Core Insights - Personal finance expert Dave Ramsey advises against expanding a business without ensuring profitability, emphasizing that good intentions do not compensate for poor financial management [3][4]. Group 1: Business Growth and Debt - A small business owner, Sarah, seeks to expand her pediatric therapy practice but faces significant buildout costs of $250,000 to $300,000 for new locations [2]. - Ramsey strongly recommends against incurring debt for leasehold improvements, questioning the rationale behind expanding without a profit [3]. Group 2: Profitability Concerns - Sarah reveals that her practice, projected to generate around $1 million in revenue, operates with extremely thin margins due to high clinical staff costs [2][3]. - Ramsey challenges Sarah on her lack of profitability, stating that expanding a broken business model is illogical and suggests she needs to either raise rates or cut costs [4]. Group 3: Alternative Solutions - Instead of pursuing a new lease, Ramsey suggests negotiating with the current landlord to extend the lease for a year, allowing time to improve the business model and achieve healthier margins [5]. - He also recommends seeking landlords willing to cover buildout costs, sharing his own experience of negotiating rent reductions in exchange for improvements [6].

Business Strategy - The article discusses how to maintain business profitability during periods of client scarcity [1] Resource Link - The article provides a link to further information on the topic [1]

How To Keep Your Business Profitable During A Client Drought https://t.co/jxDQ5ohg5S https://t.co/0vPvc70fwq ...