Before we jump into the article, it should be said that we unfortunately do not sit with a crystal ball and can say whether the market is going up or down.
That said, there are some winds blowing from the cold north (+9% inflation, rising energy prices, and war in Europe to name a few), and while we are not in a full-blown recession when the article here goes to press, there are some very concrete things you can do to secure your business and income base as a freelancer.
How does the freelance market react to a recession?
When budgets have to be cut, a number of things typically happen in a company.
Basically, the focus is shifted from growth to hard-nosed survival, and this means that:
- All non-essential projects will be cut, and the focus will be on strengthening short-term earnings.
- Freelance contracts are interrupted (despite the easiest ones to skip at short notice).
- The very large companies officially introduce a hiring freeze - smaller companies manage it less drastically, but the outcome is the same.
- Staff are being cut, and permanent employees are being fired.
- And like a yoyo, freelancers get rehired (after all, they're the easiest to hire on short notice).
Of course, there is still work to be found – even when companies cut back. But make sure you do your homework properly so you understand what stage the company is at.
Perhaps you need to spend a little extra money on quantifying the results that your skills help to create: how does it concretely help to create more sales, grow the business or save money for your customer.
The better you are at articulating your value, the easier it is to close the sale. (It could also go and be a council living on the other side of a recession!)
Don't let your freelance business be driven by fear
When more and more red lights suddenly start flashing, the immediate reaction is to run screaming towards the exit.
It's easy to be controlled by fear when the fire is burning, but if you make sure you take the necessary precautions and prepare for a bumpy ride, a recession will strengthen your freelance business and help create a stronger foundation.
create free user
An easier freelance life with Factofly
create free user
Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 2,000 others with an everyday life without administration.