Freelancing in a pandemic
Some thoughts for what COVID-19 means for those of us who are self-employed
#mindset
Though we won’t know officially for a few months,* we’re almost certainly in a recession now. And it seems likely this slowdown will continue through the spring and summer, and possibly into the fall. It also seems likely that it will be bad.
The country — heck, most of the world — is shutting down trade and commerce. Businesses are closing or cutting back, people are losing their jobs, we’re all staying home more and spending less. This is not good.
Here’s the thing: If we weren’t living through a pandemic-induced societal shutdown, I bet your approach to this year would be something like “work hard and try to achieve my goals.”
Now we have to deal with a recession and a virulent, sometimes deadly disease with no cure. What’s your plan? Probably the same thing: “Work hard and try to achieve my goals.”
Your goals may change, how you work may change, but each day you’re going to get up and work hard. Make that mental shift, and then get on with figuring out what does or doesn’t have to change in your business.
*Recessions are determined after the fact. Government economists collect data and crunch numbers to determine if overall economic production grew or fell. If the GDP fails to grow two quarters in a row, we call that a recession. But we can’t know that for certain until after those two quarters are over.
#strategy
Since “work hard” by itself is not terribly specific, what exactly should you do? First, figure out your starting position.
Most freelancers, consultants and microbusinesses can be grouped into one of three buckets when it comes to the recession:
Survivors: Your clients are doing OK. They — and you — will do OK, too. You’ll probably keep a close eye on your expenses and pursue new business more aggressively. You may be stressed — about work, family, your community — but you’ll be OK. When the economy goes back to growth mode, so will you.
Thrivers: Your clients are busy and in-demand, and so are you. If your clients are in industries like hand sanitizer manufacturing, healthcare or the like, and what you do is vital to their operations, chances are you’ll be fine. If you’re exhausted and stressed, it’s because you’ve got too much work to do.
Hustlers: Your clients are getting hammered. They’re in industries like travel or retail, or your work involves in-person events (hello, wedding photographers) or other activities now shut down. Your clients are cutting costs — including you. You’ve got to get creative, try some new things and work your butt off.
Note that I’m calling this last category “hustlers.” I know some self-employed folks will decide that the right thing for themselves and their families is to go work for someone else; that’s fine. Everyone needs to make the decision that’s best for them. But I truly believe that for most of us in Microbiz Nation, there are other options.
You may already know which category you belong in. But if you don’t, it’s time to figure it out. This could change in the future, but for the time being go with what you know. Here are some tactics to consider.
For Survivors
Review your expenses and preserve cash. Are there any recurring subscriptions or luxuries that you could get rid of? No need to cut to the bone, but now’s the time to make sure you’re operating efficiently and maintaining some cash on hand — the best form of insurance.
Reach out to current and past clients. Let them know you’re still here and still working. If they have work, need advice or just want a sympathetic shoulder to “virtually” cry on, you can help.
If there are types of work you usually turn away, consider suspending that practice. This month, for example, I’ve accepted new projects below my usual minimums. They’ll help make up for projects that clients are canceling or postponing.
For Thrivers
Consider spending more. If you’re getting busier, now’s the time to hire that contractor or spring for a virtual assistant. (And, it’s a recession, so spreading that money around is good for everyone.)
Refocus on your ideal clients. Concentrate on what you do best. If you have prospects that don’t meet those criteria, consider referring them to some of the Survivors and Hustlers in your network.
Remember that this is temporary. You may have a great quarter, a great six months or even a great year. But keep in mind that eventually the pendulum will swing back and your revenues will probably drop. Make sure you don’t lock yourself into higher levels of spending that will be painful then.
For Hustlers
Get creative. If you mostly sell to other businesses, could you reshape your offering into something consumers might want? Can you offer something new based on the fact that people are reducing in-person meetings? One wedding videographer I know has launched a streaming package for clients that are tying the knot but expect family and friends to attend digitally.
Team up. One of the best sources of new business for many self-employed pros are peers in similar fields. Writers and designers can work together, or web developers and photographers, or marketing strategists and publicists. Peers may be able to refer prospects to you, help you expand your offerings to new clients or offer your existing clients something they still need, despite the recession.
Sell what you know instead of what you do. Finally, consider novel services you wouldn’t normally. A copywriter might offer to edit college application essays. A coder might tutor home-bound high schoolers struggling with calculus. Chances are there are ways to earn money that you simply haven’t considered before. Now’s the time to consider them.
For everyone
It’s a weird time. Although your business is a major concern, it’s probably not your only concern. You may be sick with COVID-19, or have a loved one who’s affected. You might be trying to work at home while homeschooling your kids. You might be grappling with major life changes that are now even harder and more stressful.
It’s OK to cry. It’s OK, like I did today, to go for a midday run to burn off some of the stress. It’s OK if not everything goes perfectly. Each day you’re going to get up, work hard and try to achieve your goals — just like before. The outcome was always out of your control, but for most of us, the effort, creativity and courage we put into it are still there.
#resources
What the Family First coronavirus relief bill means for small-business owners and self-employed people (Marketwatch, 3/21/20)
Free Tools, Resources, and Financial Help for Business Owners Hit by Covid-19 (Inc., 2/24/20)
p.s. As I prepare to publish this, Congressional leaders have just announced an agreement on a $2 trillion stimulus package. I’ll be watching for details on what that means for those of us who own microbusinesses and share them with you in the next edition.
Wondering how much you might get from the $2.2 trillion relief bill the Senate just passed? The Washington Post has a handy calculator that shows you an estimate based on your income, tax filing status and number of children. It's here: https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/?hpid=hp_hp-bignews3_calculator-130am%3Ahomepage%2Fstory-ans&itid=hp_hp-bignews3_calculator-130am%3Ahomepage%2Fstory-ans