I get it guys, I was a Dave Ramsey Girl. Through and through. I did the snow-balling and cash envelope system and ate up all that Dave psychology for years. But here’s what I want you to understand most: Fearing business debt is likely the single thing holding most business owners back from the potential they want to reach. 

Personal debt and business debt are not the same things. Uncle Dave is nailing it when it comes to middle-class personal debt. He has helped SO many people get out of the suffocation of personal debt. But today we are talking about a different species: Business debt.

Aka: debt that makes you money.
Aka: the accelerator for business growth.
Aka: cash money that makes yo’ ass more cash money.
Aka: just a tool/just a resource (likely not the evil villain most entrepreneurs have been picturing).

The first thing we must see in order to begin healing our societal–taught beliefs about debt is to learn what taught us to fear debt in the first place: We have been taught to carry shame, discomfort, and guilt around debt.

Going into debt to keep up with the Joneses? Not so cool.
Going into debt to use capital to catapult your company? Boss.

Is it possible that debt is just a tool? Like, a screwdriver, or a hammer. The debt itself holds no guilt or shame, only the thoughts we hold about it are what is creating the guilt and shame.

Money is as evil as any other piece of paper. Do you spend time thinking paper towels are evil? Maybe. If you do, that’s weird. We can hook you up with a life coach.

But notice that this other piece of paper (money) holds friction for most people because of our thoughts about it although it is as neutral as a paper towel. Or a notebook paper. Or construction paper. Or any other piece of paper. Our thoughts, and only our thoughts, are what create our beliefs about money. 

The beauty of debt (what I like to consider the art of borrowing money from your future self) can open up so many possibilities for business advancement. We must not look to society or to our past’s poor use of debt to decide how we will use it moving forward. If you have used a hammer the wrong way in the past, it doesn’t mean you’re going to continue to use that tool the wrong way in the future and the same goes for debt.

 So, let’s talk debt…

 Examples of debt that has a return (productive debt):

• Borrowing money from your future self to receive education on business owning, marketing and mindset. Things like coaches and courses to show you what the hell to do, and *not* to do.

• Sound Marketing and Advertising with a well-educated marketing and ads team.

• Build out to create a larger space so you can handle more demand.

• Hiring proper staff members (only when the time is right, which I will talk about in a different email.)

Unproductive business debt:

• Buying yourself a nice car so you can look more professional to your clients.
• Buying all new furniture for your office before you can afford it with cash.
• Buying anything that doesn’t have an obvious return on investment.

When I was 26, I took out $80,000 of debt to move my 3-person massage therapy team out of our 1-room facility so that I could build out a 7- room facility that could hold a 14 person massage therapist team. To say I was terrified was an understatement. But I believed in the future of my company and the only tool I lacked in my tool belt was capital. When I moved from the 1 room facility to the 7 room facility, our sales went from roughly $3,000 per month to $80,000 per month within one year. This is business debt that makes sense.

When I started coaching, my coaching business had a mere $400 in it’s bank account. I knew I needed to learn more about the art of coaching and how to grow this online company, so I took out debt to hire my first online business coach who cost $10,000. After 6 months of working with her, and 6 months of learning coaching strategies, I 10x’d my monthly income. (That’s a real stat. 10x.) It’s as simple as this: I wanted to learn how coaches make money. I bought that advice by hiring a coach. I paid back my debt and pocketed the rest. *wipes hands and shimmies*

With this being said, I want you to ask yourself: How is debt-fear holding you back? What could you do with your company if you had more capital? How would you make productive money decisions that would catapult your success? What coach would you hire and what mastermind would you invest in? What marketing team could you afford?

These are all questions we must constantly ask ourselves: What are we *not* doing because of fear?

Love, Becca

PS- My advanced business Mastermind, Thirty More, is accepting applications May 1-5 for our July class.
Enrollment will not open again until November of 2022.

This round kicks off with a 2-day in-person event and involves a full itinerary of business-related topics to assure all members grow their companies sustainably and efficiently. Becca is accepting 1-on-1 consultations with anyone who fits the minimum requirements. In order to set up a meeting with her, please respond to this email and simply request a time. You can find all details of Thirty More here.