How do consultants deal with irregular income after a steady corporate salary?

Financial stability came up again and again when I asked people what was holding them back from going solo. The uncertainty of building a pipeline of steady work, and income that changes month to month. When I asked whether people would rather have a smaller amount every month they could count on, or a larger amount a few times a year, 24 of the 35 chose the smaller, steady amount.

In a salaried job you never have to think about it. The money arrives on the same day every month, whatever kind of month you had.

My two dips

I made my first sale early, in my second month, and more followed. Then revenue dipped, twice. Both dips lined up exactly with me not being at my desk: a holiday, then the summer.

That taught me the thing I most want people to know before they leave: revenue that stops when you stop is not a practice. It is a job you are also doing the admin for.

Selling first was right. It is only half. The other half is a way of finding the next client that keeps running in the weeks you are busy delivering, or away.

What to do about it

1. Work out your floor. What you need to earn in a year, divided by the days you can genuinely sell, which is far fewer than the days you will work. Write the number down and never quote under it.
2. Offer a payment plan. For the buyer it lowers the first number they have to say yes to. For you it spreads the income across the months, so one good month does not have to carry the next three.
3. Keep the pipeline running every week, including the good weeks. A few posts, a few conversations with people who engaged, one email to your list. Small and steady beats a burst after a dip.
4. Know your runway before you leave, not after. How many months could you cover from savings if nothing came in?

I am a chartered management accountant, not a tax adviser. This is your arithmetic on your own numbers, and I will not tell you what your number should be. If the answer needs somebody who knows your country's rules, get one.

For the mechanics of getting paid, read how independent consultants get paid.

Your next step

The steady part of income comes from a system for finding clients. That is what my free masterclass covers: Where on earth to start when becoming a solopreneur, and where AI actually helps.