diff --git a/app.py b/app.py
index 4a8d101..1f6d086 100644
--- a/app.py
+++ b/app.py
@@ -5,12 +5,23 @@ from werkzeug.security import generate_password_hash, check_password_hash
 import os
 
 app = Flask(__name__)
+
+# Ensure instance directory exists
+# Ensure instance and database directories exist
 app.config["SECRET_KEY"] = os.environ.get(
     "FLASK_SECRET_KEY", "your-secret-key-here"  # Fallback for development only
 )
-app.config["SQLALCHEMY_DATABASE_URI"] = "sqlite:///" + os.path.join(
-    os.path.abspath(os.path.dirname(__file__)), "instance/database.db"
-)
+app.config["SQLALCHEMY_DATABASE_URI"] = os.environ.get("SQLALCHEMY_DATABASE_URI", "sqlite:///instance/database.db")  # Read from environment
+
+# Ensure database directory exists AFTER config is set
+with app.app_context():
+    db_path = app.config["SQLALCHEMY_DATABASE_URI"].replace("sqlite:///", "")
+    try:
+        os.makedirs(os.path.dirname(db_path), exist_ok=True, mode=0o755)
+        print(f"Ensured database directory exists at {os.path.dirname(db_path)}")
+    except Exception as e:
+        print(f"Error creating database directory: {str(e)}")
+        raise
 app.config["SQLALCHEMY_TRACK_MODIFICATIONS"] = False
 
 db = SQLAlchemy(app)
diff --git a/docker-compose.yml b/docker-compose.yml
index da92fd8..e0d6cd8 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -7,7 +7,9 @@ services:
       - "5001:5001"
     environment:
       - FLASK_ENV=production
-      - FLASK_SECRET_KEY=${FLASK_SECRET_KEY}  # Required - set in .env file
+      - FLASK_SECRET_KEY=${FLASK_SECRET_KEY}
       - SQLALCHEMY_DATABASE_URI=sqlite:////app/instance/database.db
     volumes:
       - ./instance:/app/instance
+    command: >
+      sh -c "flask init-db && gunicorn --bind 0.0.0.0:5001 --workers 4 app:app"