Thursday, October 28, 2021

Debt: employee vs owner

As an employee you have a set income. If you spend $5,000 or $50,000 you still make the same amount.

As a business owner you have a money machine. Money in turns into a certain amount of money out.

Many business owners I have met apply employee mindset finance advice to their businesses. They think frugality is good (which it is), but they also see debt as bad because of interest and risk. If you had a machine that turns $10 into $15 in a couple of months, wouldn’t you borrow as much money...

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