How to Recession-Proof Your Freelancing Business
Right now is a popular time to panic as stocks go up and down and people are finding themselves with even less job security – including freelancers.
As a freelancer, your client’s success heavily affects your success. If your client is not making money or doesn’t have the cash flow to compensate you, this can limit your work.
Instead of worry about your freelancing business going under at this time, it’s important to take some to prepare for a recession or a drought in terms of assignments.
Here’s how to recession-proof your freelancing business.
Increase Your Savings Rate Now
Freelance clients come and go. In order to recession-proof your freelancing business, you’ll have to understand this and avoid mourning the loss of a client for too long. Anticipate that you may lose a client (or 3) and start increasing your savings rate. Stashing more money away now can help soften the blow if you do have to spend a few weeks regrouping and pitching new clients.
Start Thining Outside of the Box
Job boards will be flooded (like always) with new freelancers trying to get jobs. It’s very competitive and you likely won’t be able to get booked for a good rate. Instead of following the herd, start thinking outside of the box and cold pitching clients.
Try to identify you seems like they’re doing well right now and may have work for you. Move in with a targeted and high-quality pitch.
Diversify Your Service Offering
If you’re noticing that work is drying up, start to shift your focus toward services and niches that may be more profitable right now. It’s clear to see what’s trending and what isn’t. Realize that what people care about most is what they will put their money into. This is why it’s important to be open to change and learning new things so you can diversify your service.
Reconnect With People in Your Network
If you’ve taken the time to build a strong network over the years, utilize this to help recession-proof your freelancing business. You never know who in your network may be starting a business or know someone who could use your help. I’ve actually landed 3 new clients recently that are launching a new business so you never really know what’s out there unless you tap into your network.
Create a Newsletter to Market to Leads
Economic recessions can end some businesses but others find ways to come out on top. I’ve seen lots of small businesses pivoting at this time and trying to offer value in the marketplace to survive.
You can survive as well if you focus on serving people needs right now. One easy way to do this is by creating an email newsletter to market to leads. You can connect with new prospects and nurture them through an email funnel where you provide tips and advice to help them in their business.
When people see your value proposition and that you’re willing to give upfront, they will be more likely to consider working with you.
Try not to operate from a place of fear and anxiety for too long if you’re worried about your freelancing career. Realize that now is the time to step up and get creative. Lower your expenses, save when you can, and find new opportunities and strategies to grow and pivot your business.