Your dad’s philosophy is right. But given what’s happened over the last few years, I’m not sure starting businesses on credit is such a hot idea either. Most businesses will fail. Or at least take a looong time to get off the ground. If you’ve extended yourself on credit, you are in big trouble.
I started a business with just whatever I had in my bank account. Never borrowed on anything but a credit card, and even that was paid off in full every month.
You gotta start tiny, use assets you already have, choose your expenditures very carefully, and move forward slowly as you claw together the necessary funds. If it busts, no big deal, you start again. But at least you are not in debt.
In my opinion, credit is overrated as a business tool.
As long as you can survive on tiny profits, that is the way to go. But I think for many it isn't really an option. I agree with you as regards to credit. My economic training was in the eighties and nineties, when leverage was king and he who died with the most debt won. It led me to make some very bad decisions that I am still paying for.