I Took on a HUGE Risk To Start A Business

[@MichaelJayValueInvesting]

Runs a business but doesn't know how much he is making? That is a big red flag!

[@GabeDrums]

Michael Jay - Value Investing the language of business is accounting.

[@sumsolution5113]

Don't they have computers or tablets to do that for you?

[@sumsolution5113]

I was never a math wizard or accountant, but I'll hire a math wizard or accountant.

[@harocoposnick3299]

Well..they call it PnL..

[@JesusEsDios007]

Many business owners just work and rely on their wife or financial team for money strategies. Its a big problem.

[@DisabilityExams]

It's astonishing how little this guy knows about his business' finances.

[@alexbright7735]

Typical failing business attitude. The accountants handle it. As an owner you need to know the basics to make decisions to forward the business.

[@victrmeleth]

Crazy

[@chrisparker9939]

Unfortunately, it's not that rare.

[@enigmathegrayman2953]

If he won't listen, don't worry life will teach him.

[@jsbrooks72]

He wasn’t listening and seemed a bit spastic.

[@enzoorciuoli328]

@@jsbrooks72 posion formula

[@dogan6070]

Lol

[@bradnorris6383]

Man this was frustrating to listen to

[@markprice1617]

He just wants the quick way out, that's why he's not bothered about understanding his business finances.

[@avamasquerade]

And that's precisely why his business is done for.

[@trancendental5373]

Or maybe he can't understand it

[@scuba535]

Trancendental he just doesn’t want to understand it.

[@WiseAilbhean]

He’s overwhelmed

[@hey8174]

"Okay dude." *Hits him with the mute button*

[@benb7727]

Need to change the title to “What’s a spread sheet?”

[@brendasgirl90]

😂😂😂

[@24gwmcpher]

🤣🤣🤣🤣🤣

[@lionheart93]

Ben B they will help ?

[@jmonte5896]

being qualified to lift furniture onto a truck doesn't make you qualified to own and run a moving business

[@wmurray003]

How many 1M businesses have you owned?

[@bradhaines3142]

well you gotta understand liability and what you have to pay for other than the truck and people. its not that simple

[@larrybud]

He doesn't own a "1m business" if he has 250k in debt and doesn't know how much he makes (if anything).

[@mac1bc]

@Bens Steel that's a bad example. I agree with the op, if he doesn't know how much money the business is making, he needs help. He can own it but running it requires organizational skills. He needs a manager

[@lionheart93]

Organization is crucial and I am not organized as well. I would hire someone to work with me in that area

[@Fazal828]

People who don't keep track of what their profits are should not be maintaining a business. Revenue - Expenses is literally Business 101

[@rhoadestraveled]

I don’t know why he called he’s already made his mind up.

[@buckybarnes3803]

Rhoades Traveled he wanted to get Dave's blessing for an idea that is probably instinctively not a good idea

[@Light-vu6ws]

He wanted to know how to go through a bankruptcy, but Dave answered whether he should go bankrupt or not.

[@wmurray003]

Sometimes Dave is wrong.

[@larrybud]

His lawyer can tell him how to go through a bankruptcy. Doesn't need Dave for that. Dave is going to tell him how to get out of debt. Unfortunately, this guy doesn't know where a penny of his money is going.

[@Light-vu6ws]

larrybud So with your logic, why do people call Dave for financial help? They can just pay financial experts to help them, right?

[@tbaby0307]

This guy has been told by his accountants and Dave he is not bankrupt and that he should be making a profit. He’s not running his business at all. Also, it sounds like he and his family have a spending problem. The business sounds healthy, his management of it is the issue.

[@michaelcoley9360]

I love it when Dave makes ppl stutter and start mumbling. He just didn’t want to hear the truth

[@cmanina1763]

Betcha he is living on all his 'profits', then borrowing for expenses instead of stashing a portion of profits as insurence against unexpected expenses. I am not a business owner, so take my comments with a grain of salt!! I am learning a whole lot here about handling money!!! Bless you, Dave!

[@brendasgirl90]

Most likely

[@garyhost1830]

You sound like you have more of an idea about business then this guy

[@avamasquerade]

I just commented that he was a prime target for embezzling...what I should have said is *his business* is a prime target for embezzling...

[@JiisTube]

I bet you're right, and the only difference between you and most of the so-called business experts in the comments is that you are willing to admit that you don't actually own a business. I appreciated that.

[@warwagon]

He sounds like a surgeon going into a surgery with no information while blindfolded.

[@roxannegordon6162]

Like the doctor who hacked off the wrong foot!! ooops!!

[@lewdogrlew860]

@@roxannegordon6162 On the wrong patient.

[@everydayaveri28]

That guy was freakin' clueless and called dead set on bankruptcy. Didn't wanna hear anything except for Dave to say, yeah, go for it.

[@Joey-Robertson]

Open rebuke is better than secret love. Faithful are the wounds of a friend.

[@cutehumor]

Dave estimated he should have 200k per year profit from the business. I bet this guy lives in a million dollar home and spends 300k per year. 100k in the hole every year will put your business at risk in bankruptcy.

[@laura.redfield]

cutehumor - Exactly. He’s gotta be paying himself way too much... especially for his level of incompetence.

[@wmurray003]

I thought you said "100K in every hole..." ...I'm gonna excuse myself.

[@gooseseey4687]

Conservative Prosecutor if you don’t like it become and owner yourself. Until then your opinion doesn’t hold much weight.

[@acebragg5559]

Yeah, it's all conservatives. SMH

[@michaelpaliden6660]

EVErything about this statement is wrong Conservative Prosecutor 5 months ago Laura: Most owners do. This is why the bottom line fights for $15/hr.!

[@sunset6010]

Something is missing in this story. Addiction to drugs ? Gambling ?

[@LoudnProudOne]

Lisa Muryn He sounds like he’s having a drink during this call.

[@LittleHatori]

I feel like he's overwhelmed. Definitely had some drinks.

[@dr.dermixgirlmd7479]

It’s the rapid advance loan. Those things eat up your profits automatically on every debit and credit transaction an astronomical rate.

[@nurse.christian]

Whewww, Dave showed tremendous restraint on this one. I was waiting for him to rightfully go off 😂😂😂

[@samwdavis]

This is just so sad that a guy working so hard in his business knows so little about how to manage a business. I feel bad for the employees.

[@sumsolution5113]

Dave you and I both count money, not sheep, before falling asleep. Amen.

[@stephon972]

what does that mean

[@karolgarley]

Sum Solution YESSS!!!! 👍👍👍

[@wmurray003]

If you don't know what it means, then it doesn't apply to you.

[@swisstrader]

The worst in the world are predatory loan people. Usury rates coupled with personal guarantees means this headache will follow you even if the business shuts down.

[@KB-wl4ip]

Why does he need an accounting team? That just seems so weird. I've been running a business for 17 years and I just try to keep it as simple as I can. I get out my Excel spreadsheet every month and I work my way through my expenses, pay my bills, create my invoices, etc. I know exactly what I make per month and exactly where my money is going. I think he needs to just simplify things.

[@mercedesbenzfan8157]

what is your business?

[@datapatch7381]

No accounting sense most likely.

[@user-fp8xc8lf3f]

He knows nothing about his own business so he thinks he can overspend to fill the gap.

[@stephon972]

This is why you dont take out loans to start a business a business is a learning experience. Not something you just get up and do and by borrowing money all you do is strap anchors to yourself that other people can drop in the water whenever they feel like it. All this guys borrowing and lack of knowledge about his own source of income was foolish

[@wmurray003]

Lol, you don't know nothin'.

[@m.l.2483]

Life With Steph - Spot on!

[@stephon972]

Based on the video I know enough kiddo. You must have been the caller lol

[@bigmac22ify]

You take out loans to start a business depending on the type of business . The whole work 300 hours a week no sleep/ beans and rice is not realistic

[@wmurray003]

bigmac ...things guys take the quote "Outwork the work" to a whole nother level! Buahahaa.. it's like they don't understand the words "Invest" and "calculated risk" ...they only know how to "save" paltry sums.

[@ozarked2363]

How can you own and operate a business and not know if you're profitable?

[@johnprentice1474]

Running a business is stressful enough without being scatterbrained about your books. This guy is a mover, not a businessman. He'll never run a successful business until he changes that.

[@sydney45]

He can own it without running it, but that just means a bigger executive team with a great business manager.

[@onyxtowers9333]

This is what an Office Manager does, they keeps track of all filings, accounting,due dates, vendors, shipments, etc. He sounds like he hates office-y stuff. Dude either works on the job with the movers, or chooses to remain out of the office and in the golf course. Due diligence bro!

[@bleppo321]

You are not even listening to me are you! Was the best quote! 8:07. You don’t even know if you are bankrupt or profits.

[@AB-hg1cz]

I think he is in denial. He must have spent too much personally. Plain and simple.

[@sfrealestatedealmaker6001]

Most business owners that fail are bad at actually running their business. If they brought on someone to “manage” their biz and instead focused on creating the actual product or service, they’d have a chance at success. It’s challenging to be the CEO, CFO and sales manager all at the same time. Most businesses take more than one person to run all the departments.

[@marknc9616]

He sounds like a ship captain who is trying to plot the direction of his ship while not knowing if it is taking in water.

[@matthewwilliams9200]

He sounds like a addict, he doesnt want to know what happened to the money cause he may already know

[@clarissamcpigeon7857]

He runs a moving business? How's that seasonal, surely people move home all year round?

[@happyplaceforever101]

It's probably college kids stuff he's moving. I worked for a moving company. 50% of our customers were college kids. They move 3 to 4 times a year during summer and winter breaks.

[@jasonfoster8871]

I bought a house in Michigan late January, I bought for cheaper because of winter, someday I will move my stuff up from Ohio. I don't plan to physically move until mid to late March

[@dogan6070]

The problem is he borrowed to much money to run his business. Bad idea.

[@wheel-man5319]

Chris was so fixated on Ch11 that he didn't even hear Dave....

[@682Deano]

The started the music trying to get him off the phone 🤣

[@lisafisher3785]

Chris in Manassas - Do you use Every Dollar for your home budget? It helps you get organized and find solutions to your problems (that don't include bankruptcy). I know you mentioned a software system that your accountants use - but if it were me, I would put the business finance info on the Every Dollar system. I believe if you do this, 3 months from now, you will OWN this situation. Every Dollar was key for me in seeing where I was being an unorganized financial idiot.

[@katjones4840]

-2020, moving company is booming I hope this guy made it through. Hugs

[@Elena-er7zp]

He doesn't want the business. Figure out what ya got and sell it if you can.

[@acer197615]

he feels like that because in his mind he hears the final saying everything is good but somehow his eye see that there no money to pay any one

[@johncenter2743]

Don’t file 11 - there are companies out there that will fight to push off and provide a period of relief or change your MCA payment (rapid advance debt).

[@tagaway6173]

He called in May . .. I think he wanted to declare bankruptcy BEFORE his business makes more money.

[@ESponge2000]

You need to run the profit and loss statement before you even consider filing a Chapter 11 or else you have no Chapter 11 case. Look at the financial statement work companies put in to show their attempts at re-organizing before they do a chapter 11, any chapter 11 companies. Research them at least.

[@petecheng1]

Dude needs to find a company controller, best if his wife does it.

[@chrisbaker2669]

Rapid advance for $50,000 is just insane.

[@markprice1617]

You mean $100,000

[@Tr1Hard777]

Sell the business to someone that cares about it

[@porkypine1888]

This guy is a MESS!

[@donaldrichey3318]

I don’t understand how a person can be so clueless and still be able to own a business that generates a million dollars.

[@Cesar-pq2ck]

Why call in if you already made up your mind on what you’re gonna do?

[@Bojaxs]

Because the caller is seeking validation, not advice.

[@chouavue9056]

I can tell he's not a number guy. He prob doesn't know what 1+1 is. He needs to find someone who he can trust to do the number for him. At worst someone stealing money from him.

[@john1425]

Jesus christ your already paying accountants this is what they do!

[@JohnDoe-du1no]

Asset protection is what he needs

[@MyOzempicJourney]

His business doesn’t sound like that big of a deal to not know if he’s making a profit.

[@aiyamariabanat]

Well done Dave Ramsey, this was a hard phone call, guy was clueless!

[@bullforcetrading9995]

The character gordon gecko in wallstreet said it best " a fool and his money are lucky to get together in the first place" This guy was definitely lucky to get the money but not wise enough to handle it.

[@BassPlayer60134]

How does someone have a $1.4mil business and not know if it is making money?

[@Juhani139]

Dave: You can save the business. Yeah, but he clearly doesn't want to. For whatever reason he's lost all interest in it. Maybe it's something he and his ex-wife started before the divorce, maybe someone died. He doesn't want it anymore.

[@louisdesy781]

Was there any update on this situation? If all of the transactions are in Quckbooks and correctly categorized, the program will generate a standard set of financial statements; P&L, Balance sheet and even a cash flow statement. It sounds like this guy is probably either: 1: Overspending, and to keep overspending he borrowed all kinds of money from the business. Quickbooks would show that he is profitable but he is taking out of the business more cash than it can provide so he ends up borrowing against the business so he can take the money out for his spending. 2: Losing money with the business. He has all kinds of revenue, but it is too little or worse, he is really losing money every year. The borrowing is being done so he has some cash for himself plus cover the operating losses. In either case, a Chapter 11 isn't going to help since that would only really just allow him the reschedule the debt or convert debt into equity; but cost all kinds of money in legal fees. I have seen a few smaller businesses do a chapter 11 and the fees were over $100K, and those had to be paid basically up front. The retainer in one was something like $5K with a cashier check followed by something like another $20K in cashier check just prior to filing. Chapter 11 isn't going to fix his problem and would only make things worse, so bad that I expect the company would be simply out of cash and unable to operate.

[@parochial2356]

His business uses an accounting firm. He uses Quickbooks. He hasn't got a P&L. He doesn't know where the business is financially. Something doesn't add up here. All I got from the brief conversation is that he has a cash flow problem. Likely why he signed up for what appears to a shady LOC that does daily ACH debits to repay the loan.

[@expectthabest951]

I have some questions? And than some solutions? First, what is his and his partners salaries from said company? Also what does their personal expenses amount to? Solution: Send in a Revenue Agent and a Forensic Accountant to identify the problem. 🤷‍♂️ Simple........ 😉😂

[@Shadowwind4]

Owns I million dollar business “I know what I’ve been told”

[@yayyareaa2997]

Takeaway here: Don’t run a business if you can’t spell business

[@rooclicknet8666]

This guy runs a business. I can run a business! Rapid Advance!

[@garcjr]

He's still responsible for the money even if he does file for bankruptcy. Sounds like the guy hired just as incompetent people as him for accounting.

[@6lemans10]

Probably his friends.🙄

[@kzimmerman2211]

If he listens to his accountants like he was listening to Dave in this call, it explains a lot....

[@rickilane510]

Wow! This is not someone who should be running a company

[@ibealion1]

How did this guy build a million dollar business without having the first clue about anything about it...? I didn't realize that was possible.

[@drlax15m]

how do you run up so much debt on a moving business??

[@chocOneOOne]

I don't run a business but isn't it your job to know those basic numbers off the top of your head, especially when you're considering bankruptcy. Is he just not interested in what they are? Sounds no different than being disorganized with your personal finances and considering bankruptcy, the answer to his problem is obvious and he still didn't get it. You need someone who pays attention to detail and not throw your hands up and look for the out.

[@kayrealist9793]

Sounds like the business is running him... Sad.

[@nickstrapko7549]

Owning a business is not for everybody

[@Ibhenriksen]

There's also a chance his accountant is scamming him.

[@riverdaletales8457]

😂

[@itsrelativ3967]

I considered starting a moving business. It's very hit or miss.

[@newtonraymond77]

He's probably paying his residential bills directly from the business checking account

[@darrellmanning5718]

just tell him the truth....HE SHOULD NOT OWN ANY BUSINESS....HE'S INCOMPETENT

[@TylerCummings6]

Is the accounting team gouging him?

[@MRMT2000]

what's wrong w the music

[@o.c.2470]

Why would Dave not recommend bankruptcy if you’re not intending to ever use your credit ?

[@kzimmerman2211]

Because if you can pay your bills, you should. It's the right thing to do. In this case, the impression from the call is that the guy probably can pay. He just seems to truly not know what is going on with his business at all from the financial side. Also, even if you don't use credit, your credit rating comes into play for things like your insurance rates.

[@johnstown2451]

These comments.... We’re too rough on the guy- yea I agree but this is a man who is struggling BC running a business is very very hard. Yeah, there’s technology now that can help but I’m surprised this man even uses quick books as a moving company business. All I could think about was the Democrats that want more taxes from these people...

[@Tboltross69]

If you don't know your finances, you don't know your business.

[@MegaTeeruk]

This guy just sounds incompetent. Chances are he's profitable and could sell to get himself out of this.

[@jamesjhonson4568]

This guy is just disorganized, probably from bad management and accounting, he needs to sit down with his auditor and figure out where his money went and if he is making a profit.

[@rebeccashields9626]

How the heck do you not know if you are making a profit?

[@WiseAilbhean]

This guy is overwhelmed to the point he stop paying attention.

[@LordTrayus]

How dumb is this caller? How do you run a business and not even bother asking whether it's making money? Does he not even care whether it's worthwhile for him to keep his doors open?

[@lionheart93]

12k in worker’s compensation???

[@Ibhenriksen]

Oh my God. You start SMALL. Like running a lemonade stand. You keep track of how much you profit and go from there.

[@roxannegordon6162]

I want to start a business about something. I'll borrow the money and make millions somehow selling something.

[@nicoletara353]

music too loud

[@FortuneSeek3rz]

I'm thinking high school diploma meets the real world.

[@Cesar-pq2ck]

Not everyone is made to be a business owner and that’s okay; this guy just likes to say “I’m a business owner”, he likes to play the part.

[@chrysichrysi7889]

So he knows how much debt he has but not how much profit he made?? Lol Wut?🤦 But his accountants are telling him that he should be making profits but he's convinced that he's bankrupt but doesn't find out exactly how much profit he's made.😵🤯 His brain is fried.🍳🍳🍳 Does he still know in what state he's in and whst adress he lives at? Lol.

[@mazibukomail]

Serious shade 03:53

[@TheGoat-qw6jb]

This guy keeps breathing through the mic before he talk 🤦🏽‍♂️

[@WallStMario]

DERP

[@Ooshababa]

Sounds like he might have hired a "Hollywood accounting" firm to handle his money!

[@QAX300]

It's clear this guy is a hard worker but a terrible business man, if you don't know your numbers you don't know your business. That's basic business 1 on 1.

[@mozillagenesis]

A huge risk to start a business? Time to start regulating and taxing him out of the country - that's the "price of living in a civilized society" LoL.....

[@whalesnamedshark]

“Dude”

[@godsdozer]

this dude...............wow

[@MrJay197409]

Unfortunately for me in today's world everything being to PC I would never own a business.