Scaling Our Business Has Turned Into a Nightmare

Sharon, owner of a specialty tea and smoothie boba business with two locations, calls in facing a cash crunch after opening her second site. The first location generates about $500,000 annually and was mostly cash-flowed, but the new one—opened in March in a promised high-growth area—has only slowly ramped to around $150,000 so far. Buildout costs ballooned from $250,000 expected to $350,000, draining $250,000 in savings and forcing an $80,000 line of credit (now $50,000). Profits from the first site go entirely to debt service ($5,000/month), and they're behind on $5,800 monthly rent at the second location since September, awaiting eviction.

Negotiating with the Landlord

Dave Ramsey urges Sharon and her husband to meet the landlord in person immediately, rather than avoiding contact out of fear. Key is addressing unknowns that amplify stress: clarify the promised buildout credit (verbal since September, no firm number) and push for rent concessions. The pitch combines honesty about their own pro forma errors with the landlord's failure to deliver—office buildings aren't built or leased, leaving the site isolated "in the middle of a damn field."