Idea PlannerWorking money: the cash that keeps you open
Profit is a number on paper. Cash is what pays the rent on the first of the month.
The gap
You buy stock before you sell it, and some customers pay late. In between, you must pay rent, wages and suppliers. The money that covers that gap is called working money.
A simple estimate
Add up your fixed monthly costs: rent, wages, power, instalments. Multiply by the number of months you think it will take to reach steady sales, usually at least three. Add the cost of the stock you must hold. That is a starting estimate; the worksheet does the first part.
A small example (made-up numbers)
Fixed costs of 30,000 a month for three months need 90,000 of working money. If you also keep 40,000 of stock, you need 130,000 before the first sale pays you anything back.
How to need less
- Ask suppliers for a few days of credit, and sell for cash or advance where you can.
- Keep stock small and fast-moving.
- Keep fixed costs low at the start.
What to watch
Check cash weekly: money in the bank plus what customers owe, minus what you owe in the next month. If this number is falling, act early: chase payments, cut orders and talk to your supplier.
Common questions
How is working money different from profit?
Profit is sales minus costs over a period. Working money is the cash you need to keep going between paying for things and being paid.
How much should I keep?
Enough for the number of months you would take to recover from a slow start. Three months of fixed costs is a common minimum; estimate your own.
Keep going
This site states no profit figure, start-up cost, licence requirement or loan scheme: you type your own numbers, and the idea pages list questions to ask and things to measure. Interest rates in the worksheets are typed by you. It is not financial, tax or legal advice. Checked 14 November 2026.