Laid Off? It Would possibly Be the Greatest Time to Change into a Freelan…

Layoffs are not often nearly shedding a paycheck. They will really feel like a lack of identification, routine and stability, and for a lot of professionals, they set off a interval of shock, grief and even anger.

However right here’s the opposite aspect of the story: Layoffs have additionally develop into one of many largest gateways into freelancing. What seems like a profession setback typically turns into a chance to construct a extra versatile, self-directed path.

I do know this firsthand. Once I was immediately laid off, I felt blindsided. However that have pushed me to attempt freelancing, and 13 years later, it’s develop into the inspiration of a enterprise I by no means may have imagined on the time. Actually, once I was laid off once more in 2024, this time from a high-paying distant position, I turned again to freelancing full-time and scaled my enterprise again up.

Whereas it’s actually true that freelancing carries its personal stability dangers, the expertise of shedding my supply of earnings in 2024 taught me that I’d moderately be accountable for creating my very own paycheck. It took me seven months to rebuild my enterprise after that layoff and in lots of circumstances, I kicked myself all through that for “trusting” that full-time position.

So why do layoffs so typically result in freelancing? And what can professionals do to make the transition sustainable?

Associated: Why a 260% Bounce in Freelance Hiring Indicators Altering Occasions in North America

The rise of the “layoff entrepreneur”

The numbers inform the story. Up to now 5 years, U.S. corporations, notably in tech and startups, have carried out a number of rounds of mass layoffs. On the identical time, the freelance workforce has surged, now making up over a 3rd of the American workforce. Whereas tech clearly has plenty of pathways into freelancing, it’s not the one sector from which individuals could make a pivot into freelance work.

That’s not a coincidence. When persons are laid off, freelancing is commonly essentially the most accessible subsequent step. It doesn’t require ready months for job functions, interviews, and rejections. As a substitute, it means that you can instantly monetize the talents you have already got.

And whereas many begin freelancing as a stopgap, a rising quantity discover it presents extra earnings safety than a conventional job. In any case, if you happen to lose one shopper, you don’t lose your complete earnings stream, which is a serious psychological shift after the expertise of being laid off.

The emotional pivot: From shock to possession

Layoffs are emotional. On-line communities like Reddit are full of tales of execs who describe feeling embarrassed, misplaced or indignant after being let go. Many additionally point out how troublesome it’s to navigate unemployment advantages or re-enter the job market. Actually, 73% of execs say layoffs have made freelance work extra interesting, whereas 64% have misplaced belief in conventional full-time roles, in keeping with A.Staff’s 2024 survey.

However right here’s the turning level: freelancing means that you can regain a way of company. As a substitute of ready for another person’s HR division to determine your future, you get to decide on who you’re employed with, what tasks you tackle and the way you construction your day.

That shift from “one thing was completed to me” to “I get to determine” is among the strongest mindset adjustments freelancers expertise after a layoff.

Associated: How Laid-Off Company Staff Are Turning into Free-Pondering Entrepreneurs

Why freelancing works after a layoff

Freelancing isn’t only a backup plan. It truly suits the second in three key methods:

1. Velocity. You can begin instantly by reaching out to your community, establishing a profile or pitching tasks.
2. Flexibility. In contrast to a conventional job search, freelancing helps you to check completely different industries, venture varieties and shoppers till you discover what clicks.
3. Talent alignment. Layoffs typically occur for monetary causes, not due to efficiency. Freelancing helps you to proceed utilizing the talents you’ve constructed — whereas proving your worth instantly available in the market.

Frequent challenges new freelancers face

After all, freelancing isn’t a magic cure-all. New freelancers typically hit roadblocks corresponding to:

• Unclear positioning. They wrestle to elucidate what they do and who they assist.
• Underpricing. Out of concern of rejection, they tackle low-paying work.
• Isolation. After years of a gradual office routine, working alone can really feel destabilizing.
• Enterprise fundamentals. From taxes to contracts, freelancers immediately put on all of the hats.

These challenges are actual, however they’re additionally solvable. The secret is to deal with freelancing as a enterprise from day one, not only a non permanent hustle.

Methods to flip a layoff into a contract profession

If you happen to’ve not too long ago been laid off and are contemplating freelancing, right here’s a framework to get began:

1. Take inventory of your abilities. Record out the tasks, instruments and strengths you utilized in your final position. These are your first freelance providers.
2. Outline your supply. Create a transparent, particular method to bundle your abilities. For instance: “I assist startups streamline their HR processes with higher onboarding documentation.”
3. Leverage your community. Ship private notes to former colleagues, managers or shoppers. Allow them to know you’re obtainable for project-based work.
4. Begin small, construct techniques. Tackle preliminary tasks, however use them to create templates, contracts and processes that make future work simpler.
5. Steadiness earnings and exploration. Use early freelancing to generate earnings, but additionally experiment with what forms of tasks you take pleasure in most.

Associated: There’s a Main Shift Occurring With Unbiased Staff — and Enterprise House owners Who Ignore It Are at Danger

From laid off to lift-off

I typically inform freelancers this: The scariest second can develop into essentially the most liberating.

A layoff is a shock, sure. However it’s additionally a reset button. It forces you to ask: What do I actually need from my work? How can I design a profession that protects me from this type of instability sooner or later?

For me, freelancing wasn’t only a method to substitute my paycheck. It turned a method to construct a profession with flexibility, autonomy and resilience. And for a lot of professionals dealing with layoffs at the moment, freelancing presents the identical alternative. What begins as a setback can develop into the beginning of one thing much more sustainable.

Ultimate phrase: If you happen to’ve been laid off, freelancing might really feel like a leap into the unknown. However it’s additionally an opportunity to show your abilities into your security web, and possibly even into the enterprise you had been meant to construct.

Layoffs are not often nearly shedding a paycheck. They will really feel like a lack of identification, routine and stability, and for a lot of professionals, they set off a interval of shock, grief and even anger.

However right here’s the opposite aspect of the story: Layoffs have additionally develop into one of many largest gateways into freelancing. What seems like a profession setback typically turns into a chance to construct a extra versatile, self-directed path.

I do know this firsthand. Once I was immediately laid off, I felt blindsided. However that have pushed me to attempt freelancing, and 13 years later, it’s develop into the inspiration of a enterprise I by no means may have imagined on the time. Actually, once I was laid off once more in 2024, this time from a high-paying distant position, I turned again to freelancing full-time and scaled my enterprise again up.