How much cash float per technician does a start-up need?

There’s no magic number, but a common rule of thumb is to have two to three months of operating expenses in reserve per field employee. That covers payroll, payroll taxes, fuel, parts and emergencies when revenue dips. Newer businesses might need more because they don’t have established service agreements or recurring maintenance contracts.

Build your float before hiring additional techs; otherwise, every new hire is a ticking time bomb for your cash flow. Review your cash-flow forecast monthly and adjust your float as you grow.

Think of float as your oxygen tank—you don’t notice it until it’s empty.