TCF398: Contractor Q&A : When is Debt "Good Debt"?

Question 1: "Exclusively because of the Shin-Fu, we have clients with large renovation projects with deposits paid stacked up until February 2022. What additional word tracks can I use for clients who have the money, but are discouraged by such a long wait?"

Mind the Gap: Fill the waiting period with relevant content to build trust and stoke their excitement
Mindset: Remember they have to wait on other contractors, too
Communication: Be real and keep them in the loop

Question 2: "What is your take on good debt and how much of it should I rely on for the success of my business? What are some good examples and areas where good debt makes the most sense?"

The reason Tom believes most debt is not good for contractors
Good debt: increases your net worth, helps generate more value, allows you to manage your business in a more profitable way
Bad debt: doesn’t increase your wealth, isn’t used to purchase materials and holds you back
Never use debt to compensate for lack of revenue in your business