{"id":1052,"date":"2019-04-30T18:14:53","date_gmt":"2019-05-01T00:14:53","guid":{"rendered":"https:\/\/demo.stagingbeforelive.com\/foundationacs\/?p=1052"},"modified":"2024-07-18T14:40:39","modified_gmt":"2024-07-18T20:40:39","slug":"how-dave-ramsey-is-hurting-your-business-cash-flow","status":"publish","type":"post","link":"https:\/\/demo.stagingbeforelive.com\/foundationacs\/how-dave-ramsey-is-hurting-your-business-cash-flow","title":{"rendered":"How Dave Ramsey is hurting your business cash flow"},"content":{"rendered":"\n

Dave Ramsey and his\nbattle against debt has swept the nation and has rescued countless numbers of\nhard working men and women that have been willing to “live like nobody\nelse so that they can live like nobody else.”<\/p>\n\n\n\n

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Photo by\u00a0Ehud Neuhaus<\/a>\u00a0on\u00a0Unsplash<\/a>
<\/figcaption><\/figure><\/div>\n\n\n\n

The problem is that\nhis tools and techniques are fantastic for the hard-working, nine-to-five, W-2\nemployee that represents a healthy portion of the baby boomer generation. The\ngeneration that is now stuck between undelivered promises of pensions and social\nsecurity and a new generation that entered the work-force understanding that\ntheir retirement depended 100% on their own efforts to save money and prepare\nfor the future.<\/p>\n\n\n\n

These men and women will have to work forever. And\nWalmart can only hire so many door greeters\u2026<\/strong><\/p>\n\n\n\n

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Photo by\u00a0Ray Hennessy<\/a>\u00a0on\u00a0Unsplash<\/a> <\/figcaption><\/figure><\/div>\n\n\n\n

But you are\ndifferent. You chose to breach out into the wild unknown with your own\nbusiness. You eat what you kill and are thriving\u2026or are you? <\/p>\n\n\n\n

It is possible to do many jobs for a healthy profit, and have a healthy-looking business on the outside, but still not have cash in the bank. The problem is Cash Flow<\/a> vs. Debt.<\/strong><\/p>\n\n\n\n

The middle-class,\nand even many of the upper-class, have been raised with the pre-conceived\nnotion that debt is BAD! If you like the tinfoil-hat-wearing direction for\nthings, it is completely manufactured by a small group of people controlling\nyou and keeping you as servants!<\/p>\n\n\n\n

But really, think\nfor a moment about why you want to be out of debt. Is it because you want the\nmillstone off your neck or because you want one less payment each month? One\nless payment that you can now use for a more abundant life, or perhaps to\ninvest and create even more wealth for yourself.<\/p>\n\n\n\n

People like Warren\nBuffet do not see debt as bad, they see negative cash flow as bad. He\nunderstands that a deal that would cost him a $100 debt payment each month is\nwell worth it if that deal brings in $500 a month. You just don’t see him going\nout to buy a new car on the regular because there is no positive cash flow in\nthat purchase–unless he decides to start driving for Uber.<\/p>\n\n\n\n

Let me describe\nquickly the cash flow problem you are having. You bring on a new client and\nthat client is going to pay you at the end of the project. This is called\nReceivables. In the meantime, you still have to pay payroll, vendors,\nutilities, rent, etc., etc. They are not going to wait until you get paid\nbefore they will demand payment, especially the employees.<\/p>\n\n\n\n

You are stuck in a\nsituation where you have extended a short-term loan to your customer, but have\nno cash in reserves to get you by until you finish the project and get paid by\nyour customer. <\/p>\n\n\n\n

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Photo by\u00a0Madison Kaminski<\/a>\u00a0on\u00a0Unsplash<\/a> <\/figcaption><\/figure><\/div>\n\n\n\n

There are solutions for your cash flow<\/a> and they involve debt<\/strong>. <\/p>\n\n\n\n

So unless you have a\nlarge cash reserve set aside and can afford to extend loans to your customers\nfor the duration of the project, you need debt to keep your business going.<\/p>\n\n\n\n

There are several\noptions for the debt, some involving interest only payments, which are very\nmanageable in the interim and really need to be built into your estimate for\nthe customer.<\/p>\n\n\n\n

Regardless of the\ntools you use to fix the problem, it is very important to realize that unless\nyou have a large store of cash you can use for lending, running a cash only\nbusiness, as Dave Ramsey recommends, will kill you slowly. And sadly, the\nbigger the project, the more quick the hurt comes, making it very difficult to\ngrow.<\/p>\n\n\n\n

We can help with you cash flow<\/a>!<\/strong><\/p>\n\n\n\n

Call, text or email me today! <\/strong><\/p>\n\n\n\n

I can help you build your business on a secure FOUNDATION!<\/p>\n","protected":false},"excerpt":{"rendered":"

Dave Ramsey and his battle against debt has swept the nation and has rescued countless numbers of hard working men and women that have been willing to “live like nobody else so that they can live like nobody else.” The problem is that his tools and techniques are fantastic for the hard-working, nine-to-five, W-2 employee […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1052","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t