Despite a sense of restrained optimism from business leaders, the year ahead is likely to be a testing one for the UK economy. For example, the impact of the VAT rise on SMEs is uncertain with the Shadow Chancellor suggesting that it could lead  to 250,000 job losses. While this could work in favour of a freelance workforce called upon to fill the gaps, it may also have an adverse effect if whole businesses go bust – particularly if they happen to be your clients.

So, taking a pessimistic view, we’ll assume that 2011 is going to be a tough one which may hold some nasty surprises for a small number of contractors. If that’s the case then it would be a big mistake to wait for things to go wrong before acting – pre-empt, be ready, be prepared!

Save money for a rainy day

If work suddenly dries up, you’ll need to have enough cash reserves to fall back on. The amount will depend on what your living costs are and it may be handy to calculate how long, theoretically, you can survive if the work disappears.

For this reason, if you’re a limited company director, you will need to have access to your business accounts so you can monitor the financial health of your business. If you do find yourself struggling for work, look at further efficiencies you can make and reduce costs wherever you can in a way that won’t adversely affect your ability to land contracts.

Don’t get too dependent on one client

If most of your work is performed for one client, then you will find yourself in major difficulties should they go into liquidation. For that reason, it’s a good idea to have a number of different clients. It’s also a good way of spreading awareness of who you  are and what you do. It’s the whole idea of how one client leads to another, leads to another, leads to another.

Keep your skills sharp

Keep up-to-date with industry trends and take any opportunities there are to expand your knowledge and skillset. If business does go through a dip, then you should have a competitive advantage. Of course, if work does slow then the free time this presents will ample opportunity to reskill – assuming you’ve got the money set aside enabling you to do this.

Maintain your brand visibility

There are many ways to get yourself noticed. Many cities in the UK have networking events for freelancers and contractors, why not pop along to one and say “hi!” If you can’t be bothered to physically move anywhere then simply network online. Twitter and LinkedIn are great free ways of promoting your expertise whilst setting up a blog is also an option for those willing to put in the time.

Keep your customers happy

During difficult economic times, it’s crucial to maintain good relations with your customer base. Go out of your way to keep them happy, praise them and take a genuine interest in their business above-and-beyond what you would need to perform your duties. Interpersonal skills are highly valued by any employer.

However, this relates to more than just pleasantries. Maintaining good relations also extends to communicating swiftly and effectively – there’s nothing more irritating than someone who doesn’t respond to email/phone enquiries swiftly and effectively. There is no excuse for falling short on communication or lending a deaf ear to those who provide you with work.

Feel free to add your own hints and tips below on how to prepare for a barren spell of work.

Photo by Calsidyrose – CC