From the headquarters of Ramsey Solutions, broadcasting for the dollar car rental studios, Dave, Ramsey show that is, has taken the place B M w as the status symbol of choice. I am Dave Ramsey your hostess Entreri leadership. We now in the world- is that we're going to talk with business owners, leaders, small most large business, whatever you have, but primarily small business folks and we're going to your questions about running your business, better, the

Numbers, eight hundred and eighty eight, eight five hundred and five five thousand two hundred and fifty entree leadership. Well, we business and business for leadership all over America and have for a couple of decades. An trade leadership is one of the ways we do it. Another thing is called business boutique and that's where Christy right. It has an event once a year that goes with her number one best selling book business boutique equipping women to make money doing what they love. That event with three thousand ladies begins tonight, and it's been sold out for awhile and goes this weekend. It's going to be a blast, I'm looking for, I get to speak, I'm going to look forward to it. We do entreleadership events all the time all over the place. Different kinds of events all to teach support inspire an work with particularly businesses that have a couple of one hundred team members or less an where did,

come from well, I started this business on the card table in my living room and then I realized I had a lot of work to do turns out. Getting people out of debt is like a big job. Me and Jenny Craig got a lot of work to do. And so I figured out I needed some help see I was DOM, though, that I thought, if you hired people, they would work that was dumb. I thought of your hard people, they would care that was dumb and it turns out. You have to hire people that work and hire people that care, or they don't work or care. And I just thought: if you had money and you got somebody that wanted a job and you gave them money to do a job that they would do the job this shut down, my wash and so I had to start out with learning the lessons between thoroughbreds and donkeys. You cannot win the Kentucky Derby with donkey. You,

along with her bread, and so, if you're going to run, you know if you're going to play for the Superbowl. You better have some people that can block tackle and throw the ball. Instead of just stand around discussing the subject in theory, are writing a blog From their mother's basement, Whining about everything and going their way, so people that can scratch and claw and grind and hustle and get stuff done, and that's what we do around here, so I went through the process of putting the right people on the bus, as my friend Jim Collins says, getting the wrong people off the bus on the right people on the right seats on the bus and not to be mean to anybody, but some people thanks in and they should do something else and Jesus name, and so that's what we help them, though, I love him and we want to go find their calling, because if they didn't find it when they were here and so we're kind into the more nice were real, clear to be unclear.

Unkind. Can you imagine that I'm pretty clear yep? and we're pretty clear with each other by the way people clear with me all the time too, it's okay, I'm not mad about that. I just you know. I won't know what the flip is really going on and we're really gonna deal with excellence and get it done. So I figured out that if hire a bunch of entrepreneurs. Entrepreneur. Like me, or we're all a little bit a dd or a lot, a dd we're pretty much got a whole roomful entrepreneurs. That's like trying to nail jello to a tree. It's like trying to herd cats and so I knew I didn't want a whole room, full entrepreneurs, and then I thought well, I'm going teach leadership. Well leadership kinda sounds like management class by a guy who never made payroll in as a tenured professor, and so I couldn't do that either. So we put the two. Together and said we want the energy of the entrepreneur and the polish diplomacy and the honor nobility of the leader put him together, come up with this word. We made up a word, that's what we do in Tennessee. We make up words Trey leadership, and

Put down all the stuff we were doing that was causing us to win, as we grew from ten to forty to one hundred to one hundred and forty. To now almost nine hundred folks on this team, I think we are over nine hundred this week and we went place to work in Nashville, we've done it for one thousand one hundred and twelve times now. Why? Because we're the best place to work in Nashville is well, we went it, and so it's pretty simple it We treat our people unbelievably well and we work our butts off to take care of you guys put all of that in a book which is our super bowl, a book on how we've run this business, how we've grown it from a card table in my living room to where it is today and we now teach business owners from that book. It was a number one bestseller and the book is called oddly enough. Entree leadership we have these wonderful entreleadership summit events that are massive, an very cool we're doing one in May Orlando, May 17th micros coming Daymond John

coming Carly fear, Run Reno's coming cregger shells coming been german Xander cat call. Chris okay, Chris to write, can call me to me: it's gonna be a three four day event: it's will be a game. Changer, it's going to be a blowout. It is a blast. High end view high energy event and I also do a thing called Entree Master Series, which is a week long in a pretty much gives you an MBA, a master's business on the meat and potatoes, the very tactical stuff. Here's exactly how you do hiring here's, exactly how you do firing, here's exactly how contracts, here's exactly how you put a marketing plan together. Here's exactly how you lead your team with goals, here's exactly the difference in strategic on tactical thought. Now you applied to we're teaching one of those week after next November. Third, through the seventh and we're adding a day at the back of it one

today on family business, for those that want to stay over the family, business research we've been doing and there's only fifteen seats. Left of that thing. That's entree leadership, master Series and it's basically sold out like a fifteen seats left for November. Third, in a calm. But it's it it it in. You will leave that thing completely wrung out. This is not you will get motivational stuff, but it is imitate as your brain will be hurting when you leave it's like walking up the water fountain and getting a drink, so my turns on fire hose. It's just it's everything you should have known before anybody, let you open a business and we're going to be all up in your grill and you're, going to go home and do the stuff and then we're going to walk with you and help you do it. So that's what this is and then we're going to talk about. How we can serve you guys along those subjects, if you're a business boutique are your coming in for Christy, and you got a question jump in If you are a small business person,

man or woman anywhere out there, and you want to ask a question about running your business in any park or category a business. That's what this is for. The phone number is eight hundred and eighty eight eight hundred and twenty five five thousand five hundred and fifty two five Dave. I notice that you always refer to your employees as a team member. Why is this and does it help with company morale? It doesn't help with company, around. Unless you treat them like team members, words are powerful. The Bible says out of the abundance of the heart. The mouth speaks: do you really think of your folks as slave labor that you give money to employees or do you really think of them as members of a team that, when we pull We can win the Superbowl. I really think of my folks that way- and I fully expect the lady that supposed to block to block and the guy that supposed to throw the ball through the how we are members of a team. If any one of us does not do our part, the thing falls over. Is it

series of domino's here, working together and show team members depend on each other. Please come late leave early and while they're there and that's not what we, I don't want employees, and so no thank you is that I Ramsey show

business owners. The business you started is growing like crazy. Here's the deal when it reaches a certain level. The next step to protect yourself may be to set up your LLC check out Nevada corporate headquarters. I trust these guys to manage all your business formation and legal compliance needs. Nevada is one of the most business friendly states in the country and you can get a Nevada LLC, no matter what state you're in visit, Nevada, corporate h, Q, dot com to download your free guide about starting an LLC, that's Nevada, corporate h, q dot com. It's an entree leadership team, our taking your business and small business questions, Patrick is with us in Indiana, hi, Patrick

Welcome to the Dave. Ramsey show how you doing Mister Ramsey better than I deserve. What's up? Well, my real quick question so little bit of around several years ago I started a business where I'm teaching Fire fire department super is managers on would be better leaders and how to better manage their their firefighters in their team members. As that, has gone along. I've got a lot of advice from people in similar fields, an I've built. A hello. Are you there? Okay, let me again kept Kelly's motion with you. So I'm sorry, you built off what hi bill. I believe it's I teach fire officers and that in the fire department, so I teach leadership and supervision

our server. I got that and and as is gone along, it's built up and you got it buys from other people and then what and then- but you know I keep money back to in order to develop technology that my emergency five. I guess my real question. Is it that I'm almost worried on how I pay myself? How do I you know how much money to be given back just just to keep for me, how much money are you making in a year top line before expenses before expenses last year? I did about twenty thousand dollars worth of work, so this is a side hustle. This is a side house, all twenty thousand dollars worth of work in Spencer's on that or what range of about ten to ten thousand somewhere there last year was a little it's called, because I had a lot of technological expected in the coming year in the coming year. What do you think you'll have top line? What do you think your expenses will be? I think I'm going to match that. I think I'm going to be between fifteen and twenty.

This coming year. I won't have the technology that I had to buy in the pre storm here. So what is your top line in your bottom line? In the coming year? There are fifty One thousand bottom line, twenty thousand top line. Ok, She hardly have any expenses- okay, cool, yes this is a fairly steady flow, or does it come in big lumps it comes in it's a tough one. You know talking apartments in in the me. So I may have a couple months where a lot of work and some months where I don't have any ok What I would do is you set a limit in the checking account in this business needs its own separate, checking account I set a limit in the checking account that anytime it gets above X, I'm going to take it home. Ok and I'm tell you if it was me based on the numbers you gave me it's probably four or five thousand dollars, ok, and so, when it breaks that plane in a given month, what mount! So, if I got seven thousand in the account I will take to home. Ok, you don't have.

A steady enough flow or enough to put yourself on a straight payment same amount every month. That is a substantial amount when you can put yourself on dollars a month, but that's ridiculous to screw with ok, but it easier to just say everything over five: I'm taking home now when you pull it out of the business, checking account to take it home. That's I set aside one slash four for taxes, yes, and so, if you Two thousand out five hundred in an account for your quarterly estimates: and that leaves you then one thousand five hundred. So you write two checks. One thousand five hundred from my personal account, five hundred for my business tax. Count over here and then once a quarter you're supposed to unless you're going to find fifteen point. Fifty three r fifteen point three, because you Both sides are self employment tax, because the federal government small business, double taxes, so you get both sides of it and then, above that you got your income tax withholding

So that's going to bump you in your area. It's gonna, be it's probably on the under twenty five percent between option to keep you safe one, of whatever you take home, set aside for taxes, and like the rest of it home and look up and you have thousands in there, but I'm going to spend some money on technology. This coming six so I really need seven thousand well, then bump it up a little. If you want that- little retained? Earnings is all that is now you don't have to pay, taxes on that money to at the end of the year by the way. Yes, she will be ready for that as well, but you can enough out of there. If you got five thousand and then pull to over fifty bucks out, if you need to pay taxes on the build it back up, but because you don't get you're, not you're in do not do a c corporation they're horrible for small business so you're an LLC or an S corp or you're so proprietor, any of those. Whatever money is in your business. Account is profit at the end of the year, and so you know whatever your real profit is. Is your real profit, regardless of which account it sitting in a you? Don't

out of that. So even at a business my size, where we're doing two hundred million gross, we set aside a percentage of our net profits every month for our growing, earnings, but I get taxed on it then the year, and so, if I said two million dollars aside for retaining retained earnings this year means I the. Half a million of that and I didn't take any of it home- it's still sitting down here so because again the government loves small business. So, even though I didn't use the money and take it home, I didn't personally consume it sitting here for business use. I still get taxed on it because these people in one every time they say they love small business people just in your mind, yell at them liar: okay, All David is with us in Illinois. Hey David. Welcome to that I've Ramsey show at a great talking to you. You, too, how can I help well first off

okay. Thank you say. Thank you last time I he to you. He actually gifted me. Two tickets in my fiance is in Nashville right now going to the event tonight. Great just wanted to give you a big thank you for that. She's super excited So getting to my question a little bit about my business, I I started a handyman business recently and without knowing it all these years, I have been practiced. Servant, leadership alagon the construction that, although I was running getting the materials and then everything that they needed to do what they need to do. And so with that philosophy. Of course, I came across you and You know we have. We are like minded the with that moving forward. I

pay close attention to what you, especially your open, monologue this afternoon about the kind of people that you hire an in your process for hiring. I've got my foot in the air to hire somebody because I'm ready to expand. I just don't know that first step of where to put my foot down in the kind of where, to start with the home, ok well when you're interviewing them, you have to spend time with them. One hundred and thirty minute interview and hiring someone will cause you to hire bad people right: ok, I used to use the mirror fog process of involved a premier out Hiram, and I Well, let's table common constructions. Yeah I used, I mean if you want to work, I got money, you followed up a mirror you're in you know, and so you end up with this table full of donkeys. And all your time dealing with donkeys kicking each other instead of getting the work done, and so yeah. That's all you hear all day long, you know, and so

after spending more time, it's more trouble to hire good people than it is just higher humans The good news is you don't do it over when I heard did you get to do it over and over and over and over again 'cause you're, always get rid of them because causing trouble stealing or fighting or doing something else right, and when you are good they stay and they want to hang out with other good people by the way there are, like running around with her breast, don't like run around donkeys right and Take your time number one. Take more time, lots of time to come out to dinner. Take him out to lunch, spend time for them discuss it? It'll stop I feel almost like it's absurd how much time you're spending but you're going never heard that saying Mama used to say anything worth doing is worth doing right, the first time F, Hiring is that is that yet there's you know if you short cut it, you get to do it over in by the time you do it three times and finally get one good person, you Davinci

overtime wise to have just done it right, the first time and spent Last thing we do. Is we do a spousal interview. At the end, the last interview we do. We go out to dinner with the team potential team, member spouse and one of ours, our lead, and their spouse in the old days? It was sharing in me an you and your spouse. If you come to work here and informal. We just got to dinner 'cause when people dinner together in there with their spouses. They let down in there like real, when you find out who you're really dealing with and If you can look at him and go, I got bad. Think about this one. If you hear that run share every time she has a bad feeling. Ten grand I go against it, so I just quit doing that.

This is the Dave Ramsey Show

business leaders if you're, not using Linkedin jobs. You are missing out. I Ramsey Solutions, company page on Linkedin, as over one hundred thousand followers that our team communicates our current openings too. We also post on Linkedin jobs, because we know the right person will have an impact on our company for years to come. Get fifty dollars off your first job post at Linkedin, DOT, com, Slash, Ramsey, that's Linkedin, DOT, com, Slash, Ramsey terms and conditions apply an entree leadership team. Our this is the Dave. Ramsey show we're taking questions from business owners, business leaders on eight hundred and eighty eight eight hundred and fifty five five thousand two hundred and twenty five The space with us is the business boutique brand equipping women to make money doing what they love, Christy Right and three

One thousand ladies will begin a conference tonight at a complete sellout and it goes through down into the weekend I'll be tomorrow speaking and hanging out with these. Ladies. Also in two weeks we have fifteen seats. Left, leadership master seer, November third through the seventh and it ends I want to do an ad on you? Don't have to do the add on family business, I'm going to teach all day on family business. The last day with some of the research we've been doing from family business in some of the conclusions we've come to on how to properly do and do and run family in busy it's a lot of fun and of course, the entree leadership summit is the big dog it's in on every may this year, may 17th through the 20th in Orlando Micro, Damon, Jog, Carly, Fiorina, Craig Groshelle Benjamin Zander Kat Cole, Chris Hogan, Christy Wright, CAN Coleman and me plus others. It's a game changer. If you want to learn more about that, most of the Word Orlando to forty four thousand two hundred and twenty two

Orlando to forty four thousand two hundred and twenty two or you can call the Ramsey conscious which team they'll help you with either master series or summit in May the phone number for us here for those guys just triple eight hundred and twenty two piece: eight million eight hundred and eighty two thousand two hundred and seventy three two three in the lobby for business boutique of this week is Renee and Renee's are gonna, be presenting. There is and one of the breakouts- and I has a question ironic, hi Dave it's so great to be. Bring your new building. It's beautiful! Thank you. I am curious. You've been a business owner for decades. I'm there is been natural plateaus in your business and I'm an accountant. So I a get out looking at the numbers, you know gross income net profit, I'm curious on, as you experience plateaus in your

business. What did you do to overcome that? An? What did you specifically focus on? Well, what we've done is it shouldn't? Generally, the business has been wide enough, meaning that there's different areas of high school curriculum, there's financial peace, university, they're, smart dollar for corporate America, there's a whole laundry leadership brand, there's the whole broadcast section, the stuff if you're listening to, and so we've had enough different areas that if one of them gets the flu a little bit the others kind of keep truckin. So it's not as big a thing. What, if one of them it's typically not the whole business, but if one of them is struggling, we dig into it and we just start saying: ok, what are we missing here? What's broken? Obviously, there's a need in the market- or we wouldn't be here today

and how are we not serving our customers, because our belief is what KEN Blanchard says that that profit is the applause. Your customers give you the natural result of helping people. If you make money, if you're wise about how you design your business model, your product lines and so forth, we're not doing it to make money we're going to help people in a way that makes money, and so we sometimes we miss that. So now we have a bad product is on. The pricing is all the way we're delivering it. Everything shifted to digital and smartphones. The way people consume data and content has changed dramatically in the last five years, Adam even podcast listeners. Thirty six months ago, I got seven million now, just to kind of give you an idea how much the digital space is moving in the on demand, consumption of content and and so what we're doing, is we analyze that? Sometimes we find that the that the business has outgrown?

of the team, maybe even the leader or one of the leaders, and it not been unusual that a leader moves or is position or leaves, and we put a different leader and the thing takes off I am amazed at the power of leadership or lack of it in an area. The second thing I found is: is that sometimes it's completely my fault, because I run the freaking place so and for something wrong, it would be my fault by definition, an what that means is that our percent, End of things is not grown enough because I'm the problem with this business, I'm also the solution. So? What am I not growing? What am I not you're standing. Are we doing too much tactical thinking old days? I was just tactical. I gotta make payroll on Friday. I couldn't spell strategic an. I spent all my time now on strategic things getting up above the problem. The tactical stuff is just about all delegated.

From a business perspective here. So what that's saying is is that I had to learn the the functions of the C suite the CFO, the chief people officer, the CMO or chief marketing officer those people start? bring more value than those of us that we're leaving the cave, killing stuff and dragging it in, and so we've done a shift from the tactical over to the c suite in terms of how we function and that's just been how we had to do it to get it done. So it sounds a little technical to answer your question, but it's really what's happened. That goes all the way back, we got to seventy five people- and I didn't have a cfo- and I didn't have an hr director- an I was late. I It's probably several million dollars in revenue and probably twenty five people late at fifty. I probably should've had both of those I didn't know what I didn't know and when I put him in place, it took off again because their functions that they do released. The other people to do their jobs, in other words, everybody

another time doing, hiring now, we've gotten HR director through the hiring and Arbonne go back to work. You know everybody spend all time doing with accounting crap, you don't know it. No, no offense, but If you guys, if people in accounting or doing their work, I don't have to do it. You know- and I spend all my time in there. I can just look at the numbers and see read the tea leaves and see. What's going on, so sometimes functional thing sometimes is leadership things. Sometimes business model things that have caused us to Plateau did any of that make sense. Absolutely one of the things that I've been looking at mostly is investing in my team member specific, specifically, my managers and just pouring out love an opportunity to them. Yeah, and I figured just let it happen. It will grow and flourish, it does I I I do require a return on that investment. I don't mean in a very robotic way or away where I'm treating people like they don't matter People matter, but in other words if I send everybody and we spend some money on cinder by to an event-

and they're going to learn something and they come back and there's no difference. Then why did we do that? You should've just stayed at work. No, you should come home with something you didn't have before another tool in your belt and by the way you ought to use that tool. When you get home and this different people grow personally at different h, and so what we're looking at can you bring the result? And so that is that's what matters is the result in business, and so when I, pour folks. I want to see the result of doing that in a pot investment kind of way, and it's not a thing where I just expect people to just perform. It's just that we expect people to perform thanks for being here this week. Thank you for having me sure, God bless, it's awesome.

Matt is whether it's mats in Florida. I'm at welcome to the Dave Ramsey show Hey thanks for taking my call Dave sure man. How can I help um? My boss has been in business for thirty years. I've worked on form for fourteen and manage the company for the past seven. The plan is to turn the business over to me within the next five. The company is never been on a budget, so I want to know how would I approach him about getting a budget setup without it seeming like the powdered butt syndrome. With him, that's a really good question. I would lay one out: you know enough about it, you're in a position to take over your in a major leadership role inside this company. How many team members here. Um we're a seasonal business. So during the peak season we had twenty five to thirty. Ok, so your office staff, like five.

Yeah, we're we do be service that we go into a warehouse mode in the winter time, yeah, okay and so yeah. Just I would just write one up. What you think it is you're gonna be Runnin Sunday and all the budget is is were predicting our income and predicting our expenses there by predicting a profit. Okay, it's just simply driving by looking up the windshield instead of driving blindfolded, you know, and so then you go if we don't hit these projected revenues. Why. In what has to be true for us to hit the projected revenues, but you can lay out a simple budget and take it into him and go hey when I take over. This is kind of how I'm thinking about running this thing is projecting out our. The news and you, as a motivator and projecting our expenses and using that as a motivator, to keep expenses down. Would you look over this and tell me what's right or wrong with it and just get his advice on how to fix it, and then you right? Why don't we just go ahead and start doing this now once he puts his

stamp on it uhm you might just back into it. That way, you're going to be can you might as well get used to this. Transaction. our scriptures. Today, John one thousand four hundred and twenty seven peace. I leave with you my peace. I give you give to you as the world gives do not let your hearts be troubled and do not be afraid the words of Jesus now Carnegie

if you want to conquer fear, don't sit home and think about it, go out and get busy. No, that very true it's an entree leadership theme hour, Dave weather in Illinois. High Dave, welcome to the Dave. Ramsey show hey How are you doing Dave better than I deserve? What's up great name, you have there, I'm a officially move into the second generation of our business so January one next year, I'll be one hundred percent business owner wow and uh My dad, my uncle identical twin brothers started the business, a nineteen ninety two and they will be just good, move in and sales role and tell they decide they want to get out okay. So so they work for you. Yes, yeah.

We have a great family dynamics, so I'm I'm more worried about moving from a sales team of owner sales people only to a sales team of non owner sales, people just people and not with our last name. So what I know you've uh you're actively working through that you know with your Ramsey personalities and at some point you hired a person to sell, for you what are the things that you feel like set you up for success when you brought sales, blonde, that weren't you and and to properly continue the the the of what you do from a quality standpoint of dealing with people. My guess is that um when it's a family member, You know that they're not going they're going to truth. They're going to under promise over deliver

I go in with the customers needs as the prime concern and then the sale is the natural occurrence of all of that correct and that's your company values which means these are really more like servers than sellers. We tell our people, don't sell. Anybody just serve people and if somebody it's not needed something that we have. Don't some little. You know, and it is you know, and so You ever been to a really good restaurant when you get ready to order something- and you ask the waiter, is this any good and they they go? The truthfully? No, get the other thing, no doubt if you trust that guy forever after that right, and seven whatever else he recommends you just do it because once he told you the truth, your end, you know he's got your best interests at heart and you know it. You know if I ever ask you and I've been to other restaurants. What's the best thing on the menu and they always tell me the most expensive thing you've been there on that.

What is less lost, my trust, all they're, trying to make a dad gum tip and you missed out on how to get a tip for me. The way to get it for me to take care of me. You know yeah, and so you know this is what it is, how Why are people around here? So you have to care about customer, like you own this business, and if you screw people, they tell everybody. And you run your business, your reputation of your business, Trust is really all you got to sell. That's all you're allowed to sell out here and especially in the construction business, where exactly know exactly Stores all over we're not trying to temporarily raise revenues by you, lying we're trying to raise revenues over the long term by having cared for people and an incredibly valuable work and charged less than that where they want to come back to us every single time. Work is excellent. It's on time and its own budget.

And that's what we want to do over and over and over again, if you don't want to sell that, you don't need to work here. And I've had it I've had you know, you know I had one lady The one we could sell ice to Eskimos, I swear to God. She could pick up the phone and get the president on the phone. I never saw anything like it, but the would lie. I mean she just exaggerated you know, one of my leaders said well, she's really good salesman, but she exaggerates. I said. No, she lies, you know and she gets us in trouble. Cousin she's telling people we're going to do stuff or we can do stuff. We can't do. We have to come in here and click. Always run around behind it with a pooper scooper, and I don't want to do that. So guess what she anymore, and so that That's what you're doing you just have to train people that you can get good people that are good? Is your family members in terms of their character quality, and I'm in the seat and then you don't let them have the freedom and the dignity to have

integrity in to do the right thing, for the customer actually suggests that they don't do something, because it's not the best thing on the menu. Yeah. I completely agree with that, and you know you just have to you- have to go through a few to get to that and you're interviewing for that you're, not interviewing for the quote: unquote, closing ratios and their ability to do verbal gymnastics paint somebody into a corner and put a gun in there. In the new, with the walk away like a dad gum time, sure salesman or something you know you don't you just don't want that? That's that's! Just try she and how the way we want to be sold to yeah. It's not warm beach hotel and we treated that way. I don't work with people treat people that way, and I want my company be known that way. So you that stuff, I don't need you. So if you can just 'cause, you can do sixteen verbal back flip you've learned. All these techniques doesn't mean squat to me. Do you love people?

will you serve them with our product line and, if you'll do that you can fit in our team and I can teach you to serve and you you have to learn to sell. You'll, never be pushy once if you serve people that take your products away from you, you don't have to talk him into it. All you get is love on and t and have their best interest at heart It's made me hundreds of millions of dollars. Gus is in Arizona, hey guys. How are you good day, thanks for taking my call sure, what's up? Is it ever appropriate to for business to have a line of credit? We have a very successful business sometimes our clients due to their own industry practices, the ninety days. Ninety days so you got in trouble and that won't you be your own line of credit, quick drying in the profits,

I sold some back and be your own line of credit. That's what I do very good, I got I got- you know the publishing business. They pay us in ninety days and half the time the ship, the crap back at the eighty ninth day, so they can start the ninety day cycle over re order. Ten days later, it's a constant dad gum disaster, publishing substitute business If you do not, however, you're always going to have profit locked into Yeah, it's called retained earnings, but you can't distribute those retained earnings to the you use them to run your business? I've got ians of dollars of retained earnings that are not distributed that are sitting here to cover cash flow fluctuations. Do you didn't turn you do the term problems with vendors and customers, but not,

that's what is so you know you don't borrow into that, because we borrow into that and then that company goes in chapter eleven and you never see your money, not you know what you got yeah well, not going to chapter eleven yeah they do, they do every week, happens all the time. So no, I you need to set aside more retained earnings and hold it into the business to cover that you don't have any man, you guys, are running by string. You learn by thread and when you cash. You got no power. Business cash is power. It gives you stay in power. It gives you the ability to buy the competitor for pennies, on the dollar when they go broke, it gives you the ability to survive a cash flow swing. It gives you a bill to survive a slowdown. He gives you ability to keep your good. Call naphtali I'm off 'cause. You got cash all the time not going into that cash is power and it's retained earnings, and so we set aside of percentage of our profits, every single

to continually grow are retained earnings as our company has grown, and that has kept us in the cash business. We do not borrow money and I'm in a bunch of different business lines that people pay us I got when they want to. I mean and forty seven percent forty eight percent of the hospitals in America. That's called a government account and you know, guess what their payroll is: government further paying bills the government. Sometimes I pay cash on the barrel head with one of their pre pre set things, and sometimes it's been boots before we get our money and they've already teaching our little people are curriculum before we get our money along time, and so it's called retained. Earnings to make that run thanks for the call that puts us our that I Ramsey show in the books will be back 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

This is James Child producer of the Dave Ramsey Show. Once again, you made the Dave. Ramsey show one of the top five most downloaded podcast last year to get your daily dose of motivation and inspiration subscribe. Today, make more money doing what you love check out. Christie writes business, boutique, podcast, precision, firing, inning quipping women to become successful, running their own business, hey I'm Chris, you right, and I help women all over the country, take their ideas and passions and hobbies and turn them into profitable businesses. If you have an idea in your head or dreaming your heart and you've ever wondered if you could make money doing it, I'm here to help Join us on the business boutique podcast, where we are equipping women to make money doing what they love.

From the Ramsey network, including Christie, writes business boutique podcast wherever you listen to podcasts, hey it's, it's producer of the Dave Ramsey show