How Can We Open A Business Without Going Into Debt?

How Can We Open A Business Without Going Into Debt?
Nix the guesswork and scrolling. We’ll connect you with investment pros we trust: bit.ly/3hc6Pgt
Visit the Dave Ramsey store today for resources to help you take control of your money! goo.gl/gEv6Tj
The new Borrowed Future uncovers the dark side of the student loan industry and exposes how the system is built to work against you.
Watch Now: bit.ly/3j9FOLl
Did you miss the latest Ramsey Show episode? Don’t worry-we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: kzbin.info...
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
kzbin.info...
• The Ramsey Show (Full Episodes): kzbin.info...
• The Dr. John Delony Show: kzbin.info?...
• The Rachel Cruze Show: kzbin.info...
• The Ken Coleman Show: kzbin.info...
• The Christy Wright Show: kzbin.info...
• EntreLeadership: kzbin.info...

[@AfroMomVanlifing]

They are going to start the business with the savings. She called to get confirmation from Dave, didn't get it, still going to do it.

[@Musicienne-DAB1995]

Well, I don't know. She sounded like she was more on Dave's side in this whole thing.

[@yoshit9819]

Yup

[@citylights3452]

Doesn’t concern you

[@yoshit9819]

@@citylights3452 no it doesn't. But since they put it out there it's open season for comments and opinions. No matter if it's none of our concern

[@dungeonmaster6292]

They'll probably thrive and prosper

[@nic_ccc3366]

Agree with Dave. They don't seem ready to do this yet, pay off existing debt first before even thinking about borrowing for a business. My husband and I have a small business (also in the health field) and we didn't borrow a cent.

[@lynnebucher6537]

Starting a new business means your income starts at zero or nearly zero, and startup expenses are huge. They need to not be in debt at that time. Good thing is those first years of losses can be offset by income from other work, which can drastically reduce their taxes

[@larryhawes8295]

But I want everything RIGHT NOW. How do we get everything now Dave!

[@Indyzato]

Seems like a good question….and a good answer.

[@georgewagner7787]

My aunt and uncle had a successful childcare business but sold it when people were falsely being accused of abuse. They borrowed to start a candy store and it failed. My poor aunt was still working full time to pay the loans when she passed at 80.

[@creeksidechiro]

I built my practice from scratch. It can be done. It took along time but I paid for everything in Cash. We bought our X-ray with cash. It feels like an impossible journey but I have always been debt free in practice and it makes the ups and downs easier to handle. Get after it you can do it!!!

[@cannednolan8194]

Congratulations. When she talked about the X-ray machine I thought why buy that at the start. I got mine done they sent it to my chiropractor. He doesn’t have on. He starting said it’s about getting people in the door. He moved to an established clinic and said it was a waste of time cause he was expecting to take over. But the guy just kept working and he was not getting clients cause there was four other clinics on the same street. Where his office is he’s one of the only ones in a the down town are. Said it was good cause it showed his wife that they should just keep at it cause moving to a high end area didn’t add anything. But if they are in real estate they can find a nice location.

[@commonenglishmistakes4360]

Whether it seems impossible or improbable while paying in cash, the odds get much worse paying interest by taking credit. If you have no money, debt makes it worse. If you have money, debt isn't necessary. Aside from a mortgage there is no good reason for going into debt.

[@jimroscovius]

Good call. She's a typical young person - "I want it all and I want it now. " In case you haven't heard it before - slow and steady wins the race.

[@cathy3701]

Pay off the debt first. We have owned our business for 17 years & you cannot imagine how long it takes to be profitable.

[@Fc9ers]

how long it take you?

[@cathy3701]

@@Fc9ers we did not take out any debt so we were profitable within the first year. But there are so many ups & downs in our industry that it took us a few years to understand the flow of our business & to plan accordingly. That is why Dave’s advice of not going into debt is so important.

[@todd2456]

This is the first time I've heard them say to put away the 3-6 months of expenses BEFORE paying off the debt.

[@Jayjay-311]

I think he may have only said because of her uncertainty about her next career

[@todd2456]

@@MeloFloww he's never said that before

[@iamjessie.b]

The new guy actually said that… if you notice immediately after he mentioned that Dave tried to correct him by saying I’ve never changed my principles and never will … I think new guy misspoke.

[@todd2456]

@@iamjessie.b Dave confirmed it later saying to have the emergency fund in place before paying off the debt. At 4:46

[@r.rodriguez4991]

I think he just misspoke.

[@j.m0ney133]

Starting a chiropractor business is expensive but they make $200K a year. They should be able to grind and save up for the business in cash over the next 3-4 years.

[@b.cdrisk2035]

200K before taxes

[@tracygaluszynski1868]

There's inflation Bozo.

[@newconservative7357]

Needed to hear this, thank you Dave!!!

[@mountainsriversandtrees1474]

"You cannot borrow your way into prosperity..."

[@DemetriPanici]

Building a business from the ground up is hard

[@jamalshanti]

Very hard, depending on the type of business it will take time and effort to reach those goals

[@alinatamashevich3354]

Most businesses are built that way!

[@nathanarant6465]

Fancy seeing you here :D

[@angelsilva7287]

Chiropractors can make good money just doing dot physical exams it’s like 20 min total and they can charge 50-100 and get a ton of business

[@00Noontide]

She knew Dave would say no, but still gave it a shot. :)))

[@plants4thewin]

She mad at Dave, 🤣. Dave, thats not what she called in to hear! 🤣

[@charlesg7926]

I own a business that makes over $1.2 mil a year. I started my business with less than 500 dollars, and my business grew as I made more and more money. If this caller needs to put a huge amount of money into the business before they ever see a sale, *then it’s probably not a marketable business* !!

[@alinatamashevich3354]

Wise advice Charles!

[@gzfashions]

What kind of business?

[@GD-tn3ez]

@@gzfashions he probably paid off his house and works at Walmart.

[@matthewgardner2144]

Are we the same person? I started a business for $500 and sold it for #1.2MM. Very little debt going along, except for owner-financed acquisitions. Happlily retired at 57.

[@charlesg7926]

@@GD-tn3ez It’s a blue collar business. Won’t say more than that! Don’t want competition, LOL

[@stephenshapiro8404]

Is this caller about enthusiasm or greediness? Glad Mr Ramsey advised her with the tortoise and the hare lesson. Slow down to speed up.

[@StarDustMoonRocket]

I went from $5k capital investment from personal savings to 8-figure annual sales, and never borrowed a dime. Business thrives when you can make your own decisions. When you're beholden to others, you stifle your growth.

[@johndone8045]

In house x ray,.., thats a ton of investment U wont cash flow it The. Time to save up does. Not worth delaying opening am. Office

[@kingberry100]

Started my first business about 5 yrs ago wholesaling cellphones and related electronics. Invested those proceeds into crypto and stocks, have a little over half a mill currently. No debt, no loans, just time and cash saved up

[@zenthegeneral]

Open a business when you can afford to open it without borrowing money for most of it. Work on business foundations that you can work without spending money. Brainstorming, research, saving, networking, studying for certifications, training, etc

[@jaylaarmani3697]

Save and budget your amount saved into different aspects of the business.

[@EagleTwo758]

Pay off debt before starting a business sounds like a great plan. What's so hard to understand about that eh

[@toeknee5565]

Am I missing something? Why on earth did he tell her to set aside 30K for an emergency fund and then throw 100K at their debt? He mixed up Baby steps 2 and 3.

[@sidwhiting665]

Probably because she's losing her job. I have heard him before say "when you anticipate a steep loss in income, push pause on the Baby Steps and pile up cash." It's rare, but I have heard it for income loss, birth of a child, and other major life events. It's a temporary thing, and then once she gets a job again, he'd likely say then it's time to throw everything at the debt.

[@mariaharris1179]

I will 💞 not open any business right now because you don't know what is going to happen right now because everything can shot down again 🤣

[@Musicienne-DAB1995]

You never know what will happen. Starting a business now and surviving economic uncertainty could be a good sign for the future, provided you don't carry debt.

[@DaveM-FFB]

Don't borrow money to start a new business! They already have a successful business (real estate). Just expand that. Maybe get a broker's license? Get that student loan debt paid off!

[@dungeonmaster6292]

Don't pay a dime on student loans. Nobody else is

[@Essentialoils4ujess-weagle]

My chiropractor has a small office with no fancy equipment. And she’s busy! He can start his own business.

[@jimroscovius]

Yes, after getting out of debt.

[@kvgolfa]

Dumb advice. I'm a dentist. 400k student loans. Bought a practice for $800k as soon as I could. Now I make $700k a year. Otherwise I'd be stuck making $200k forever

[@onyx9857]

I started my practice using debt.

[@theforeignerinamerica1817]

Pay off debt and then worry about starting a business. Once your debt is paid off, you can spare some money for a business loan. Do not overload with debt because it will kill your finances!

[@autistic-lutheran-carnivore]

Starting a business with debt should earn someone an F in a Business Finance course because unless you have a crystal ball or a time machine, you have no idea whether the business will make money.

[@sblijheid]

@Andrew Schnick Debt is treated like the normal course of business in any business finance course. They only concern themselves with how to balance it sustainably over time. That's what the term "finance" means in business finance.

[@LordLoMR2]

With any business it’s a gamble. I’ve seen people go in huge debt and were depressed for 3-4 years, but now they are multi millionaires. I never took risks and I’m still a corporate cog - getting paid peanuts. 😂

[@christian15213]

Never spend your core money more than 25%. You put skin in the game but you never give up the kitty and that's for buying a house or a business or a car. No corporation or smart business person operates buy paying cash for everything. Things might not work out and you need to be prepared for that. But, if you manage debt the best you can and work on building your business successfully and be very cautious about taking on any additional debt then you will be ok. If you fail, you'll fail probably in the 1st year to 2 / 3 years. That's ok if you fail it's hard but don't wipe out your life savings because whether your successful or you are not successful has no difference of whether you did it with debt or with cash. The difference is will you have cash that belongs to you in the end or not.

[@MrTaylorfenoglio]

You never start a business a business is grown.

[@ClaxtonBay123]

You’re saying a bunch of nothing.

[@MrTaylorfenoglio]

@@ClaxtonBay123 building a business is different than just starting one.

[@donjohnson1416]

Did George tell them to keep 3-6 months EF and throw the rest at debt?

[@toeknee5565]

Dave did! I am also confused, I think they forgot their own baby steps!

[@tran4ga]

For new businesses, be cautious of ADA serial filers..

[@JS-sv4ol]

Chiropractic is pretty competitive in Austin. That said, lots of companies that include chiropractic in their business. The real estate is pretty hot there too, which would say to me their costs are going to keep going up for the property they lease.

[@MooMoo69556]

Cool, exactly why you don’t go into more debt to do it

[@georgewagner7787]

They work in real estate, they have connections

[@mynameisgiovanni1424]

Genuine question.. why/ how do Americans get in such massive amounts of debt at college?

[@harrykam28]

They don’t have financial education… they follow the crowd…

[@sblijheid]

They don't calculate the costs up front or consider other options like scholarships, advance placements, etc. They only look at the school they want, without considering the price tag. They then take out these student loans without reading the terms, and therefore, not knowing what the interest rate is. To make matters worse, they don't study hard enough and have to retake classes and tests which prolongs their time in college and adds to their debt. In theit senior year, their stupidity starts to dawn on them, especially when they realize that potential jobs don't pay that well.

[@adamseidel9780]

These people are paying pretty high loan interest on $300k so they can sit six figures in a non growth savings account???

[@Joshualibbyy]

Debt is nothing to be afraid of if u know u are gonna make much more in the future. Use debt to leverage your business

[@autistic-lutheran-carnivore]

"if u know u are gonna make much more in the future" How do you know? There are a lot of businesses that existed in 2019 that do not exist today. Do you have a crystal ball?

[@hollyb6885]

@A P Oh oh. I hope he doesn’t have zero “patients.” 😱. I do agree that they have zero patience. 😁😁😁

[@besweeeet2]

Nobody can predict how much they will make in the future.

[@nic_ccc3366]

You say that as if starting a business is easy and guaranteed to work. It's not, and most fail. These guys may be great chiropractors but have zero business acumen. I'm with Dave, pay off your existing debt before even thinking about getting a business loan.

[@jrwntctv8091]

Nobody knows anything about the future. Therefore debt is something to be afraid of.

[@carloscampos5469]

130k a year in Austin is realllly good.

[@etiennedegaulle3817]

Not in 2021. House prices are rising, property taxes are high, and there is a chiropractor on every block. 190 is really good.

[@orangecookie3132]

@@etiennedegaulle3817 nah Austin still cheaper than other places it's not getting a small shed for half million.

[@carloscampos5469]

@@etiennedegaulle3817 dude im in austin 130k is really good to live off. 130k you can pay off your home even if you just bought within 10 years or less if you already have a home

[@preston8859]

I’m surprised people that already listen to Dave still call and ask him if they should borrow money. You should know by now what he’s going to say lol

[@Homeoffersunited]

Some of the absolute greatest companies have started in debt. UFC was 10 mil in the hole.

[@ryankiel4895]

A couple of young DINKS who have more money than sense. I'm jealous. At least they are asking Dave for advice and going in the right direction.

[@dungeonmaster6292]

Amen. What good is a union without children

[@gzfashions]

Sweat equity & late nights. Ask Elon Musk. Oh and not giving up (timeframe).

[@scottandersen508]

I’m single making 35k a year and have about 40k in total dept. got $600/month for rent $400/month for car. how do you pay off debt if you can barely pay bills??

[@Gonzalo.Escobar]

Why do you have 40k in debt and why do you have $400 car payment making 35k?

[@scottandersen508]

@@Gonzalo.Escobar student loans and I got to get places (car is 19k). I know you’ll tell me to buy a shit mobile but that will cost more in repairs, I guarantee it. I’ve had them before. Also, I make 43K now so I’m doing better. Haven’t paid for a single car repair and have been able to chip away at my debt

[@Sexy40baby1]

Don't have enough money to start this business completely debt free

[@elizabethallen4353]

Keeping a 3-6 month emergency fund in baby step two? George. No no no.

[@Homeoffersunited]

Dave needs to go Gary brecka and do some push ups

[@rayn1ful]

one thing i dont understand about americans , has nothing to do with this but i will say it , why do so many people in USA feel its more important to own a gun , then it is to have an adequate health care system?

[@LuhRen]

Because with a gun I can avoid a trip to the hospital 🤷‍♀️

[@Homeoffersunited]

Yikes idk, I’d say leveraging business credit is alright to start a business. Don’t go bananas but you can use some.

[@tcbridges]

Shouldnt take that much a table to lay on and maybe a vibrator other than renting a place and a computer to do billing

[@etiennedegaulle3817]

Add in malpractice and other types of insurance which is probably 100k per year.

[@EagleTwo758]

Those vibrators with jet engine get expensive lol

[@tedpark6814]

There are always lots of things in a business that cost money. Licensing fees, rent, "building operating expenses", insurance, phones, answering service, power come to mind initially. Since it's a professional service sort of business, they probably can't get away with ratty furniture like we did. Also, there is the cost of incorporation, possibly advertising, internet stuff like a web site - well, you get the idea.

[@TPBGR]

If her husband said he would not become a chiropractor again then maybe it’s not the profession for him.

[@opizacharyuhaulhascomeinmy2139]

focus on yourself girl he will leave u at 40 anyway your the starter wife don’t build up this man …

[@djpuplex]

Why is she "losing her job". She's leaving her job, before the debt is paid off. I love these people who take on a mountain of student loans and don't ever think to start paying them off

[@johnnhoj15]

@@Tania-rg7jp shut up

[@sblijheid]

She said she's losing her job, not quiting. Who knows, perhaps the company she works for is shutting down or down sizing.

[@xgnofearzthe10thgenlegend82]

Definitely living a life style that is not needed just yet. I didnt hear about children. So the can down size and smack there debt and pay for everthing cash to open that business in under 2 years

[@stevenporter863]

I keep wondering why people keep asking Dave investing advice. He is good at eliminating debt, but his investing advice isn't the best.

[@cmchandelier]

Dave is a multi-millionaire with zero debt. Nuf said.

[@MrDougfunny7]

@@cmchandelier non-sequitur. But exactly what I would expect from a Dave Ramsey simp lol

[@Primitivegarage915]

His advice is always safe and steady. People don’t like safe and steady. They want return on investment NOW, which car be risky

[@nic_ccc3366]

Because his net worth is around $200 million.

[@alinatamashevich3354]

Mark and you would be wrong.

[@randy944]

$300k for a chiro degree? How do they justify that?

[@alinatamashevich3354]

And not a real doctor!

[@Homeoffersunited]

Cringe from minute 6 on.

[@TTVZicaZachh]

Do what you love. Money will come later

[@johniii8147]

Typical dave mis advice. Well agreed pay off those student loan, but starting a new a business you're always going to have acquire debt. You're just going to have to control it.

[@nic_ccc3366]

Disagree. You don’t need to borrow to start a business, and problems controlling debt is the reason Dave even has an audience. They make $200k a year, it’s more than doable to eliminate existing debt and save what they need to start the business in 3-4 years.

[@johniii8147]

@@nic_ccc3366 That's not really how it works if you're really going to build a business that worth the effort to spend all the time. Agreed pay off current debt first, but debt will come into play as as you get serious about building a business that that really makes money. If you can't control business debt you shouldn't be running a business anyway. And Dave would bey LYING if he claims he never took out debt to fund his business.

[@nic_ccc3366]

@@johniii8147 And Dave has absolutely over-leveraged in the past (and sent himself broke!) that’s why he will never recommend taking on debt if you can help it.

[@johniii8147]

@@nic_ccc3366 Well that is exactly the key..to NOT over leverage. But debt handled responsibly is part of running a business.The biggest key it to get a good accountant for a business that keeps you in check.

[@EagleTwo758]

Hey John and that's where people go astray and load up on debt. That's why Dave said what he did bruh

[@ceecee8757]

😁👏

[@clutchtastic_]

Wait, so, maybe I'm missing this...they make $130K/year and they want MORE money? Imo, cut back on whatever the heck the money is being spent on. If it were me, I would have a one story home, paid for and no debt and start saving, saving, saving

[@TextingBiz]

“Be honest who else is a few hours late” 😂

[@jayw8081]

They broke

[@alinatamashevich3354]

She only sees her 130K not the 300K debt. They BROKE

[@MrOfficer235]

Going to Physical Therapy school or Chiropractic school is suicide.

[@miketheyunggod2534]

You always use other people's money to open a business. In less than a year, all that debt will be gone.

[@stevenbeach748]

Unless the business fails ( most do) and now you owe the bank with no income.

[@alinatamashevich3354]

Good advice Mike! The friendly banker and a attorney will always help you out when you fail. !

[@alinatamashevich3354]

@@richrancy Sorry , I don't live in fantasy land like you.

[@johnmirbach2338]

😎🖖✌👌👍😁

[@Kysen10]

Borrow money for quackery?

[@mangoryder7139]

Chiropractic will become obsolete in five years

[@musicpro7278]

Explain

[@jeffygoodguy]

Boomer😂😂😂😂 ppl who listen to DR may be doomed in the new world

[@jbosky6882]

Loan rates are lower than inflation. Dave is for the dumb masses. Not for the go getters.

[@iamjessie.b]

You make NO sense… get a loan and pay interest because the rate is lower than inflation 🤔 they are still in debt and still have to deal with inflation (plus a loan with interest) … there’s nothing go getter about this equation! 😂🤨 Dave was 💯 spot on with the answer!

[@alinatamashevich3354]

@J Bosky, you do not understand theft do you.

[@alinatamashevich3354]

@@iamjessie.b Yup, only broke jokes try and borrow their way to success. They think because Apple Corporation has debt it is OK for them to as well. Go figure that out.

[@alinatamashevich3354]

@@iamjessie.b Don't try and explain it, these fools are a bankruptcy attorneys wet dream.

[@iamjessie.b]

@@alinatamashevich3354 exactly! What’s understood doesn’t need to be explained! 📈 mindset!

[@Mm.Ant70]

*”Congrats to everyone who is early and who found this comment!"🏆*

[@Adrian-op5ni]

Ok here’s what you do, use that $130k to start the business. Then when it’s successful you keep making those student loan payments. Keep doing real estate on the side to help pay off the student loans. That’s what she wanted to hear, and that’s what she’ll be doing.

[@gzfashions]

Sweat equity & late nights. Ask Elon Musk. Oh and not giving up (timeframe).