The EntreLeadership Podcast

Episode: We Make $13 Million, But We Didn’t Pay Our Bills
Host: Dave Ramsey, Ramsey Network
Date: February 18, 2026

Episode Overview

This episode delivers practical business and leadership coaching as Dave Ramsey fields real-world questions from three business leaders. Topics covered include managing major business debt, keeping company culture aligned with decentralized teams, and succession/exit planning in a family business. Dave provides direct, experienced advice with actionable tactics, illustrating his points with memorable analogies and frank conversation.

[00:53] Segment 1: Managing Debt & Financial Recovery in a Fast-Growing Business

Context & Caller

• Caller: Andrew, CEO of a Dallas-based third party logistics firm ($13M revenue, 30 FTEs, 20-40 temps)
• Challenge: $1.25M debt, services with key suppliers paused due to unpaid bills, considering a high-interest debt consolidation offer to ease operational pressure

Discussion Highlights

• Company Background

  • Rapid growth, profitable now, past cash flow issues worsened by warehouse move and poor labor planning.
  • Paying down main supplier debts at $20,000/week per vendor.

• Debt Details

  • Three main vendors: $400k, $300k, and $180-225k owed.
  • Considering a private-lender consolidation loan: 16-19% interest and 0.5% of revenue over 2 years.

• Dave’s Core Advice

  "Interest rate is absolutely ridiculous. I would just call these three vendors and say, look: we want you back online and we're committing $20,000 a week. If that's not enough, pop us offline again." – Dave Ramsey [05:29]

  • Direct repayment over consolidation: Focus cash flow directly on vendors, negotiate discounts for faster or priority payment.
  • Suggests leveraging partial lump sum offers for vendors in exchange for substantial discounts.
  • Warns against trading a minor speed-up for prohibitive interest just to avoid embarrassment and inconvenience.

• Memorable Quote

  "You stubbed your toe, you didn't manage your cash flow well...but we're really slowing down how fast we get out of debt by this [loan]. It's not speeding it up." – Dave Ramsey [06:30]

• Key Tactics

  • Maintain regular, transparent communication with creditors/vendors.
  • Use healthy payment history as negotiation leverage.
  • Avoid high-interest loans unless it substantially accelerates recovery or is the only option.

[10:30] Segment 2: Creating Alignment in a Decentralized Field Team

Context & Caller

• Caller: Zach, Atlanta-based power utility contractor ($11M revenue, 40 employees, debt-free)
• Challenge: Field crews work independently under client direction, leading to fragmented subcultures and employee alignment issues with company values.

Discussion Highlights

• Problem Defined

  • Crews take daily orders directly from the client’s directors, causing them to identify more with the client than their employer.
  • Client interference undermines safety meetings and internal processes.

• Dave’s Advice: Restoring Company Culture

  • Centralize Workflow: Consider transferring work order dispatching back under company control to reinforce reporting lines.
  • Direct Communication: "The instant one of these guys stepped between you and them on something like a safety meeting, I would do a sidebar with that customer and say, 'We're not doing that.'" – Dave Ramsey [15:55]
  • Increase Visibility: Weekly site visits and competency check-ins from a promoted manager.
  • Frequent Stand-Ups/Touches: Regular briefings (in-person or virtual) to reinforce alignment and keep communication flowing.

• Memorable Quote

  "My job is to make your life better, I’m gonna knock down blockers for you. But you’re also staying aligned, which means we’re course-correcting as we go along, gently in public." – Dave Ramsey [19:05]

• Implementation Ideas

  • Weekly in-person or bi-weekly Zoom check-ins.
  • Proactive, private correction of client overreach.
  • Persistence in reinforcing values and culture: "Chief Reminding Officer" as a core leadership function.

[31:02] Segment 3: Succession Planning in a Family Construction Business

Context & Caller

• Caller: John, Los Angeles-based custom home builder (11 employees, $5M–$6M sales, two sons in the business, owner aged 64, planning retirement/exit)
• Challenge: How to equitably transition business ownership and roles, balancing contributions of sons and future succession among five children (three not involved in business).

Discussion Highlights

• Disentangling Roles and Ownership

  • Operational Leadership: Clearly define who handles production, operations, sales, office tasks, and how to increase “bench depth” so owner can step back.
  • Ownership vs. Employment: Sons are compensated for jobs, not just familial relation. Ownership transfers and profit shares can be distinct from job roles.
  • Profit vs. Equity: Offering equity or profit sharing as a staged step, with flexibility for future bequests via will or later transfers.
  • Communicate Plan: Telegraphed transitions boost morale, offer continuity for staff/clients, and clarify future expectations.

• Memorable Quotes

  "You just need bench depth for what you’re physically, tactically doing. If someone was doing what you’re doing and they worked for the president…you could have a leadership team that can run the business for you guys." – Dave Ramsey [34:48] "If you keep this real separate in your mind, it helps...First thing is we have to create the leadership team that can run it, with me being an absentee owner." – Dave Ramsey [38:59]

• Key Steps Outlined

  • Transition daily duties to staff/sons and hire for gaps.
  • Define profit-sharing based on actual business contribution and ownership, not just inheritance.
  • Plan an 12–18 month transition for a smooth handover.
  • Decide on long-term ownership allocations (all to working family members, split with other children, etc.).

[22:27] Rapid Fire: Handling Bad Promotions

[22:27] Key Moment

• Caller Question: How to "undo" a failed leadership promotion without humiliating the team member or losing credibility?
• Dave’s Take: Take responsibility publicly, be authentic, apologize, and put the blame on your own misjudgment.

"When the leader says, 'I was wrong, I messed up, I apologize,' you’ll get a lot of grace from people." – Dave Ramsey [26:57]

• Outcome: Own mistakes openly; risking some embarrassment is better than protecting egos to the detriment of the team.

Notable Quotes Recap

• On Debt:

  "Interest rate is absolutely ridiculous. I’d just call these three lenders and say, we're going to make good on this." – Dave Ramsey [05:29]

• On Culture:

  "I'm retraining my customer, and I'd be pretty direct with them that way. Especially in that world where you don't want to be subtle." – Dave Ramsey [16:25]

• On Succession:

  "If you'll separate the leadership team and the operations of the business as one category and the ownership as another, you can start to see a path to create a one-year exit ramp..." – Dave Ramsey [40:41]

Timestamps for Key Segments

• [00:53] Debt & Vendor Management — Andrew, Dallas
• [10:30] Field Team Alignment — Zach, Atlanta
• [22:27] Handling Bad Promotions — Ken, Kansas City
• [31:02] Family Business Succession — John, Los Angeles

Summary & Takeaways

Dave Ramsey’s tough-love style yields clear, actionable guidance in difficult situations:

• Negotiate, don’t capitulate, on business debts—transparent, disciplined progress beats costly shortcuts.
• For scattered field teams, regular, visible leadership and role clarity are essential for strong culture and safety.
• When planning succession, treat leadership duties and ownership as separate—be deliberate and communicative.
• Admit leadership mistakes openly to gain long-term respect and trust.

The episode is rich with real scenarios and practical wisdom, delivered with both compassion and the candor Dave is known for.