Why a Debt-Free Business May Not Be Best For Growth
Welcome back to the Mid Market Insider!
Today, we’re breaking down the common misconceptions about having a debt-free business and why it may not be the best option for growth.
Many business owners take pride in running a debt-free company—and we understand why.
It’s a badge of honor, a sign of independence, and often tied to the hard work that built the business.
But avoiding debt entirely can sometimes hold a business back from growth opportunities.
Debt, when used responsibly, can be a powerful tool for expansion.
Debt isn’t inherently bad—it’s how you use it that matters.
We’ve seen companies avoid leverage out of fear or pride, only to miss out on transformative opportunities.
For example, one business owner refused to take on debt for new equipment, even though it would have doubled production capacity that his customers were clamoring for.
Responsible debt isn’t just taking risks—it’s about investing in the future.
Growth requires investment.
Whether it’s expanding facilities, acquiring new technology, or entering new markets.
Without leverage, businesses can find themselves stuck—unable to scale or compete effectively.
We help owners understand how to use debt strategically to strengthen their businesses without unnecessary risk.
Here’s the truth:
Avoiding debt entirely can sometimes be more risky than using it wisely.
A well-structured loan can fund growth initiatives that drive revenue and profitability far beyond the cost of borrowing.
The key is knowing when—and how—to use debt as a tool for growth.
Business Tool of The Week
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That’s all for today’s newsletter! Thanks for reading!
📅 Next Week:
In next week’s edition, we’ll be diving into employee stewardship and why you should focus heavily on employee buy-in when entering into a business relationship with a company.
Keep building,
Nick
P.S.
If you want to hear more from ‘The Most Boring Guy In Private Equity’, follow me on LinkedIn and YouTube. I dive into the world of private equity, share some tips and tricks for small business owners, and most importantly, share my industry knowledge.
Make sure to follow me so you don’t miss out!
If you want to discuss your business goals in greater detail book a discovery call: https://calendly.com/nickmclean/discovery-call.
Just remember, this won’t cost you a dime and you get what you pay for :)
I just launched a podcast, Ambition with Nick!
Links can be found here:
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LinkedIn: Nick McLean
YouTube: NickFourPillars
