09/25/2026
I can survive 6-12 months without income and I run my business the exact same way. It stems from one principle: I refuse to let debt be a lifeline. 3 things keep me honest and able to do it.
Most owners dream of having the comfort of cash for catastrophes yet never feel like they can prioritize it.
But, just like in your personal life, you have to intentionally set aside a % of revenue to protect your business.
Here’s what I do every time revenue comes in:
- 10-20% in a emergency account (I call this my “profit” account and I funded it until it was fully funded to cover 6-12 months of OpEx. This is a HY savings serving as an emergency only. Once fully funded, distributions of actual profit from here go to ownership each quarter.)
- 15% in a tax account (also a HY savings where all tax payments come directly from. If overfunded after tax time - distributions are taken for ownership or I let it build for safety.)
- 30-65% stays in OpEx to run the business
As your business grows, it gets more complicated & expenses tend to rise very quickly.
Implementing a simple system like this though, keeps you intentional about your “yes” and “no” decisions while ensuring your business can withstand catastrophic events like 2020.
This girl just started her babysitting business & she’ll be running it exactly like this.
She plans to purchase 2 cats when she heads off to college with the profit.😂 Whatever your goals are…make sure you have the cash to fund it.
Cash is queen, folks.
Do you have a cash system like this?