What’s the 411 on debt? The Million Dollar Plumber and The Lovely Laura discuss why debt is a necessary tool in your arsenal and what kind of debt is good in this special edition of Potty Talk LIVE.
Subscribe
Apple | Stitcher | Castbox | Spotify | Google Podcasts
Resources
3 GOLDEN NUGGETS
- Debt is Necessary.
- Debt is Good.
- Debt is to be Respected.
Sponsors
Get Google Verified with SearchKings, a Google Premier Partner and get The Million Dollar Plumber discount.
ApplicantPro is the ultimate hiring solution for plumbing companies to increase applicant flow, skillfully screen and select candidates, and make quality hires without breaking the budget. No IT or HR team required.
Show Notes
Debt is Necessary
[09:03] If you’re wanting to grow a business, debt is simply a tool. You might even call it a power tool.
What’s quicker: soldering a whole house, with running water lines or using crimping power tools? The same is true when you look at debt as a power tool. If your job is to grow a successful company, debt is a tool to make that job easier.
Despite the fact that we’ve been conditioned to think of debt as a bad thing and we’ve been preached to that the ideal state is to be debt free, every successful company has debt. It’s a key to success.
Good Debt is Good
[13:42] Debt in itself is not good or bad, it’s all about how you use it.
Power tools can make your job easier, but if you don’t use it right, you can get hurt. The same is true for debt. If you go out and incur a bunch of debt, that isn’t going to help your business. Credit card debt, supply house debt, all forms of bad debt will stunt your growth.
Bad debt costs you money; in interest, by taking away from your bottom line. Good debt makes you money; buying a truck and investing in marketing will grow your business and attract more of the right customers.
Debt is to be Respected
[24:10] You have to respect debt. It’s been said that the borrower is the slave to the lender. When you borrow money and take on debt, you are beholden to the person providing the money.
With that in mind, make sure you’re aware of your debt and the relationship with the debt holder.
Richard’s Call to Action
If you want to learn more about numbers that matter and how to best run your plumbing business, why not schedule a free 30-min strategy call with us? Let’s talk about your goals and where you want to be this time next year, and we’ll help you create a path to make that happen. Schedule your free strategy call here today!
