A Business Owner With $300K In Debt Wonders If He Should Work Or Delegate Tasks. Dave Ramsey Responds: 'You're Going To Work, My Son'

Dave Ramsey is a financial guru and the host of "The Ramsey Show." He has been helping many callers with their finances and recently spoke with a business owner who is $300,000 in debt.

While it's normal for business owners to pour plenty of time and capital into their businesses, some of them end up with significant debt. A recent caller finds himself in this scenario with his dog training business. 

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This exchange came from an episode on "The Ramsey Show," and you can see it unfold in this video. The caller wondered if he should hire more people so he could spend more time with his upcoming baby, but Ramsey was pretty blunt.

"You're going to work, my son," the financial guru stated in response.

How The Business Owner Got Into Debt

Growing your business is great, but if you can only grow by financing, it's incredibly risky. Those risks can compound if you're not able to make a profit right away, and that’s the caller's current scenario.

Some of his business expenses were unnecessary. For instance, he is a tenant of a facility and spent close to $300,000 renovating it. However, if he isn't able to renew the lease after five years, all of those costs are for nothing. He also spent $30,000 on a van.

The end result is $17,000 in monthly overhead. Meanwhile, the business generated $300,000 in sales and only $40,000 in profits. Ramsey wasn't happy with this turn of events and told the caller that he had to work harder instead of hiring more people and getting deeper into debt.

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Ramsey has mentioned that men leave the house to make money and then return home with their earnings since the start of time. Whether it's corporate executives or hunter gatherers, men have always been the providers, and that comes with sacrifices. Ramsey brought this up to explain why the soon-to-be father should continue to work hard even when the baby is born.

Learn How To Grow Your Business Organically

Ramsey's main gripe with the caller is that he exclusively grows the business by spending money. While you sometimes have to spend money to make money, you can't use that motto when you are broke. Furthermore, there are plenty of ways to grow without getting deep into debt. For instance, you can work on online marketing campaigns and do some networking.

"You need to learn to organically grow your business. Concentrate on getting revenue up without spending any more money," Ramsey explained. 

It takes more time to grow a business organically. However, organic growth gives you profits that you can then reinvest in the business. You can also prove the business concept if you are just getting started. 

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Chip Away At The Debt

A focus on growing the business without spending money can pay off nicely for the business owner. This shift in focus can lead the caller to make meaningful progress toward the $300,000 debt. 

The caller recently downsized his company's staff in response to high operating costs and the $300,000 debt. Ramsey's advice to focus on organic growth strategies can help the caller get their debt back under control while reaching more customers.

He still hires a few people, but doing more of the work on his own can break bad habits and facilitate meaningful changes for his company.

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