The EntreLeadership Podcast: "I’m Scared This Technology Will End My Business"
Release Date: April 7, 2025
Host: Dave Ramsey, Ramsey Network
Introduction
In this episode of The EntreLeadership Podcast, Dave Ramsey addresses pressing concerns from business leaders navigating challenges in today’s rapidly evolving market. The episode primarily features two in-depth caller interactions, focusing on the impact of emerging technologies on established businesses and managing business transitions during personal tragedies.
Caller 1: Joshua from San Antonio – The Threat of Collision Avoidance Technology
Timestamp [00:52]
Joshua’s Dilemma:
Joshua, the owner of a successful auto collision shop in San Antonio, Texas, reached out with growing concerns about the long-term viability of his business. Despite grossing $2 million annually with strong margins and a dedicated team of seven, Joshua fears that advancements in collision avoidance technology (ADAS systems) might drastically reduce the need for auto collision repairs. He observed a significant downturn in his business since April 2024, dropping from $200,000 to $121,030 in monthly sales, a trend mirrored across San Antonio and statewide.
Key Concerns:
- Rapid decrease in insurance claim rates.
- Potential decline in collision-related repairs due to self-avoiding vehicle technology.
- Uncertainty about future investments and business growth.
Dave Ramsey’s Analysis and Guidance:
Timestamp [02:39]
Ramsey begins by questioning the plausibility of such a rapid business decline solely due to technology. He suggests that a sudden 40% drop in revenue within a single month is illogical if attributed solely to ADAS. Instead, Ramsey posits that other marketplace factors, such as economic shifts, election-year impacts, or policy changes, might be contributing to the downturn.
Notable Quote:
"It's not logical that that is collision avoidance, that that happens in a one month period of time... Something else is happening in the marketplace."
— Dave Ramsey [04:11]
Long-Term Strategy: Ramsey advises Joshua to monitor the gradual impact of ADAS over a multi-year horizon, similar to how cassette tapes were phased out for DVDs. He emphasizes the importance of adapting to technological changes by diversifying services and integrating new technologies into the repair process to stay relevant.
Quote on Adaptation:
"This is all practical. This is all shoveling the ditch. This is all cutting the weeds. It's whatever we have to do to run a business up one side, down the other."
— Dave Ramsey [37:44]
Caller 2: Josiah from Salem, Oregon – Navigating Business Transition After Tragedy
Timestamp [11:15]
Josiah’s Situation:
Josiah, the president of a family-owned custom stair and railing business in Salem, Oregon, faced a heart-wrenching challenge following the untimely death of his father, the company’s founder and CEO, in a car accident in October. With the business generating $1.8 million in revenue and employing 17 full-time staff, Josiah is now tasked with assuming full ownership and leadership amidst personal grief and operational uncertainties.
Key Concerns:
- Transitioning ownership without a fully established buy-sell agreement.
- Ensuring financial security for his mother, the current bookkeeper.
- Valuing the business appropriately to honor his father’s legacy.
Dave Ramsey’s Advice:
Timestamp [16:19]
Ramsey guides Josiah through valuing the business based on net profits rather than fluctuating accounting methods. He recommends using an average of the past few years’ net profits to determine a fair purchase price, typically valuing the business at four to five times the annual net profit.
Notable Quote:
"If you run it on cash basis... But what we're looking for is what the real business is actually earning."
— Josiah [16:19]
Valuation and Ethical Considerations: Ramsey emphasizes the importance of ensuring Josiah’s mother is financially secure, proposing a buyout structure that compensates her adequately while transferring ownership responsibly. He reassures Josiah that adhering to ethical valuation practices honors both his father’s legacy and secures the business’s future.
Quote on Ethical Leadership:
"If the thing kicks up and you start making four or five hundred thousand dollars a year out of it five years, six years from now, and your mom's in trouble, dude, you can help her. But she's not gonna be in trouble. She's gonna have a million dollars."
— Dave Ramsey [21:03]
Caller 3: Joe from Springfield – Encouraging Team Ownership and Decision-Making
Timestamp [37:44]
Joe’s Challenge:
Joe, who runs a cleaning and restoration business with 30 employees and $3 million in revenue, struggles with his team’s over-reliance on his availability. Operating a 24/7 emergency service, Joe feels the constant demand to support his team, which hampers their ability to take ownership of decisions and align with company values.
Dave Ramsey’s Solution:
Timestamp [38:34]
Ramsey advises Joe to implement a structured problem-solving approach where team members present problems along with three potential solutions before seeking his input. This method empowers employees to think critically and fosters a sense of responsibility.
Notable Quote:
"Don't bring you problems without solutions. So when they bring you a problem... I want you to hold it in your hand and... let them look down at their hands and see the problem in their hands, not in yours."
— Dave Ramsey [38:34]
Steps to Empowerment:
- Problem Ownership: Encourage team members to retain ownership of issues by initially presenting them with potential solutions.
- Critical Thinking: Train employees to evaluate and choose the best solutions based on company values and principles.
- Delegation: Teach principled decision-making to reduce dependency on leadership and enhance operational efficiency.
Quote on Delegation:
"You're training them how you made the decisions. And sometimes it's not a technical methodology for the decision making. Sometimes you go, okay, the way we made this decision is it's cheaper. Or the way we made this decision is it's what the customer would want, and we're gonna surprise and delight the customer."
— Dave Ramsey [42:24]
Conclusion
Throughout this episode, Dave Ramsey provides actionable insights to business leaders grappling with technological disruptions, personal loss, and team management challenges. Emphasizing ethical leadership, strategic adaptation, and empowering team ownership, Ramsey delivers practical advice grounded in his extensive experience leading businesses and coaching entrepreneurs.
Final Thoughts:
"This is all practical. This is all shoveling the ditch. This is all cutting the weeds. It's whatever we have to do to run a business up one side, down the other."
— Dave Ramsey [37:44]
Listeners are encouraged to apply these strategies to navigate their own business challenges, ensuring sustainable growth and resilient leadership in an ever-changing marketplace.
Note: This summary excludes advertisements, promotional segments, and non-content sections to focus on the substantive discussions and advice provided during the episode.