Navigating Business Growth: Strategies to Avoid Debt Pitfalls
In this episode, we explore how to grow your business without being buried in debt.
I’m Deb, a Profit First Professional, and I want to shift the conversation around borrowing. Debt isn’t always the enemy—but it’s not a quick fix either. Used well, it can help you scale. Used poorly, it can trap you in a cycle of stress and instability.
We’ll walk through a structured framework to help you evaluate whether a debt decision is truly strategic—focusing on investments that increase capacity, boost profit, or strengthen your long-term sustainability. This episode is a call for financial clarity, so you can grow with confidence, not chaos.
Because your business should fund your life—not consume it.
About the Podcast:
This episode of the Financially Healthy Business Podcast is for entrepreneurs who want to grow smart, not just fast.
I break down the difference between productive debt and problematic debt, and share practical criteria for making borrowing decisions you won’t regret. You’ll learn how to avoid panic borrowing and how to assess whether the investment will actually generate a return.
We talk about building a business that’s financially solid from the inside out—and how fostering community, clarity, and confidence is just as important as chasing revenue.
In 15–20 minutes, this episode gives you a financial health check and a decision-making lens that will serve you for years to come.
Plan wisely. Grow sustainably. Lead with confidence.Takeaways:
- The podcast emphasizes the necessity for business owners to maintain control over their finances, thereby reducing stress and fostering sustainable growth.
- Strategically utilized debt can serve as a beneficial tool for business expansion, provided it generates a return on investment.
- Business owners are urged to develop a written repayment plan for any incurred debts to ensure clarity and accountability in financial management.
- Establishing a contingency fund, no matter how modest, can prevent the need for desperate borrowing during financial challenges.
- It is crucial for entrepreneurs to assess whether their debts have fostered genuine growth or merely covered operational gaps, which can clarify future financial strategies.
- The importance of planning over panic is highlighted, as careful financial planning is essential for successful business growth.
Links referenced in this episode:
Companies mentioned in this episode:
- Accounts Ladies
- Accounts Office Academy
- Financially Healthy Business
Transcript
Foreign Healthy Business Podcast for business owners who want the confidence on cash flow that supports the life they actually want to live.
Speaker A:I'm Deb Halliday, Profit first, professional founder of award winning accountancy practice the Accounts Ladies and the Accounts Office Academy and author of how to Build a Financially Healthy Business.
Speaker A:Learn how to take control of your finances, reduce stress and grow sustainably.
Speaker A:Because your business should support your life, not consume it.
Speaker A:Let's get started.
Speaker A:Welcome back.
Speaker A:I'm Deb Halliday and today on the Financially Healthy Business Podcast, we're talking about growth without drowning in debt.
Speaker A:Growth sounds exciting, doesn't it?
Speaker A:New clients, bigger projects, scaling up.
Speaker A:But it can turn into financial pressure fast if you're not careful.
Speaker A:I've seen business owners take out loans, max out credit cards, or commit to payments they can't sustain, all in the name of scaling.
Speaker A:Let's figure out how to do this smarter, using small numbers again so it's easy to follow along.
Speaker A:Here's the truth.
Speaker A:Not all debt is bad.
Speaker A:Debt used strategically can be a smart move to fuel your business.
Speaker A:The key is asking does this debt create a return?
Speaker A:If it funds something that increases your capacity, revenue or frees up your time, great.
Speaker A:If it's just a short term cash plug to cover poor planning, think twice.
Speaker A:Let's look at an example.
Speaker A:Say you need new equipment that'll let you take on bigger projects, boosting your income by £1,000amonth.
Speaker A:A £2,000 loan with a clear repayment plan could make sense, but if you're borrowing £500 just to pay last month's bills, that's a red flag.
Speaker A:Here's a simple framework to guide you.
Speaker A:1.
Speaker A:Use debt for assets that pay you back, equipment, a part time team member or marketing with a proven ROI.
Speaker A:2.
Speaker A:Always have a repayment plan in writing.
Speaker A:Know exactly how and when you'll pay it off.
Speaker A:3.
Speaker A:Build a contingency pot, even £200 so you're not borrowing out of desperation.
Speaker A:Your challenge this week is to review any current debts.
Speaker A:Ask yourself, did this create growth or was it just covering a gap?
Speaker A:Write down your answer.
Speaker A:It'll clarify your next steps.
Speaker A:For a deeper dive, visit financiallyhealthybusiness.co.uk and join our program where we help you assess and plan.
Speaker A:We grow when we plan, not when we panic.
Speaker A:Next time we'll tackle the difference between owner's pay and directors loans.
Speaker A:Until then, take care.
Speaker A:Thanks for tuning in to the Financially Healthy Business podcast.
Speaker A:If today's episode helped you take a step closer to building building a business that supports your life.
Speaker A:Share it with a fellow business owner, follow the show or leave a review.
Speaker A:It all helps to get the message to the people that need it.
Speaker A:For further Support, head to ww.financiallyhealthybusiness.co.uk to find out more information on my online coaching program.
Speaker A:You didn't start your business just to survive.
Speaker A:You started it to thrive.
Speaker A:Till the next time, Sam.
