When I originally planned out our blogs for 2020 – this one was going to be about passive income.
Because with the school summer holidays approaching, I know it’s hard to put the usual hours into your business, with the kids being at home all the time.
But hey! We’re now at week 11 (!) of having the kids home from school. So we’ve all had to adapt already, in so many ways.
Many of us have pivoted, started working in new ways, introduced new services – or taken your business in a completely different direction – just to make it through the last few months.
So I’m coming at this now from a slightly different angle…what’s helped people keep calm about their money in this time of turmoil.
Having more than one income stream!
As a business owner, you’ll have a ‘day job’ of some sort. That thing you’re good at and do for your clients, every day.
But it’s worth taking a fresh look at HOW your income is generated within that.
If you’re just selling one product or service, or if the bulk of your income comes from one single client – even on a retainer basis – you may have had issues over the last few months.
I have a client who left the corporate world just before Christmas, to set up her own consultancy business. The conversation we had in January was promising – a new client signed, £5k a month on an ongoing basis – for 4 x days work a month.
She was really excited to be losing the London commute and being able to work more flexible hours around her young family.
Fast forward to end of February? The dream contract got pulled.
Her client is in the hospitality industry. They had to shut the doors, furlough all their staff and had no income to pay freelance contractors like her.
Is she disappointed? Yes.
Up a creek without a paddle? NO!
Fortunately, she has a pot of savings to draw on. She squirreled away money before leaving her job to ensure she has a safety net, in case the income from her new business didn’t come in straight away.
But lots of businesses haven’t been so lucky.
Especially business that didn’t qualify for government help (lots of us didn’t) and are finding themselves needing to act FAST, to keep their heads above water.
Maybe it’s launching new services or moving into new markets. To meet the needs of people with money to spend, who are still buying right now (which let’s be honest – isn’t everyone!).
Maybe it’s taking their physical business online and using Zoom, YouTube and other platforms, to deliver content and services in a different way.
And acting quickly!
I know a taxi company, that within 14 days of lockdown were delivering locally sourced veg boxes, using their existing fleet of vehicles and creating a viable income stream.
A brilliant guy who sells deluxe ice cream at weddings and events – all now cancelled. Who within 10 days, set up a website to order online + was delivering contact-free ‘essentials boxes’ (and still doing ‘Ice Cream Sundays’, with family-sized deserts being delivered at the weekends!).
And of course, so many coaches, consultants and service providers, who usually find new clients out networking or deliver their work face-to-face. Who’ve now moved online, offering 1:1 sessions through Zoom or creating new digital courses and programs, to serve people who are now sitting at home with time on their hands.
So my #2 top tips to feel calm about your money, in times of uncertainty:
1. If you ONLY have one source of income, start developing a new income stream now.
It could be creating a new training package, course or membership you can sell online, to provide semi-passive income.
Introducing another product, at a different price point than you usually charge, to target a new part of the market.
Packaging what you’ve already got into a different format, to appeal to people who now need a bite-sized solution to work around running a busy home (rather than a series of long 1:1 sessions or trainings).
Writing a book (the ultimate passive income, once it’s done!).
Or simply ensuring you have a range of clients making up your income. So that if one cancels, you’re not left with no money coming in. This can work well by adding in a membership or clients on lower priced retainer contracts.
2. Build up some savings.
Your income goes up and down all the time, when you run a business. Even when not we’re not in the grips of a global pandemic.
So start building your financial safety net NOW.
Keep a sufficient buffer, so if a client doesn’t pay or you go on holiday for a fortnight (can’t wait for that myself), you still get paid.
And it also means that in a mega crisis like now, you don’t panic about money. You don’t lie awake at night stressing over it and you’re not forced into making knee jerk decisions – because you HAVE to, to survive – that you might live to regret later.
Aim to keep 3-6 months’ salary money in your director’s account. So that your salary gets paid every month and you can keep things going at home as normal, whatever happens.
Different pots of money – each with a defined purpose – in your business and personal accounts is just part of the strategy I teach in my one-month Money Multiplier Intensive.
Designed for women approaching or at a 6-figure turnover, it’s a step-by-step process that leaves you feeling calm and secure. Knowing you’re sorted financially, whatever happens. And with your finances mapped out in a clear roadmap for success, for your exact personal situation.
To find out more about the Money Multiplier Intensive, just click here now to message me on Facebook.
And let’s have a chat, to see if it’s right for YOU!
Until next time,
Claire