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Ask Dave

Growing Without Credit

Even Dave has made mistakes over the years with his business, but borrowing money only amplifies those mistakes.

QUESTION: Rod just got a credit card in the mail. He is a small business owner with no personal debt. How does he expand his business with no credit?

ANSWER: I’ve been in business for 20 years, and we started this business off a card table in my living room, and now it’s multinational and I have 200 team members. When I first broadcast on the radio, I used the local radio station’s stuff since I couldn’t afford it. Now I have about $300,000 invested in this current studio. Sometimes we grew slower or got creative with our business-growing ideas. If you don’t borrow into your latest idea, you won’t magnify your mistakes.

I’ve made some colossal mistakes over the years, and the problem with borrowing is you amplify those mistakes. You’ll stay open because you don’t get in a cash-flow bind. Also, never be under the illusion that your debt isn’t personal. They will come get you if you don’t pay the bills.