Living with Hurricanes
Living on the West Coast of Florida, I’ve grown accustomed to the unpredictable nature of Hurricane Season. Our experiences range from minor disturbances to major catastrophes, like the one that hit us five years ago. I found myself ill-prepared for the aftermath of that particular storm, with no power for 17 days. This was not just an inconvenience but a profound, life-changing event.
Business Amidst Chaos
The challenges extended beyond just my family and home. Local businesses, including mine, were significantly affected. With power outages widespread, the daily operations of many establishments were halted. Even simple tasks like traffic light management were disrupted, necessitating curfews to ensure safety.
It’s during these times that you realize the vulnerabilities not only in your personal life but in your business as well. Post-storm, it was a slow recovery. Many areas were off-limits for weeks, affecting client interactions and project timelines.
Seeking Financial Resilience
However, this experience prompted me to introspect about my business’s resilience. Was there a way to be better prepared? Could a system make handling such disruptions smoother?
The Profit First Revolution
It was during this quest for answers that I came across the “Profit First” system by Mike Michalowicz. The concept is a boon for Accountants and Financial Planners but is also practical for business owners. At its core, it introduces an envelope system for your finances. Income is immediately divided into specific buckets based on predetermined percentages. It’s like having several bank accounts, each with its purpose – Operating, Tax, Profit, Owner’s Compensation, to name a few.
Embracing New Financial Strategies
Adopting the system requires discipline. You might face skepticism (even from your banker!). But, after using it for four years, I’ve found solace in the clarity it provides. No more guesswork – I can gauge my business’s health instantly.
Navigating Global Challenges
2020’s global pandemic was a testament to the system’s efficacy. While many businesses faltered, the preparations I had in place, backed by the Profit First model, cushioned my business against severe disruptions. The uncertainty the pandemic brought was different from a hurricane – it was unforeseen and globally impactful. But with a solid financial strategy, navigating through such challenges becomes manageable.
Living in Florida has taught me that storms, whether natural or economic, are inevitable. But with the right preparation and systems in place, weathering them becomes a test of endurance rather than a battle for survival.