Why You Shouldn’t Be Freelancing (Do This Instead)

Are you unemployed (or think you might become unemployed)? On the other hand, are you self-employed? 

As I stated in my last article, “The Uberization of Project Managers: A Survival Guide for Corporate Refugees” –

“At least 40% of the U.S. workforce will be moonlighting for more than one company at any given time.”

It won’t be long before freelancers make up the majority of the U.S. workforce. 

So, whether you are involuntarily unemployed or choose to be self-employed, it’s time to graduate your thinking. You have to transition to an entrepreneurial, ownership mindset. 

Start seeing yourself as more of an entrepreneur-in-the-making than an employee-for-hire. This will be beneficial even if you decide to pursue full-time employment.  

Competition is relentless. 

You’re not only going up against people in your local area who might have a zillion and one certifications, degrees, and years of hands-on experience. The reality is you’re competing against MBAs and technocrats across the globe.

Better yet, your competitor might be a machine half a world away. 

How will you remain competitive and make money in this new economy? If you’re currently freelancing or think you might have to in the future, these tips will help guide you in the right direction.

The Journey Begins

In 2008, I transitioned out of an enterprise account executive role with a Fortune 500 telecom company. After taking a months-long travel sabbatical that took me from the halls of Corporate America to villages in Third World Countries and beyond, I decided to get serious about working for myself.

At the time, the U.S. economy was as bad, or worse, than it was following the Dotcom bubble bust a few years earlier. Landing a decent gig wasn’t easy, especially in light of the fact; most of the apps people use nowadays didn’t exist. Luckily, I had already incorporated a side business.

With this in mind, I compiled hundreds of pages of ideas, notes, and research I’d done while traveling and synthesized them into an action plan. Simply stated, this plan consisted of the step-by-step actions I’d take in order to achieve my goal.

Based on this plan, I focused nearly all of my efforts on reaching out to small and medium-sized consulting firms that I could add value to in my local market. Eventually, I caught the attention of a small, but fast-growing consulting firm. 

I bet you’re wondering how I did this.  

Well, I honed in on a major pain point. They were trying to sell their new marketing consulting solutions to larger companies, but none of the owners had experience penetrating large B2B accounts. This was one of my specialties. 

Long story short, they offered me a contract position with a stipend. I agreed to their terms – with one exception. Instead of contracting with them directly, I wanted them to hire me through my company.   

This might sound like a minor detail, but I assure you, it’s not. 

You see…it all comes down to a mindset. 

When you contract directly with a company (e.g. use your SSN instead of an EIN), you signal to them that you are okay with being treated as an employee-for-hire. If you’re auditioning for a full-time job then that might be fine, but for budding entrepreneurs, that’s a no-no. 

It’s best if you establish this understanding upfront. Down the road, once you’ve shown your value, it will be easier to take your relationship to the next level. 

Sounds easy enough, right? Well, as they say, the devil is in the details.

Create and Execute Your Action Plan

I once heard motivational speaker Les Brown say –

“When life knocks you down, try to land on your back. Because if you can look up, you can get up.”

That’s a great quote. Really it is.

It inspires you to pick yourself up and figure out what to do with the lemons that were thrown at you. However, if you aren’t careful, the thought will roll over your head like a stream running downhill.

The key to success is to capture that inspiration and document it in an action plan. This is how you ultimately turn lemons into lemonade. 

Here’s a 6-step process to get you started – 

1)  Establish a Goal – What Do You Want? (e.g. a job, contract, teaming partner)

2)  Target Right – Which Companies Will You Approach? (e.g. consulting firms, SMBs, Fortune 500s)

3)  Locate Them – Where Will You Find Them? (e.g. trade associations, networking, social media)

4)  Take Action – How Will You Engage Them? (e.g. cold calls, direct messaging, emails)

5)  Propose to Them – What Value Will You Offer? (e.g. a unique methodology, industry relationships, proven results)

6)  Ask for the Business – How Will You Seal the Deal? (e.g. email, conference call, face-to-face meeting)

At the end of the day, keep it S-I-M-P-L-E. If you overcomplicate the planning, you won’t take action.

Final Thoughts

Like I mentioned in an earlier article –

"Money flows to those who create the most long-term value. By it’s very nature, a gig is short-term. This is fine if the gig is part of a larger business strategy, but most of the time it’s not."

Don’t be the dog that barks and chases after every car that drives by. Set yourself up for future success.

Get in the habit of pursuing opportunities that have the potential of helping you grow long-term. This is how you start building a sustainable business model.

About Oliver Yarbrough, PMP?

Oliver is a LinkedIn? Learning Author, speaker, trainer, and leading expert in project management, PMP? Exam Prep, and growth strategies to raise competitiveness. You can follow his musings at OliverYarbrough.com and on Twitter @OliverYarbrough.

You can get a 10-day free trial to the Lynda.com (a LinkedIn? company) learning platform. It will give you access to an entire library of courses including my course on Project Management: Government Projects and Exam Tips: Certified Associate in Project Management (CAPM)?.

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