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Starting to do business without working capital is very expensive, and can lead to big problems but plenty have overcome it.

http://en.wikipedia.org/wiki/Working_capital

I would consider a small business loan which will need to be backed by something of value like a home, or CDs, etc.

That way you aren't paying the ludicrous rates the CC companies charge.

Perhaps google "Quick Books Advisor" in your area who can help you set up your QB accounts, etc.

Good Luck
 

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These stories never add up. There is supposed to be enough sales and work completed to have a 10k-15k material bill. If substantial work is being completed month in and month out why aren't the reserves there yet? Is your husband working in the field or just managing? Do you guys have a high personal cost of living?

When I just starred I did a lot of jobs where I could have my checks quickly. If I wasn't comfortable that I could organize the job where I wouldn't get stressed about the payment structure, i would only inter the agreement on time and material bases where I had a check every week. I never got in a spot where I was waiting on money to pay the bills.

5-10 % of every job should be profit and adding to reserves. That money should be there unless it is being used to reinvest in the business. If you don't have reserves that should be the number one priority. If you have 10-15k in material a month I would expect you are doing 25-50k a month in volume. Lets say its the low end (25k)and you only have a 5% profit. That's $1,250 in profit a month. At the end of a year you will have $15,000 to cover material if you are waiting on a payment. If you where able to make a 10% profit and the monthly volume is closer to 50k you will have your reserves for material in 3 months. Hopefully you have a budget that gives a budget to cover the costs of doing business without interfering with profit.

So lets get to it. What is the monthly volume and what is the planned profit?
Frank, these types of threads baffle me as well. From the materials bill volume she stated, it absolutely suggests that there should be something left over every month to begin building a cash reserve just from the labor portion...unless hubby works for free.:blink:
 
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