Debt vs. Strategy: Which One Are You Using to Grow Your Business?
Based on insights from Ryan R. Richardson
Partner at Grundy’s Consultancy | Business Funding & Strategy Advisor
For many business owners, the default plan is simple: if I want to grow, I need a loan.
But that mindset, while common, is often what holds them back the most.
The reality is this. Debt alone is not a growth plan. And in the hands of someone without a clear strategy, it becomes an anchor, not a lifeline.
As Ryan R. Richardson points out:
“Most people think they need a loan to grow their business. What they actually need is a strategy. Otherwise, that loan becomes a trap, not a tool.”
Let’s explore what that really means.
The debt-first mindset is a trap in disguise
It’s easy to believe that more money equals more growth. On the surface, it makes sense. Cash flow is tight, opportunities seem just out of reach, and a loan looks like the bridge between where you are and where you want to be.
But without a plan for that money, without clarity on how it translates into real return, what you’re building is not momentum. It’s pressure.
Debt can be useful. Strategic capital can unlock scale, expansion, or marketing that works. But debt for the sake of survival, without a defined pathway to profitability, only accelerates financial instability.
At Grundy’s, we’ve met too many business owners who borrowed first and asked questions later. They accepted high-cost loans with unclear terms, used funds to patch holes rather than build systems, and found themselves in a worse position than before.
They didn’t lack vision. They lacked a strategy.
What lenders want is what you should want too
This might surprise you, but the way lenders assess your fundability is also the best way to assess your business health.
They want to see structure. They want to see that if they give you $50,000, you know exactly how it will multiply. Not just how you’ll spend it, but how that spending drives return. They want to see that you’ve thought ahead, prepared for risk, and built a model that can sustain the weight of capital.
When Ryan advises clients, he often asks, “If you got the funding tomorrow, how would it double your revenue in the next six months?” The answer to that question reveals everything. If you don’t know, you don’t need debt. You need to plan.
Strategy is not about waiting. It’s about positioning.
Some people take this message to mean they should avoid funding altogether. That’s not the point. The point is to become the kind of business that can use capital intentionally, confidently, and efficiently.
Strategy is about knowing your numbers. Understanding your margins. Identifying where investment creates leverage, not just liquidity. It’s also about having the financial structures in place so that when the time comes, you can access the right kind of capital without sacrificing long-term stability.
We’ve seen businesses get approved for funding and say no. Not because they were afraid, but because they realized their strategy would deliver better results if they waited another three months, cleaned up their books, and increased their offer size.
That’s what control looks like.
This is how financial transformation begins
Debt is not inherently bad. It’s just not the starting point. For real transformation, you need to begin with clarity. With guidance. With a plan that aligns every financial decision with your long-term goals.
At Grundy’s Consultancy, we don’t just help our clients access capital. We help them position their business so that capital accelerates impact rather than eroding it. That starts with asking better questions, mapping smarter moves, and treating money not as a miracle fix, but as a strategic asset.
If you’ve been relying on loans to plug gaps or keep things afloat, it’s time to rethink the pattern. You don’t need more debt. You need a roadmap that actually leads somewhere.
And if you’re ready, we’re here to help you build it.
FAQ
Is debt always bad for a business?
Not at all. Debt can be useful when tied to a clear growth strategy. The problem is when it’s used to cover shortfalls or make up for a lack of planning. Strategic capital works best when it supports a business that already understands how to turn investment into return.
How do I know if I need debt or a strategy?
Ask yourself this: if you received $50,000 today, could you clearly map how it would double your revenue in the next 6 to 12 months? If the answer is no—or even “kind of”—you need a strategy first.
What does a business strategy include when it comes to funding?
A good strategy includes financial clarity, margin awareness, operational structure, and a defined plan for how funding will be used to increase cash flow or scale sustainably. It positions you to access the right funding at the right time.