548 | The mental and emotional benefits of running a debt-free business Part 1
Nov 14, 2023 ·
56m 12s
Use the timestamps below to guide you better as a leader or individual: - The importance of managing debt for business owners and leaders. https://otter.ai/u/FJ4wNC5jXWFzLduFLQCPume9c30?tab=summary&t=0s - Chris LoCurto and Joel...
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Use the timestamps below to guide you better as a leader or individual:
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- The importance of managing debt for business owners and leaders. 0:00
- Chris LoCurto and Joel Fortner discuss the importance of running a debt-free business, with Chris expressing the topic's difficulty and potential to hurt people, while Joel shares his perspective and invites Chris to share his as well.
- The hosts aim to provide valuable insights and advice on managing money and debt, with Joel interviewing Chris to draw out his perspective and share his own thoughts as well.
- Joel Fortner's financial struggles were a turn-off for Mary Beth, who had already paid off tens of thousands of dollars in debt.
- Mary Beth saw Joel's lack of financial stability as a risk to her security, but was hopeful when he finally made changes to his finances.
- Business debt risks and the importance of financial planning. 5:43
- Chris LoCurto highlights the risks of business debt, including the potential for financial insecurity and the consequences of convincing oneself that one is savvy with finances.
- Joel Fortner agrees, noting that the risks of business debt affect not just business owners but also team members and leadership, and can lead to serious consequences such as considering not existing.
- Chris LoCurto highlights the god factor as the biggest risk in financial planning, where clients often overestimate their abilities and ignore potential risks.
- The risks of debt and its impact on personal life. 9:53
- Chris LoCurto shares how God pivoted his clients during the COVID-19 pandemic, despite some facing industry shutdowns.
- Chris LoCurto highlights the risks of debt, including losing options and being under constant stress.
- Debt can lead to a different state of mind, causing individuals to approach their personal life and relationships differently, leading to negative impacts on their well-being.
- Risks of using debt for business growth. 13:39
- Chris LoCurto highlights the risks of taking on debt for business growth, including the potential for poor decision-making and loss of control.
- Chris LoCurto shares his experience of expanding his business to a second location, which led to financial difficulties and decreased focus on the original moneymaker.
- He advises against rushing into new opportunities without proper planning and financial stability, as it can lead to desperation and negative consequences for the original business.
- Taking calculated risks in business. 17:55
- Chris LoCurto advises a taco vendor to start with a rolling cart instead of a brick-and-mortar restaurant, citing the flexibility and lower financial risk of the former.
- The vendor expresses understanding and appreciation for Chris's advice, but Chris encourages them to test their concept first before investing in a brick-and-mortar location.
- Chris LoCurto emphasizes the importance of paying cash for business opportunities to avoid debt and maintain a healthy work-life balance.
- He shares his personal experience of prioritizing cash flow over debt to avoid stress and maintain a strong marriage and family life.
- Business planning and adapting to change. 22:27
- Joel Fortner plays a character who questions Chris LoCurto's risk assessment and planning abilities, suggesting that even well-planned businesses can be impacted by unexpected events like COVID-19.
- Chris LoCurto responds by highlighting the unpredictability of life and the importance of adapting to changing circumstances, even for small business owners who may not have anticipated major challenges like COVID-19.
- Chris LoCurto attributes the success of his clients during COVID to their ability to pivot and retool, while many other businesses struggled due to excessive debt.
- Starting a business focused on helping people, following God's direction. 27:05
- Chris LoCurto emphasizes the importance of understanding God's direction in running a business, rather than relying on personal desires or ambitions.
- He shares his personal experience of three and a half years of hearing God's call to start his business, and the importance of jumping on board with what God is already blessing.
- Chris LoCurto shares his journey of leaving a large platform to work one-on-one with clients, despite criticism from others.
- He emphasizes the importance of following God's direction and building the kingdom of God rather than an empire of self.
- Using credit cards responsibly in business. 31:55
- Chris LoCurto advises against opening a business with the goal of making money solely through hustle and hard work, instead suggesting to start small and serve with integrity while honoring God in the process.
- He emphasizes the importance of prioritizing growth and spending money wisely, pouring back into the business what is needed and taking a reasonable salary for personal needs.
- Chris LoCurto discusses the importance of understanding the aspects holding back business growth and the impact of debt on spending habits.
- Joel Fortner asks about the difference between controlled use of credit cards and using savings capital, and Chris highlights the potential for overspending without feeling the pain of payment.
- Managing debt and mental/emotional benefits for business owners. 37:27
- Chris LoCurto emphasizes the importance of managing debt well, as only 74% of miles are never recovered or written off, and using secured cards to operate like credit cards while still having control over spending.
- Joel Fortner adds that not having debt can free business owners emotionally, reducing stress, fear, hubris, pride, and risk, allowing them to make more intentional decisions.
- Chris LoCurto and his team had a Zoom call to discuss how to handle the COVID-19 pandemic, with a focus on planning for the "what if" scenarios and potentially changing roles within the team.
- The team discussed how to sustain paying people in roles that may not be needed if the pandemic lasts for years, and some team members discovered hidden strengths and talents in their new roles.
- Financial stress and debt management. 42:09
- Chris LoCurto experienced trust and faith during the pandemic, leading to minimal stress and business continuity.
- Joel Fortner and Chris LoCurto discuss the mental and emotional benefits of being debt-free, with Chris arguing that most people don't think of themselves as being "slave to the lender" despite being in debt.
- Chris believes that people don't realize the implications of being in debt, including the fact that the bank can take back the asset (such as a house) if they want to, and that this concept is not just about historical slavery but also about the indentured servitude aspect of being in debt.
- Making decisions based on emotions vs. logic. 46:35
- Joel Fortner is struggling with his mental and emotional well-being due to his job, and is considering taking on debt to pursue a new opportunity.
- Chris LoCurto advises Joel to focus on addressing the current problem rather than jumping into another potentially bad situation.
- Chris LoCurto shares his business wisdom, revealing past mistakes and their lessons learned.
- Running a debt-free business with mental and emotional benefits. 51:19
- Chris LoCurto shares his experience of working in toxic environments and the importance of making smart decisions in business.
- He emphasizes the reality of entrepreneurship, where business owners can experience both exhilaration and terror in the same day.
- Chris LoCurto and Joel Fortner discuss the benefits of running a debt-free business, including improved mental and emotional well-being.
- They invite listeners to share their stories and insights on the next episode, and encourage them to take action to change their leadership and business for the better.
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