4 min read ⌚
20 Years of Practical Business Wisdom from the Trenches
And we have the summary.
About Dave Ramsey
Dave Ramsey is an American businessman and author, the host of “The Dave Ramsey Show,” one of the most listened-to radio shows in history. He has also authored no less than five “New York Times” bestsellers. In addition to “EntreLeadership,” these are: “More Than Enough,” “Financial Peace,” “The Total Money Makeover,” and “Smart Money Smart Kids.” Find out more at https://www.daveramsey.com/
In Dave Ramsey’s opinion, the modern world belongs to neither the leaders nor to the entrepreneurs – only. You have to be both: i.e., an EntreLeader!
But, what does that mean?
Well, obviously, it means to combine the qualities of both an entrepreneur and a leader.
And if our top leadership books have something to say on the matter, to be a leader means to be visionary, emotionally intelligent, disciplined, and charismatic. Our top entrepreneurship books uncover the traits of the finest entrepreneurs: daring, resolute, original, driven.
An EntreLeader has to be all of this!
Because, as Dave Ramsey says, it’s not only about envisioning and innovating; and it’s not only about building the right start-up. It’s also about leading it to the top!
Hell – even “Twitter” earned nothing before being taken in more capable hands!
Now, before you start anything, you have to be aware that a business (much like anything else) is merely an extension of your character. Or, in other words, if you are a weak and indecisive person, it’s probably not a good idea to gamble on a start-up. The company will end up being weak too.
If you are a strong character and people describe you in terms of the adjectives we used above – then go for it!
Of course, not before putting your business goals on paper. “Write the vision and make it plain,” says “The Bible” (Habakkuk 2:2), and Dave Ramsey suggests you consult it from time to time. A conservative Christian, he is one of the very few financial advisors you’ll find out there who think that “The Bible” is a good place to start building a business empire.
However, it seems it has worked for him, so even when he says that “Prayer” is one of the 12 crucial components of the hiring process, it’s difficult to raise objections.
Speaking of hiring – having a clear vision may be a prerequisite to success, but having a good team is even more essential! And we used the word right: EntreLeaders don’t have employees, but team members.
As Simon Sinek taught us: they eat last! Although, if you ask Dave Ramsey, it wasn’t exactly Sinek, but Jesus Christ. Who has also taught us that you need to treat your employees – oops, team members – as you would like them to treat you.
Of course, business is also a financial matter, and maintaining a full financial accounting is not something you should take lightly. Don’t mix personal and business funds, and never go into debt.
Which brings us to Ramsey’s pro tip:
If you’re working somewhere, don’t quit your job to set up a start-up. Do it in spite of it! And leave your job only when your business starts earning money.
You’ll thank us later.
Key Lessons from “EntreLeadership”
1. EntreLeader = Entrepreneur + Leader
2. Set Up a Start-Up – and Separate Checking Accounts
3. Don’t Forget to Interview Your Employee’s Spouse
EntreLeader = Entrepreneur + Leader
There are very few successful entrepreneurs who are not successful leaders. So, no matter how original and brilliant your idea is, if you’re not interested in learning how to lead your company to grow and prosper, you are better off not starting it in the first place.
Entrepreneurs are so yesteryear! Welcome the EntreLeaders!
Set Up a Start-Up – and Separate Checking Accounts
“Small businesses fail because of poor accounting,” writes Dave Ramsey. “They start without enough money (undercapitalized), they miss projections, they don’t pay their quarterly taxes or their payroll taxes, and they run into ‘cash flow problems.’”
And the most serious mistake behind this: they use the firm’s money for personal interests. Don’t ever do this. Once you set up a start-up, set up separate checking accounts. And budget carefully. You shouldn’t be a Scrooge, but you shouldn’t go into credit card debt either. It kills businesses.
Don’t Forget to Interview Your Employee’s Spouse
Dave Ramsey is pretty conservative on all accounts. But, not when it comes to the hiring process.
In his opinion, it’s a 12-step program, which starts with a prayer and ends with a 90-day probation period. However, mingled with the more usual tactics (referrals, several interviews, resumes, mission statements) there is one you’ll find nowhere else: the spousal interview!
According to Ramsey, knowing your employee’s family means knowing your employee better than hi/she know himself/herself.
So, have a dinner with your potential hire and his/her significant other! It may be strange, but you’ll take a lot out of it!
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