Do you view debt as a four-letter word, or as a tool for accelerated growth? In this financially focused episode, Lars from Calgary Lock & Safe in Alberta, Tony from Assured Security in Minnesota, and Chad from Loc-Doc Security in Charlotte, NC, redefine debt and the crucial role of leverage in scaling a small business. They challenge the old-school mentality that "debt is bad" by clearly defining leverage and positive cash flow. The discussion moves from the abstract to the practical, using real-world scenarios: Should you pay cash or finance a $70,000 work vehicle? When does buying a building make financial sense?
The hosts break down the math for profitability, explaining why a 6% cost of borrowing is a "no-brainer" when your business is generating 11–14% returns. They emphasize that the secret to growth isn't a lack of business, but the ability to free up cash through intelligent financing for people, processes, and equipment. This episode also touches on the necessary discipline needed to manage debt, drawing on concepts from Profit First to reduce the chance of getting into "leverage problems".
