GGB Working capital
The cash that runs the day-to-day: current assets minus current liabilities. Runway, in plain operator terms.
Working capital is the liquid buffer that pays suppliers, payroll and rent while revenue ramps: current assets minus current liabilities. New venues fail here more often than on concept, because the build consumes the budget and the first slow months consume the rest. A sober working rule is to open with several months of fixed costs in reserve, and three is a common floor.
Working capital = current assets - current liabilities
Current assets = cash, stock and receivables; current liabilities = payables and other amounts due within the year.
Illustrative: cash, stock and receivables of AED 150,000 against payables of AED 90,000 is AED 60,000 of working capital. If monthly fixed costs are AED 90,000, a three-month reserve means opening with AED 270,000 set aside, separate from the build budget.
Budget the launch runway