The EntreLeadership Podcast

Should I Leverage Debt to Speed My Business Growth?

Apr 21, 2025
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ANECDOTE

Joe's Chicken Restaurant Growth

  • Joe expanded from one chicken sandwich shop to nine restaurants in six years using reinvested cash flow.
  • He aims to open 75 restaurants in 10 years but faces challenges getting bank debt due to lack of collateral on leasehold build-outs.
ADVICE

Grow Cash Flow First

  • Avoid heavy borrowing to accelerate business growth due to high risk of failure.
  • Consider cash flowing growth even if slower, to ensure sustainability and completion of your business goals.
ANECDOTE

Sharice's Childcare Debt Crisis

  • Sharice ran out of money expanding her childcare business, facing debt and possible lease loss.
  • Dave advised selling her house to pay off lenders and restart debt-free, preserving the profitable first location.
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