"You Have No Freaking Idea What You're Getting Into"

Summary

Podcast Summary: The Ramsey Show Highlights - "You Have No Freaking Idea What You're Getting Into"

Release Date: June 30, 2025
Host: Ramsey Network
Duration: Approximately 10 minutes

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Introduction

In this episode of The Ramsey Show Highlights, host Dave Ramsey addresses a caller named Caleb, who is contemplating a significant business venture: purchasing and operating a Canadian fishing lodge. Caleb seeks advice on how to secure a down payment and navigate the complexities of running such a business. Dave Ramsey provides candid feedback, drawing from his extensive experience in coaching small businesses and financial planning.

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Caleb’s Business Proposal

Caleb’s Dream:
Caleb, who currently earns an annual salary of $90,000 in the construction industry, shares his aspiration to buy a Canadian fishing lodge. He envisions running the lodge from May to November each year, providing guests with fishing and hunting experiences without the full-service amenities typically offered by lodges, such as meal plans.

Financial Considerations:
Caleb plans to contribute approximately $100,000 towards the down payment, combining his savings, his wife’s contributions, and a small loan from his parents. He notes that lodge prices vary significantly, ranging from $250,000 to several million dollars, making the down payment a critical hurdle.

Business Experience:
Despite his hands-on skills and knowledge in fishing and hunting, Caleb admits to having zero experience in business management. He has consulted with friends who have previously owned lodges, all of whom transitioned from unrelated professions, particularly in construction, to lodge ownership.

Quote:

"I'm really, really good with my hands. Really knowledgeable about fishing and hunting. I'd be doing both and see Ro."
— Caleb [00:19]

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Dave Ramsey’s Candid Assessment

Lack of Business Acumen:
Dave Ramsey expresses concern over Caleb’s lack of business knowledge, emphasizing that operating a fishing lodge is predominantly a business operation (90%) with only a small portion (10%) dedicated to fishing and hunting activities.

Quote:

"A fishing lodge is 90% business, 10% fishing."
— Dave Ramsey [01:30]

Financial Risks:
Ramsey underscores the financial risks associated with Caleb’s plan. He points out that with a proposed $150,000 mortgage on a $250,000 property, coupled with Caleb’s inexperience, the venture is precarious. He highlights the common pitfalls in business, advising that projects often take twice as long and cost twice as much as initially anticipated.

Quote:

"It's going to take twice as long as you think. It's going to cost twice as much as you think. And you're not the exception."
— Dave Ramsey [06:14]

Recommendation to Savor Reality:
Ramsey advises Caleb to gain practical experience before committing to the purchase. He suggests that Caleb work at an existing lodge for a year to understand the operational challenges and ensure the business model is viable.

Quote:

"I really would love for you to go work at one for one of these people, operate it for them as a part of the purchase plan before you close on the deal."
— Dave Ramsey [05:03]

Concerns About International Business:
Additionally, Ramsey raises concerns about the complexities of purchasing and operating a business in another country, highlighting potential legal and logistical challenges that Caleb may not have fully considered.

Quote:

"Now you are an immigrant. I don't know what it means for an American to immigrant permanently and buy a business in Canada."
— Dave Ramsey [06:56]

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Key Insights and Lessons

1. Business Knowledge is Crucial:
   Before embarking on any business venture, especially one in a foreign country, comprehensive understanding of business operations is essential. Practical experience can provide invaluable insights that theoretical planning often overlooks.

2. Financial Preparedness:
   Securing adequate financing and preparing for unexpected costs are vital. Underestimating expenses or overestimating revenue can jeopardize the entire venture.

3. Realistic Expectations:
   Dreams fueled by passion must be tempered with reality. Recognizing the challenges and preparing accordingly can prevent potential nightmares from turning into financial and personal setbacks.

4. Consulting Experts:
   Seeking advice from seasoned professionals and possibly mentoring under existing business owners can bridge the gap between aspiration and successful execution.

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Conclusion

In this episode, Dave Ramsey provides a reality check for Caleb’s ambitious plan to purchase and operate a Canadian fishing lodge. While recognizing Caleb’s passion and skills, Ramsey emphasizes the importance of business acumen, financial planning, and practical experience. His advice serves as a valuable reminder that dreams require careful planning and realistic assessments to transform into sustainable and profitable ventures.

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Notable Quotes with Timestamps:

• Caleb [00:19]: "I'm really, really good with my hands. Really knowledgeable about fishing and hunting. I'd be doing both and see Ro."

• Dave Ramsey [01:30]: "A fishing lodge is 90% business, 10% fishing."

• Dave Ramsey [05:03]: "I really would love for you to go work at one for one of these people, operate it for them as a part of the purchase plan before you close on the deal."

• Dave Ramsey [06:14]: "It's going to take twice as long as you think. It's going to cost twice as much as you think. And you're not the exception."

• Dave Ramsey [06:56]: "Now you are an immigrant. I don't know what it means for an American to immigrant permanently and buy a business in Canada."

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Resources Mentioned:

• Entree Leadership: Dave Ramsey references his coaching brand, Entree Leadership, which has guided over 20,000 small businesses.

• Books Recommended:

  • Build a Business You Love by Dave Ramsey – Suggested for Caleb’s first investment to gain foundational business knowledge.

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This episode serves as an insightful discussion on the importance of preparation, knowledge, and realistic planning in pursuing entrepreneurial dreams. Dave Ramsey’s forthright advice aims to guide aspiring business owners like Caleb towards informed and sustainable decision-making.

Transcript

[Dave Ramsey]

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[Caleb]

So me and my wife, I was looking for some advice. We want to take our family. We have three small children. Our dream is to buy a Canadian fishing lodge and run that from about May to November every year. The issue that I'm running into, just because I'm new at this, is trying to come up with figuring out how to come up with a down payment for something like that. You know, some of these lodges range from $250,000 to millions of dollars. I'm trying to figure out what's the best way to go about doing something like that.

[Unknown]

It depends on how much money you have to spend.

[Dave Ramsey]

You don't have any money to put a down payment down.

[Caleb]

I mean, I've got. I think I could probably come up with, between my. Me and my wife and, you know, asking my parents for, you know, a small. A small amount to pay back, I could probably come up with maybe around 100 grand, but it seems like that won't take me very far.

[Dave Ramsey]

What do you make?

[Caleb]

Right now I make about 90,000.

[Dave Ramsey]

What do you do?

[Caleb]

But, I mean, I'm in construction and a job I really don't like. I'm away from my kids, you know.

[Dave Ramsey]

You ever worked in a Canadian fishing lodge?

[Caleb]

No, but I'm really, really good with my hands. Really knowledgeable. Knowledgeable about fishing and hunting. I'd be doing Both and see Ro.

[Dave Ramsey]

Knowledge about business.

[Caleb]

Zero knowledge about business. Yes, sir.

[Dave Ramsey]

A fishing lodge is 90% business, 10% fishing.

[Caleb]

I'm just going off of what I've talked to. I've got a couple, you know, mutual friends. Now, of course, since I'm in this process of owners up there, I've talked to them and they both. Both the ones I talked to are. They've been. They've owned a lodge now for about 10, 15 years. And they didn't do this before, didn't run business before. One of them was in construction, just like me.

[Unknown]

Yeah, I'll tell you, I don't. I've never been to Canadian fishing Lodge. I don't know what, what that is. Is it something. Do you live on the property? Is it like a bed and breakfast where you live there and you provide, you know, all of this for, for your guests and you're living on the property?

[Caleb]

Yep. We would live on the property with, with our, My family. And what we are looking for, we are not to provide the American plan, which is food and everything. It's More of just, you're coming up there, you're fishing, we'll take you, we'll guide your fishing trip, we'll guide your hunting trip, show you where to go, stuff like that. But we're not going to provide the American plan, which is all your meals included.

[Unknown]

So just play this out with me. So you said these could range from 250,000 plus, right. All the way up to a couple million. So let's just pretend you said, okay, I'm looking at the $250,000 plan. My family lives on the property. I put 100,000 down. So we've got the place, we're living there, and now we're starting to rent out the experience to guests. What. What happens next on your end? Like, what's the next step?

[Caleb]

I guess I don't know what you mean. What do you mean, next step?

[Unknown]

So you've got the lodge, you purchase the property. What's the next step? How do you build out the business? How do you get people to come to you? How do you build a profit?

[Caleb]

The next one's. Yeah, there's already an existing customer base on most of them because you're buying a turnkey. But a lot of the lodges up there for sale are elderly people that are trying to get out, and they haven't marketed in years. They don't do online marketing. They're only. They're only relying off of their annual return customer. Like I said, both the people I talked to that have purchased the lodge in the past 10 years said it was really easy to get a lot to up their. Their customer basis. It was really easy with simple marketing tactics.

[Unknown]

You know, know, what do they earn? Like, what's their. What's. What do they. What's their net profit? What are they getting out of this?

[Caleb]

I mean, I couldn't ask them that. I'm not close enough to them to ask them exactly what they're earning.

[Dave Ramsey]

But the first, if you want, if you said, I'm going to put $150,000, I'm gonna put $100,000 down, I'm gonna buy a $250,000 house with 150,000. With 100,000 down, I'm gonna have a $150,000 mortgage and I'm going to start a new business. And I don't know anything about the business other than I know about fishing. And I talked to three people who said it's a good idea, you know, so the elderly people are going to owner Finance the 150 and hope you make a Go of it. Okay. Yep. So are you. Are you 27 or 29?

[Caleb]

28.

[Dave Ramsey]

Yeah. Almost like I've done this. Okay. And so I'm your old ugly uncle that's 64 that loves you. Okay. You are about 90% dream and about 10% reality. And talking to you.

[Caleb]

Yeah.

[Dave Ramsey]

You have no freaking idea what you're getting into. You just think you do. And it's very romantic with rainbows and Skittles and unicorns in your head right now. And when you get up there and get dirt under your fingernails and realize this is freaking mess and what have I gotten my family into? That's about the time you're going to discover how this really works. So I really would love for you to go work at one for one of these people, operate it for them as a part of the purchase plan before you close on the deal, like run it for a year and see the numbers and see what is wrong with this. Because the only impression you have is all positive. And there are three rules of business, Caleb. It's going to take twice as long as you think. It's going to cost twice as much as you think. And you're not the exception. Those are the three rules of business. And the way you're painting this is you are using fantasy language, not reality language. And it scares me for you. I'm afraid you're gonna turn this dream into a nightmare if you're not real careful.

[Caleb]

I'm afraid of that, too.

[Dave Ramsey]

I really want you to get some reality on you in this thing and get under the rainbows and the Skittles and find out what the flip is really going on up there and why is it that there seems to be a lot of these for Sal? You know, there's a problem here, okay? So I really want to go work up there. I want you to take your family up there on vacation for three weeks. Find an old couple that wants to sell a 250,001, write down a contract that says I'm going to work for you for a year. At the end of that, I'm going to close on this. If I find out things to be the right thing, be the way that you say they are, and if I can get financing or if you provide me financing.

[Unknown]

And what's it mean for you to be doing business in another country?

[Dave Ramsey]

Yeah. And now you are. Now you are an immigrant. I don't know what it means for an America to immigrant permanently and buy a business in Canada. I have no idea how to do that. I do know it's probably more difficult than it was 12 months ago. So, you know, you've probably got some issues there. And, you know, I really want to understand the business better than you are doing. So the way I always ask myself when I'm going into something as a business person, would I hire me to do that? And if the answer is I don't know what the flip I'm doing, no, I wouldn't hire me to do that, then that tells me not to go into that space until I learn some more about it. And I am 100% sure you don't know what the flip you're doing on this.

[Unknown]

Well, there's no.

[Dave Ramsey]

You can fish.

[Unknown]

There's no numbers around that.

[Dave Ramsey]

I doubt that. But you've never run a business of any kind and you're stepping into this. I'm not trying to be a dream killer. I love killing nightmares, though. I love killing nightmares. So I want you to go forward with this slowly, carefully, and much more wisely. And then while you're doing that, work like a crazy man and pile up some cash and come up with your down payment and get one of the old people to owner finance it. Because I don't think a bank's gonna touch us with a ten foot pole, dude. And that's probably good for you that they won't. So. So, guys, the wonderful thing about America is that we live in the free enterprise system. And the wonderful thing about america is that 54% of the gross domestic product is brought to you by small businesses. All the goods and services totaled up, over half of them are delivered by small businesses. People like Caleb, who started something. So I love encouraging the free enterprise system. I also have spent 20 years coaching over 20,000 small businesses through our Entree leadership brand. And I see all the things that go wrong when you're doing this. So you know, you're not the exception. It's going to take twice as long and it's going to cost twice as much. Those are the three rules. And they do apply. They apply to me. When I get ready.

[Unknown]

You're not the exception.

[Dave Ramsey]

When I get ready to go into. When I get ready to go into. We're going to open an app. We're working on one for Dr. John DeLoney right now. Let me tell you what our projections on that are known as a guess. We have no idea what the stupid app's gonna do. And we need to build out our business model as if the thing does nothing. And then when it does something, be pleasantly surprised.

[Unknown]

Yeah.

[Dave Ramsey]

You know, and so and you can get digital advice, but everybody's got a dadgum opinion. They're like armpits. They stink. Oh, my God.

[Unknown]

Caleb needs to invest. His first investment needs to be in your book.

[Dave Ramsey]

Let me send him one. Send him entree leadership and build a business you love. I want you to do this. I want you to do it in such a way, Caleb, that it doesn't kill you. If anyone depends on your income. You need affordable term life. Never cash value insurance. Visit xander. Com today for quotes.