A layoff is not the time to become a freelancer

I’m starting to see a trend amid the many layoffs happening right now: Those who have been laid off are being encouraged to freelance. Speaking as a freelancer myself, I can’t think of worse advice. Everyone’s situation is different, but the vast majority of people simply are not prepared. It’s not that most people aren’t capable: I think most people can handle it in the long run. But the “long run” is just that: long! Learning how to work for yourself takes time. I’ve been at this for many years now and I’m still learning.

If you got laid off, especially if you have responsibilities, kids to feed, bills to pay, etc. then what you need most is a job. Period. You need cash coming in the door. Taking three or six months to start a business, and burning what’s left of your savings or 401k in the process, is not what you want to be doing right now. Better to spend that time, energy, and money on job hunting and interviewing like crazy.

You may think my discouragement is driven by the fact that I’m a freelancer. Who needs more competition, right? But that’s largely irrelevant. There is a big world of work out there. I have very little concern about competition. My biggest challenges day-to-day are ones of my own character. Competition is very far down the list.

I fear that if too many of those who have been laid off listen to the articles, authors, and talking heads out there, in six months or a year we’ll have a situation that is even worse, as we have a rash of would-be small businesses collapse. And that’s not good for anyone.

Certainly there are those among you who have what it takes. And you won’t know if you don’t try. I can certainly understand that. I would simply suggest that you’re not directing your own destiny much if you’re letting a layoff tell you when you can and can’t start working for yourself. Better to have a strong plan that you can execute in 6 months than to learn to juggle in the batting cages now.

If you absolutely must do the freelance thing, here’s a small list of advice, for what it’s worth:

Cut your costs mercilessly.
Cable? Gone. Car? Sell it, ride the bus. Starbucks? $4 coffee? Are you f**king kidding me? You get the idea.

Get Clients (duh)
If you’re at risk of layoffs, get one or more clients before you quit or lose your job. This is absolutely non-negotiable. If you don’t do it, you’re not serious. And if you’ve already been laid off, set a time limit, perhaps a month. No more than that. And if it doesn’t work, get back on the job hunt. Don’t dick around. Trust me. I have dicked around. It isn’t pretty.

Work part time.
There have been layoffs, but there is still work to be done out there. It might not be glamorous but if money is coming in, who cares?

Work as a temp or contractor.
I’ve done this myself with great success, alternating periods of freelance work with periods of work as a contractor. (During layoffs contractors are usually the first to go. Later – when things even out – contractors are some of the first hires as fiscally-cautious companies need labor.)

Have a specific niche.
Telling people you make websites for independent car dealerships is a lot more meaningful than telling people that you make web pages or that you’re a programmer, designer, etc. Prospective clients tend to trust niche players over generalists.

Be awesome.
Seriously. You may have slumped a little bit while you were sitting in your gray cube in the middle of gray cubetopia. Now everything you do reflects directly on you. That directly impacts future work and referrals. So you’d better be good at what you do.

That’s all I’ve got. If I knew more I would probably be too busy to write a post like this!