By: Rutu Ruparel
In today’s unpredictable business landscape, having a financial contingency plan is not just prudent; it’s essential. Eduardo Miramontes, Member Success Manager at A+ Federal Credit Union, shares his insights on the importance of financial preparedness for businesses. With his rich background and dedication to helping others, Eduardo offers valuable advice that every business owner should consider.
Eduardo Miramontes’ story begins in Mexico, where he spent the first half of his life working for major banks. His career took a significant turn when he moved to the United States in 2009, choosing to work exclusively with credit unions. Starting as a member service counselor, he has held various roles, including branch manager positions. Today, as a Member Success Administrator, Eduardo focuses on developing strategies to better serve the Hispanic community, bringing his passion for helping others to the forefront.
Eduardo’s professional journey is deeply intertwined with his personal values. He believes that the true purpose of life is to assist and support those around us. Every day, he finds joy in making a positive impact on people’s lives through his role at A+ Federal Credit Union. Unlike traditional banks, credit unions operate as not-for-profit organizations owned by their members. This member-centric approach ensures that the primary focus remains on serving the members rather than generating profits. Each member has a vote in electing the board of directors, who serve voluntarily. This structure allows employees like Eduardo to prioritize helping members without the pressure of meeting sales targets, aligning perfectly with his personal values and professional mission.
Eduardo frequently encounters business owners who lack a contingency plan or savings for unforeseen events. He emphasizes the importance of defining what constitutes a “rainy day” and differentiating it from regular, predictable expenses. For instance, regular vehicle maintenance should be planned for, whereas something as unpredictable as the COVID-19 pandemic exemplifies a true rainy day scenario.
While many potential challenges in business can be anticipated and planned for, truly unforeseeable events require a dedicated rainy day fund. This fund should be distinct from regular savings and specifically earmarked for emergencies. During the pandemic, businesses with such savings were better able to retain employees and maintain operations while awaiting government assistance.
For entrepreneurs and small business owners, Eduardo’s primary advice is to start saving immediately, regardless of the amount. Developing the habit of setting aside a portion of income regularly is crucial. He suggests treating savings as an expense within your budget to ensure it becomes a consistent practice. Whether it’s a percentage of income or a fixed amount, the key is to begin without delay and maintain the discipline to continue saving over time.
Eduardo Miramontes’ insights highlight the critical role of financial preparedness in business success. By understanding the unique advantages of credit unions, recognizing the importance of a rainy day fund, and starting to save immediately, business owners can build a more resilient and sustainable future.
Find the Spanish version here.