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I've been reading the fine homebuilding book on running a construction company and basically it says you need 10 % of your gross for the year in cash in the bank at all times. So basically if I do a renovation, garage, and addition in a year that adds to about 350 I should have 35,000 in cash in the bank. I understand that this would be great to have but is it always resonable? The reason I'm asking is I've been pondering the idea of focusing on general contracting for a while now. I've been mainly a subcontracting business for 7 years now with a few general contracting jobs in there being my house and a large renovation. If I'm going to go that route I want to do it right thats why I'm reading this book. But the thing is I don't see myself saving 20-30 thousand up anytime soon so I'm on the fence as to jumping in feet first or just staying as a general carpenter making a wage and getting by. Has anyone been teetering in this situation before and have any advice? Thanks very much.