A reserve protects payroll during slow months and surprises.
In this article
Target
Months of expenses.
Separate account
Out of sight.
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Monthly transfers
Automatic.
Using it
Real emergencies.
Rebuilding
After use.
A closer look
Slow seasons, a broken truck or a big customer paying late can squeeze payroll. Owners with reserves make calm decisions; owners without them take bad jobs or expensive loans.
Where to start
Open a separate savings account and set an automatic weekly transfer.
An example
An HVAC company built a reserve over two years. When a mild summer cut revenue, it kept every technician.
Common mistakes
Using the reserve for wants, no target and stopping transfers.
What to track
Track reserve balance in months of expenses.
Questions to ask
How many months could we cover today? What counts as an emergency? Who approves using it?
Price every call so it pays.
We help service businesses set clear policies, book better jobs and turn more calls into profitable work.
Frequently asked questions
How much cash should a service business keep in reserve?
Many owners aim for several months of operating expenses. The right amount depends on seasonality, payroll and how fast customers pay.