#397 Forget clearing debt - build cash first. Here's why

A new client started coaching with me a couple of months ago, and he wanted to use his spare cash to clear down a loan that was bugging him.

But that would leave him with NO wriggle room at all.

🔺No backup if he lost a client.

🔺No buffer if someone paid him late.

🔺No margin for error if revenue falls or an expected cost comes in.


I’ve worked with many hundreds of small companies, and the ones with cash always outperform and out-survive those without.

Even if they’ve got some debt.

So I told him to leave the debt for now and focus his energies on building his cash reserves:

👉Get his taxes saved up - VAT and corporation tax

👉And build enough cash to cover 3 months overheads


But surely he’s better getting rid of that interest cost?

Hard No!

Life and business are nothing but f***ing unpredictable and having cash in your business protects you.

• It gives you thinking time.

• It gives you PEACE.

• It could mean the difference between surviving, or not.And

Cash buffers come first. Always.

They might just save you.


Do you agree - does cash win?

Or does that go against everything you’ve been taught?