Dave Ramsey

Dear Dave,

I’m a general contractor, and I was recently offered some business by a large corporation. I’d need new equipment to handle the job, and the purchase would use most of my cash flow. I’m wondering if the opportunity is worth the risk.


Dear Wayne,

I’m glad you realize that, on the surface, not all growth is good growth. The number-one thing that causes small businesses to fail is accounting and cash-flow problems. The second biggest thing is that they grow too quickly and fall in on themselves. Owners are sometimes scared to turn down anything, so they take everything that’s offered, and things grow and grow and grow. The problem with that is it can become impossible to keep infrastructure, leadership, management and equipment in line with what you need to do the job right and keep the company running smoothly.

Working with a large corporation could mean good money. You said you have the cash available, but at the same time, it could put you in a bind financially. So, in my mind if the existing business has to suffer, you’re probably biting off more than you can chew at the moment.

Think about this. Maybe you could start out on a smaller scale with the corporation that wants to work with you. At the same time, you could begin looking for someone to help manage things in this area. From a leadership perspective, as well as emotionally, intellectually and logistically, it’s impossible for one person to carry the entire load of running a company and do everything well.

Regardless, I think there are enough reasons to back off and take it slow. You just don’t have the resources to pull this thing off right now without jeopardizing your business. Remember the tale of “The Tortoise and The Hare”? Every time I read that story, the tortoise wins. The hare is always running around, looking flashy, but he never finishes the race.

Take your time and go a little slower, Wayne. It’s okay to be the tortoise! 




(Is multi-level about money?)

Word count: 315



Dear Dave,

Dave Ramsey

Dave Ramsey is a personal money management expert, popular national radio personality and the author of three New York Times bestsellers.
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