Lately, as I engage in various transactions and explore different business offers, I've noticed an overwhelming surge of fear and trepidation. What strikes me as ironic is our societal approach to financial decisions and the apparent lack of consideration for the numbers. Living in the Seattle area, where housing prices are notably high, it's common for people to commit to mortgages ranging from five to seven hundred thousand up to a million dollars without much hesitation. Despite the diverse financial landscape, the cost of living remains consistent.


In essence, purchasing a home of such magnitude is often a stretch for many, yet few seem to be bothered by it. I recently made a similar move, acquiring a house on an island in Washington. The financial strain was evident, but the prevailing attitude is one of indifference. People willingly embrace mortgages that consume between 25% and 40% of their income, seemingly without concern. The irony lies in the fact that once you've committed to this mortgage, the bank technically owns your home, and failure to pay turns it into a rented space with no recourse.


Conversely, I recently spoke with a friend contemplating the purchase of a business. Over the past two years, he has approached this decision with palpable apprehension, despite being the epitome of an average small business buyer. His concerns and fears surrounding the potential risks are markedly intense. Surprisingly, the business he's eyeing comes with the same price tag as his home, and he would be taking on a loan of equivalent size.


What struck me was the disparity in his attitude. When he bought his home, he did so with little due diligence, almost impulsively. However, when it comes to buying a business, armed with comprehensive data, historical insights, and the support of experienced brokers and banks, his fear is palpable. The business, with a 27-year history and SBA loan potential, aligns perfectly with his desires, allowing him to maintain his day job while running it remotely. Moreover, the business is poised to not only generate income but also pay down the debt.


Comparing the risks involved in purchasing a home, where external income is necessary to meet the mortgage, to those associated with acquiring a business that pays down the debt and provides additional income, reveals a skewed perspective. Despite having more control and the ability to make strategic decisions in a business scenario, my friend remains a thousand times more fearful of the business endeavor.


This paradox underscores a societal normalization of taking on substantial debt for homeownership, while simultaneously instilling irrational fears in individuals considering an asset that not only pays off its own debt but also provides additional income. The math behind these decisions seems fundamentally flawed.


Therefore, for those contemplating such significant financial decisions, it is crucial to step back from societal norms and assess the situation objectively. Let the numbers guide you, build your confidence, and evaluate the potential trajectory. While individual circumstances may vary, it's essential to recognize that no business is perfect. However, the calculated risks associated with buying a business, supported by sound financial analysis, often make more sense than the normalized approach to homeownership debt.


In conclusion, reconsidering societal norms and recognizing the potential in acquiring businesses as assets that not only pay off debt but also generate income can be a transformative mindset shift. As entrepreneurs, leveraging the benefits of business ownership, supported by favorable SBA loan rates, can lead to a more secure and rewarding financial future.