An Optimist’s Guide to Freelancing Through a Recession

Where there are risks, there are also opportunities.

Monday brought an unfortunate first in my freelance business. Two of my five retainer clients, within hours of one another, both decided to adjust our contracts. The good news is that neither client fired me. However, one reduced my workload (and by extension, my pay). The other requested a one-month pause to reevaluate their marketing strategy.

I didn’t take the conversations hard. It helps that both companies insisted that they want to continue working with me. The interest is mutual.

It also helps that I believe economic downturns are healthy. Companies must respond to a changing world. Crises cause bad companies to go under and cause good businesses to refine or set new strategy. In fact, I left these client conversations hopeful about the future because I share their desire for new direction.

Every recession is an opportunity to reset, to take a skeptical look at anything you can describe as “business as usual.” That’s exactly what I’m doing in my business. I’m asking, where are the biggest opportunities?

In March 2020, as awareness about Covid rose around the world, markets fell. My wife and I doubled down on work. We had never endured a fear-stricken economy before. We did the only thing we knew to do: overcompensate financially and productively. We worked straight through multiple weekends for several weeks back to back. By the time more clarity about Covid was realized a few months later, we’d amassed a great savings (that we fortunately didn’t need) and broke a few earnings records for our business.

Today, the freelance business is in a healthier place than it was in 2020. But I’m still looking around for both the next opportunity, as well as the next big risk. I think it’s healthy to remember that past growth does not guarantee future success. I’m not afraid of the near future, but my awareness is piqued by the current economic and social circumstances of the world. I want to be ready for anything.

What does this mean going forward? I see two countervailing economic forces that freelancers should pay attention to: budget tightening and hiring pains.

On the budget front, freelancers should be aware that we’re often the first to be cut when organizations are overextended. It’s easier (both legally and personally) to fire a contractor than an employee. This could turn out to be a great risk to freelancers in the near future.

The counterpoint — and opportunity — is hiring pains. Many industries today can’t source enough people to fill demand. While it’s true that some business budgets are tightening, it’s equally true that these same businesses require people to keep their companies productive and running. Who better than a self-starting, responsible freelancer?

The tech industry — whom I primarily serve— has the opposite human resource problem. Many tech companies over-hired during the digital boom of quarantine. Now, they are cutting back. This may be an opportunity for savvy freelancers. Employees who remain in their tech jobs may suddenly find themselves bogged down by the work left undone by former colleagues. That’s your chance to serve as an on-demand productivity machine for those organizations.

All this to say, I remain hopeful, despite what’s happening in the markets, Washington, or the news. There’s been much pain this year — and the past three years. But I am optimistic for the future of freelancers.

My advice is to remain vigilant. Overdeliver for your clients so that you become vital to their operations. Perform enough marketing to generate more qualified leads than you can handle. (Having too many clients is a much better problem than having too few. Pick your battles.) Maintain a healthy savings to weather the ups and downs of entrepreneurship.

And most important of all: continue to have fun. Freelancing is the best damn job in the world. Even when all seems dire, I hope you’ll continue to smile and press onward. The freelance economy remains a place of big opportunities that are just waiting for you to uncover.

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