Trendspotters report that the Freelance work force will continue to grow as full time employment continues to disappear.   Sole proprietorships grew twice as fast as the overall economy during the decade 1999 – 2009 and our numbers now exceed 22 million (source:  SBA).

Employers are expected to continue practices begun in the late 1980s,  laying off  full time, benefits receiving employees and replacing them with part time workers and outsourced services wherever possible.  In other words,  Freelancers will be hired because we are perceived as being less expensive.

Unfortunately,  income generated will most likely be less than satisfactory.  Freelance writers,  for example,  have on average taken a huge wage reduction.  Receiving $2-$3/word for a 500 word article is nearly a thing of the past.   Many writers are now forced to accept 50 cents/word.

You know,  besides a university degree,  there’s not a whole lot that separates Freelancers from Cesar Chavez and the grape pickers.  A day laborer is a day laborer, whether working in an office or out of doors.  Meanwhile,  the videographers continue to make lots of money,  adding little vignettes to the websites of businesses and social service agencies in need of customers and donors, respectively.

Obviously,  it’s also been predicted that most Freelance professionals will continue to work from home,  because most can operate effectively and cheaply from a home office. Well,  you can’t beat the commute!  Technological advancements have made home offices a practical and efficient choice.  Email plays a pivotal role in all of business,  along with electronic  transfer of all types of documents—attach and hit the send button.   The once revolutionary practice of faxing has been much diminished.

If we need to obtain data on nearly any aspect of our business,  we are almost guaranteed to find our answers on line, often at no charge.  Market research has become lots more convenient.  It’s much easier to compile the data needed for business plans and strategic plans,  from within our company databases or from outside sources.

There are analytical tools whose cost once confined their usage to big budget companies now available at prices that a small business operator can afford. That has given a tremendous boost to our decision making capabilities.

On a more mundane level,  when we want to keep tabs on our competitors,  a visit to their website,  LinkedIn or FaceBook profile can give some clues.   A Google search may also be useful.  We check out our clients and prospects in the same way, to augment personal referrals or warm up a cold call.

The internet delivery system known as the cloud gives low cost access to advanced computer capabilities and reduces the need for IT support by providing back-ups and security.  The cloud is what allows us to use mobile computers like iPhones.

Of course,  those of us who knew life without computer proliferation know that technology giveth and also taketh away.  Millions of good paying,  steady jobs have been lost because of these and other technological advancements and they will never return.

Remember graphic artists? These days,  those who perform that function are mere computer technicians.  The old timers who graduated from art school and studied composition,  color theory and free hand drawing have nearly all been replaced.

Yes,  a few million IT jobs have been created,  but specialized qualifications are required.  Re-engineering a career is often not possible when one is 45 years old.  Besides, those jobs are disappearing, too.  They are being off-shored,  or collapsed down and handed off to one Freelance contractor who must do the work of 3 former full time employees.  Ask yourself:  is a flat screen TV and an iPhone worth more than an $80,000 a year job with health insurance,  paid vacations and sick days?

I would be remiss if I did not include the creative arts in our discussion.  Painters,  sculptors,  dancers,  singers,  musicians,  photographers,  actors  and  artisans  (e.g. jewelry designers)  are the original Freelancers.  In troubled economic times,  their numbers usually increase.

An opera singer friend,  who is part time faculty at The Longy School of Music,  told me recently that enrollment there has soared.  She also has more requests for private lessons.  Opera companies and orchestras are struggling and sometimes closing as a result of shrinking donations and ticket sales,  but nevertheless quite a few people have looked to the arts for a career or to reinvent themselves.  Damn the torpedoes,  I guess.

So where does all this Freelance ferment leave us?  More fulfilled in many ways,  I will say.  For lots of us,  going out on our own was the realization of a long held dream.  Your Diarist was disappointed with the corporate world a dozen years before the  exit.  I think most of us  enjoy being the captain of our own ship.

Alas  money,  or a shortfall thereof,  remains the sticking point.  Billable hours are thin,  sales are weak.  The answer to the riddle of how to survive and thrive remains elusive.  In this blog I will continue to put forth suggestions that may lead you to that answer.  I want to help  you—and myself!—make it successfully through the year.

Thanks for reading,

Kim

Happy New Year! We made it out of 2009–whew! We’re battered and bruised perhaps,  but there is a pulse.  The post mortems on the past decade are already rolling in and as we suspected,  the 00s really were zeros for lots of us when it came to making money.

Not surprisingly, the data show that this past decade was the worst for the US economy since the 1930s.  In fact,  net job growth was zero from 1999 – 2009.   Full time employment at a professional level wage evaporated for so many (like your Diarist).   Maybe that explains why you, too, became a Freelancer? Already, that period has been named the Lost Decade for American workers.  Downward mobility has become all too common.

In the January 3  NY Times,  there is a front page story that tells the sad tale of a woman in Florida who had been a successful real estate agent,  regularly generating an income of $100,000 + per year.  Now her income is, literally, zero.   She and her two children are living only on a few hundred dollars of food stamps each month.

Long term economic  instability appears to be what we will face for several years into the future.  Maintaining a comfortable middle class life has become much more difficult,  if not impossible.  What can a Freelancer do to improve financial prospects?

Primarily,  we must recognize how the new economic  conditions have impacted our clients—financially and psychologically—and devise marketing strategies and business practices that integrate the realities of this  altered environment.   Every quarter may be a new adventure, as client priorities continue to shift.  Keep eyes and ears open,  connect the dots and become flexible and resourceful if you expect to survive.

No one knows when the purse strings will loosen.   However, business will be done, meaning that money will be spent.  Here are a few suggestions that may help you to remain solvent:

Keep it simple

Information overload is in full effect.  Many people feel overwhelmed and are too hassled and harried to pick through a plethora of choices,  or a complicated and/or grandiose marketing message.

Bring it back down to earth.  Have you noticed what has been going on in the restaurant business over the last few years? White table cloth restaurants with ultra formal service have been on the wane since the early 2000s.  Comfort food,  less glamorous cuts of meat and dining at the bar are in.  Take this as a cue for your business.

Distill your services down to what customers will desire, understand, value and pay for. Pay attention to their current spending patterns—they are likely to continue for the next 2 – 3 quarters.   Sell your services in easy to understand terms that tell clients what is in it for them.  Also,  make sure the price is right.

Green and sustainable

Clients have been willing to pay a premium for environmentally friendly,  fair trade,  local, organic and  sustainable everything.  For some products at least, this trend looks to continue.

Remain visible, appear viable

The ad budget may be smaller, but continue to promote your business in cost-effective ways that reach your target customers.  If that means taking out print or web ads,  try your best to fit those into your budget.   Radical cuts in advertising and promotions can cause you to miss the boat on opportunities.   We all need even the small contracts in order to make it through the month.  Ask to stretch out the ad payments and the answer will probably be yes.  They want your business more than ever!

You will also be wise to continue membership in the chamber of commerce and other networking organizations where prospects and referral sources can be found. You may make fewer visits, but don’t disappear.   Do not cede ground to your competition.

Project hope and confidence

Everybody likes a winner and everyone gravitates to (realistic) optimists.   Don’t whine and moan about business to clients and prospects! That will be a turnoff.  So chin up and portray a reasonable level of self-confidence.  Remember that it is possible to make significant money in a recession:  Kraft introduced Miracle Whip in 1933;   Apple launched the iPod in 2001.

Good luck and thanks for reading,
Kim