The unemployment rate currently stands at about 8.5 percent, with 13 million people unemployed. Nationwide, there are only about 3 million new jobs available. That is an average of more than four applicants for every job opening—twice as many applicants per job opening than when the recession began in December 2007, according to the U.S. Department of Labor.
Clearly there have been recent signs of improvement in the economy and some states, like Texas, have not been hit as hard as others. Nevertheless, with the current high unemployment rate, you may want to consider contract work, freelancing, and consulting—at least until you can find a more permanent position. Consulting, contract work, and freelancing are especially popular among professionals who can work out of their homes, requiring modest start-up money. They can sometimes acquire former employers as their new clients. Some see it as an opportunity to become their own bosses.
Here are some tips if you are thinking about exploring contract work, consulting, or freelancing arrangements:
- Reach out to those who know your work best, and inform them about your new self-employment enterprise. Prime targets would include your former employers, particularly your most recent company, and networking contacts.
- Try to specialize in a few subject areas. Choose subjects that you know best and can successfully compete for business in.
- Assemble a portfolio showcasing your talents and experience. Customize the portfolio to highlight your relevant experience within the same industry and/or with the same type of company as each business prospect you contact.
- Price yourself competitively. Find out what the prevailing hourly or project rate is in your area for your type of work. Choose an hourly rate or project cost that will enable you to be profitable. But you also want to ensure that you get in the door and start doing business with your target. If your industry reputation and personal brand are strong you will be able to charge more.
- Before spending money on advertising or direct marketing, use social networking websites such as LinkedIn, Facebook, Twitter, and others to announce your new venture. Also spread the word via e-mails and text messages to your networking contacts, former colleagues, friends, and family.
- Volunteer your services to a nonprofit, civic, or religious group to make business contacts and promote your enterprise.
- Build a website that will give you an Internet presence. Don't expect to initially get much business from the Internet, but refer potential clients to your website for more information about what you do.
- Closely investigate and comply with all applicable local, state, and federal permit, license, and tax rules and laws. Hire legal and accounting professionals to ensure compliance with these if needed.
- Consider taking a part-time job during non-business hours, if necessary, until your self-employment arrangement is generating sufficient income.
