Why Debt Isn't Your Enemy
Download MP3In this episode, Tiffany-Ann Bottcher sits down with Beau Eckstein, a business lending expert with over 27 years of experience, to break down how entrepreneurs can use debt strategically to grow their businesses. Many business owners fear debt, but when leveraged correctly, it can be the key to scaling faster, acquiring competitors, and unlocking new financial opportunities. Beau specializes in SBA financing and business acquisitions, helping entrepreneurs transition from corporate jobs to successful business ownership.
Key Insights
- Debt Can Be Good When Used Strategically: Borrowing isn’t a bad thing when it’s used to generate returns, expand operations, or acquire assets.
- SBA Loans Offer High Leverage: With SBA financing, entrepreneurs can buy a million-dollar business with as little as 10% down—and sometimes even less with seller financing.
- Buying a Competitor Can Be a Smart Growth Move: Instead of struggling to hire top talent, acquiring a competitor can help business owners gain an established team, customer base, and market presence.
- Understand Your Business Credit: Too many entrepreneurs rely on personal credit cards, damaging their personal credit scores. Setting up business credit correctly can open doors to better financing options.
- Know Your Numbers and Keep Good Books: Business owners who manipulate their financials to minimize taxes can struggle to secure loans or sell their businesses at a fair price. Transparency and good record-keeping matter.
- Wealth Is Built Through Strategy: Successful entrepreneurs don’t just work hard—they work smart. Leveraging debt, tax strategies, and financing options can help businesses grow faster and create lasting wealth.
- Get Funding Before You Need It: The best time to secure financing is when your business is doing well, not when you're desperate for cash. Planning ahead ensures you can seize opportunities when they arise.
About the Host
Tiffany-Ann Bottcher, a seasoned business strategist, podcast host, and agency founder, blends expertise in business strategy, marketing, and automation with a focus on building meaningful connections. Her mission is to help entrepreneurs scale their businesses without sacrificing their sanity.
About the Guest
Beau Eckstein is a seasoned SBA loan advisor and business ownership coach with over 25 years of experience in commercial finance and business consulting. As a licensed California real estate broker, he specializes in SBA financing, franchise discovery, and expense reduction strategies, guiding entrepreneurs and business owners through the complexities of securing funding and optimizing operations.
Website: Beau Eckstein
Linked In: Beau Eckstein
Youtube: Beau Eckstein, Business Ownership Coach
This episode is brought to you by Path 2 Profit Bookkeeping visit https://path2profitbookkeeping.io/
Click here to watch a video of this episode.
Timestamps:
00:00:00 - Introduction to Scaling Service Based Businesses
Beau Eckstein is a seasoned SBA loan advisor and business ownership coach with over 25 years of experience in commercial finance and business consulting. As a licensed California real estate broker, he specializes in SBA financing, franchise discovery, and expense reduction strategies, guiding entrepreneurs and business owners through the complexities of securing funding and optimizing operations.
Website: Beau Eckstein
Linked In: Beau Eckstein
Youtube: Beau Eckstein, Business Ownership Coach
This episode is brought to you by Path 2 Profit Bookkeeping visit https://path2profitbookkeeping.io/
Click here to watch a video of this episode.
Timestamps:
00:00:00 - Introduction to Scaling Service Based Businesses
00:00:27 - Leveraging Financing for Business Growth
00:00:56 - SBA Loans and Strategic Financial Decisions
00:02:26 - Bo's Journey into SBA Financing
00:03:29 - Overcoming the Fear of Debt
00:04:24 - Using SBA Loans for Business Acquisition
00:05:42 - Structuring Deals and Due Diligence
00:07:06 - SBA Financing for Business Expansion
00:08:10 - Alternative Financing Options
00:08:41 - Building Business Credit
00:09:54 - Buying Out Competitors
00:11:29 - Growing Quickly vs Growing Too Quick
00:12:26 - Partial Buyouts
00:13:25 - Adding Additional Businesses
00:15:52 - The Tax Code
00:17:36 - The Triangle Method
00:18:11 - The Importance of Books
00:20:34 - Paying for a Knowledgeable Person
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Creators and Guests
Host
Tiffany-Ann Bottcher
Entrepreneur | Founder, Bottcher Group | Host, Service Based Business Society Podcast | Author, Data Driven Method | Helping you scale your success!
Guest
Beau Eckstein
Franchise Consultant • SBA Business Loans • Small Business Lending • Commercial Real Estate Lending • Podcast Host
