Sell personal car to help pay business debt?
Robin wonders if she and her husband should sell one of their cars to help pay down the debt accumulated by his small business. Dave says no, and he explains his reasoning.
QUESTION: Should Robin and her husband sell one of their personal vehicles to help pay down debt on a small business? Dave doesn’t think so, and he explains why.
ANSWER: I think you’ll be able to pay off the debt from your future income. If your husband started his business less than a year ago, he has spent that time working with very little name recognition. If he’s good at what he does and markets himself properly, he should be able to double what he made in the last year.
He’s going to have to spend some time in accounting mode, though. He needs to figure out the types of jobs he makes the most money on for the time he puts into them. I know a guy who took home more than $100,000 as a handyman last year. His prices are higher than most, but he provides superb quality work, and he’s always polite, on time, and on schedule.
If your husband does the research and crunches some numbers, I think he can dial it in and make a lot more money in the future than he’s making now.