TCF 398: Contractor Q&A : When is Debt “Good Debt”?

Listen in as Tom and Dan answer your questions about how to communicate with customers during a long wait and whether there’s such a thing as “good debt”. 

In this episode, we talk about…

  • 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 


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