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You sold everything, but you have no money for the next batch
You sold all the candles. The account looks good.
But when you want to restock, you find out you don’t have enough.
It isn’t a sales problem. It’s a cash flow problem, or the flow of money, as we call it in the workshop.
Of the 100 lei you take in, only part of it is yours.
- part of it belongs to the raw materials supplier
- part of it to the courier
- part of it to the state (VAT and taxes)
If you treat all the money as profit, the workshop quickly ends up in a situation where it has sold everything but can no longer produce the next batch.
Where the money from a sold candle goes
| The situation in the workshop | What actually happens | The effect after 30 days | The practical solution |
|---|---|---|---|
| You reinvest everything you take in in stock | VAT and taxes aren’t set aside | You no longer have money for taxes | Set aside 20–25% straight away |
| You buy raw materials after a good month | The working capital is tied up in stock | You can no longer produce the next batch | Create a fixed working capital fund |
| You mix the profit with the business’s money | The real profit becomes invisible | Wrong investments | The “2 boxes” system |
5 signs that your workshop has a cash flow problem
In many workshops, the cash flow problem builds up gradually and isn’t visible at first. If you recognise the situations below, the money in your workshop may not be separated correctly.
1. You sold the whole batch, but you have no money for new raw materials. The money is already tied up in taxes, stock or operating costs.
2. You only order raw materials after new money comes in. The workshop always depends on the next sale to keep production going.
3. The real profit isn’t clear at the end of the month. After you pay taxes and invoices, very little is left available.
4. Stock grows faster than sales. Raw materials are bought with no direct link to the production you’ve planned.
5. Every big order creates financial stress. Even though the sale is good, the workshop has to fund the production of the next batch quickly.
If you recognise these situations, the “2 boxes” method becomes essential for the stability of the workshop.
Why we know these rules matter
In our first years at Servus, we delivered over 600 wedding candles in a single week.
18,000 lei came into the account in a single week. Of that, 3,600 lei was VAT to be paid over, and 6,000 lei was already committed to wax invoices with deferred payment.
That means the money really available to the workshop was under 8,500 lei.
Our enthusiasm made us order new scents, extra wax and premium packaging straight away.
Two weeks later, when we drew the line, we realised that the real profit was tied up in stock we didn’t need right away.
From that moment we brought in the simple rule in the workshop: “The lesson of the 2 boxes”.
The first month we applied this rule was also when we saw the real difference: 4,200 lei clear stayed in the current account, with no taxes or invoices hidden behind it.
The lesson of the 2 boxes
Every payment that comes in is split straight away into two flows.
Box 1 — The working capital
- raw materials
- taxes
- operating costs
Box 2 — The real profit
- your salary
- investments
- a financial reserve
If these two flows aren’t separated, the workshop starts to run chaotically even when sales are growing.
Checklist: how you apply the “2 boxes” method
Apply these steps every time you get paid for an order:
1. Create a bank sub-account. In your banking app, create a Vault called “Taxes & Working Capital”.
2. The 24-hour rule. Within 24 hours at most, move:
- 20–25% for taxes
- 30–40% for raw materials
3. Purchasing discipline. Buy wax, wicks and fragrances only from the working capital fund.
4. A monthly check. At the end of the month, check:
- the real profit
- the stock available
- the cost of the next batch
If you’re not sure how to work out that cost correctly, down to the decimal point, use the basis we set out here: How to work out the right price of a candle: the workshop formula
Conclusion
The cash flow problem doesn’t come from selling too little.
It comes from the fact that the money in the workshop has different jobs.
When you separate the working capital from the profit, production becomes stable and you can plan the next batch with no surprises and no sleepless nights.
In the workshop, stability comes from discipline, and profit grows when you make your production costs more efficient by ordering wisely.
Check the volume prices and rebuild your working capital stock for your next batch: Raw Materials – Candles & Soap
If you produce steadily and buy raw materials regularly, Servus Club members get preferential prices on consumables, with discounts between 6% and 24%, available once you log in to the shop.
