Entreleadership

I'm back after an extra-long summer hiatus. I appreciate the positive comments I've heard in person and by email over the last few months. I've even been able to address some readers' questions directly by email, which I've enjoyed.

This week I'd like to step away from personal finance and discuss small business finance instead. Of course, I will still be referring to Dave Ramsey's principles. He not only addresses personal finance, but he also teaches principles for business finance and leadership with his Entreleadership seminar (http://www.daveramsey.com/entreleadership/home/). He normally gives these seminars only in person. I went with some team members from Kodiak Mountain Stone to this seminar in Portland about a year ago, and the things we learned were well worth the travel and ticket cost. I keep my note-filled workbook on my desk, and we still refer regularly to it as we make plans for our business.

On November 5, for the first time, he will be broadcasting this seminar live to various host locations across North America. We will be hosting the event at the Cardston Civic Center from 9 am to 3:30 pm. Tickets are $40 each (including lunch) and can be purchased at Sims Olsen Chartered Accountants (66 3rd Avenue W, 403-653-3509). The topics covered will include EntreLeadership defined (combining entrepreneurship and leadership); dreams, visions and goal setting; business financial principles; hiring and firing; and making major decisions.

People often ask me how business and personal financial principles differ, and the answer is that there isn't much difference. Businesses should still have an emergency fund of three to six months of expenses. Businesses who have emergency funds are the ones who survive downturns like this. The best way to operate a business is without debt, and those in debt should develop a plan for getting out of it over time.

One thing Dave Ramsey emphasizes in the Entreleadership seminar is that debt amplifies risk. Most businesses prosper because of a few good decisions that outweigh many more dumb decisions. Business owners often become so confident that a new idea will work that they load up on debt to implement it. Chances are that any given decision will be a dumb one, and the debt associated with that idea can kill the business.

So how can you implement an idea without debt? The best option is to use cash, which will cause you to cautiously test an idea until you know if it's a good one or not. It's much easier to spend the bank's money than your own hard-earned cash. If the idea requires equipment that you don't have the cash for, try renting until the idea proves itself. When the idea does prove itself, buy used equipment. Instead of over-hiring, start by outsourcing or using contractors. There are many ways to build a business without debt, but it requires hard work, creativity, and sacrifice. Sounds a lot like how to succeed in personal finance, doesn't it?

If you have any questions or topics you want me to address, please email me!

Welcome to my Personal Finance Blog!

Welcome to my new blog! I have been writing a personal finance column called "Dollars and Sense" for several months for the local paper, and I realized that I could take advantage of technology and broadcast my column to the world! I started this blog to keep an archive of my newspaper columns and also make other personal finance-related comments.