Debt vs. Equity
The most expensive way to fund growth is often mistaken for the least.
I’m looking at you, equity.
When you sell equity, you accelerate dilution. Potential upside transfers to your investors.
If things go well, it’s akin to wallpapering your office with winning lottery tickets.
And that’s not all. Equity is a marriage; debt is a date.
Equity investors wield influence. Once you cash their check, you’re joined at the hip. Yes, using simple leverage to fund growth or bridge gaps comes with interest. But if today’s loan funds tomorrow’s growth, the winning lottery ticket will be in your hands.