The word “recession” can strike fear even in the most gainfully employed among us, nevertheless freelancers. And while admittedly, an economic downturn is seldom good news for anyone, it doesn’t have to mean doom and gloom for all contractors out there. What’s more, life as a freelancer can be more attractive than that of a salaried worker when things are a bit shaky economically. Recessions can open doors for more flexible businesses to hiring them as it’s less of a hit to their finances than hiring a full-timer.
In fact, freelancers are on their way to becoming an impactful force in the US workforce. A 2020 report revealed that an estimated 59 million Americans have freelanced in the past year, which is 36% of the country’s labor force. That number is expected to surpass 90.1 million by 2028.
So, clearly, the numbers don’t lie–freelancing may be where it’s at for a large number of us, but that doesn’t mean a high level of diligence isn’t required to navigate a recessive period.
Here are a few tips to stay above water while maintaining your freelancer status.
Make yourself an invaluable partner to whoever you’re working with
Reputation is everything as a freelancer. Going the extra mile, remaining a consummate professional and tracking your wins are excellent ways to keep your contracts renewed continuously (if that’s what you want) and a steady stream of cash to keep you salient during touch economic times. Even in the event the company has to let you go because of budget cuts, it’s likely you’ll get another call when budgets are replenished.
Paris Woods’s book The Black Girl Guide To Financial Freedom offers great tips on positioning yourself for professional excellence that can be applied to a freelance careerist.
Curtail expenses.
Budgets can be annoying but they’re a necessary evil when aiming to safeguard yourself from potential economic turbulence. Utilizing a spending tracker tool like Rocket Money for instance is a great way to have a big picture view of what coming in and out, and move accordingly.
The tool is also great with giving a bird’s eye view of costly subscriptions you probably don’t need, high bills you can negotiate down and other ways to save money.
Forge deeper connections with clients.
Over-communication can be key in establishing immense trust in client-facing contract work as it reinforces your level of commitment to the work, and also affords the opportunity to build a great rapport with the client that can extend a bit beyond professional into the friendly territory.
This can lead to them providing a glowing recommendation to other potential clients, and/or extending their current contract with them.
Consider raising your rates.
Cost of living raises are often offered to salaried employees to remain on par with rising yearly costs. Freelance work should be no different.
Tracking successes is a great way to build a solid explanation (if needed) for raising the rates a client should pay. But be ready for possible pushback.
Keep your options open.
One of the great benefits of freelancing is just that, being “free” to explore other avenues simultaneously. Even while in the midst of a great project, be sure to keep your professional rolodex up-to-date, promote your work and remain open to new opportunities. You never know when you’ll need them.