Can You Run a Capital-Intensive Business Debt-Free?
Вставка
- Опубліковано 16 бер 2023
- Links mentioned in this episode:
• The EntreLeadership Podcast: bit.ly/TheEntreLeadershipPodcast
• Start your free trial of EntreLeadership Elite: bit.ly/3tI2fN8
• Linchpin by Seth Godin: bit.ly/3kMP0tl
• Thou Shall Prosper by Rabbi Daniel Lapin: bit.ly/3xqo5Gz
• 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: www.entreleadership.com/ask
Start growing in business and leadership with the EntreLeadership Newsletter. Sign up to receive tactical tools, advice and resources in your inbox every week: bit.ly/3IRWnsL
Support our sponsors:
• Hite Digital: bit.ly/HiteDigital
• NetSuite: bit.ly/NetSuiteEntre
• BELAY: bit.ly/351P9AE
• Payority: bit.ly/3IaA5SK
• Staples: staplesbusinessadvantage.com/...
Learn more about EntreLeadership Events:
• EntreLeadership Summit: bit.ly/EntreLeadershipSummit
• EntreLeadership Master Series: bit.ly/EntreLeadershipMasterS...
Learn more about EntreLeadership Coaching:
• Elite: bit.ly/3tI2fN8
• Advisory Groups: bit.ly/EntreLeadershipAdvisor...
• Executive Coaching: bit.ly/EntreLeadershipExecuti...
• Workshops: bit.ly/EntreLeadershipWorkshops
Listen to all the Ramsey Network podcasts anytime, anywhere in our app. Download the Ramsey Network app: apple.co/3eN8jNq
Learn more about your ad choices: www.megaphone.fm/adchoices
Ramsey Solutions Privacy Policy: www.ramseysolutions.com/compa...
Im so glad dave is doing this show. Its for people like me
I generally agree with Dave but I think he oversimplifies the issue of agricultural equipment. And the industry of farming. There are certain pieces of equipment that are so crucial to the operation of the farm that downtime is a huge factor. Harvest time is very short and the risk of equipment failure is huge. A manufacturing line can go down for a day and loose 1/365th of a year’s productivity. A combine goes down during harvest and looses 1/10th of a year’s productivity.
Farmers are the most practical people I know, and are not afraid to get their hands dirty fixing equipment. They’re not out there buying the latest and greatest for Bluetooth capability…they’re doing so for increased productivity and decreased downtime. To further complicate matters, agricultural equipment in recent years have become more and more proprietary, meaning the farmer can no longer fix a broken component but instead take it to the authorized service center for repair. It’s a racket for the manufacturers and right to repair is a hotbed issue. But at the end of the day, a bricked combine is not productive and farmers have had to make the business decision that newer equipment is more cost effective than old equipment.
Great video! We’re new farmers and only pay cash for equipment. Never going to go into debt again. Also, have to say we have the fanciest/high tech equipment you can buy from the early 80s/90s 😝 JD 9500 s and 4440 s age like a fine wine
Farming is much more complicated than stated and IS different than other capital intensive industries. Farmers do not have control of the prices that they receive for their crops. Farmers are price takers. Costs are rising at a faster rate than prices are. The only thing that farmers can do to increase revenue is try to increase yields (which most often costs the farmer more) or increase quality (which most often costs the farmer more) which do not always increase profit. That said, I’m not saying farms cannot be run debt free. I’m merely saying that farming is very different than stated and is a very difficult business model.
Wahhhh
The one thing he didn't cover was that farmers buy retail and sell at wholesale and they cannot set their own prices. Those prices are forced on by others.
If that is true, why be a farmer?
@John Ingram Because most of the time these people grow up doing it they love it. It's in their blood. And they realize somebody's gotta grow our food.
Great question.
I will say that AC in a tractor cab is pretty important for it to be a workable environment for a guy for any length of time. But it’s still an option fans help too
A 10-20yo tractor still has ac is what I'm sure Dave is trying to say.
No you can't.
A small family farm makes so little money to begin with.
Does he knows how much farm equipment costs?
Around here, it’s lifted pickup trucks, mansions, and hunting trips.
As someone who is doing it with almost half a million in annual sales mine and my wifes retail business is debt free!
Keep up the good work.
That’s awesome! Good job!
I bought my first truck, a 99 dodge dakota, to start my plumbing company later this year. It cost me $800 with another $800 put into it to get it up and going. It'll get the job done until I can buy a better one with cash as well.
Daves first comment was the best. He said there is a lot of capital intensive businesses. Any CEO could argue that any business is capital intensive. A farmer could always go old school let a bunch of fields fallow which lowers the cost of fertilizer and wear and tear on equipment.
Still expensive farming its millions
I was a farmers helper alot of work and cost alot
People run their business the same way they run their personal lives
Myself I hope to only have to borrow money for purchasing land
Here is the part Dave Ramsey does not understand or maybe he just doesn’t think about it in this way. I am a small farmer I cannot buy my inputs for cash because the inputs went up two or three times what they should be. Has nothing to do with equipment. The other thing is I have no control over what I earn for the product I produce. Dave Ramsey does he can control what he charges for his services if you had a factory you could control what you can produce the product for. Everything with farming is done with an open market which we have no control over. So about three years ago I could buy my inputs for cash. Now because they went up two or three times what they were can’t. I’m not gonna quit farming because I have a big capital investment in everything I bought up to this point . That’s the part he doesn’t get do I wish I had that no I wish I could buy everything for cash but I am not sitting here with 1 million bucks in the bank really no farmer is
I think the farmer thing is complicated by the government interference in farming and agriculture. I’m sure the government would love it if you couldn’t succeed without being in immense debt, especially something that is so important to society.
The building is worth 4 million. Not 400 million.
Dave just isn't making much sense anymore...
The message seemed pretty straightforward to me.
Maybe this wasn’t the best answer for this question, but he usually gives some great advice.
@MikeThePike why would $1000 from a plan developed in 1993 not be inflation adjusted? "Because it's not designed to be" Go ahead, Mike and tell us what that means
Dave, once again, is talking out of his ass about an industry he has no clue about. Equating his studio to farm machinery is ridiculous. He can set his prices for his services, farmers don't, often time breaking even is a good year. Also farming is a kind of an all or nothing endeavor, you really can't stair step your way up. In addition cheap equipment is cheap for a reason, it's more than likely junk, that will cost you more in down time than it'll ever save you in up front costs.