Why Moving Companies Need a Cash Reserve

Hey, my friend. It's Luis Massaro, author of 10 Rules of a Profitable Moving Company and founder of Moving Mastery. Today we're going to talk about something that, you know, everybody needs to be doing, especially in the moving business, alright? It's actually rule number six of ten Rules of a Profitable Moving Company, which is keep a cash reserve, alright? This is so important. You know, it's a seasonal business. There are ways to become busier in the winter and make up for that slow time. But generally, you know, after summer, things start to slow down a little bit. You know, my first year in business, you know, I opened up in February, you know, I was 19, I opened up my office and you know, rolled into summer and started becoming profitable that first summer. And even after the summer, I actually continued to grow a little bit, right? Even though it was off season, just all the work that I was putting in and just the open opening of a new office and being a new mover in the city, I gained some momentum, right? So then the year came around, February came around again. I went through my second summer and I was not prepared for what happened after that second summer, which was, you know, I started to, you know, plateau a little bit. And then I had a dip in the off season. You know, come, you know, October, November, December, things started to slow down. Well, I already took all the money out of the account and bought a house and spent the money thinking that, oh, there's enough in there. But I didn't really account for the slowdown, right? And I see this happen. I work with a lot of moving companies and I see it happen to where you have a great summer and you're excited and you want to take a bonus or a distribution and go buy a house or a car, take a vacation. Listen, you should, you work hard, you deserve it. Just make sure you're keeping a cash reserve, right? The best way to do that is to just set up a savings account attached to your business account. So it's a business savings account and just put a certain percentage of money in there, alright, every month just to make sure you're good through the off season. All right? If you need to take it as a distribution or as a bonus, wait, wait until the year is over, wait until moving season starts again. And if it's still there, then you could take it. But you know what? Oxygen and money are the same thing. You need oxygen to live and to breathe, while your business needs money to live and breathe. And if you take out all the money and you get in a bad position it's like suffocating, right? Money is the oxygen for your business. Don't suffocate your business by taking out all the money. All right? Too many times this is the case. You know, you have to run this like a business. You have to make sure that you're always well funded. You don't want to end up in a position where winter months come and you have to cut back on marketing because you don't have the money to keep it going. You. You have to keep marketing going. You have to keep certain things going all year round because you know, what money you spend for marketing in the winter is going to result in moves in the spring. All right? Now, yes, there are things you can cut back on each year as you come into the off season, but you have to keep a cash reserve, right? Imagine if you just had a couple of bad months. It happens. Things happen that are out of our control. You know, I've gone through it. Things like you wouldn't expect, they happen, right? You just think, oh, you know, we don't prepare for the worst case scenario, you know, but it's, you know, it's the guys that have the cash reserve when things go bad. When the 2008's come, right? That almost put me out of business, that almost caused me to go bankrupt with, you know, offices throughout the country, was able to continue to float those businesses and get through that time. But you know what? A lot of people went under quick, you know, and it was still a struggle for me. I wish I had more of a cash reserve, right? So the point is, anything could happen, right? A couple bad months could happen for whatever reason. You know, just recently we had an election, right? You know, as you know, you probably felt a little slowdown around election time. You know, people were a little uncertain and things weren't, you know, quite. They didn't know what was going on. And you don't want a couple of bad months for whatever reason, you know, whether it's an election or whether, you know, the year before there was something with the mortgage companies and the way that they change the way they need to process loans that caused a slowdown in our business. Okay? You don't want that to put you out of business. You need to keep a cash reserve. All right? You know, I'm not sitting here telling you don't spend your money. I'm not sitting here telling you don't live the lifestyle you want to live and buy the things you want to buy. But if you don't have, you know, ammunition to continue the fight in business. You know, business is tough. You know, a lot of people, you could compare business to war and if you don't have ammunition to fight, then you're done, you're out, you're over. Right? So keep a cash reserve, set up an account, attach it to your business account and keep some money in there, alright? You never know when you're going to need it. You never know, not even for the bad times, right? Let's not just make this a doomsday scenario. Maybe a great opportunity comes up. Maybe there's just a great investment opportunity for your business that because you have that extra money you can jump on, you could capitalize on. Has there been anything that's ever come up that you just couldn't get involved with because you didn't have the funding, you didn't have the money. The cash reserve could be used for that too. At the end of the day, don't run your business on a bare bones minimum. Don't make money and take it all out and spend it. You know, you need to make sure there's money there for the business to be healthy, right? And that's. It's just going to help you in so many different ways. Alright? So if you're not doing that, start doing that, all right? It's so important. Go out there, continue to profit in business, Continue to thrive in life. I'll see you next week. Hey my friend, it's Louis. I hope you enjoyed this episode. Do me two favors. Number one, subscribe to this channel so that you continue to get updates every time I release new training for you. Number two, if you'd like to get ahead a little bit faster and become more profitable in your business, what I'd like to do is give you a copy of my 10 rules of a profitable Moving company. These are the same 10 rules that I applied in my business that helped me grow it into a multi million dollar nationwide company. Okay? So all you need to do is click on the link on this page or head over to louismassaro.com 10rules. So that's Louis. L O U I S Masaro M A S S A R O Com tenrules. Just put in your name and email address and I'll email you out a copy. Okay? Until then, every single day, go out and profit in business and thrive in life. I'll see you later.