How much money do you have in the bank? I’m talking about your business primarily, but your personal cash reserves can become an important tool to temporarily support your business. When I decided to hang out my shingle in 1979, I had less than $1,500 in my bank accounts. I needed to purchase tools, some modest inventory, and buy a truck. Customers were already scheduling work, so time was of the essence.
A friend sold me his 1966 Ford pickup truck for $500, and I lucked into a going out of business auction for a plumbing and heating contractor that was held on a weekday and poorly attended. It was unlike other auctions I attended in later years where items like sawzalls, hammer drills and hand tools sold for nearly as much, or amazingly, more than retail!