Luis suggests a mindset shift: “From now on, you are the CEO of Me Inc.” Anyone going independent should think like a startup, with phases, metrics, and runway. And just like any startup, saying “no” early to misaligned or low-value clients becomes easier when you know your numbers and have a runway that protects your positioning.
Just like a startup, your process goes through four stages:
For new fractionals, this translates into kickoff, traction, salary matching, and beyond, usually over three to nine months. Expect 9–12 months to match your corporate income, and treat anything faster as a bonus.
Designing a runway starts with knowing all your expenses, big and small. Break them down into critical or essential, optional, and luxury or reducible.
The goal is full control and realistic forecasting.
Even after hitting your income goals, keep a buffer. Seasonality and unexpected events are part of the game, and the only way to reduce stress is to have reserves.
A good rule of thumb is to keep at least six to seven months of living expenses saved to make better decisions under less pressure.
Recurring contracts or prepaid packages are key because they give predictability. A retainer becomes the replacement for the corporate paycheck and protects you from the ups and downs of one-off projects.
In this early stage, recurring always beats one-off.
Borrowing from SaaS best practices, Luis recommends keeping a pipeline at least three times your quarterly income goal. This gives you a safety margin when some prospects don’t convert.
Build 12-month forecasts with a spreadsheet. Update it every three months to simulate scenarios and anticipate risks. Use expense-tracking apps or “virtual envelopes” to stay on top of spending.
Start lean: in the first months focus on signing one or two paying clients and validating your offer. Don’t obsess over perfect branding or websites.
Optimize later.
Luis closed with a reminder: “It’s a marathon, not a sprint.”
Avoid fully customized solutions in the early stage. Instead, design repeatable, plug-and-play services so you can deliver faster, scale efficiently, and keep margins healthy.
Building a solid runway isn’t just a financial plan, it’s the system that gives you the freedom to grow sustainably.