You know the truth: in this business, things can change fast. One slow-paying client, one piece of equipment breaking down, one job delay — and suddenly your bank account is bleeding.

That’s why every contractor — no matter the size — needs a rolling cash reserve. Not a maybe. Not a “someday.” A real, intentional, protected pool of cash designed to help you stay in control when the unexpected hits.

I’m not talking about saving for retirement (that’s a separate strategy). I’m talking about a business survival buffer — 1 to 2 months of operating expenses that give you the breathing room to weather storms without panic.

Why don’t most contractors have this? Simple: they think they can’t afford to set it aside. But the real truth? You can’t afford not to.

One of my clients was doing $95K/month in revenue but had just $7,000 in the bank at any given time. When a GC delayed payment on a $120K draw for 21 days, he couldn’t make payroll, had to float checks, and nearly lost his best foreman. We put a system in place where he set aside 5% of every dollar received into a “Reserve” account. It didn’t feel like much at first — a few hundred bucks here and there — but over 90 days, it added up to $18,000. Now, when surprises hit, he handles it without stress.

Building a reserve isn’t about saving what’s left over — it’s about treating your cash like a tool, not a side effect.

Want to build your rolling reserve (without starving your cash flow)?

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