Making the Switch Despite the Economy: Why it is Sooo Good
Allena TapiaYou know that commercial where the two girls sit around eating their yogurt and talking about how “it is sooo good?” Yeah, I hate that commercial.
But you know what? Freelancing in the U.S. economy has been good to me lately.
“It’s like, $4.00 a gallon gas good!”
“No, no, it’s like write-off your new laptop good.”
Kind of like that.
Thinking of making the freelance switch? Here are a couple reasons why you should buck up and go for it, recession and all.
- Downsizing is good for you. It may feel counterintuitive while you’re sitting in your cube farm, but downsizing is actually a good thing for new, start up businesses. Who do you think companies will turn to when all the cubes are empty? That’s right- you! The copy needs to be written, and the website needs to be maintained. Someone’s got to do it, and a company’s number one choice is going to be a former employee. One that’s gone freelance. One like you.
- Less gas! Man, doesn’t that feel good? While most small businesses grow first from a home or virtual office, those who elect to rent an office or Jelly will still save a few bucks. Even train commuters and Mother Earth benefit from less oil use.
- More helpful handouts. When the economy takes a nosedive, Uncle Sam opens the wallet. Although the government’s Small Business Association loans have plummeted recently, the news wasn’t entirely unexpected, and lawmakers are already calling for the relief to begin.
- You still get your stuff. Last year, over $1,100 of my expenses went to some form of books or print material. Luckily, many of the books that I buy can be written off on my U.S. tax return as reference or research material. Plus, don’t even get me started on the Holy Grail of tax write offs- the home office tax deduction. Rules have recently loosened up a bit, so see if you’re eligible.
- Digital camera, digital organizer, digital postman. Whatever it is you need to run your business just as efficiently as the big boys, someone out there has invented it. Your seamless global office is waiting. Need a primer? Be sure to visit the Freelance Switch list of 101 Essential Freelancing Resources.
- Slow is good. I just read the Tortoise and the Hare to my 4 year old, and realized that slow is good for freelancers. Steady, sustainable growth enables new start ups to find their footing without the danger of a fast, violent pop on the other end. If your sector is growing at breakneck speeds, you won’t have time to catch your breath and learn from your early mistakes. But the easy growth you’ll experience now is a good way to get your contracting feet wet before you dive in.
- Competition is cutthroat. Still. Remember all those panicky companies that were laying people off in #1? They’re looking for ways to stand out from the crowd in their sector. They’re eyeing new branding campaigns or thinking of upgrading their websites. They’re ready to spend their money on certain services that will strategically place them ahead of their competition. That’s where you come in.
If you’re tottering on the edge of your switch, don’t back away because of today’s economy. A well-planned start-up has a shot, even today.
Join us…it really is sooo good.
Allena Tapia is a freelance writer and editor based in Lansing, Michigan. After serving in career positions as a marketing writer and an editor, she made the switch to freelance by establishing GardenWall Publications. She leads new and intermediate freelancers through the process as About.com’s Guide to Freelance Writing.
Eric
June 28th, 2008
Hi I am one of those people that is ‘tottering’ on the edge of making the switch. I do full time web development work for a large company, and lately I have been feeling closer and closer to handing in that 2 week notice. My business is up and running, I’ve got my license, and I’ve got enough projects to keep me busy at nights on and on weekends.
The problem I run into these days is - I can’t take on too many clients while working the full time 8-5 job, otherwise I would be unable to fulfill so many requests. So I feel like I don’t really know what the true potential is out there were I actually able to take on more and more clients. I know I am good at what I do, but the question of course is - will there be enough work for me when I do make the big switch?
The list of resources is outstanding and your article helps with the motivation. I really appreciate Freelanceswitch.com. Thanks, Eric
Andy Chapman
June 28th, 2008
Eric - one word for you - do it! If you’ve managed to drum up enough business to keep you busy on weeknights and the weekends, then it’s reasonable to assume that you can drum up enough business to keep you going full time when you have the 9-5 hours at your disposal.
I recently made the same switch (after working full time for 8 years) and though I’ve had my ups and downs, it’s working and I don’t regret the decision at all.
Good article by the way Allena.
Andy Chapman
June 28th, 2008
Alright, so “do it” is two words - doh!
Susan Johnston
June 28th, 2008
I went full time freelance a couple of months ago, and a few people were skeptical of the timing, but it’s been great so far. I think that if you are highly driven and willing to live below your means, then you can make it work. Whenever I see my former coworkers (my old company is now a copywriting client), they tell me how relaxed and happy I look!
@Eric: I ran into that same catch-22 before I left my job. If you’ve been working steadily, setting aside money, and you feel that you would be able to find more work if you had more time, then you’ll probably be in good shape. The issue I ran into was that I had plenty of work that first week of freelancing, but I also needed to market myself so that I could keep working a month into the future. It was like “great! I landed this giant project, but now when am I supposed to network or write queries?” I’m still finding that balance.
Jad Graphics
June 28th, 2008
I went to the Freelance Route about 8 months ago and I love it!
There are so many benefits to being a freelancer. Sure, there are some disadvantages, but the pros outweighs the cons by far.
To all you that are on the edge, like the famous NIKE slogan says, “Just Do It.”
Lee Milthorpe
June 28th, 2008
I don’t think there has ever been a better time to make the switch!
Of course it is always goin to be a scary thing to do, especially for those of us who don’t have a steady part time business already and have bills to pay, but like you say, with the extreme price of gas at the moment, working from home will already save you quite a lot of cash.
Andrew Scotchmer
June 28th, 2008
Freelancing is great (and profitable) at any time.
When the economy is good, businesses hire freelancers to take care of the increase in workload; when the economy is bad, businesses prefer to use freelancers than taking on permanent staff.
It’s win-win.
You’ve just got to keep networking and getting your name out there. Regardless of the economy work will come.
Ben Ho
June 28th, 2008
Great article Allena. Very motivational.
Eric - I was exactly in the same situation as you before I started Freelancing, my freelance jobs were spilling all over and it really tells me to make the switch. I was skeptical to make the switch at first worrying about not having work after the current ones. It is all natural to think that way and I’m sure all freelancers feels the same. My advise is that the only way to wind up your freelance business is to provide bad service and bad quality work and not get repeated business. Otherwise you’re good to go.
Here’s a quote for you which is a comfort for me and I hope it helps you: “You don’t have to see the end of the staircase, just take the first step”.
Bryan Kress
June 28th, 2008
I love knowing that I can roll out of my bed and go to work. Times are tough right now and they will be for a while, so instead of worrying about whether or not you will have a job start your own business to guarantee your success. I work a lot harder and better with my own business compared to working for someone. Good luck with your switch and remember there are plenty of people out there wanting to help you success.
Allena
June 28th, 2008
But, Andy, some people need more than that. Take my ever-loving Husband for instance: I have to reason everything out for him, put it on paper, and make sure the numbers gel.
This post is for those of his ilk.
I’m off to the beach, but will check back soon. Thanks for the comments. Hope n00bs make their way to this post.
Sofia Skantzos
June 28th, 2008
You make some great points, Allena. Great vibe to your article!
Hope Clark
June 28th, 2008
I left the government cubical, well actually I had a private office, five years ago. Can’t believe it’s been so long ago. Time flies when you’re having fun. I adore my freedom and being my own boss. I think the biggest issue, though, in taking the leap, is making sure you have health insurance. That’s becoming more and more THE issue in being self-employed. Good article!
Angela
June 28th, 2008
Great advice Allena!
I agree with what you said about the economy–when companies are facing a recession, they are more likely to lay off employees and hire contractors. It saves them so much money…so if you think about it, now is the perfect time to make the freelance switch and take advantage of the opportunities available.
Beth J. Bates
June 28th, 2008
Thanks for this post. You just confirmed what I’ve been thinking myself. I’m considering going back into the world of freelance after a year hiatus with a consulting firm and this gives me more confidence in my decision. Thanks for easing my mind a bit!
Jaden @ Screenwriting for Hollywood
June 29th, 2008
Great topic choice.
You have some valid points, I suggest that the employed folks proceed with caution. Unless a person has several months of financial backing plus clients lined up, it can be worrisome. People with families and lavish lifestyles need to be even more thoughtful about how and when they do it.
Selene M. Bowlby
June 29th, 2008
I am SO happy to say that I made the switch two weeks ago, and am SOOO glad I finally did! I was teetering on the edge myself for the longest time. The main reason being the fear of leaving a steady paycheck (I’m a web designer and was contemplating when to leave my job of 9 years (also as a web designer) to run my own business full time.
I have to advocate lots of planning - and the biggest requirement I set for myself was that I needed to save up 6 months of expenses in the bank. Once I did, I finally gave my 2 week notice.
I’m only 2 weeks in after making the switch, but I can say without a shadow of a doubt that I am absolutely in LOVE with my new life! It’s everything I imagined and more! If your thinking making the switch, just be sure to do a little advance planning, but once you’re “almost” ready - Go For It! You’ll be so glad you did (and will likely wish you had made the switch sooner).
I hope you don’t mind the link, but here’s a blog post I wrote about finding my “AH-HA” moment where I finally realized that THIS was the time to switch!
http://www.idesignstudios.com/blog/2008/06/13/taking-the-plunge-i-am-free/
@Eric - I was in the exact same situation myself, too. Easily working 60-70 hours a week, working non stop.. work the day job, then work my own job, sleep 4hrs a night, wake up exhausted… repeat. If you have been saving and have a steady enough client base to keep you this busy now, you can be sure it’ll continue. Just think of how much more time you will have where you can market yourself if you had 40hrs a week to yourself!
One thing that I’m completely amazed by now that I’m full time freelance - is how busy I still am! With all the client work, and all the marketing I’m able to do, I thought my to do list would dwindle… but it’s as full as ever, and I keep thinking of more stuff that I want/need to do (esp marketing and updating my web site etc.)
Anyway, best of luck to you, but it sounds like you very well are just about ready to make the switch!
Suzanne
June 29th, 2008
Allena, your article is spot-on. So many people forget that when you freelance, you can write off just about anything you do or buy that feeds into your business. Thanks for the article!
Allena
June 29th, 2008
GREAT stories everyone– Selene, Hope, Jad.
I do agree with Jaden, one book that addresses making the switch SLOWLY and PURPSOEFULLY is the Anti 9-5 Guide- excellent advice on how to do it without sacrificing your mortgage lol.
Cath
June 29th, 2008
Good stuff, Allena! But you forgot to add that other great economic reason for freelancing–I save a bundle on wardrobe costs
But I absolutely agree with the idea of a prepared leap into freelancing. I’ll pass your book recommendation on to my kid, the college grad who wants to be a freelancer-overnight!
Karen G
June 29th, 2008
Inspirational article, Allena!
JMB
June 30th, 2008
I’ve frequent this website every day. I see a lot of posts to this blog are made by web designers / developers. I have been seriously thinking about taking the leap into the Freelance world, however my situation is a bit different than most posters that I see here. I have a wife, a son, a mortgage and a car note. I am also not a web developer, but rather and Systems Administrator. I do have three full time clients that I maintain on the side but that come close to my full time salary. I am very interested in a freelance career in Business Analysis and Project Management, but I’m not sure how to make the transition.
Essentially, how many of these posters are in the same situation in terms of being married with a child/children, own a home and are the primary bread winner?
How do you find new leads / customers….other than word of mouth?
What can I do to realistically make the transition.
Any information you can provide is greatly appreciated.
Please feel free to email me with any feedback: jmbeauford[at]hotmail[dot]com.
Joe Wallace
June 30th, 2008
Great piece–I didn’t know about Kerry’s small business loan fee cuts proposal–a very welcome bit of news,that. Even if I don’t have a small biz loan—yet.
@Eric–re making the big switch–I took on enough freelance work at the end of my last sting working for the man to literally FORCE me to jump. I overextended myself on purpose. It was a draining two months, but in the end it was worth it. I saved up enough just in time before the holidays to survive a mini slowdown, and I had plenty of free time to scare up other gigs. Yes–JUMP! Unless you have nothing saved to fall back on, you should do fine with the proper drive to succeed.
Joomla Developer
June 30th, 2008
Everyone I’ve met who teetered on the edge of freelancing was relieved when they finally jumped. Myself included. Now, it’s like “Why did I wait so long?”
Great article.
Reem
June 30th, 2008
Puts the idea that freelancing is just a good idea in more defined perspectives. I got a good boost out of this article
Selene M. Bowlby
July 1st, 2008
@Allena - Thanks! And thanks for the great article, too!
@JMB - I’m in a similar situation as you… I have a husband and young daughter, as well as a mortgage, car payment, you name it, LOL. On the actual profession, I’m a web designer / front-end web developer. Most of my business is through word of mouth, however I get a bit from just getting my name out there, many people just find me on the search engines, etc. I’ve been reading a book called Get Clients Now! by CJ Hayden which has some great marketing advice (I’ve written about it on my blog if you want more info).
As for making the transition - it’s not easy! I worked VERY early mornings and VERY late nights, and every weekend (with a toddler, that means during naptime, and again early morning/late night). I did work myself to a point of burnout which obviously isn’t good… My main goal was to get 6 months of savings in the bank - so if things do slow down now after taking the plunge, I know I’m “OK” for at least half a year…
It’s definitely not something to jump into lightly - especially with the family and financial responsibilities that people like us have (spouse/kid(s)/mortgage/loans/etc.) But it can be done - you just have to believe in yourself! A great support system (family, friends, etc.) is crucial to help you though the down times, as well.
If your existing clients help bring you close to your full time salary, then I’d say work it for as long as you can stand it - and save every penny that your side work brings you. Pretend you don’t even have it - just SAVE, save, save… Try to market as much as you can (tough with the time constraints, but it can be done!) - if you see you can bring in a few more clients and maintain the work level, you should be able to do it!
Best of luck to you! I hope you (and everyone here!) are able to make the switch!