Mike Finley said:
I think any well run business can get to the same level of success and be debt free over time, however prudent borrowing of capital can get you to that point much faster than a business that won't borrow.
Other than lines of credit with my suppliers and subs my business doesn't have any credit and probably couldn't buy a truck on my business credit.
I've considered a credit card for memergency cash flow issues such as a large upaid receiveables. The problem with borrowing large sums of money to
START a business is that it is somewhat difficult to put together accurate predictions unless you have spent a few years in the same industry already. Even then your predictions could be off base, and that could get you into troule with your creditors when you start paying late.
My company was founded on just under $20k of my personal funds. I paid myself back within 5 months. I am now using my revenue to fuel my growth. To be honest if I grew any faster I'd be very scared, as it is I need help and I am having a hard time finding qualified candidates for my open positions, and have had to pause much of my advertising temporarily.
I know I will get to a point where I hit a growth hump and I won't be able to get over without a cash infusion. At that time I will need to make a decision "Am I good where I am at, or should I borrow to grow?" The answer depends on my circumstancs at that time, but
GROWTH is apples-oranges when compared to
START UP, in my humber opinion.