I met with a business owner to introduce certain financial products that will allow him to expand and improve his business. He quickly informed me that he has never had a loan. He proudly shared with me that he is debt free and presently the owner of a personal residence, rental apartments, barber shops, and Bar-B-Q restaurants. His business transactions are all cash when purchasing and selling assets. His model for business expansion or entering a new venture is first to purchase the necessary equipment and facility for the business venture, and then open the business without debt. He stated firmly that “a person who needs a loan to start a business does not need to be in business!”

Many may disagree with this business philosophy and speculate that he perhaps could have generated more revenue and accumulated greater wealth by using the concept of leveraging, but this business man has defined his success. He owns debt-free cash generating assets which exceed a million dollars in value, and has cash money set aside for each of his children in the event they decide to travel an entrepreneurial pathway. This gentleman is in his early sixties, does not have a high school diploma, and cannot read or write.

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