Cash runway for Etsy sellers and makers: how many months do you really have?

Runway turns money stress into a plan. For Etsy sellers and makers there's one twist in the math.

Guide · FantasyLab ·

The worked example

Kiln & Co., a ceramics studio selling online, holds $48,300 in cash against a monthly burn of $6,900, with everything in it: rent, gear, software and the owner draw. That's 7.0 months of runway at the current burn. It's above the four-month line, so the owner can plan in seasons instead of weeks.

The method, plainly

Runway = cash on hand ÷ monthly burn, using your heaviest recent burn month rather than your cheapest. The main runway guide has the full reasoning and what to do at each level, and the calculator runs it on your numbers in your browser.

The twist for Etsy sellers and makers

Inventory is cash wearing a costume. A materials buy converts runway into shelf stock, so count planned buys as burn in the month you place them, and remember December revenue lands after December bills.

Keep reading

  1. 01How many months of cash does your business actually have?
  2. 02Cash runway calculator with a thin-months warning
  3. 03How much should Etsy sellers pay themselves?

Counsel

Counsel does this math on your real numbers.

Connect Stripe, Square, Shopify, Etsy, QuickBooks or a bank feed, or drop in a CSV. Every answer comes with a receipt that shows the method, the sample size and how confident it is. When the math isn't conclusive, the app says so.

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Every figure on this page is computed from Counsel's demo businesses or from the numbers you type in. None of them are made up. This is cash math, not tax or legal advice. Written and kept up to date by the founder.