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.
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