Saturday, July 12, 2014
Inquirer Daily News

Control the overhead

Author and radio talk show host Dave Ramsey.
Author and radio talk show host Dave Ramsey.

Dear Dave,

I own a small business, and I'm having trouble scaling up while keeping expenses down. Do you have any advice for me?


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  • More advice from Dave Ramsey
  • Dear Josh,

    There are two types of expenses: fixed and variable. Variable expenses rise as the volume and size of your business grows. A good example of this would be shipping. The more stuff you move, the higher your shipping bill. Fixed expenses are there regardless of your income. Rent is a fixed expense. The amount doesn't change, and you have to pay it whether you're making money or not.

    The best advice I can give you in a scenario like this is to take a deep breath, and accept the fact that you need to slow down and grow slowly and steadily. If you let expenses get out of hand you'll be chasing them and playing catch up for the life of your business. Overhead kills businesses, Josh. It's the death knell.


    Dave Ramsey is America's trusted voice on money and business. He's authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at

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