Sometimes you DO need to borrow!
Starting a company takes guts, it takes passion and in most cases it takes at least some.
There might be times when you need to borrow cash.
There are a lot of do’s and don’ts to debt financing.
But if you are going to borrow you NEED to make sure that the funds will ONLY be used to direct grow your businesses bottom line and nowhere else.
Until you understand how to run your business efficiently with what you have and to make profit with what you have then you shouldn’t be borrowing a penny.
Only when you have been able to take £1 and stretch it a mile should you think about borrow to fund scaling.
Only when your business is already profitable should you think about borrowing to fund scaling.
Only when you are ultra clear on your vision and your business’s vision should you think about borrowing to fund scaling.
Find yourself in the situation where you have already borrow (and perhaps in hindsight it was no such a great plan) – then it’s a debt snowball plan that you need. Have any Q’s then please feel free to get in touch!
Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!
I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!