We have all heard it before. Stay out of debt. Pay off your credit cards. Avoid loans at all costs. For personal finances, especially later in life, that advice might make sense.
But in business? That mindset could be the very thing holding you back.
Rethinking Debt in Business
I heard a phrase years ago that has stuck with me ever since.
Being debt free is not necessarily a badge of honor.
It challenges everything most of us were taught about money. But if you are a business owner looking to scale, grow, and create real wealth, this shift in mindset is critical.
Debt is not always bad. In fact, when used wisely, debt can be one of your most powerful tools.
The Difference Between Good Debt and Bad Debt
Let’s make one thing clear. Not all debt is created equal.
Bad debt is taken on to impress others. Think expensive cars, big purchases on credit cards, or buying things you cannot afford just to keep up appearances. That kind of debt leads to financial stress and being upside down in your finances.
Good debt is strategic. It is leveraged for growth. This includes:
- Investing in real estate
- Acquiring other companies
- Building your team
- Scaling operations
- Investing in coaching or professional development
Smart leaders use debt as a tool to grow their business and build long-term assets.
Are You Letting Debt Anxiety Hold You Back?
I talk to business owners all the time who are hesitant to dip into their line of credit. They want to grow, but they are afraid to take on debt. Some even debate whether they should invest in coaching or leadership development.
But then I ask a simple question: Do you have kids in college?
Almost always, the answer is yes. And many of these same business owners are spending five or even six figures a year on their children’s education—often for careers their kids may never pursue.
Yet when it comes to investing in themselves, in their team, and in the future of their own business, they hesitate.
That is the wrong mindset.
You and your business are the number one vehicle for creating wealth and freedom. You cannot afford to underinvest in your own growth.
What Successful Companies Understand
Look at the biggest, most successful companies in the world—Amazon, Google, and beyond. They take on massive debt. They also hold cash reserves. But more importantly, they use debt to acquire assets and expand their reach.
The goal is not just to borrow money. The goal is to use debt wisely to buy or build income-producing assets. As those assets grow, the debt gets paid down, and what you are left with is financial freedom.
Compare that to someone who spent their whole life avoiding debt. They might be debt free, but they often have fewer assets, less growth, and more limitations.
Final Thoughts
If you are a business owner who fears taking on debt, you may be slowing down your own progress.
Stop thinking of debt as something to avoid at all costs. Instead, ask yourself how to use it wisely. How to invest in yourself. How to build your team. How to scale with purpose.
Debt is not the enemy. In fact, when used with intention and clarity, it can become the very thing that unlocks the growth and abundance you have been waiting for.
COACH MICHAEL DILL is an Award-Winning Certified Business Coach, global speaker, and published author. He is a proud ActionCOACH Franchise Partner as well as the President of Power & Ice Wealth Creation—a strategic leadership company that works with business owners, leaders, teams, and entrepreneurs to both develop a systematized and structured organization while accelerating their mindset, efficiencies, and effectiveness to grow both personally and professionally to achieve extraordinary results. He brings more than 40 years of business and entrepreneurial experience in his leadership, team training, and mentoring practice. BusinessCoachMichaelDill.com