The Recession-Proof Freelancer
The thought of a recession leaving you shaking in your freelancer boots? Here are some tips to help you weather any storm in your solo career.
Sky-high gas prices.
Rising food costs.
Scary chyrons blaring across the bottom of our TVs.
Every day, it seems like there’s another headline about how the economy is tanking.
And while a recession can be scary for businesses and full-time employees, it doesn’t have to be disastrous for freelancers.
In fact, with a little bit of planning, you can actually maintain (and even grow) your income during an economic downturn.
Here are a few tips to help you recession-proof your freelance business:
1. Diversify your income streams to insulate yourself from a drop in any one area.
When you’re relying on just one or two clients for all of your income, you’re putting yourself at risk if they should decide to cut back or stop working with you altogether.
By diversifying your income streams, you can insulate yourself from a drop in any one area.
So how do you diversify your income? Start by looking for new clients in other industries or sectors that may be less affected by an economic downturn.
For example, if you typically work with small businesses, try targeting larger corporations with the budget to maintain their marketing and advertising spending even during tough times.
Or, if you typically work with businesses in consumer-facing industries, try targeting B2B companies that may be less affected by a recession.
2. Keep your overhead low to make it easier to weather a slowdown.
When revenue starts to dip, one of the first things businesses often do is cut costs. And as a freelancer, you can do the same by keeping your overhead low.
One way to do this is to avoid signing long-term leases or contracts.
If you work from home, you may be able to avoid paying for office space altogether. And if you do need to rent office space, look for short-term leases that you can cancel if necessary.
You should also consider ways to cut costs on your business expenses, like negotiating with vendors for better rates or switching to cheaper alternatives.
For example, if you’re paying for a pricey software subscription, see if there’s a less expensive option that will still meet your needs.
3. Build up your cash reserves to ride out a slowdown.
When businesses are facing tough times, they often rely on their cash reserves to help them make it through the lean months. And as a freelancer, you can do the same thing.
Start by taking a close look at your budget and identifying ways to cut back on your spending. Then, use that extra money to build up your cash reserves so you have a financial cushion to fall back on if necessary.
It’s also a good idea to start setting aside money in a separate account that you can use only for business expenses.
That way, you’ll have the funds you need to keep your business running even if your personal income takes a hit.
4. Get creative with your pricing to stay competitive during a slowdown.
During an economic downturn, businesses often have to get creative with their pricing in order to stay competitive. And as a freelancer, you can do the same thing.
For example, if you typically charge by the hour, try offering discounts for bulk projects or flat fees for ongoing work. This can help you attract new clients who are looking to save money during a slowdown.
You can also offer additional services or packages that add value for your clients but don’t necessarily cost you more to provide.
For example, if you’re a web designer, you could offer search engine optimization services to help your clients get more traffic to their websites.
5. Stay flexible and adaptable to changes in the market.
The key to weathering any economic downturn is to stay flexible and adaptable to changes in the market.
As a freelancer, that means being willing to change up your offerings or adjust your rates as necessary.
For example, if you typically work with businesses in a particular industry, be willing to branch out and work with companies in other industries if necessary.
And if you’re used to working on one-time projects, consider adding recurring or long-term projects to your portfolio.
By being flexible and adaptable, you’ll be able to keep your business running smoothly even when the economy takes a turn for the worse.
6. Learn potential client pain points so you can offer solutions.
The key to winning clients is to understand their needs and pain points. And in a recession, those needs and pain points are likely to change.
To stay ahead of the curve, make an effort to learn about the challenges your potential clients are facing. Then, position yourself as a solution to those challenges.
For example, if you’re a freelance writer, you could offer content marketing services that help businesses attract new customers.
Or if you’re a graphic designer, you could create affordable templates that businesses can use to promote their products and services.
7. Keep your marketing efforts up even when business is slow.
When business is slow, it can be tempting to cut back on your marketing efforts. But that’s a mistake.
Now is actually the perfect time to step up your marketing game and get your name out there.
After all, when the economy rebounds, you’ll want to be one of the first businesses that potential clients think of.
So how can you keep your marketing efforts up even when business is slow?
One option is to offer discounts or special deals on your services. You can also use this time to create new marketing materials or update your website.
Another great way to market your business during a recession is to get involved with charities or other causes that are important to your community.
Not only will this help you give back, but it will also put your business in front of potential new clients.
Ride Out the Wave with Proactive Planning
No one likes to think about the possibility of an economic downturn. But as a freelancer, it’s essential to be prepared. Fortunately, freelancing is one of the best ways to weather a recession.
By following the tips above, you can weather any economic storm and come out on top. So don’t wait until the next recession hits to start planning for it. Use these tips to recession-proof your freelance business today.
