Coding with Jesse

5 Reasons Freelancers Can Succeed in a Shrinking Economy

October 24th, 2008

Like many people, I've been a bit obsessed about the economy lately. I'm wasn't sure whether or not to be scared, and to be honest I still don't. But I did think of some reasons freelancing might be a safe place to be.

  1. You have a diversified clientele. Your clients can be anywhere in the world, and you have many of them. And if you're lucky, you have more than enough work to fill your time. No matter how bad the economy gets, there should still be some business available.
  2. You have very little overhead. For most freelancers, all you need to work is a laptop and the Internet, both of which you'd probably have even if you weren't freelancing. You probably pay $10/month for your web site hosting, but otherwise you don't have a reason to borrow money. The gears of the credit crunch don't touch your business.
  3. You can drop your prices whenever you want. If you find less people can afford what you're charging, you'll be able to adjust accordingly. If you have a job and they decide they can't afford you, then you get laid off.
  4. The Internet is the place to be for self-employed professionals. With the considerably low cost of having the Internet, I would assume that a lot more business will happen online as more people become self-employed and work from home. The number of people you can potentially connect with online feels infinite.
  5. Businesses who don't want employees might turn to freelancers. Who knows, maybe in uncertain times, more business will want to hire freelancers on a contract basis rather than dedicate to hiring an employee they don't know if they'll be able to keep.

For those of you who don't freelance, I'm not suggesting you quit your job and start freelancing tomorrow. You'll have to decide that for yourself. If you want to start freelancing, I would suggest is to get the ball rolling on the side while you have a job. Get that website up and get some presence on the Internet. That way you'll have something to fall back on if you lose your job.

So things don't look too bad for us freelancers. How about you? Have you noticed the shrinking economy having a direct effect on your business or job? What do you think we can expect?