How to Reduce Freelance Income Risk: The Income Security Audit

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What would happen if a client left tomorrow?

If you lost your biggest client tomorrow, how much would it impact your business?

Most freelancers and founders don’t ask themselves that question until they’re already facing a gap in their income (I've seen it so many times). But the truth is, if a single client walking away would derail your cash flow or your confidence, your business is more fragile than it should be.

That’s why I recommend using a simple but powerful tool I call the Income Security Audit. It takes 15 minutes, and it can completely change how you think about your client base, your pricing, and your business strategy.

 I walk through frameworks like this in more depth in my free eBook on pricing and strategic growth, but here’s an article on how to get started today.

Why freelancers and founders need to audit their income risk

Let’s be honest, too many freelancers are over-reliant on one or two clients. It’s easy to end up here, especially when the work is steady and the relationship (and money) is good.

But that reliance is risky:

• A single client ending a contract can knock out half your income.

• You might feel forced to say yes to unreasonable demands just to protect the money.

• Growth stalls because you’re not focused on developing other areas of your business.

  
  

An income security audit helps you spot risk before it becomes a problem, and take action while you still have control.

(While we’re talking about money, if you’re not sure whether you’re charging enough, I’ve built a pricing calculator to help you set your rates with confidence. Check it out and let me know what you think)

How to run an income security audit (step-by-step)

This audit is designed to give you a clear view of where your money comes from, how secure each source is, and where your biggest opportunities (or dangers) lie.

Step 1: List all your income sources

Start with a simple list of every source of income you currently have.

Include:

• Clients (retainers and projects)

• Digital products

• Courses or workshops

• Affiliate income

• Any other revenue streams

Step 2: Calculate the % of your total income

For each source, calculate what percentage of your total monthly income it represents.

This immediately shows if you’re overly dependent on a single client. If one source accounts for 40% or more of your income, that’s a risk to flag.

The calculation is as follows:

• Take the amount from income source in question (e.g. Client A)

• Divide it by your total monthly income from all sources (A+B+C etc)

• Multiply that answer by 100 – That’s the percentage of your monthly income that individual source contributes.

Step 3: Rate the security (1–5)

Next up you want to be thinking about how stable each income stream is.

Consider things like:

• Length of contract

• Consistency of work

• Client reliability

• Whether it’s guaranteed vs ad hoc

Score each income source from 1 (very risky) to 5 (very secure).

Step 4: Rate the growth potential (1–5)

Now, assess how much potential each source has to grow.

Ask yourself:

• Can I expand or upsell this?

• Is there more budget available?

• Could this lead to referrals or recurring work?

Score from 1 (limited growth) to 5 (strong growth potential).

Step 5: Plot it on a grid

Take what you’ve just scored and plot your income streams on a 2x2 grid.

• X-axis: Growth Potential

• Y-axis: Security

• Size of the bubble: How much income it represents

This will show you:

• Which income sources are low risk and scalable (nurture these!)

• Which are fragile but high potential (stabilise and grow)

• Which are secure but capped (maintain, but don’t over-prioritise)

• Which are both risky and limited (consider phasing these out)

Step 6: Take action

The audit is only valuable if you use it. Depending on what your grid shows, you might:

• Focus on growing a secure client with more services

• Reduce dependence on a single revenue stream

• Diversify your income with new offers

• Rebuild relationships with valuable but uncertain clients

  
  

It’s about shifting from reactive to proactive. Don’t wait until something has gone wrong, or you’re scrabbling to replace lost income. Identify your biggest challenges and opportunities and take action.

(Ps. If your grid is telling you that you could do with some more long-term clients, check out my blog: How can I get more retainer clients?)

Bonus tip: Revisit the audit regularly

Businesses evolve. Client relationships shift. Projects end. If you want to stay in control, revisit this audit monthly or quarterly. Don’t be caught out!

CEOs review risk constantly, so should you. Running your business like a CEO means thinking beyond just delivery. It means managing risk, building resilience, and making smart, informed decisions before things become urgent.

Want the Google Doc Template?

I’ve created a clean, editable version of this audit that you can copy and fill in each month.

Click here to get your copy. Or drop me a message and I’ll send it to you directly.

And if you’re doing this audit and it’s showing some uncomfortable truths; clients you’ve outgrown, income that feels too fragile, you don’t have to fix it alone.

Ready to build a more resilient freelance business?

If this exercise highlighted gaps or risks in your business, but you’re not sure what the next steps could or should look like, I can help.

I work with freelancers and founders to:

• Strengthen business foundations

• Reduce reliance on a few clients

• Grow their income confidently and sustainably

Let’s talk. Contact me here to explore coaching options that help you think more strategically and earn more predictably or check out my process and pricing page to find out more about how you can work with me.