After a hurricane nearly destroyed his company, a 52-year-old CEO's 'stupid' strategy resulted in a $9.5 billion fortune.

The Moment series by CNBC Make It features successful individuals discussing the pivotal moment that altered their career paths and lives.

Todd Graves is aware of his fortune in maintaining a business.

Last year, Raising Cane's, the chicken finger restaurant chain owned by Graves, generated $3.7 billion in net sales, contributing significantly to his estimated net worth of $9.5 billion. However, nearly two decades ago, Hurricane Katrina almost destroyed the entire company, a mistake Graves attributes to his own "stupid financial strategy," as he told CNBC Make It.

In 1996, Graves, now 52, established the first Raising Cane's restaurant near LSU. By 2005, the chain had expanded to 28 locations across Louisiana, generating an annual revenue of $54 million, as stated by a company representative.

Graves secured larger loans from banks by using debt obtained from private investors at a 15% interest rate.

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In 2005, when Katrina hit the New Orleans area, thousands of businesses across the state were shut down due to massive flooding, including 21 Raising Cane's locations. With no revenue coming in, Graves faced a dire situation: He might not have enough money left to pay his employees and avoid defaulting on his loans unless he sold his stake in the company.

Graves devised a plan to open restaurant doors as soon as power was restored in the region. He mobilized employees from unaffected areas to coordinate cleanup efforts, acquire supplies for his flooded stores, and learn how to cook and serve food under a boil-water notice.

Graves reports that Raising Cane's reopened its first shuttered location in just two weeks and experienced a sales boost due to being one of the only restaurants available to locals. With cash flowing again, Graves made his payments and avoided selling any company equity. As per Forbes, he still owns 90% of his business today.

Discussing the panic he felt while observing New Orleans' levees break, Graves shares his insights on managing crises and avoiding the same financial errors he made.

How dire was your financial situation when Hurricane Katrina shut down most of your restaurants?

Graves: I recall watching on TV from our location on Lee Drive [in Baton Rouge, Louisiana] when the levees broke. I knew I had invested heavily in the business. Twenty-one of those restaurants were shut down. There were no more customers coming in. I was still responsible for paying my bills.

I assembled the team, explained the situation to them, and apologized for putting us in a difficult position. I also emphasized the importance of providing jobs for our crew members and being open to the communities. People require a hot meal when they're renovating their homes, and we need to save the company. We are currently facing a financial crisis, so we must take action.

We collaborated with the health board. We collaborated with the state. Tyson Foods delivered chicken to the back of our office, as they were unable to access the most damaged regions of New Orleans and manage their own logistics.

We had a big crew to help, but we ended up working ourselves to death.

What was the worst-case scenario, in your mind?

We spoke to all our vendors and banks while planning, but none of them agreed to extensions. They simply said, "We'll see how it goes." Despite their friendliness, they were not willing to make a commitment.

I didn't want to admit my mistake and offer equity, even though they knew, because I didn't want to say, "Hey, I messed up with your money." Despite showing them everything, I didn't want to give up equity. The reason why I own so much of my company compared to others is because I was very risk tolerant and not bothered by it at all.

Be cautious when selling equity for your business if you believe in it, as you will still work just as hard as if you had retained full ownership.

What should someone do first if they are worried they could lose everything during a crisis?

This is a daunting task, but we will overcome it. We will find a solution.

Believing that you will overcome adversity is crucial.

Present the major obstacles to you and be open about your current circumstances.

Trust your team and work with them to build a plan. With relentless pursuit, go after it and adapt to the changes that occur. Keep doing it and you will succeed.

Did nearly losing your business alter your perception of success? What do you now define as "success"?

My initial American dream was to establish a successful business by venturing out on my own.

My American dream is to start a business that benefits people and creates a positive work environment. The company generates profits that can be used for philanthropic purposes on a large scale.

Since 1996, we have given more than $140 million to community organizations across the U.S. I am eager to give $150 million in a year, if it is God's will.

Helping others achieve success and happiness is the essence of the American dream for me.

What advice would you give to someone considering adopting the debt-financing strategy that led to your troubles?

I was young and thought I was invincible, with no financial problems. I didn't imagine a natural disaster or anything like that happening. I believed that one day, I would be able to use my own money instead of sub-debt investments.

I used to employ a foolish financial strategy by over-leveraging myself and not maintaining a safety cash reserve. However, I now have a substantial personal safety cash reserve to fall back on in case of unexpected events, as things often do.

To avoid getting into a bad financial situation, slow down your company's growth. Eventually, if you're successful, you'll have your own funds to finance the business.

This interview has been edited and condensed for clarity.

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