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.

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

[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.