Absolutely! Not in charge of anything! He should start with learning the business inside and out. He's been at it 33 yrs and still doesn't, apparently. Maybe join other groups or get friends where he can talk through this stuff.
Hey!!! I say long story short all the time. Well this guy was either nervous or has no clue what the books are. This guy clearly thinks he can be the boss. Obviously he’s not there.
Summarizing and simplyfying is sometimes hard mental job. And you cannot expect that lot of people will do it on the fly. For complex things is often be prepared in advance.
@@Wablestomp2 no way. I may be biased but I never heard people mix up revenue and profit. I hear them mix up the word "income" because it is vague. I also hear ignorant people say "revenue is profit", but I never hear someone say "profit is revenue" like this guy did.
It sounds like this caller has just been given an easy "in" to the family business his whole life and told what to do so he can play along for his paycheck. He can't really describe what he wants to change because he doesn't really understand how anything works. He just thinks its getting near his turn in the lineage to be boss and be successful, and he wants to in some way make his mark.
If you have been doing something for 30+ years (granted some of those year he was younger, lets jut call it 15) and you still don't understand what you are doing..... therein lies the problem.
Perfect example of why successful family businesses don’t last into the 3rd generation. They never look at what made them successful, just jump in and make big changes that don’t add to the revenue.
Hope he see this. You have the room currently. You need to add an evening shift of Mechanics. Bring down the times of service for your customers. Run the numbers after a quarter to check production and profitability. Then you could hire one person in sales or online sales to bring people in.
For someone who has worked in the business his whole life, he doesn't understand his business. Most importantly he doesn't understand what creates sales.
That's because he's been spoiled and just been given managerial jobs but not actually expected to learn anything. Guarantee that anytime a problem comes up this guy just calls Daddy to fix it
Most likely, the caller has been an employee for the business, and Dad didn't teach him anything about the business. I have some experience with that situation. He needs to take some coarses in business management and accounting. You don't add space until you have more business than currently is maxed out. I have seen some shops use "carport" additions until the revenue justified actually adding on to the building. And they paid cash for the additional space.
$230k revenue for an entire year for a powersports dealership is incredibly low. That's less than a side by side sold every month. Edit: Hah Dave says almost exactly the same thing.
Pitfall I see too often is that people see a need for investment of purchases as THE barrier to do better / more work and then, magically,..... Profit. Better to get work done and getvresults and then let investment follow with a proven model.
At first it's easy to dismiss this guy as an idiot, but it's clear he's trying to learn and really wants to do the right thing. He needs some guidance, certainly. I hope he finds a path that works and his business flourishes once he works around the growth and expansion issue
If he's doing $3m in revenue and only $265k net, margin is what he needs. If you have more demand than you have supply, increase your prices. Make $3.5m in revenue and $750k in profit, and then use that to expand.
Junior had better shut up and listen to Dad and Dave. I haul new boats from manufacturers to dealerships exactly like his. The "Toy" industry...boats, side-by-sides, a.k.a. "Power Sports"...went into a boom shortly after Covid first hit, when the directive was "Here's a monthly government check, stay away from work, spend the money, buy stuff." That tidal wave of record sales started faltering in late summer of 2023, and it's falling on its face right now. I'm delivering 2025 model boats that are being parked next to un-sold 2023 boats on the lots. The trucking company I drive for just walked away from a 15-plus-year business association because one of the largest boat manufacturing groups in the country needed to significantly cut freight rates because sales are so poor, and are predicted to continue being so. Service might be their bread and butter, but with sales like they're going into, it's not the time to be expending capital.
Economics is the study of how different parts of an economy work together. This guy doesn’t even understand basic accounting, so he can’t understand how a single business works, much less an entire economy.
He has no clue how to run a business. There is a good reason the dad does not want to follow his advice to grow. There is something missing in the story telling.
5 people on staff @ $250,000 (minimum) gross revenue per staff member (for a decent, healthy business) = $1,250,000 It was shocking to hear their revenue was only $230,000 If you watch Dave's show, many reach $200,000 to $250,000 per employee. When we look at a busines, we set $250,000 revenue per employee as a bare minimum target. *EXAMPLES* General Motors made $1,054,245 per employee in 2023 Apple Computer made $2,380,000 per employee in 2023 Harley Davidson made $912,000 per employee in 2023 Then (whew!) Dave got him on the right track and he said "we grossed $3 million" $3,000,000 / 5 staff members = $600,000 per employee That's pretty decent, so his older family members are doing okay. He just did not know the meaning of 'revenue' .
That totally depends on the business. For a dealership like this, $3M with 5 people is okay, not amazing because most of that $3M goes to COGS. On the other hand, if you have a remote marketing agency with $3M in revenue and 5 employees, you are crushing it because your expenses are practically $0 outside of payroll.
@@fabsmaster5309 We prefer > $250k per employee - partly because when a downturn in revenue occurs, we have at least some 'room' to avoid knee-jerk layoffs. Hiring well is so important - having a cushion is good. At $500k per employee, if gross sales take a hit, we have a 'margin of safety' Some businesses (say, in-home healthcare in a midwest region) - I've seen $60k per employee. Too thin. If you look at the General Motors case last year - over $1 million dollars revenue per employee - there's no way I'd buy into GM, even with that huge per-employee margin. (Especially in today's auto market - real tough just now.) So $250k gross revenue per employee is just one factor. But $250k is the minimum we will be okay with.
Dave yells at the guy for not understanding the difference between revenue (gross receipts) and profits (net); a LOT of people on the Internet are confused about that--maybe it's because their salaries are the profit, so that their 'personal revenue' is that profit? Don' know. But he was smart to stop the conversation before moving forward.
This one was kind of painful. When it gets down to it there’s really only one way to grow a business. It’s called bringing in more business. I get why this guy wants to grow. 230k net profit split 5 ways kinda sucks. The problem was he was asking Dave all the wrong questions. Now I don’t want to beat him up for not knowing what revenue means. It is embarrassing but there’s no sense in piling on the poor guy. I felt kinda bad for him and frankly it concerns me that the rest of his family may be just as ignorant. But this is something that can be corrected from an entry level accounting coarse. What this guy really should have been asking Dave is simple. How do they sell more boats? If all of his questions centered around that key issue then this would have been a far more productive conversation. Instead this guy just got humbled by Dave. I kind of wish Dave had dug in a little bit more about telling this dude that if he really wants to grow and enrich the family more he needs to learn to sell and get more customers walking through the door. Everything else is meaningless without that.
Don't put this guy in charge of anything. Not only will the business be doomed but everybody who works there will have no respect for the owner or the son. They will see it for what it is. "Daddy gave me this job yet I have no actual skills to run the place" And you can tell that's the case here because he has no idea even remotely how to grow the business.
if this guy doesn't know the difference between revenues and profits then he shouldn't be in business Let's be honest, for you to be able to sell more and grow your sales you'd need more people in your area looking to buy. If you don't have a population in your area large enough to sell too, you're not going to move many vehicles and boats. Do y'all service them as well or are you just a dealer? Service is a huge part of the powersports game, you can only sell so many vehicles, you've gotta be able to make sales on service as well as parts and accessories. I really don't think this guy knows what he's doing, he needs more knowledge of the business world and i don't believe he has the mind for this Sounds like this guy have more ambitions then knowledge, ambition is good but you need the smarts and abilities to make the ideas viable. There are only so many people buying powersports vehicles. Set up a few tents in the parking lot and service some of the vehicles, get caught up and see where you sit then. If youre juat stacking appointments then opening up more bays may not actually do anything for growth but just widdle the window down to a quicker turn around. Once youre caught up you may actually be able to keep up with demand.
Dave pisses me off sometimes and this is one of those times. He wants to speak without understanding the issue and that makes him give opinions on things he doesn’t understand
He worked hard to understand and EXPLAIN to the caller the difference between revenue and profit and that hiring more employees doesn’t equal more revenue. The caller doesn’t understand his own situation, a standard profit and loss statement, or basic business sense.
This guy is not an accountant. He does not understand general accounting practices terminology, maybe he has an accounting software doing this for him. But it might be time for them to have a proper bookkeeper and he could focus running on the business and learning.
Daddy has the money, the kid doesn't! Dad has been in business for 35 years. He knows how to survive. Dave never asked the SON if he was still living at home! The son has no concept of money,!!!! Just spend spend!!!
If you ever wondered if you could run a business, this guy "doing it" (albeit suboptimally) should be proof that you're gonna be okay. Lmao. People who don't know the difference between revenue and net profit and "run a business" - I don't know man. YIKES. I lost brain cells listening to this.
![โอ้เธอช่าง... - บี้เดอะสกา ft. ต๋อง เทวัญ (Prod. by ป๋าเพชร) [Official MV]](http://i.ytimg.com/vi/zbWhiLFmVL0/mqdefault.jpg)
This guy should not be in charge of anything.
Nah brah he knows better than the guy that built the business. You aren’t listening to him🤷♂️
@@richardwallis9374need to make your sarcasm more obvious lol
Absolutely! Not in charge of anything! He should start with learning the business inside and out. He's been at it 33 yrs and still doesn't, apparently. Maybe join other groups or get friends where he can talk through this stuff.
Any call when they say "make a long story short" get ready for a 10 minute call where nothing makes any sense.
some people are good at creating a good story, some people aren't. Ramsay is experienced enough to deal with the 'wanderers'.
Hey!!! I say long story short all the time. Well this guy was either nervous or has no clue what the books are. This guy clearly thinks he can be the boss. Obviously he’s not there.
Summarizing and simplyfying is sometimes hard mental job. And you cannot expect that lot of people will do it on the fly.
For complex things is often be prepared in advance.
Not necessarily, but it's terribly annoying and tiresome when someone leads with that and then follows it up with a preamble with a side of word salad
Let’s just hope his nerves got to him on the call and that he truly didn’t confuse his revenue with net profit, because… yikes
Actually crazy it happens ALL the time
@@Wablestomp2 no way. I may be biased but I never heard people mix up revenue and profit. I hear them mix up the word "income" because it is vague. I also hear ignorant people say "revenue is profit", but I never hear someone say "profit is revenue" like this guy did.
He’s the third generation. That’s usually when the family business crumbles.
@@mistere5857 I agree it’s crazy
Words matter. Keep it simple: Gross & net.
Dave has so much patience. He really wants to help small biz owners. Especially ones who know nothing about business.
I love how easily Dave can cut through the bull crap, and get to the real issue.
Exactly, why call in to an anti-debt show if you wanna push debt?
The issue is that he called in to an anti-debt show and wants to push his pro-debt proposal and Dave won't fall for it.
It sounds like this caller has just been given an easy "in" to the family business his whole life and told what to do so he can play along for his paycheck. He can't really describe what he wants to change because he doesn't really understand how anything works. He just thinks its getting near his turn in the lineage to be boss and be successful, and he wants to in some way make his mark.
If you have been doing something for 30+ years (granted some of those year he was younger, lets jut call it 15) and you still don't understand what you are doing..... therein lies the problem.
This guy hasn’t. He’s 33 and he said in the call he still doesn’t understand the business much, which is the understatement of the century.
Imagine working at a place with this guy doing the thinking. I hope his father loves working and lives for a very long time.
This information has been helpful to me, thank you for posting!
This guy shouldn’t be allowed to run a race, let alone a company.
When you don't understand what revenue means and is, you're in trouble.
Perfect example of why successful family businesses don’t last into the 3rd generation. They never look at what made them successful, just jump in and make big changes that don’t add to the revenue.
It's that old saying - first generation make it, second generation expand it, and third generation spend/squander it.
When the “business guy” doesn’t understand the diff between sales and profit and blames his father for not “expanding” the business. Wow
Hope he see this. You have the room currently. You need to add an evening shift of Mechanics. Bring down the times of service for your customers. Run the numbers after a quarter to check production and profitability. Then you could hire one person in sales or online sales to bring people in.
I hope the caller (Kyle) sees your comment, too. Most of the other comments here are not helpful at all.
Hire weekend and night mechanics and use the same layout.
i was just as lost as Dave… i’m glad he figured it out
If this guy is running that business, it’s all over. I doubt if you put a P&L in front of him, he would have any idea what he was looking at.
Dave treating him very gently, which is good.
For someone who has worked in the business his whole life, he doesn't understand his business. Most importantly he doesn't understand what creates sales.
That's because he's been spoiled and just been given managerial jobs but not actually expected to learn anything.
Guarantee that anytime a problem comes up this guy just calls Daddy to fix it
Most likely, the caller has been an employee for the business, and Dad didn't teach him anything about the business. I have some experience with that situation. He needs to take some coarses in business management and accounting. You don't add space until you have more business than currently is maxed out. I have seen some shops use "carport" additions until the revenue justified actually adding on to the building. And they paid cash for the additional space.
Uncle Dave has a point. He knows what he's talking about, you need to listen to him dude.
Yeah get a bookkeeper. Stat.
nice job Dave. You can say it but is it being heard?
This call hurts
$230k revenue for an entire year for a powersports dealership is incredibly low. That's less than a side by side sold every month. Edit: Hah Dave says almost exactly the same thing.
Why don’t you watch the video before you comment
@@zachz699 Where's the fun in that?
This guy is on a different planet
Pitfall I see too often is that people see a need for investment of purchases as THE barrier to do better / more work and then, magically,..... Profit.
Better to get work done and getvresults and then let investment follow with a proven model.
At first it's easy to dismiss this guy as an idiot, but it's clear he's trying to learn and really wants to do the right thing. He needs some guidance, certainly. I hope he finds a path that works and his business flourishes once he works around the growth and expansion issue
If he's doing $3m in revenue and only $265k net, margin is what he needs. If you have more demand than you have supply, increase your prices. Make $3.5m in revenue and $750k in profit, and then use that to expand.
What worried me the most about this call was his lack of confidence
Junior had better shut up and listen to Dad and Dave. I haul new boats from manufacturers to dealerships exactly like his. The "Toy" industry...boats, side-by-sides, a.k.a. "Power Sports"...went into a boom shortly after Covid first hit, when the directive was "Here's a monthly government check, stay away from work, spend the money, buy stuff." That tidal wave of record sales started faltering in late summer of 2023, and it's falling on its face right now. I'm delivering 2025 model boats that are being parked next to un-sold 2023 boats on the lots. The trucking company I drive for just walked away from a 15-plus-year business association because one of the largest boat manufacturing groups in the country needed to significantly cut freight rates because sales are so poor, and are predicted to continue being so. Service might be their bread and butter, but with sales like they're going into, it's not the time to be expending capital.
Economics 101. Basics. No clue.
Economics is the study of how different parts of an economy work together. This guy doesn’t even understand basic accounting, so he can’t understand how a single business works, much less an entire economy.
The truth is they’ve been doing him a favor for many years
The caller needs to listen and DO what he is told. He is full of self importance.
Accounting is the language of business. The best advice this guy could get is to take accounting courses.
It reminds me of Charlie from it’s always sunny 😅
He has no clue how to run a business. There is a good reason the dad does not want to follow his advice to grow. There is something missing in the story telling.
This business is not going to be a fourth generation business with this guy in charge.
Kyle needs to start by taking a class in basic accounting.
Im dying laughing here😂, imagine running a business and not knowing what revenue and profit is🤦🏻♂️
If this were my son and I saw this video, I would fire him from the business simply because of utter shame.
I’d fire him, not out of shame, but for his own good and the good of the business.
Hmm I live in Salt Lake City and I think I know which business this is. 😂
The old saying the first generation makes it and next ones blow it
first generation make it, second generation expand it, and third generation spend/squander it. He's third gen
5 people on staff @ $250,000 (minimum) gross revenue per staff member (for a decent, healthy business) = $1,250,000
It was shocking to hear their revenue was only $230,000
If you watch Dave's show, many reach $200,000 to $250,000 per employee.
When we look at a busines, we set $250,000 revenue per employee as a bare minimum target.
*EXAMPLES*
General Motors made $1,054,245 per employee in 2023
Apple Computer made $2,380,000 per employee in 2023
Harley Davidson made $912,000 per employee in 2023
Then (whew!) Dave got him on the right track and he said "we grossed $3 million"
$3,000,000 / 5 staff members = $600,000 per employee
That's pretty decent, so his older family members are doing okay. He just did not know the meaning of 'revenue'
.
That totally depends on the business. For a dealership like this, $3M with 5 people is okay, not amazing because most of that $3M goes to COGS.
On the other hand, if you have a remote marketing agency with $3M in revenue and 5 employees, you are crushing it because your expenses are practically $0 outside of payroll.
@@fabsmaster5309 We prefer > $250k per employee - partly because when a downturn in revenue occurs, we have at least some 'room' to avoid knee-jerk layoffs.
Hiring well is so important - having a cushion is good. At $500k per employee, if gross sales take a hit, we have a 'margin of safety'
Some businesses (say, in-home healthcare in a midwest region) - I've seen $60k per employee. Too thin.
If you look at the General Motors case last year - over $1 million dollars revenue per employee - there's no way I'd buy into GM, even with that huge per-employee margin. (Especially in today's auto market - real tough just now.)
So $250k gross revenue per employee is just one factor. But $250k is the minimum we will be okay with.
Dunning Kreuger
Dave yells at the guy for not understanding the difference between revenue (gross receipts) and profits (net); a LOT of people on the Internet are confused about that--maybe it's because their salaries are the profit, so that their 'personal revenue' is that profit? Don' know. But he was smart to stop the conversation before moving forward.
This is rough lol. He needs to work at a fast food place and learn some real life skills.
For a 33-yr old who "grew up in the business", he sounds ignorant. And it's his dad's fault. Uh huh.
How to lose grandpa’s business lol😂
This guy is 3rd generation and ready to burn everything the 1st generation built lol
What the fuck did I just subject my eardrums to
HIS PROBLEM IS HE WORKS 8 HRS A DAY AND WANTS TO WORK 3 and stand around talking the rest of the day!!!
That guy’s great idea is just to expand and upgrade de office and probably wants a new AC unit too so he can be more comfortable 🤦♀️
Righttttt lol 😆 😂
This one was kind of painful. When it gets down to it there’s really only one way to grow a business. It’s called bringing in more business.
I get why this guy wants to grow. 230k net profit split 5 ways kinda sucks. The problem was he was asking Dave all the wrong questions. Now I don’t want to beat him up for not knowing what revenue means. It is embarrassing but there’s no sense in piling on the poor guy. I felt kinda bad for him and frankly it concerns me that the rest of his family may be just as ignorant. But this is something that can be corrected from an entry level accounting coarse. What this guy really should have been asking Dave is simple. How do they sell more boats? If all of his questions centered around that key issue then this would have been a far more productive conversation. Instead this guy just got humbled by Dave. I kind of wish Dave had dug in a little bit more about telling this dude that if he really wants to grow and enrich the family more he needs to learn to sell and get more customers walking through the door. Everything else is meaningless without that.
I need a college degree in order to understand 6th grade math. 😂
This young man should go back to grade school….he’s a dreamer but is not prepared to work!
If I have to hear “Riight” from this guy one more time…
I suspect chemicals are eating into some of that net profit.
This made me ashamed to be from Salt Lake City. I promise I know what revenue means.
Don't put this guy in charge of anything. Not only will the business be doomed but everybody who works there will have no respect for the owner or the son.
They will see it for what it is. "Daddy gave me this job yet I have no actual skills to run the place"
And you can tell that's the case here because he has no idea even remotely how to grow the business.
hire someone to work when the people take days off
you then would not have to turn away as many people
This guy sounds like the reason his grandfathers company is going to go out of business...triple the expenses
if this guy doesn't know the difference between revenues and profits then he shouldn't be in business
Let's be honest, for you to be able to sell more and grow your sales you'd need more people in your area looking to buy. If you don't have a population in your area large enough to sell too, you're not going to move many vehicles and boats. Do y'all service them as well or are you just a dealer? Service is a huge part of the powersports game, you can only sell so many vehicles, you've gotta be able to make sales on service as well as parts and accessories.
I really don't think this guy knows what he's doing, he needs more knowledge of the business world and i don't believe he has the mind for this
Sounds like this guy have more ambitions then knowledge, ambition is good but you need the smarts and abilities to make the ideas viable.
There are only so many people buying powersports vehicles. Set up a few tents in the parking lot and service some of the vehicles, get caught up and see where you sit then. If youre juat stacking appointments then opening up more bays may not actually do anything for growth but just widdle the window down to a quicker turn around. Once youre caught up you may actually be able to keep up with demand.
Revenue. You keep using that word. I do not think it means what you think it means.
BYU business graduate 😂
Ralph Kramden had better ideas to make money.
Kyle - sorry dude - you need to stop and go to college and learn some basic business rules. Trust your Dad - and don't trust your ego.
Typical, young buck wanting to change things having a zero background in business 😂
Bro is confusing revenue and profit. How is he gonna run it better?
Dave pisses me off sometimes and this is one of those times. He wants to speak without understanding the issue and that makes him give opinions on things he doesn’t understand
He worked hard to understand and EXPLAIN to the caller the difference between revenue and profit and that hiring more employees doesn’t equal more revenue. The caller doesn’t understand his own situation, a standard profit and loss statement, or basic business sense.
Dude you need to go and learn what is this bussiness about, he has no idea what is going on.
This guy is not an accountant. He does not understand general accounting practices terminology, maybe he has an accounting software doing this for him. But it might be time for them to have a proper bookkeeper and he could focus running on the business and learning.
This guy knows nothing about business. I would be afraid of letting him run anything.
Guy Doesn't even know what revenue is...
If you don't know the difference between revenue and net profit you should not be running a business lmao
This guy would borrow a few million to make the business less profitable.
Dude definitely on his way to bankrupting the business..totally clueless!!!
This guy is a business owner and doesn't even understand the absolute basics.
This guy is obviously not the sharpest tool in the shed, he should just delegate to someone smarter.
This is painful listening
Daddy has the money, the kid doesn't! Dad has been in business for 35 years. He knows how to survive. Dave never asked the SON if he was still living at home! The son has no concept of money,!!!! Just spend spend!!!
needs CFO immediately or even his dam son or daughter to do basic excel sheet
There is no way this caller is 33.
Is there anything better than slipping and falling when you are pooping in the shower?
If you ever wondered if you could run a business, this guy "doing it" (albeit suboptimally) should be proof that you're gonna be okay. Lmao.
People who don't know the difference between revenue and net profit and "run a business" - I don't know man. YIKES.
I lost brain cells listening to this.
Go hire a consultant lmao
Cut expenses. Get out and make sales on your own.
Not a smart person