Accountancy & Tax

Three reasons why freelancers are safer during a recession

With gloomy forecasts and ever-decreasing red numbers dominating the news we’ve been keeping a eye on what the state of the economy means to freelancers and contractors. And it’s not all bad news! Today Freelance Advisor and Web Marketing Consultant Leif Kendall gives us three reasons why freelancing might actually be a very good option during a recession.

When the economic crisis began to unfold, I wondered whether my decision to go freelance had been sensible. Was my copywriting work going to dry up? Would I have been safer in regular employment? I soon came to the conclusion that although a freelance existence can feel very exposed, the smart freelancer can actually make their position much safer than their employed counterpart.

Spread the risk

Freelancers have many employers. As a freelancer, you’re not dependent on one company’s fortunes.

Steer your own ship

As an employee, you probably don’t have much direct control over your employer. If your MD is driving the business into oblivion, you have to just sit back and wait for the sack.

Be your own boss

You might hear rumours about redundancies, but there’s not much you can do but wait. As a freelancer, you know exactly where you’re headed. If things aren’t going well, you can take corrective action. You have the possibility of reviving your own fortunes.

Freelancers are suddenly in demand

As skilled workers are made redundant, companies will be looking to replace those skills with freelancers. So the amount of available work may rise, but so too will the number of freelancers. Make sure you’re ready to compete in a changing market.

By Leif Kendall, freelance copywriter and web marketing consultant

Related articles: advice, adviser, advisor, consultant, contracting, contractor, Contractors, Financial Management, freelance, freelanceadvisor, freelancer, freelancing, Money, Podcast, recession

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User Comments

Jon Aizlewood
Oct 23, 2008
at 12:22 pm

I totally agree. In fact, I see the freelancer/contractor role becoming pivotal in the coming months in the UK, with C-levels pushing back permanent head count in favour of short-term, high-value bodies. This exact scenario is unfolding at my current workplace, and I can’t imagine it will change anytime soon.

Additionally, freelancers (at least web-related) offer skills that will surely become even more crucial in a sinking economy. The web, although we’re all used to it and take it for granted, is still relatively untapped by those brick n’ mortar stores owned by baby boomers etc. who need a low-cost, quick win, high value solution (ie a kickass website that gets quality traffic) to address their problems.

Ultimately I’m remaining highly optimistic that any freelancing that’s directly web-related will only stand to benefit from this credit crunch; the Web is cheaper, more accountable and in many ways much more effective than any other channel. Go freelance, go web, and thrive!

John
Oct 23, 2008
at 2:31 pm

I too have seen this… my company has been promising extra people for a long time now. It keeps getting pushed back. There is no room for extra developers or producers… more sales people, sure, but nothing to help businesses grow and develop.

IF new projects are given a green light the creative freelancers will be called in for sure.

That’s a big if though, people are so uncertain I don’t see many new projects emerging, except maybe online where fail fast (and cheap) models rule.

Clare Stoves
Oct 23, 2008
at 3:50 pm

I’m just about to go freelance. This has given me a bit more confidence today. Thanks guys!

Jesse Skinner
Oct 24, 2008
at 7:25 pm

I totally agree freelancers can succeed – I wrote an article about this today actually (but before I read this one!):

http://www.thefutureoftheweb.com/blog/5-ways-freelancers-can-succeed-in-bad-economy

Leif Kendall
Oct 25, 2008
at 11:33 am

Hi everyone – thanks for your comments. It’s great to hear that this article has been interesting and useful – even for those who’ve already had the same ideas! Look forward to hearing from more of you…

Michael Rose
Oct 25, 2008
at 11:39 am

Jesse, I like what you say about being able to drop your prices whenever you want. Obviously we’re going to need more hours, or clients, to make ends meet, and find more economical ways of achieving the same results, but the freelancer is definitely more able to flex and flow as the situation demands.

Alex Kitchin
Oct 30, 2008
at 12:53 pm

much of my work comes from small independent business, who are unfortunately rather vulnerable at this time, so a drop in price may be a path i will have to take in order to keep securing jobs.