In 2024, I joined a contentious podcast debate with True Viking Finance Inc., a friend and strategic partner, on debt versus equity financing. The host wanted sparks to fly—and they got their wish! But beneath the drama, one truth stood out: understanding your financing options is essential for small business success.

Here’s a quick breakdown of the risks and rewards:

*Debt: Provides structured funding without diluting ownership, but payments are required regardless of your cash flow.

*Equity: Offers access to capital and eliminates the need for regular cash flow payments, but it comes with dilution of ownership and potential misalignment on key decisions, like exiting the investor.

*Bootstrapping: Keeps you in total control of your business, but it can slow growth and leave you vulnerable to competitors who scale faster.

No option is perfect. The key is choosing the path that best fits your business goals and market position.
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