To run a buisness, take on projects, run payroll, there is a certain amount necessary to keep in the bank. New buisness rarely gets good financing so the first few years, you are on your own. You are absolutely correct in that saving cash today is no longer a good thing. You should reinvest profits into the company by buying equipment and assets when the excess cash is there. I started out with a beater 4wd truck with a ratchet strap holding the shifter to the transmission using rented equipment. Now I drive a very nice new truck and no longer need to lease equipment. Work done with it would be straight profit. It takes a lot of sacrifice but so worth it to be your own boss.