Have you ever been forced to live “month-to-month”? If you’re like many (most) Americans, chances are this phrase resonates with you. You’re used to living on the financial edge at times and if you aren’t currently there, you’ve probably either been there, or will be there, at some point during your life.

In the context of business, living month-to-month can be a scary thing. Despite whether it’s 2 or 30 employees counting on you for their paychecks and livelihood, the anxiety of tip-toeing financial disaster can be overwhelming. Yet, for many entrepreneurs, if you decide that you don’t want to go the route of borrowing, living month to month is a reality that has to be faced.

It’s certainly easier (and many times recommended) to borrow capital to finance growth. Whether it’s venture capital money, angel investments, a private loan, your personal credit cards, or perhaps from family or friends with deep pockets,, many entrepreneurs “borrow for bliss”, hoping money will solve all of their immediate problems. And to be fair, many times it can in fact propel you to the next level; helping to buy equipment needed to be a more efficient or profitable company or simply to make the deal.

But, all too often, the results are negative. Sometimes money changes the way in which a company is run, prompting normally sane business owners to go from tight to liberal with their cash overnight. With borrowed money comes debt. With debt comes responsibility. And with responsibility comes lost freedom. If you have no other way to fund an idea besides borrowing, you’ve done your homework , crunched the numbers and feel as if there are no other options, by all means, go for it. Know what you’re getting yourself into and don’t make the mistake of under-selling your idea because you lack capital, but by all means raise the funds if that’s what it takes.

On the other hand, if your business is progressing well naturally and you haven’t had to borrow, it may be best to keep it up. Sure, it may take longer and your dream of being an overnight celebrity after a $100M round of venture capital may not come true, but push the ego aside for a minute and hear me out! Businesses and organizations based on good ideas and the framework of a solid team will grow naturally if you let them evolve. Oftentimes, the companies that are built naturally have the most culture, the most profitability, and the best reputations.

My advice: don’t sell yourself short whether you borrow money or not. And understand two key points:

1. Nothing in life is free. If you’re borrowing money, the lender wants a return. This return can come via lost freedom (having to answer to ___________), future profit, future acclaim (maybe your Uncle Tom says, “Thanks to me you’re successful!”), etc…
2. If others are willing to invest in it, think twice about getting investments. Why? Because they are investing for a return. And if you have something good enough that they trust enough to lend, you’re better off thinking twice about how you can earn the return instead of them.

Additionally, don’t try to be big just for the sake of it. Look at 37Signals.