Industry sector:

Plumber: Other income


'Other income' means any amounts you might receive from sources other than your main plumbing business that haven't been dealt with anywhere else in the cash flow.

Examples of Other income

For example, if you have premises you might decide to rent out part of them that you're not using to another business. Any rent that you receive is referred to as Other income.

You may sometimes find that you are asked to take away fittings and materials (for example old copper tanks and lead or copper pipe-work) from a job which have some salvage value and can be sold on. However, remember that scrap materials belong to the person whose building they have been removed from - never take valuable scrap away without getting permission first.

If you think you will have any income of this nature, make an estimate of how much you think you will receive every month and enter this in your cash flow projection. Exclude any loans and grants which you expect to receive. Be careful not to count any income twice - if you've already counted something like scrap metal sales as 'Cash sales' don't count it again as Other income.

Income from outside the business

It may be the case that you also have some income that's nothing to do with the business at all. For example, you might:

  • own a house or flat that you rent out
  • have a part time job that you intend to keep up
  • have income from investments

Don't include this type of income in your cash flow unless you use it to meet business expenses. If you do spend it on business items it's referred to as 'Capital introduced'. But even if it's nothing to do with the business, be sure to mention it to anyone you approach for a loan - it can help to demonstrate your creditworthiness. On a practical note, it could also help to tide you over during the early days when your new business is still getting established.