A common dilemma for many solo entrepreneurs and freelancers is how to justify turning away paid work from one-on-one clients in order to create or explore new revenue streams.
When you first start your business, you’re simply looking for clients, so you become excited by the prospect of actually being able to work for someone. As things get busier, you’re excited to finally be able to say, “I’m booked.” Then the reality sets in, and instead of thinking excitedly, “How am I ever going to handle all this work?,” you actually start thinking:
- “What if I get sick?”
- “How will I retire?”
- “What if I decide to sell my business?”
- “If I’m not doing billable work, then I’m not getting paid.”
- “What if I want to take a vacation?”
- “The only way I can make more money is to charge more.”
All of a sudden, what once seemed like a badge of honor starts resembling a ball and chain. Even if you thoroughly love your work, you can see the trap you’ve set for yourself.
Deciding to Free Yourself from the Trap
In order to free yourself from the trap, you have to begin weaning yourself from one-on-one clients, and somehow replace that income with revenue from another yet-to-be-created source. It seems like a magical balancing act to make it happen, and you arrive back at the original question, “How do I justify turning away paid work from one-on-one clients in order to pursue [fill in the blank]?”
First, you have a choice to make. Do you want to continue working under your current business model, with all its limitations, or do you want to figure out and pursue an alternative? The best way to decide is to connect with the “why.” For example, why do you want pursue an alternative? Do you want more free time, greater flexibility, more income, etc., or do you want the business to be less reliant on your physical presence? Once you know the reason why you want to do it, then you just have to explore the “how” and find a way to make it happen.
Also, if you decide to go after the alternative, you’re going to have to accept that resources will need to go towards this new pursuit. That might be in the form of money, like the loss of income when you turn away one-on-one clients, or when hiring an assistant to take over some of your work or help out in other areas of your business. It might also be in the form of time, like you having to work additional hours so that you can maintain your current income while creating new revenue streams.
Alternatives to the Trap
The next step is figuring out what options you have for creating additional revenue streams. What you’re looking for are more automated sources of income (ebooks, products, etc.) or more group-centric sources (group workshops, membership sites, tele-seminars, etc.). The easiest way to get started is to explore ways to repackage or re-purpose your one-on-one work. Is there some way to create a group setting around the consulting or work that you provide on a one-on-one basis, or is there a way to package that into an informational product?
Another place to begin exploring the possibilities is with common questions that you’re asked or common problems that customers and clients report to you. How can you create a “do-it-yourself” solution around these common questions or problems? Could you create a product, an ebook, an audio workshop, or a group tele-seminar that addresses these issues?
As an added note, you’ll want to remember that it’s more important to roll out these alternatives quickly and perfect them over time than it is to get caught up in the details. A tele-seminar, for instance, can be put together quickly and easily using EventBrite and a free conference call solution.
As solo entrepreneurs and freelancers, it’s easy to get caught in the spin cycle of working only billable hours, but there are ways to begin introducing new sources of revenue to your business. If you hope to create the greatest level of flexibility around your work, they’re definitely worth exploring.
At what point in your business did you begin setting up other revenue streams aside from one-on-one client work?