The EntreLeadership Podcast

How to Pay Your People and Survive a Down Economy

Oct 30, 2023

Topics discussed include honoring a mother's legacy without debt, establishing annual bonuses, not being able to afford staff raises, eliminating business debt, dividing assets in a family business, challenges of buying from family members, determining bonuses in a fluctuating economy, the principle of generosity in profit sharing, financial challenges of giving raises, showing appreciation without monetary raises, unique ways to express gratitude, importance of being debt-free in a down economy.

50:15

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Quick takeaways

Eliminating debt and having cash reserves is crucial for surviving a downturn in the economy.

Expressing appreciation through verbal recognition and small gestures can compensate for the inability to give raises.

Deep dives

Paying Off Debt in a Slowing Economy

The caller owns a second-generation family-owned Mexican restaurant with two locations and 75 team members, generating $7.2 million in sales. They have a $673,000 loan at 3% interest and $850,000 in savings. The caller wants to know if it's wise to pay off the loan and deplete their savings given the current market conditions. Dave advises them to pay off the loan and mentions the importance of not having payments during a down economy. He emphasizes the need to survive downturns by being debt-free and having cash reserves.

Introduction

2min

Dividing Business and Estate Among Siblings

11min

Pricing, Family Relations, and Holiday Challenges

5min

Determining Bonuses in a Fluctuating Economy

8min

Principle of Generosity and Profit Sharing in the Company

4min

Financial Challenges and Showing Appreciation to Staff

7min

Showing Appreciation in Difficult Times

5min

Importance of Being Debt-Free and Having Cash Reserves in a Down Economy

8min

Today we’ll hear about:

• A business owner trying to honor her mother’s legacy without going into debt

• How to establish annual bonuses and avoid entitlement from your team

• What to do when your staff deserves a raise but you can’t afford it

• Why the best thing you could do for your business is to eliminate debt

Links mentioned in this episode:

• The EntreLeadership Podcast

• EntreLeadership Elite

• Have a question for The EntreLeadership Podcast? Leave a voicemail at 844.944.1070 or submit your question for a chance to be on the show with Dave Ramsey: https://www.entreleadership.com/ask

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