Capital Deployment Plan

Acme HVAC is a 2-truck residential HVAC operator in Phoenix doing $85K/mo on average. The $250K advance — at a 1.28× factor over 9 months — creates a $320K total payback obligation, repaid via $1,615 daily ACH for 198 business days. Affordable if margin holds.

The growth gap isn't lead volume — calls are coming in. The gap is conversion + ticket size. Three of every ten estimates close. Average ticket is $620 when it should be $850. Both have proven fixes.

Recommendation: deploy 70% of capital into operational lift (ServiceTitan + membership program + service-writer training), 20% into a second tech, 10% into reserve.

At $85K/mo average revenue, the $1,615 daily ACH consumes 7.5% of gross — within the safe zone (under 10%). In a worst-case month (we modeled the lowest 3 of last 12 at $62K), the ACH consumes 10.4% — still affordable, but the margin envelope tightens.

P10 month nets $2,540 to owner after ACH + payroll. Tight. Recommend a $25K cash reserve floor before deploying remaining capital.

1. 01
   Cash reserve floor

   Sits in business account untouched. Insurance for P10 months.

   Reserve
   10%$25,000
2. 02
   ServiceTitan implementation

   Software + 4-week implementation + tech training. Best ROI lift in the trade.

   Software
   5.6%$14,000
3. 03
   12 months ServiceTitan license

   Pre-pay to avoid monthly cash hit during ramp.

   Software
   2.9%$7,200
4. 04
   Membership program launch

   Materials + CRM setup + first 90-day campaign. Targets 200 members at $30/mo = $72K/yr recurring.

   Marketing
   1.8%$4,500
5. 05
   Service writer + tech training

   On-site + ongoing. Estimated ticket lift +18% based on industry data.

   Training
   2.4%$6,000
6. 06
   Local SEO + Google Business

   6-month engagement with vetted partner. Conservatively projects +25% leads.

   Marketing
   1.9%$4,800
7. 07
   Hiring 2nd tech (signing + first 30 days)

   Recruiter fee + onboarding cost + payroll buffer. Tech becomes net-positive month 2.

   People
   7.4%$18,500
8. 08
   Used service truck (down payment)

   $60K used Transit. Down for financing. Monthly $980 — covered by 2nd tech revenue.

   Capex
   4.8%$12,000
9. 09
   Inventory + parts prepay

   Negotiated 8% discount with primary supplier for upfront prepay.

   Capex
   3.6%$9,000
10. 10
    Bookkeeping cleanup + 6 mo recurring

    Brings books current + monthly close for the next 6 months.

    Finance
    3.1%$7,800
11. 11
    Working capital buffer

    Held in business account. Used for payroll smoothing, seasonal dips, opportunity.

    Reserve
    56.5%$141,200
12. ΣTotal deployment100%$250,000

1. Day 1–14
   Books closed through prior month

   Bookkeeping cleanup. Real cash position visible by day 14.
2. Day 15–30
   ServiceTitan live, all techs on board

   Software installed, jobs flowing through system. Training continues.
3. Day 30–45
   2nd tech hired + onboarding

   Job board live, screening complete, start date booked.
4. Day 30–60
   Membership program first 50 members enrolled

   Hand-pick existing repeat customers. Easiest first 50.
5. Day 45–75
   Service writer ticket size lift visible

   Targeting +$120 average ticket lift. Tracked weekly.
6. Day 60–90
   2nd tech net-positive, GMB ranking moved

   Trailing revenue should be tracking 25-40% above baseline.

Current factor: 1.28× over 9 months. If 90-day milestones land, trailing 6-month revenue should be tracking ~$110K/mo. That moves Acme from B+ to A− paper in funder boxes.

We open renewal conversations with Acme's existing funder + 2 alternatives at month 6. Target factor: 1.20×–1.24× over 12 months. Translates to ~15% lower cost of capital + longer runway.

• 01
  2nd tech doesn't produce

  Mitigated by structured onboarding + revenue-per-tech tracking from day 1. Decision point at day 60.
• 02
  Membership program flops

  Conservative 200-member target. We have a pivot to a $50/yr maintenance plan if monthly attach fails.
• 03
  Seasonal slowdown harder than modeled

  Working capital buffer ($141K) absorbs up to 5 months of $30K under-revenue.
• 04
  Tech turnover during ramp

  ServiceTitan + documented SOPs make the second tech replaceable without losing the system.