To Leverage or Not To Leverage?

Doing the podcast gives me the privilege of talking to some successful individuals in various stages of their lives, and their businesses. Whether they're in their first decade or planning to retire in the near future, they all have had their own set of lessons. Today's article is going to discuss debt, how much to take on and when.

In a recent interview with Mike Briggs, the owner of Minnesota Firearms, I asked him a common question entrepreneurs get. What would you do if you could roll back the clock? Do it all over again?

He stopped to think for a moment before answering:

"Build a range right away. Figure it out. Build it now if you can."

He was quick to follow up with another golden nugget. Focusing on not overextending yourself. He was familiar with another podcast episode we did with Brady's towing and Recovery, where we also discussed the importance of managing your debt.

Sounds easier said than done right? Here are some takeaways from our episode that I'll expand on:

Save some money.

Cash is confidence. Having money in reserve not only gives you breathing room during slow months, but it also lets you make smarter, more patient decisions instead of reactive ones. The best opportunities often go to the people who have the cash ready when everyone else is stretched thin.

Put some of your own money into it.

When you’ve got your own skin in the game, you treat every decision differently. It forces discipline and accountability in a way borrowed money can’t. It's a lot easier to spend someone else's money, so you might not see your own effort rise to the occassion. Plus, lenders and partners see that commitment — it’s proof that you believe in what you’re building.

Position yourself right with that first loan.

The terms you negotiate early can set the tone for years. A good first loan isn’t just about the rate — it’s about flexibility, payment structure, and building a track record with your lender. This is an important seed to plan with them for any future opportunities, not just taking on debt one time.

Get the first loan paid off before the next one.

While this has some nuance to it, momentum works both ways — so does leverage. Paying off that first note builds credibility, cash flow, and confidence for the next phase. It also forces you to truly master one stage of growth before stacking another layer of debt on top.

You need your own building.

This was a big one for Mike. Leasing can work early on, but ownership changes the game. When you control your space, you’re not at the mercy of rent hikes or landlords, and your payments start building equity instead of vanishing. It’s one of the smartest long-term plays for any business that plans to stay put.

Reinvest

Don’t get comfortable once you start turning a profit — that’s when the real building starts. Putting money back into your equipment, people, or marketing compounds growth faster than any savings account ever could. The ones who win long-term are the ones who never stop feeding the business.

Final Thoughts

At the end of the day, leverage isn’t the enemy — impatience is. Debt can be one of the most powerful tools in business when it’s used with discipline, purpose, and timing. The goal isn’t to avoid borrowing altogether, but to make sure every dollar borrowed moves you closer to ownership, stability, and freedom — not just more stress.