By: John S. Morlu II, CPA
Introduction: Welcome to the Hard Way — AKA, The Real Way
Building a business from scratch is not like those motivational YouTube ads make it seem. It’s not sipping smoothies in Bali while your Shopify store makes millions overnight. No. Real founders are over-caffeinated, underpaid, and desperately hoping their Wi-Fi doesn’t crash during a pitch call.
And then comes financing.
Until you start generating real cash flow, you typically have three options:
1. Your own money — Your savings, that generous gift from your rich uncle, or the inheritance your grandparents left behind (bless their strategic planning).
2. Equity — Hand over a slice of your company to someone who will now start every sentence with, “You know what we should do?”
3. Debt — Borrow the money, keep full ownership, and commit to monthly payments that feel like wrestling an angry bear with a calculator — every single month.
As a former instructor of advanced corporate finance, I’ll tell you this: debt is cheaper. But it’s also stressful, relentless, and the business version of “do or die.” Still, when wielded correctly, it can transform average founders into legendary ones.
1. Debt Is Like Marriage: Cheaper Than Dating, But Way More Commitment
Equity funding is like being courted by investors. You pitch your idea, they nod thoughtfully, and eventually one slides into your cap table like it’s a Tinder match.
Debt? No romance. No dinner. Just signatures, collateral, and a terrifying repayment schedule. You get a pile of cash, sure. But you also get a partner who doesn’t care about your dreams — just your monthly performance.
Real-Life Vibe: It’s like marrying someone who only texts you once a month — to say, “Where’s my money?”
Common Sense Reminder: Equity gives up control. Debt gives you stress. Choose wisely.
2. Debt Makes You Creative — Or Desperate. Same Thing.
Nothing lights a fire under you like knowing rent is due and your Stripe account is sitting at $14.72.
Suddenly, you go from CEO to a one-person circus act:
- Freelancer — “I’ll do graphic design, SEO, fix your Wi-Fi, and sweep the floors — all before lunch.”
- Salesperson — Cold emailing strangers like a telemarketer fueled by six shots of espresso.
- Philosopher — Pondering the meaning of life while Googling, “How to go viral before Friday.”
- Prompt Engineer / ChatGPT Whisperer — Begging AI for the next million-dollar idea like it’s your last hope.
True Story: One founder once sold custom mugs of his own face to cover hosting fees. He made it work. That’s the magic of desperation.
Fun Fact: 63% of small businesses say cash flow issues keep them up at night. The other 37% are lying.
3. You Don’t Age. You Just Earn “Finance Lines.”
Founders don’t get older. They get seasoned. You can spot them:
- Deep forehead line = investor backed out
- Eye bags = working weekends… again
- Jaw clench = bounced payment to a supplier
Funny But True: You start tracking your age in fiscal quarters. “Yeah, I aged two Qs this week.”
Stress may wrinkle your face, but it sharpens your decision-making.
4. Bankers Are Your Best Frenemies
Your loan officer becomes your most consistent relationship. You learn their tone. You fear their emails. And when they say, “Can we chat?” your soul leaves your body.
Example Email Translation:
- “Please provide updated financials” = “I don’t trust you anymore.”
- “Let’s schedule a review” = “Something looks sketchy, and I’m circling it in red.”
They smile in meetings but track every move like a hawk in a suit.
Truth Bomb: They don’t care about your story — just your spreadsheet. Adjust accordingly.
5. Equity Makes You Comfortable. Debt Makes You Grind.
When people give you money for equity, there’s usually a grace period. You get to “find product-market fit” or “experiment with go-to-market strategy.”
With debt? There is no honeymoon.
You take that money, and you run.
Because in 30 days, the first payment hits like a truck.
Fun Fact: The difference between a “visionary founder” and a “hustler” is debt. One dreams, the other delivers. And nothing will make you execute like the fear of default.
6. Debt = Drama. But You’re the Star of the Show
Your startup life becomes a suspense movie:
- Will the payment clear?
- Will the supplier send goods before the deposit?
- Will your CFO cry in a corner before or after payroll?
But drama builds heroes.
Metaphor Moment: If equity is a chill indie film, debt is a thriller — explosions, plot twists, and the occasional financial explosion.
Every week brings cliffhangers. And somehow, you survive them.
7. You’re Never Broke. You’re Just “Between Invoices”
You start renaming everything to feel less broke:
- No money? “Temporary liquidity bottleneck.”
- Late payment? “Cash flow imbalance.”
- Account frozen? “Digital banking miscommunication.”
Founder Mantra: It’s not failure. It’s a pending transaction.
In debt mode, founders become poets, lawyers, and magicians — anything to buy a few more days to make magic happen.
8. You Learn More from Pain Than from Any Business School
MBA programs teach theory. Debt teaches reality.
Real lessons from debt:
- Don’t rely on “hope” as a strategy.
- Always know your cash burn rate.
- That fancy office? You’ll regret it in month 4.
Satirical Truth: You’ll get a crash course in law, accounting, psychology, and prayer — all in the same week.
Failure from debt is fast and unforgiving. But it also gives you the sharpest business instincts you’ll ever develop.
9. You Start Celebrating the Weirdest Things
VC-funded startups celebrate IPO filings.
Debt-funded startups celebrate:
- Getting a $10K payment on time.
- A positive bank balance for 3 consecutive days.
- Not crying during QuickBooks reconciliation.
Mood: You start doing victory laps around your apartment for hitting breakeven. You high-five your plants. Every small win feels like conquering Everest.
Fun Fact: Founders in debt become some of the most grateful people alive. When you’re down to the wire, a $500 sale feels like winning the lottery.
10. Pressure Doesn’t Just Build Diamonds. It Builds Legends
Debt makes you face the worst version of yourself. But that pressure carves out a better one.
You become:
- Faster at decisions
- Sharper with cash
- More honest with your weaknesses
Founders who survive debt become war-tested. When others panic, they remain calm. Why? Because they’ve been to the edge — and built from it.
Mic Drop Moment: That company you admire? There’s a good chance it almost collapsed under debt… before it rose like a phoenix.
Final Thought: Building With Debt Is Not for the Weak — It’s for the Relentless
Debt doesn’t care about your excuses. It doesn’t reward potential. It only respects execution. It’s hard. It’s unforgiving. And it will test everything you’ve got.
But if you can handle the 2AM anxiety, the missed vacations, the bank statements that look like horror stories — then congratulations…
You might just be an inch away from greatness.
And no, it won’t be easy.
But neither is becoming a legend.
About the Author
John is an entrepreneur, strategist, and founder of JS Morlu, LLC, a Virginia based CPA firm with multiple software ventures including www.FinovatePro.com, www.Recksoft.com and www.Fixaars.com . With operations spanning multiple countries, John is on a mission to build global infrastructure that empowers small businesses, entrepreneurs, and professionals to thrive in an increasingly competitive world. He believes in hard truths, smart execution, and the relentless pursuit of excellence. When he’s not writing or building, he’s challenging someone to a productivity contest—or inventing software that automates it.
