Que faire si vos finances en tant que consultant indépendant sont hors de contrôle ?

Life may test us with difficulties from time to time with natural disasters, as well as changes in the global economy, health-related situations and family turmoil. Those situations may lead to increased financial difficulties. What self-employed consultants need to do in this case is to objectively evaluate the financial situation by reviewing the strategic road map, investigate the origins of the business by conducting a SWOT analysis to find permanent solutions. It's important to reconsider our lives to prevent any burden in such situations, and decide to start from scratch if necessary. Our presence in the world is far beyond our work; mindful living is the most important thing that improves our perspective and makes us stronger.

Take control of your finances by tracking all income and expenses, setting a budget, prioritizing essential expenses, and cutting unnecessary costs. Consider hiring a financial advisor or using accounting software to manage finances more efficiently. Increase income by diversifying services or finding additional clients. Set aside emergency funds and establish a retirement plan to ensure long-term financial stability.

Consulting is a business like any other. What you sell is expertise. If you aren't profitable, it means that you aren't selling it enough or getting the right value for it. Your bandwidth is your production line. Each hour of your day has a tangible cost to it. Therefore you must treat it like unit economics and work out the right PAT for every hour. Now price it accordingly so that your hours are filled with the work you want to do at the price that works for you. Simple?

I would like to analyze my financial state by looking through my books. I will investigate my funding structure (equity and debt), then do some ratio analysis on my financial statements. This will help me to know the next step to take regarding funding. Performing some financial analysis helps to make some decisions on whether to increase my price, add more services, intensify more on promotions among others.

Sure, if you're finding that your finances as a self-employed consultant are spiraling a bit out of control, don't stress! It happens to the best of us. Here's a friendly guide to help you get back on track: If your finances as a self-employed consultant are feeling out of whack, take a breath. Here's a quick guide to get you back on track: 1. Assess your money situation. 2. Make a budget. 3. Track your spending. 4. Tackle debts strategically. 5. Explore ways to boost income. 6. Trim unnecessary expenses. 7. Build an emergency fund. 8. Consider seeking financial advice. 9. Stay organized. 10. Review and adjust regularly. With a little bit of planning and a whole lot of determination, you'll have your finances back on track in no time.

Establishing your "runway" is very important if you hope to be an independent consultant. You must not only understand your total monthly personal and business expenses, but also a realistic estimation of your income to match based on your daily rate. Most international consultants with 5-10 years of experience can start off in the range of USD 300 - 450/day. With this number, and your expenses you should be able to calculate how much 'consulting days' per month you would need to work to break even. Understanding your monthly runway is key to setting a realistic budget.

Write down every single thing you buy anytime with a date. You must know how much money you earn monthly and how much money you spend on what, where, and when. Don't go shopping when you are hungry, don't feel like you're okay, are on your period, and want to prove to others that you are rich! You don't have to prove yourself to anyone. You must only know how you are spending your income and investing it to save more money.

I am not saying to save money for "if I lose my job" times, but I say one must be ready for anything. Sometimes, we cannot stop what is coming our way, like a war or a crisis in the market, because of something that has happened in another country or for any other reason. You must be ready. You can have an account that you can only use during the crisis and save about 20 % of your monthly income, so you have something to survive during the hard times.

As a consultant, you can have a part-time job like anything else, like a teacher, for instance. These days, you don't have to be in another place to work; you can do it through the Internet. So, be creative and do whatever you like in your spare time to improve your skills and increase your income.

If any aspect of your life is 'out of control' it is important to take stock of the situation and be humble enough to know when to pivot. If you decide to try your hand in consulting, it is important to establish a clear "go/no-go" criteria and stick to it. Declare: "Based on my current savings, and expected consulting fee rates, I plan to spend XX months to start my consulting business. By the end of this trial period, if my business is earning $XX per month, then I will continue. If not, then I will seek traditional employment."