In the 2000s, there have been several recessions: 2001, 2007–09, and 2020. Depending on your definition and which economists you listen to, it’s possible we’re in one right now or could be heading into one next year. I still feel sick to my stomach when I think back to 2001. I’d been in business for myself for two years, and everything was going great . . . till it wasn’t. Client budgets dried up and my phone stopped ringing. I knew I wasn’t going back to a corporate job, however, so I needed to hustle and figure it out. Here are a few of the ways that I have built my business up so that the ’07–’09 and ’20 recessions had far less impact on my freelance income.
- You have more control than you realize. Even in a weak economy, there are companies that are chugging along or thriving — but it takes extra effort to find them. Here I’ll plug former NAIWE expert Peter Bowerman’s The Well-Fed Writer series, which I used as my playbook in 2001. Using his strategies, I made a few hundred cold calls, secured a bunch of new clients, and got back on track.
- Saving up a go-to-hell fund is an obvious way to protect yourself against economic uncertainty. I love saving any way I can. The easiest is a monthly auto deposit into my brokerage account from my bank account, so I don’t have to think about it. Important to note that saving money isn’t about expecting to use it. It’s so you can make clear decisions and avoid taking lousy projects out of desperation.
- Diversifying your freelance business with a mix of clients, project types, and industries is another key to surviving challenging economic times. My basic rule of thumb is that I try not to have any client be more than 30% of revenues. The phrase anchor client makes me break out in hives! I knew freelancers who made a ton writing about real estate during the housing boom . . . and then got wrecked when everything crashed. This isn’t an argument against specialization, but rather a cautionary note that booms never last.
- It’s also about mindset. Are you in freelancing for the long haul? Are you developing client relationships strong enough that they’ll always find budget for you? Are they giving you high-quality referrals? Over time, your system needs to be resilient.
- There’s no guilt in doing something on the side to generate a bit more income. (For example, I coached rowing for a long time and hope to get back to it.) As long as it’s not taking too much of your time, side income can help take the sting out of downturns.
- It’s a good time to take a cold, hard look at your expenses and pare back where you can. A few months ago, I dumped a variety of subscriptions that no longer delivered return-on-investment, and I changed my Adobe account to a better option. I’m currently considering changing from cable internet to Verizon 5G, which just arrived in my neighborhood. Every bit helps.
- In addition to the potential of recession, inflation is also taking a serious bite out of how far our money goes. I don’t do annual price increases, because my projects and clients are all over the board. But as I negotiate with new prospective clients, I am taking inflation into account.
Economic downturns are inevitable — and the same type of preparation you do for a recession can help eliminate freelancing peaks and valleys.
Jake Poinier made the leap into freelance writing and editing in 1999 after a decade of positions in the publishing industry, giving him key insights from both sides of the desk. As the founder and owner of Boomvang Creative Group, he has worked with a diverse array of Fortune 500 and small businesses, consumer and trade magazines, and independent authors. Jake is committed to helping freelancers improve their businesses and shares his knowledge and experiences frequently as a speaker at industry conferences, through webinars, and on his blog.
Leave a Reply