How Vince Shorb Shifted From Being In to Being On the Business

How Vince Shorb Shifted From Being In to Being On the Business

Sean: And Vince, now that you’re into personal finance, I wonder, can we do a little role play? A little role play just for fun. So let’s just say I’m a business owner and I’m new. I’m a new business owner. I’ve been doing this for like a year. I’ve had some success. And now I’m thinking, Hey. I think I need to take out a $500,000 loan because I want to expand my manufacturing plant and I manufacture pots and pans for for cooking. Right. And I need to hire more people. Got to invest in new machinery from China. I’ve got to ship it all the way here. What do you think about that?

Vince: Yeah, I think every business is different, right? It’s all about risk, right? Or I might be more risk adverse. Somebody else might be, ‘hey, let’s go for it. We’ll roll the dice and maybe they win. Maybe I win.’ It doesn’t matter, but it comes down to somebody’s risk. So the first thing I talk to people is if you do this, Sean, can you sleep at night?

Sean: It’s going to be pretty hard because the interest rate is at 7% here in the Philippines. And I got to pay that. You know, I got to cut down on some things that I spend on my lifestyle right now. And I’ve got to live more frugally for sure. Not sure if I could stick with that. But, you know, I try my best to sleep well at night.

Vince: And are there things you could do, people you could talk to, conversation you can have that can make you more certain of that potential? We’re never going to 100%. But are there people that that you can chat with about that maybe it’s a current client where you can get a preorder or something like that, would make that more of a idea based on facts instead of your hope for the future.

First place I’ll start to say, talk to those people and see, and I want to make sure you’re making the right decision for yourself. There’s no right or wrong answer to say what’s going to make sense for you. If we can figure out, ‘Hey, when that returns come in,’ if you can sleep at night with taking on that debt. The other area that’s I think, a big area for you and a lot of business owners is intermingling their personal finances into their business. Do you have very accurate business finances that are separate from your personal finances or are you drawing off that business account? What does that look like for you?