If you depend solely on one source for income, your business just as likely to take a nose dive when a situation arises as someone who depends on one sole income from an employer. To avoid such a circumstance, you need more than one revenue source to stay afloat. CurrentMom recently elaborated on revenue sources and how she’s able to diversify them.
Building on this advice, I always tell work at home moms to think about how you will achieve:
Cash flow — revenue that comes in regularly to keep the lights on and rent paid.
Equity — something of value that you’re building that will keep paying out income as your pace of work slows, or even stops.
If you build a business dependent on cash flow, every time you take a vacation or have a sick child, you stop making money. But when you devote some of your time to building medium or long-term equity, you have at least the potential of continuing to bring in revenue when you take a break from working. That break may come because of a holiday or family needs, or it may be a new line of business that you want to build.
Photo by zzzack