The Day I Understood What I Didn’t Know
Yesterday I was talking to a contractor I’ve worked with on and off through different levels and stages of construction. I always thought he was slow in his work — methodical, almost too slow on some jobs. But I realized yesterday that he was much more intelligent in the business aspect than I had understood.
I also realized how much I didn’t know about finance, banking, and how to move money correctly. I always thought I had it right — I even ran a multi-million dollar company — but I ran it into the ground through COVID. I understand why now.
He explained how to hold a separate business account for tax reasons and liabilities, and how all the money that comes from a customer should first go into an individual escrow account, then move to a business account, and finally to a personal account — never the other way around, and never to reinvest from personal to business.
One of my lifelong problems is that I would get paid and almost always turn the money back into the business to support the next week, the next check. No matter how big we were running, it was always just a little bit more. I would get paid, and then it would go right back.
I now understand what I didn’t know — the “unknown unknowns” that Rumsfeld talks about. It’s a good day when you begin to understand what you didn’t understand. And today, I learned that I didn’t truly understand banking, finance, or business.
I’m terrified of what I’ve done — not being trained in business. I always trusted the accountants to do the bookkeeping and accounting. They always told me, “You make the mess, we’ll clean it up.” That was wrong. No matter how weak I am with numbers or dyslexic, I still should have understood the principles better. I really had no idea until yesterday.
Now I know and I accept you cannot take action until you know what to take action toward, but you must take responsibility even for your ignorances. I’ve worked for 30 years in the trades and never knew the simple things.
