Debt: Friend and Enemy

A few weeks ago, the United States reached its debt ceiling of $14.294 trillion. What an untenable position. The staggering, difficult to visualize, debt makes running the country quite a challenge. Without raising the ceiling again, one of the richest countries in the world could default on its loans. Could this happen to your business? Of course operating a small business is significantly different from running a country. Small businesses that continue to default on loan payments go out of business. Take a moment to look at the role debt plays in your business life in and your personal life. I hate debt. Yes, it is that simple. While the thought of owing money chills me to the bone, offering the best customer service warms my heart and requires investing in support and equipment. So what did I do when I established my small business? One of the first actions I took was secure a line of credit. I’ve increased that line several times in the years I’ve been in business. Indeed, I have raised my company's debt ceiling. Knowing and accepting the value of debt in business are different. And it took some time for me to accept that debt was necessary. As revenues grew, I became more comfortable. There is a place in business for debt. In fact, now owing money in business no longer chills me to the bone. Secure in the flow of energy, because money is only energy, I warm, almost with heated excitement, to purchasing products and services that create a better experience for customers. Raising the debt ceiling for the life of business, yes. In some ways, debt is a best practice for business. Raising the debt ceiling for personal lives, no. Borrowing to enhance personal lives can be intoxicating and feel as good as sitting in the sun. If we get too much sun, we can burn. Too much personal spending sets our financial house aflame. Helping both business coaching and life coaching clients make the distinction is essential. We take a more consistent attitude toward spending in business, knowing that we must have reserves to carry us through lean times, and that every purchase must make fiscal sense. Because we don’t take a free and easy attitude toward business expenditures, we would be wise to ask ourselves what happens in our personal life that’s different. How is it that our attitude changed simply because spending occurs in our personal lives? Borrowing for personal pleasure can create a hole in your pocket. Borrowing for business can create a better experience for customers. Does the US’ borrowing beyond its debt ceiling create a better experience for its citizens? Debt is a word that works in the life of business, not in personal lives. I welcome your comments on debt’s role in your business and personal lives.