons. Obviously, they've lost an entire month of income. No, they really haven't. Because there's going to be a line around the block as soon as they open up with all these shaggy people standing at their door. Right? So some of the money that they would have made in april they're going to make extra money in may because of that if they open in may

as an example and i i don't think yours is quite as much of a pent-up demand on that yours is more of a luxury where a classic haircut for so many shaggy people in my building right now is more of a necessity. But I think the pent-up demand is still there. I think some of your income, your April income is going to show up as extra income in May if you were to open in May, as an example, or June, or whatever the date is. So if I'm you, I'm going to hold on because there's no reason here for you to give up and walk away. Yeah, and just depending on how compliant you are, I guess you could start an underground, you know, come to my house. Speakeasy. Bikini waxing service on this. Yeah, I don't know.

These are things I don't know about. These are things you don't know about. And never want to. Yeah, this is things I'm just looking at you as you're throwing this idea out over the airwaves here. Yeah. Well, there's haircut speakeasies popping up everywhere. I hear rumors. But again, you and I would know nothing about that. I got razor blades. That's working for me. Yeah. Well, there's haircut speakeasies popping up everywhere. I hear rumors. But again, you and I would know nothing about that.

I got razor blades. That's working for me. Yeah. All those clippers I bought at Walgreens are doing just fine, and they have for 20 years now. So, yeah, some problems we don't have, but it's still a fun business discussion. I'm sorry you're facing this, and I'm sorry that your governor's not giving you any more insight. Where there is no vision, the people perish. He needs to tell you what the flip's going on. But the trick is, I think your customers will come right back as soon as you can get open, and I would hold on if I could. This is the Dave Ramsey Show. In the middle of these uncertain times, Ramsey Solutions wants to give you some hope. For the very first time ever, we're giving you Financial Peace University free for 14 days. Go to DaveRamsey.com slash hope so you can watch from home.