In Episode 10 of the Starbuck & Sargent Podcast, James Starbuck and Herb Sargent break down one of the most misunderstood topics in construction business: cash flow and operating reserves.

What starts as a simple question — “How much cash should a business have?” — quickly turns into a deep discussion on survival, risk, pricing discipline, and how financial pressure impacts decision-making in real time.

The conversation explores why many contractors operate dangerously lean, how relying on incoming payments can destroy stability, and why building a cash buffer isn’t just about safety — it’s about creating options and control.

Jimmy shares real-world insights from running a transport and earthmoving business during rising fuel costs, where subcontractors struggle to stay operational and early payments can quickly erode res ...