How I went from $100-an-hour programming to $X0,000-a-week consulting 14 years ago
I couldn't help but post, I run a very similar business model to the one that is described in the article and i can confirm that it is a very successful model. We are slowly at the stage of try to scale out.
The "terrifying cashflow" problems are very real, we take the model of taking a modest wage as to not cripple it the cash flow. We also have put on our first staff member which we are pretty excited about.
Its interesting to hear that others are using the residual cashflow to create a product. We have tried to generate a couple of differente products but it hasn't out performed the consulting arm.