Watch For Falling Rocks: The New Freelance Economy

Last weekend I was roadtripping through Arizona on my way to a business conference focused on human capital and the emerging new freelance economy.

As I drove through one particularly gnarly stretch of the journey -- the switchbacks from Flagstaff down into Sedona -- a road sign caught my eye:

WATCH FOR FALLING ROCKS

I am not sure who the government employee was who came up with this gem, or why this sign continues to be posted around the country on our nation's highway system, but as I continued to make my way down the road through this corridor of impending doom, I reflected on this not-very-helpful advice.

After all . . . if a rock is going to come crashing through my windshield, watching out for it won't do me much good at all. In fact there's not a lot any of us can do if the universe decides to drop boulders on our heads.

In a way, it's not so different from the business advice that freelancers and independent contractors are often dealt as they first explore the idea of becoming a consultant.

An Economic Era of Falling Rocks

We are in a new economic era of falling rocks. I can try to dispense the secrets of consulting success, but if a rock falls on your head, all the freelance tips in the world aren't going to help you out much.

Perhaps some of the consulting and freelancing equivalents to this road sign might be:

• Watch out for clients who don't pay.
• Watch out for a sudden illness that leaves you unable to work.
• Watch out for your skill set suddenly becoming obsolete or commoditized.
• Watch out for those times when you cannot find work or consulting contracts.
• Watch out for when someone steals your intellectual property.

So uh . . . did that help? Now, at least, you can't say you weren't warned if any of these things happen to you. But I doubt those caveats are in any way actionable.

How Does This Apply To My Consulting Business?

Signs notwithstanding, there are some ways that a heightened awareness of danger can help us become more resilient -- in business as well as in life.

• I can't watch for the rocks falling above me, but I can watch for boulders in the road ahead of me.
• I can slow down and ensure I have optimal control of my vehicle.
• I can turn off the radio for a bit so my focus is not distracted.
• I can wear my seatbelt so that my risk of injury is reduced.
• And I can make sure that both my car and my own physical health are fully insured in case the worst should occur.

Rocks Fall

The takeaway for you in your freelance business is that you can't prevent rocks from falling.

But there are things you can do:

1. Keep a close eye on your freelance invoicing and receivables. Invoice early and often, and learn the best practices for professional collections or outsource billing and collections to protect your cashflow.

2. Write careful consulting contracts to protect your intellectual property wherever possible and ensure you don't get screwed by business partners or would be clients.

3. Make sure you are adequately insured, because rocks fall. This needs to include real health care, disability insurance that protects your income in case you're rendered unable to work for a while, and business insurance that shields you from General Liability and Professional Liability (E&O insurance).

4. Keep your professional skills on the bleeding edge, and make sure you're aware of the evolution of your industry. Things are changing faster now, and skills can drop in value quickly. Bolster up your value by focusing on not just skills but also strategy, and how you can bring value to clients and solve their business problems.

5. Don't get distracted. Keep your eye on the road and make sure you pay attention to your business. A passive approach to running a consulting firm may seem zen and can work for a long time. But there may be boulders on the road just after the next bend in the road, and if you're distracted you'll be less able to avoid trouble.

Have you had rocks fall on your head in this economy? Leave a comment and tell us about it.

Share This: