What do you do if your income as a consultant is inconsistent and unpredictable?

1. Track your expenses using apps. 2. Set up an emergency fund to cover minimum 6 months' expenses. 3. Avoid large purchases that will require multiple EMIs. 4. Ensure your life and term insurance needs are covered and the policies are active. 5. Invest in yourself - Upskilling, learning and personal branding.

As a consultant, one is basically, self-employed. Meaning, that he depends on the proceeds of his consultancy. If, then, the income is inconsistent and unpredictable, he needs to diversify and have multiple income sources, to help him out during the times when the income is low. I would recommend one to have both a service-based business and a brick-and-mortar business to complement each other. Having at least four different sources of income is a good idea. Having 7 sources of income is MAGICAL!

Being a consultant is a bold step initially - not knowing how to safeguard your past regular income. One is overwhelmed and requires certain buffer in place - upto six months. Key is extensive networking and while building passive income streams like returns from investments that cushion during the dry season. It is fulfilling once there is traction and workflow is guaranteed. Its important to note that initially one invests all their time in the actual work and much less efforts are used in creating healthy pipeline to guarantee tommorow. Embracing sales process becomes necessary to navigate the needs for tommorrow.

I manage my finances by living my lifestyle according to the previous year's annual revenue. Even if I have a big payday cheque, living expenses and monthly budget have already been set the year prior.

My advice for diversification is to "SaaSify" your IP. Times are not right to build SaaS, but the time is right to get involved with BPaaS. BPaaS is a class of PLG product. It's a combination of SaaS, IaaS, and PaaS with built in process know how. Be the process know-how piece of the BPaaS product to scale your income and allow the PLG motion to do all the heavy lifting. This can be done with complementary partners, sharing in the fruits of sustainability and near-decades retention.

Adopt a portfolio approach. Uncertainty, in any endeavour, needs to be mitigated, and the most efficient way to do that is with diversification. That can comprise of income streams, communities, support channels, alternative vertical offers, etc. and is all a part of a successful risk-management strategy. By creating this flywheel, you'll be able to lean on what works at the time. It's all about 'market product fit', as the market will drive the demand for your services, and you need to be ready to pivot and adapt if required. Being a part of a strong community is also key, because a large percentage of your work will come through people recommending you. (Be sure it is a community where your ICP hangs out, rather than a P2P group)

Rather than paying yourself on random days with the amount dependent on the income, create a pay day with a set salary if you can. It helps manage how much is going out of the business each month in combination with expenses, then you know the minimum amount that needs to be brought in. Of course having a big buffer is the ideal situation but I can appreciate not everyone is in that position. A good income protection insurance will also help set the mind at ease for any long term sickness!

I was laid off as a VP of Marketing in 2001. I decided it would be wiser to start a business based on my experiences and make rain for myself rather than a business. And not putting my family's destiny in the hands of others' decisions weighed in heavily as well. I founded and self-funded a SaaS product based on swift email marketing and tracking. (It was 2001 ;)). Instead of a single point of income failure, I had thousands around the world. All paying our business for several years; in fact some still do! My advice is to consider the same and go beyond YouTubes, Workshops, and Online Courses. You're not in control and they have a shelf life. BPaaS is the 2024 version of 2001 SaaS. It's what's emerging as the way forward.