Should You Take on Debt in Your Business?
I have gotten myself into some major debt as an entrepreneur.
When I first started out, with no money in the bank, I signed up for a $6000 group coaching program.
My bank had no business giving me that loan because I didn’t have any income nor any idea of how I was going to repay it.
Before I said yes to the debt, I checked in with myself and ask the following questions:
- Am I sure this debt is going to be in service to my purpose or is it something my ego wants to do on a whim?
- Am I willing to invest all my time, energy, and focus into this program to ensure that this debt is honored and produces fruits in my business?
- Am I willing to shift my perspective on debt from “it’s bad” to “it’s another way that money wants to support me”?
My answer was a resounding YES to all 3 questions.
My bank blindly trusted me and gave me $10,000 (I asked for more because I knew it would take a couple months before I was making enough money to repay it.)
I gave my all to that coaching program and confronted all of my fears of visibility, sales, and not being good enough.
Within 4 weeks, I made my first $2,000 from following the program steps and within 3 months I made enough to pay back the loan.
This happened with grace, ease and determination because when I checked in about the debt, I knew it was in service of my purpose.
However, I did once decide that I wanted to be an actor headshot photographer and bought an expensive camera and equipment on credit. That decision was not in service to my purpose and it took forever to pay off. It was a super expensive investment that produced zero return other than incredibly high interest payments.
Today, I invite you to look at debt in a new light. If you’re deciding on taking on debt for your business ask yourself 3 questions:
- Is this debt truly in service of my purpose?
- Am I willing to invest my time, energy, and focus so that I can repay the debt and reap a return?
- Can I open my heart to this debt and see it as one of many ways money wants to support me in living my purpose to the fullest?
If you want some support turning your purpose into a business that makes a big impact & supports you in living an abundant life, click here to talk with me: Application to talk with Lloyd.