Sunday, February 23, 2003

'Free Agents' Find Too Much Free Time
It's difficult to gauge how many people are independent contractors, but the Bureau of Labor Statistics estimates that about 6.5 million Americans were self-employed when the economy peaked in 2000; the current total, it says, is about 6.2 million. With the economy now weak, many free agents are trying to find their way through a nebulous zone that isn't quite unemployment, but is still nowhere near the full-time business they once had.

Projects have become smaller and less frequent than they were two years ago, said Robert Steir, the founder of MBA GlobalNet in New York, a network of management consultants who bid jointly on projects.

At Dice.com, which lists freelance assignments for technology professionals, contract job listings fell 14 percent in 2002, after declining 28 percent in 2001, said Thomas Silver, a senior vice president.

According to the Labor Department, the number of self-employed people working full time, or at least 35 hours a week, declined 5 percent in 2002 from 2000, while the level of self-employed people working part time rose 9 percent.

"It's similar to being on unemployment," said Dr. Jo Ann Brusa, a counselor and psychologist at Oak Consulting, a human resources consulting company in Lisle, Ill. "You're dealing with loss in your business and anger and possibly depression."

There are ways to get through this down cycle, which some career experts and consultants expect to continue through this year. But solo professionals also need to be at least a little creative when it comes to marketing themselves and networking for leads.

The biggest challenge is financial. Free agents don't have unemployment checks or severance pay to fall back on when work stops for a few months.

Some independent consultants have had to take other jobs outside their fields to carry them until business picks up. Todd Smith, 32, a consultant in Jacksonville, Fla., who helps small companies develop and execute business plans, hit a 10-month dry spell in 2002. Only two years out of graduate business programs at the University of California at Los Angeles and Thunderbird, a graduate school of international management in Glendale, Ariz., and still carrying big student loans, he had no time to build a financial cushion.

Fortunately, he had a real estate license, received in 1995. He put it to work recently for the first time, helping clients buy and sell property in the Jacksonville area and investing in houses with partners who could provide most of the cash.

The plan was to fix up the properties for rent or resale. But with no money to hire contractors and with plenty of extra time, Mr. Smith said he "spent most of 2002 building decks and walls, drywalling, tiling, carpeting and painting."

He periodically checked in with U.C.L.A., MBA GlobalNet or freelance Web sites like Guru.com for new work leads. In the meantime, income from the rentals and one or two quick sales helped make ends meet.

…One of the hardest things about being underemployed, or unemployed, is figuring out how to be productive while also staying optimistic about marketing your talents. That's why some free agents have decided that when they cannot sell their skills, it may be worthwhile to give them away.

Volunteer work also lets professionals meet people in their fields or related sectors, which can lead to paying work.

"People I've met through volunteer gigs have approached me about contract opportunities," Ms. Mullens said.

Julian E. Lange, an associate professor of entrepreneurial studies at Babson College in Wellesley, Mass. and a private consultant himself, agreed that people who work alone need to make extra effort to look outward when business slows.
http://www.nytimes.com/2003/02/23/business/yourmoney/23FREE.html?pagewanted=all&position=top

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