With levels of personal debt at all time highs, plus falling home equity values, feelings of insecurity during this pandemic-caused recession are even stronger than usual.
That usually sends people into ‘survival’ mode, which is the worst mode to be in.
Time to develop a side hustle
Any business knows that you should never have a single point of failure – whether that’s in the supply chain, IT systems or any other part.
The same applies to your income.
It is only sensible to develop a side hustle, particularly in times of recession.
Make yourself independent of your employer by developing, improving or reviving some personal skill that you can sell to others, and use that to develop a separate source of income.
We all have some personal knowledge or experience that would be useful to others.
Even if you’ve been employed in the corporate world all your working life, you’ll still have developed knowledge and expertise that you can provide to others on a consultancy or freelance basis.
- If you’ve been an administrative assistant you could use your MS Office skills to offer copy-typing or Resume production services to others on a freelance basis.
- If you’ve been in marketing or sales you could offer your services to small businesses on a commission only basis.
- If you’ve been working in IT, or on maintaining the company website, you could offer website design services to small off line businesses.
The trick is to identify what services you could provide to others.
And if you can’t identify any, then take the opportunity now to develop some skills and knowledge that you could provide professionally.
What if you have limited funds?
If you have a limited budget then spend it on something that gives you leverage, such as acquiring knowledge.
Once you have knowledge no one can take it away from you.
There’s another advantage to acquiring new knowledge too: it will make you more valuable to your employer.
I said earlier that you should make yourself independent of your employer. That does not mean leaving your employer.
It means getting yourself to the point where you’re not left without options if your employer downsizes you.
Acquiring extra knowledge may be useful to your employer, which would make you more valuable to them and increase your chances of avoiding the chop.
And you’ll always have the opportunity of turning it into a business of your own if you choose.
Take a skills inventory
So what skills do you have and what skills do you need in order to sell your services as a freelance or contractor..?
- If you have good technical skills you may need to check out a marketing and selling course so you can sell yourself and your offering more effectively.
- You may need to study some books on consultancy so you’re better prepared for writing proposals and reports.
- You may need to identify a potential business partner whose skills complement yours.
Identify the skills you have and identify the skills you would need in order to provide services on a freelance basis, and make sure you’re fully prepared.
5 steps to preparing for a recession
- Identify the particular skills or experience you have that you could provide to others on a freelance basis.
- Identify who would want to use the skills you have, and how to let them know about the services you can provide.
- Identify your strengths and weaknesses. Do what you need to do to strengthen your weak areas.
- If necessary, identify who you could team up with to make your offering stronger – someone whose strengths complement yours.
- Put together a plan that you can implement quickly in the event you’re laid off.
If you do go independent you’ll need to report any income you earn from your independent work to the tax authorities, so be sure to keep records of your income and expenses right from the start, because trying to pull them together later will be a long and thankless task.
And if you don’t go independent you’ll have made yourself even more valuable to your employer, which will be to your benefit too.
Who knows – this recession could be the best thing that happened to you!
Updated – 13th September, 2020.
I originally wrote this post back in March of 2008.
The pandemic of 2020 has destroyed many economies, and millions of people are hurting badly now. You may be among them.
I was caught up in the telecom meltdown in 2000/2001 and I nearly lost everything, so I can understand how you must feel.
The point I made above about acquiring knowledge seems to me to be even more important now. It’s a way of making yourself more marketable, which gives you more security.
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Owner – WealthyDragon