I’m going to tell you something that you don’t want to hear.

You are dispensable.

Told you.

The brutal and hard truth is that whenever you work for someone else – either as a consultant, contractor, or employee – they can cut you, cut your hours, or cancel your contract whenever they choose to.

It doesn’t matter how hard you work
It doesn’t matter how long you’ve been working with them
It doesn’t matter how loyal you are
It doesn’t even matter how critical you think your role is

The nature of business is that sometimes business needs change, and people (clients, CEOs) can make decisions that directly impact you and your livelihood – for any reason or no reason at all, at any point in time. And it’s all outside of your control. Welcome to the world of entrepreneurship!

So what do you do despite being dispensable?

First, let me put a disclaimer out there. You are a person of great value in the eyes of God (and me, for what it’s worth). You as an individual are loved and needed in the world and are by no means actually dispensable.

But when it comes to the revenue we rely on to pay ourselves, pay our bills, and invest back into the business, there’s no guarantee that the money coming in this month will be the same next month. Because, just as we as people go through life changes, companies do too. And sometimes those changes mean they can’t keep paying for your services at the same level. Your retainer today might not be retained tomorrow.

Despite the inherent uncertainty in our business relationships, there are things we can do to position ourselves to withstand the ebbs and flows of entrepreneurship. We can’t control everything, but there are things we can control. We can do business wisely so we’re prepared for the lulls that are sure to come. As the saying goes, “If we stay ready, we don’t have to get ready.” The tips below will help you be a proactive, well-positioned entrepreneur and keep you from having to react when reality strikes.

Diversify your income streams. Essentially, this means don’t put all your eggs in one basket. Having multiple revenue streams makes it easier to stay afloat when one stream runs dry. For example:

• Add passive income, like online courses, an e-store selling products, or affiliate programs that put money in your bank account while you sleep
• Offer a variety of services at different price points. Maybe you offer a signature service at the highest investment level, a mid-range service for those who aren’t quite ready for your higher fee, and a lower-priced service to serve as an entry point for new clients to get a taste of what you do. Catering to different segments of your target market in this way will help your pipeline (see below).
• Consider a mix of one-time and recurring services. Offering a one-time service is good, but services that generate recurring monthly revenue are even better (think memberships, retainers, or long-term contracts).

Open a business savings account…and save. We know the importance of having an emergency fund in our personal lives, but this concept applies to businesses as well. By building up a savings account strictly for business purposes (and paying yourself is a business purpose), you’ll have a reserve during slow months or when unforeseen circumstances arise. Start small, and work toward saving 3-6 months of your monthly operating expenses.

Consider your contract. If you’re working in a coaching or consulting capacity, hopefully you’re doing so under a contract. Contracts should contain a termination or cancellation clause, which serves to protect both you and your client should either of you decide to part ways. But it’s your contract, so the terms should definitely work in your favor. Can clients terminate the agreement at any time, for any reason? Are your services refundable or nonrefundable? Up to what point? Are clients required to give you a 30- or 60-day cancellation notice? It would be much better to find out if a client plans to leave 60 days out instead of the day of. Review your contract terms and make sure they provide some assurances for you and your business.

Keep your pipeline flowing. Your sales pipeline represents the journey of a lead becoming a customer. Not all leads will become paying customers, but all customers start as leads. Clients/Customers are what keep us in business, so we need to have a steady flow of leads coming in. Leads are generated in a lot of ways – word of mouth, advertising, our website, and networking events to name a few. So all that sales and marketing that most of us loathe and don’t have time for? It’s what gives your brand exposure and generates new leads. When we’re diligent about gaining new leads, we always have the possibility of gaining a new client. A full and flowing pipeline can prevent you from panicking when business slows down.

Build your business on a rock-solid foundation. Wise people build on rock so when the storms come, the business can stand. Having a strong foundation made up of a clear vision and strategy, efficient business operations, the right people, and sound financial practices, is a good starting point to ensure your business is structurally solid. (Shameless plug here: My coaching program walks clients through my signature Seven Pillar Framework to accomplish this very thing.)

Entrepreneurship is a joyful journey with many twists and turns, bumps and hills along the way. Embracing the reality of your dispensability in the business world is not an admission of defeat; it’s an acknowledgment of the ever-changing nature of entrepreneurship. Diversifying your income, building on a solid foundation, and establishing a solid savings and pipeline are just some of the ways you can thrive despite the uncertainty and position your businesses for sustainable success.