dave says
Featuring the advice of personal finance expert and bestselling author Dave Ramsey , the Dave Says column is filled with timely , relevant questions and answers taken from actual letters and calls on Ramsey ’ s radio program , The Dave Ramsey Show .
DON ’ T CRACK THE FOUNDATION Dear Dave , Do you think it ’ s a good idea for a small business , one that ’ s very young but growing , to seek out investors ? -Trey Dear Trey , My advice to someone in this position is to grow their business with organic cash . That may sound like a fancy phrase , but it just means you earn the money with which you ’ ll grow . This may mean growing a little bit slower , and it might even mean passing on a few “ big deals ” you thought were going to be the best things ever to happen to
IF YOU ’ VE EVER FELT LIKE YOU JUST CAN ’ T GET IN CONTROL OF YOUR MONEY , YOU ’ RE NOT ALONE . But it ’ s time for your struggle to end — starting today . Join our Financial Peace University class at North River Church , 4215 Rice Mine Rd NE , and learn how you can pay off debt , save more money , and build wealth . Visit https :// www . fpu . com / 944BE6 or call ( 205 ) 349-9068 to sign up !
you and your business . But you want to know something ? That ’ s okay . I ’ ve turned down plenty of deals like that over the years , and it ’ s left me firmly convinced it ’ s better to be the tortoise than the hare .
Think about this . When you sell a piece of your ownership to people who are looking for a return , instead of caring about your dream , you ’ re creating the potential for a big mess . A lot of times , these folks will seem like silent partners — which is an oxymoron in small business . They might even present themselves that way in the beginning . But the truth is most people who ’ ve put money into your business won ’ t keep silent . They ’ re all going to have different opinions and ideas , and there ’ s a strong possibility these are going to clash at some point with the vision you have for your company .
In short , I would not recommend a fledgling small business , even one that ’ s doing well , to seek out investors . Period . Cash flow your growth , Trey . Cash flow your equipment purchases , and the markets you enter , also . Does this mean you might miss a good opportunity here and there ? Sure , it does . But it also means you ’ ll be missing opportunities to fail . Too much success too soon is one of the biggest reasons why small businesses shut down . When you grow too quickly , you run the risk of outgrowing your financial resources , your infrastructure and your human resources .
Do what you can to ensure growth is steady , but play it smart . Don ’ t grow so fast that you crack the foundation of your company . — Dave september / october 2024
26