Some believe you must spend money to make money, but that doesn’t give business owners free reign to rack up debt for business expenses and still expect to turn a profit.
In this episode, I explore the pros and cons of incurring debt and why a strategic approach to debt management aligned with your business goals is key to sustainability.
In this episode, you’ll also hear:
- Identifying good debt vs. bad debt
- Managing debt with intention
- Creating a realistic repayment plan
Must-listen moments:
[00:01:18] But the difference between a good debt and a bad debt is that a good debt is incurred for strategic investments. That means that you are looking to get debt that is going to make you money, not debt to pay down expenses.
[00:02:44] Before taking on any debt, you really need to critically assess whether the expenditure contributes to the business's growth and sustainability.
[00:07:25] Try to manage this debt and get it down to a lower interest rate, lower payments, something that makes it more manageable for you.
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