Episode Overview

Podcast: The Ramsey Show Highlights
Episode: "This Is Why We Tell People To Avoid Partnerships"
Date: September 20, 2025
Host(s): Dave Ramsey (A), guest host (C)
Caller: Andrew (B), young business owner

This episode tackles the risks and pitfalls of business partnerships. Dave Ramsey and a co-host advise a caller, Andrew, struggling with a lopsided business arrangement in the pool service industry. Listeners are given firsthand insight into why partnerships so often end in disappointment, financial loss, and frustration—especially when proper agreements are absent and partners have misaligned values or work ethics.

Key Discussion Points and Insights

1. The Genesis and Evolution of the Business ([00:06]–[03:27])

• Andrew's Journey:
  • Andrew co-founded a pool cleaning, repair, and resurfacing company three years earlier with a partner.
  • Early operations were small, handling power washing, window washing, and pool jobs for about 10–15 clients.
  • The business expanded by taking over many clients from Andrew's previous employer, resulting in 60 service visits per week.
  • They subcontracted, then acquired a related pool resurfacing business connected to Andrew’s partner’s uncle.

2. The Partnership Goes South ([03:27]–[04:39])

• Dysfunction Sets In:
  • Andrew manages the pool cleaning and repair side, bringing in $49,000 monthly.
  • The partner’s division is failing: only two jobs in three months, bringing no profit.
  • Communication issues: Andrew’s concerns about performance are deflected with personal excuses (“You wouldn’t understand, you don’t have a child at home” — Andrew’s partner’s response, paraphrased at [03:29]).
  • The partnership agreement is “very vague,” providing no clear recourse.

3. A Bad Acquisition and Mounting Debt ([04:05]–[05:06])

• Poor Decisions and Regrets:
  • The business took on $260,000 in debt to buy the resurfacing business, largely at the partner’s urging (and against Andrew’s reservations).
  • Terms: $4,000/month for five years, supposedly with marketing help.
  • Andrew admits he ignored his gut instinct:

    “But you did it, Andrew. But you did it.” — Dave Ramsey ([04:39])

  • Dave invokes a proverb:

    “The prudent see danger and seek refuge. The simple see danger, move forward, and pay a penalty...I’ve been simple and move forward and pay a penalty.” ([04:42])

4. Strategic Exit: Advice on Ending the Partnership ([05:06]–[07:32])

• How to Escape:
  • The seller (partner’s uncle) allows the business to be “returned” at any time, nullifying debt—but the partner refuses.
  • Dave’s directive:

    “I want you to call the people back and say, I’m going to give you my portion back and deed his portion…Let him have that business, and you go run your other business.” ([05:22])

  • Strong urging to be decisive and assert control:

    “This is your time where your backbone gets installed.” — Dave Ramsey ([07:32])

  • The legal route is on the table if negotiation fails:

    “If you don’t do that, I’m going to hire a lawyer and sue you because you don’t work.” ([06:19])

  • Emphasis on personal agency:

    "You have been too stinking nice to tell people the truth..." ([07:27])

5. Lessons Learned: Why to Avoid Partnerships ([06:33]–[08:13])

• General Principles:
  • Dave reiterates, “Rule of thumb is never do a partnership.” ([06:33])
  • If you must do a partnership, ensure a robust agreement covers contingencies (“when one of the partners is not performing, or doing drugs, or dies, or gets disabled, or gets divorced…” — [06:37])
  • Don't entangle your business with your partner’s personal life.
  • Direct confrontation: Dave pushes Andrew to stop writing drafts and simply have the tough conversation.

    “I don't want to write anything up. I’m going to go sit down, have a cup of coffee and go, dude…We’re not working together anymore. This is how this is ending. I’m done.” ([07:47])

Notable Quotes & Memorable Moments

• On partnership pitfalls:

  “Partnerships are the only ship that won’t sail, correct?” — Dave Ramsey ([00:55])

• On missed warning signs:

  "The prudent see danger and seek refuge. The simple see danger, move forward and pay a penalty..." — Dave Ramsey ([04:42])

• On assertiveness:

  “This is your time where your backbone gets installed.” — Dave Ramsey ([07:32])

• On closure:

  “Be decisive, Andrew. Clear and decisive.” — Co-host (C) ([08:11])

• On personal regret:

  “I didn’t want to be in this in the first place. I wish I wasn’t.” — Dave Ramsey ([08:02])

Important Segment Timestamps

• Background & Start of the Business: [00:06] – [01:19]
• The Partnership’s Downward Turn: [01:19] – [03:50]
• Financial Trouble & Regretful Acquisition: [04:05] – [05:06]
• Advice on Exiting the Partnership: [05:06] – [07:32]
• Summary Lessons & Final Coaching: [07:32] – [08:13]

Takeaway for Listeners

Main message:
Avoid partnerships unless absolutely necessary—and always get legal agreements outlining every scenario. If a partnership goes bad, act decisively to protect your future and financial well-being. Have the hard conversations directly, with clarity and resolve.

This episode provides both a cautionary tale and a practical playbook for breaking free of a failing business partnership. The hosts’ tough, supportive advice is a hallmark of Ramsey’s straightforward approach to life and finance.