"Should I Pay Off Debt or Start a Business?" — Transcript

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1. 0:00Ah, well, so that was a a mystery
2. 0:01question. All right, let's go. Moving to
3. 0:03whatever. Uh if you were in crippling
4. 0:06debt with $20,000 in cash,
5. 0:09would you work a sales job to pay off
6. 0:11the debt or would you take the risk of
7. 0:12starting a business if it had the
8. 0:13promise of getting out of debt faster?
9. 0:15It's an interesting question. Um
10. 0:18crippling debt is a very
11. 0:20emotionally laden
12. 0:24label.
13. 0:25Cuz you were willing to tell me how much
14. 0:26cash you had, but you weren't willing to
15. 0:28tell me how much debt you had. Uh and so
16. 0:30if you had like $100,000 in debt and you
17. 0:32had $20,000 in cash, um
18. 0:35it's an interesting question cuz it
19. 0:36actually cheats the question that I was
20. 0:37just answering, which is it's a
21. 0:38risk-based question. Like what is the
22. 0:40correct amount of risk to take on?
23. 0:42Depends if you win or not, right? Um
24. 0:45there's a very strong argument for
25. 0:46somebody to say, "Well, is there really
26. 0:48a big difference between taking out, you
27. 0:49know, a loan for $500,000 versus
28. 0:51$400,000 to start this new business?
29. 0:53Could I make it work with 400 and then
30. 0:55basically get the other 100 that I would
31. 0:57pay off, which is my personal debt?"
32. 0:58Probably.
33. 1:00Uh on the other hand, there's probably a
34. 1:01strong argument for saying like you can
35. 1:02just go sell and pay it off. It does
36. 1:04depend on how much debt it is and how
37. 1:06good your skill set is.
38. 1:07Right? And so there's a there's a big
39. 1:09fat it depends and both of them are one
40. 1:11is on your skill, the second is on your
41. 1:13risk tolerance.
42. 1:14The true downside is that you file
43. 1:16bankruptcy and then your credit gets
44. 1:17dinged and then you start from scratch
45. 1:19again. So, it's not death if you fail.
46. 1:21That is the true worst case.
47. 1:23All right, FBA Dimes. Last one and then
48. 1:26I'm going to take the next call. If you
49. 1:27like this video and you're a business
50. 1:28owner who wants to break through your
51. 1:29current revenue ceiling, I distilled
52. 1:30every lesson from scaling 10 businesses
53. 1:32past 10 million and three businesses
54. 1:34past 100 million into a completely free
55. 1:36scaling roadmap that I've used to go
56. 1:38from zero to one, zero to 10, and zero
57. 1:39to 100 plus. And so you can click here
58. 1:41and you can check it out. Again,
59. 1:43absolutely free and since you're a
60. 1:44business owner, appreciates you and
61. 1:46enjoy.