Making money
Leaving behind the certainty of salary is one of the biggest changes we make exiting corporate life. For me the monthly salary was literally bankable – as were my annual bonus and share options. Beyond that I didn’t really connect my corporate contribution with the cash it brought in.
But working for yourself forces you to think differently about cash and income. Partly because you’ve lost the certainty of an annual salary divided into twelve monthly payments. And partly because cash only hits your bank account when a customer pays.
Portfolio approach
One great thing about working for yourself is opening up new sources of potential income. At least if, like me, you’re keen on a “portfolio career”. I have income from property, my redundancy pay-out (£25 Premium Bonds win this month!), some from consultancy and even some subscriptions from Familiarize. I follow a few companies on the stock market and think of it as income when one rises (I ignore it when they fall). Even my Vitality life insurance gives me cashback for buying healthy food at Waitrose! Today, this income isn’t enough, but one day it might keep the wolf from the door.
This is probably over-sharing.
But I feel like celebrating my income diversity and how it diversifies my risk versus a monthly salary and dependence on one benevolent employer.
I hope it’s just the start and within a year or two I can make this moderately sustainable. But only if I plan, budget and save in a way I’ve never done before.
Revenue models
This all got me thinking about different revenue models open to us when we work for ourselves: from asset management, to e-commerce, to marketplaces, subscriptions and consultancy or services – and a bunch more. I wondered if looking through this ‘revenue model’ lens would surface new opportunities to make money, reduce the risk of returning to a salaried job and still fit with my purpose and passions.
I know this contradicts what I said I was going to do in Focus, but 2021 is my year of experimenting with an alternative way of life. Also, I would hate to look back (from a new cushy corporate job) and regret not having tried things. I just need to keep prioritising and not start new things just because the current ones get too difficult.
Here are a few ideas of different ways of making money I’m thinking about – maybe they’ll inspire you to try something too, alongside your job/primary income stream.
e-commerce: build an online shop – ever since I was a kid at John Lewis I have found retail fascinating. Admittedly I wouldn’t want the risk of physical retail, but I love the simplicity of buying something, improving it and selling it for a higher price.
services: getting paid to write – Substack’s model relies on me one day creating a premium list of subscribers who will pay for this ‘incredible wisdom’. Don’t worry - I was thinking more about paid articles or maybe even stories for kids.
asset management: relocating to Devon and building some kind of seasonal live-in business. Probably after the poor hospitality industry has recovered.
marketplace: buying and selling something niche second-hand, to cut waste connect communities. As I raved in Flywheel, I love network effects, and nowhere are they more effective than in a marketplace, bringing together buyers and sellers. I am a huge fan of niches, which I think over time will overshadow many of the generic players.
micro-consultancy: video-based calls with clients to tackle a specific marketing challenge. 20 minute coaching, idea-sharing and advice could be fun – and the more I do the more value I could potentially add.
So there’s a few going round my butterfly mind right now.
And of course it’s not all about making money. This week my good friend asked if I would help her with some pro bono consultancy to build a new brand and culture for an education charity. More on this as we get going, but this freedom from the 9-5, if I can make it sustainable, also opens up opportunities to do more of what I love – whether that’s helping someone else, volunteering, mentoring.
It’s not all about making money, but you can’t get very far without it. And it certainly helps create options and opportunities.
It’s a big – and potentially exciting - change from the corporate job; another one we all need to embrace!
How has your attitude to money changed since leaving your corporate job? And what different revenue models are you using? Let’s help each other learn fast!
I live in my head, like I’m not part of the corporate world, I understand, walking the path, is the real deal. This is why I’m connected to reading and walking through your journey with you.