Equipment failure doesn’t just cost you repairs — it costs you downtime, missed jobs, reschedules, and lost client trust. Yet many contractors don’t have a plan or a fund for equipment replacement. They just deal with it when it breaks.

That’s not strategy — that’s survival.

Instead, you should be setting aside a monthly amount based on useful life, replacement cost, and usage. That way, when the truck dies or the compressor goes out, you’re not scrambling for financing or maxing out a credit card.

Real World Mistake & Lesson: A landscaping contractor I worked with had a fleet of aging trucks. One summer, two broke down within 3 weeks. He lost $12,000 in jobs, had to pay for two rentals, and spent $18,000 in unplanned repairs. We created an equipment sinking fund and added replacement costs to every estimate — and now he’s covered.

 Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com