I’ve been teaching the very first Escape the Rat Race course on Monday nights this month. The conversation has been truly engaging and I’m enjoying learning more about my fellow rats out there who want to declare mutiny on traditional jobs and work for themselves and/or from home.
One topic that we discussed this week was streams of income. Any business owner alive will tell you that relying on a single client or a single source of income is not smart business. If you lose that one source, you are sunk. That is why mutliple streams is so important.
In my class, I gave the example of an ocean that is your salary. This ocean is called Reformed Rat Ocean for this example. the ocean is partially supplied by rivers. Rivers are big gushes of water. Some rivers are wider than others (bigger) and some are thinner. Rivers are a pretty good size of your income, though. They make up maybe 50 to 80 percent of your income combined. You should have two or three rivers.
If you lose a river, it will hurt. However, since they are from different sources, you are unlikely to lose them all at once.
Your streams and creeks are your small jobs. These are either occasional or trickle in. These add to your ocean’s depth, but they are much less likely to make you or break you. A healthy business has both rivers and streams and several of each. The goal is a balance. If you have all your income from a single source and that source folds, then you are sunk. This is true for any business, not just writing.
We went into many examples and talked about individual business plans in the class, of course. If you are currently running your own business or just thinking about it, streams of income is an important topic for you.