Advice from Nashville's Financial Guru Dave Ramsey
Dave Says
By Dave Ramsey
Author of Financial Peace and The Total Money Makeover
11/2/2004
Take part-time job while trying to launch business.
Dear Dave,
My husband and I are in our early 30s and have been married for nine years. He got laid off last September. We had four children, but our 18-month old baby girl passed away in April. We’re still trying to deal with that.
My husband has gotten the opportunity to start his dream company. He got his degree in graphic design and he started up a company providing that service. We had a lot of clients in the beginning, but it’s slowing down and we don’t know what our residual income is going to be. In our best month, we earned $6,000, but in the worst month we only earned $300. I’m working with him on marketing to get more clients. In the meantime, we’re trying to figure out if we should get part-time jobs to support our household and this new company. Right now we’re two months behind on our mortgage and we’re behind on our student loans.
Sharon in Flint, MI
Dear Sharon,
First of all, I’m so sorry for your loss. With regard to the company he’s starting, I think it is your best part-time job. You need to get out there and sell more accounts. That’s better than anything else I can tell you to go do part-time. It sounds like your quickest path to money is marketing. Go buy, or check out from the library, a book titled Guerilla Marketing by Jay Conrad Levinson. It lists inexpensive, grass-roots ideas for marketing. You need to read that book tonight. This is hand-to-hand combat type of marketing. With your graphic design skills you can create all kinds of marketing pieces. Then you can just go door-to-door with your sample kit and his portfolio working to get some business. Get them to give you a deposit to hold their place in line to create income right now. The only limitation I would put on that would be if you’ve lost confidence in your ability to go out and win new business. In that case, I recommend getting extra part-time jobs. Otherwise, just go out, work hard and get some new business.
For your student loans, I would contact the loan companies and ask for a hardship deferment based on the loss of your child and your husband’s layoff. That will give you six months without having to make a payment. The interest will continue to accrue, but no payments will be due. As far as the mortgage is concerned, I still think going out and working really hard to get some new business to bring money in is going to be your quickest way to take care of that. Read that book immediately and by the close of business tomorrow set a goal of talking to 35 businesses that are good prospects for doing business with you. Just cold call those businesses with samples of your husbands work in hand and tell them, “We’re running a special with our graphic arts company. We’re offering you 25% off any graphic work we do for you this week, but you’ve got to book it by close of business today.” Make sure you talk to the decision-maker.” If you go do that, you will land some accounts tomorrow!
Dave
More About Dave
Dave Says Articles
Dave Ramsey History
Dave Ramsey.com
