Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
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Welcome to the Ramsey Show, where we help you win in your life. We're going to help you win with your money, win at work, in your work, and win with your relationships. All three of those are coming together. Hopefully you're winning. I'm Ken Coleman. Jade Warshaw is the voice. And the fabulous face that you see next to me. And we're here together. We're going to help you out. Take your phone calls. 888-825-5225. 888-825-5225. Partner, you ready to go? You warmed up? I'm warmed up. Did you do your salt cleanse on the throat or any kind of lozenge? Stretch the hammies. Okay, warmed up the voice. Okay, I like you stretched your hammies for sitting here for three hours. That's pretty good. We're going to start it off in Springfield, Missouri with Isaac today.
Isaac, how can we help?
Hey, guys. So I'm 26. I'm married with two kids, and I own a business that we just opened back in June. It's really taking a lot of time from us. My wife and I are both working at it full time, and we're not making much money yet. And so we're just kind of stressed about bills and stuff. We're kind of wondering how we can organize our lives better to be able to make more money and move forward.
Okay. What kind of business is it?
So it's a franchise that a friend of mine and I bought into, and it's a cookie store.
And it sounds like we've got a myriad of issues. So I heard we've got to organize, but then we've got to figure out if this franchise can actually work. So which is the bigger problem, spending or budgeting the money, the little bit money you're making? Are you making any money at all? What's the bigger problem here? Because I heard several things.
So I guess to get more specific, so we have that business. I'm also a realtor on the side. And so any extra time I have, I'm, I'm spending on that, trying to sell houses and stuff. Um, I knew it that too, just a few months ago. So I'm just barely starting to make money. The business itself, the cookie shop, the cookie shop, isn't making really anything. We're just barely breaking even. And then we're just doing all kinds of little side hustles where we can. DoorDash and Uber Eats and delivering for Walmart and stuff like that.
So let me ask this.
I can't figure it out.
Yeah. I got an idea now what we're talking about. So is it you, your buddy that you mentioned, you're the two partners and your wife is also helping out just because you can't afford to pay anybody? Give us just a little bit more clarity on that.
Yeah, so we did stuff the stupid way because we hadn't found Dave Ramsey yet. And so a friend of mine, he's just a silent capital partner. He put in money up front and helped us get into it. We have a big loan on it. How much? It's a quarter million.
Oh, mama. And you owe $125,000 of that?
Yeah, so I owe, yeah, 70% of it, yeah.
Oh, no, that ain't 125. Last time I did math. Oh, that would be... Okay, so you owe 70% of it.
And the rest you owe to your... Right, I'm the 70% partner.
Oof, and you guys aren't making anything. You're barely making it, keeping the business going. It's just barely making it.
Do you know why? Do you know the problem? Basically, yeah. Have you figured out what the problem is?
Well, kind of. We think we do. So our sales were really, really good when we opened in the summer, and we would have made money, but we didn't have our expenses under control. Once we got our expenses under control, we cut payroll costs really down. We got control of our inventory costs, stuff like that. We're doing a lot better on the expenses side. But our sales went down and we hit the winter. Part of that is because our marketing budget was kind of gone. So we weren't making as much because we just, our marketing was suffering.
Did you expect that? Did you expect that it would get slower during the winter considering, you know, it's the winter and folks aren't just out? Yeah.
Yeah, and in Missouri, the winters are pretty brutal and cold, so yeah.
Okay, so you expected this, but it was too early to have had any reserves kind of piled up is what you're saying.
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