Ken Becker, CDT: Turns Family Laboratory Into 'Slim, Trim, Debt-Free' Business

In 2007, Becker Dental Lab was doing well, but the business was about $170,000 in debt, including delivery cars, an equipment loan from a supplier, a business renovation loan, credit cards and a line of credit. Ken and his two brothers, Dan and Ryan, all worked at the lab—owned by their parents—and planned to buy it from them in two years, so they wanted the business in top financial shape.

Ken, who oversees the lab's finances, set out to eliminate that debt and the stress that went along with it. Using strategies endorsed by financial gurus John Cummutta and Dave Ramsey, Ken put large purchases on hold, made some other minor internal cost-cutting measures and then itemized and prioritized what they owed. He then got his brothers to agree to reserve about 10% of the lab's income—by reducing their own salaries and using excess cash generated from higher-than-expected revenues—to pay off the debts in order of priority. It took discipline, but within...