Mike asks: "We've used our own cash reserves for deals, but we're contemplating using other people's money—not because we need it, but to deploy our capital elsewhere. We've been debt-averse but see value in this if done correctly. How would you view this?"

In this episode, Scott breaks down the decision using the Investor Priority Pyramid, explains why capital is foundational (use it first), when debt makes sense (only when levered and proven), and shares a cautionary tale about six-figure credit card bills that worked—until revenue shifted. You'll learn why debt is fine until it's not, and why you should never take on debt without a proven model.

The bottom line: Use your capital first. Take debt only when you KNOW it returns more than it costs.

Got a business question? Ask Scott here: https://scotttodd.net/ask