Feast and Famine
Jan 26, 2022
How do you deal with feast and famine in your business?
All businesses have feast and famine periods, some months where you are making loads of money, and some where you make none. Maybe you do a big launch so you get everyone paying up front, but then you have to deliver the course. Or you have the summer holidays off, or your business is seasonal.
Often costs are much more consistent, as your website etc are charged monthly. Do you know how to plan for this fluctuation in revenue in your business? Or does the yoyo income make you feel ill with worry? And then do you think you might not be able to pay the bills?
You need to have a plan in your business for the times when there isn't work. It is a fact in a freelance business, there is no getting away from it. Some months are just leaner than others. But you need to make sure this isn't a surprise to you and that you can manage to cover your costs.
So get clear on what your outgoings in your business are, including paying yourself, and what your income is going to be. Look at how much of that is certain, such as retainers with clients, and how much is variable. Do you have a passive income stream? Be realistic about how much you are working and what you are charging. Remember knowledge is power.
