The Gig Work Bridge—Building Income Between Jobs
If you’ve built up some financial runway (see Part 1) and started working your network (see Part 2), you have options. For some people, a layoff turns out to be the push they needed to try something different.
The gig work path—consulting, freelancing, contract work—is increasingly viable. But it’s not for everyone, and how you approach it matters.
Three types of people (know which one you are)
I see three types of people who take on gig work after a layoff. The approach that works depends entirely on which type you are.
Type 1: trying it out to see if you could make a life of it. If this is you, you need to give it a real shot. That might mean taking on a longer contract than feels comfortable—six months or a year—so you have a genuine opportunity to see if this works. You’re not dabbling. You’re testing a potential new path.
Type 2: just doing it until you find a full-time job. If this is you, keep your commitments short. Only take on gigs you know you can complete before you might need to start a new job. Don’t overcommit your time—you need hours available for your job search. And whatever you do, don’t take a six-month contract and then leave after two weeks when a job offer comes in. Nothing burns bridges faster.
Type 3: not sure which one you are. This is the hardest position. People in this category tend to stumble into the work half-heartedly. Since they’re half in and half out, they don’t get traction in either direction—not in their job search, and not in making gig work sustainable. I’ve never seen this end well.
Be honest with yourself about which type you are. It will determine everything about how you approach this.
What gig work actually looks like
This isn’t just “consulting” in the McKinsey sense. It’s any way of monetizing your skills on a project or part-time basis:
Project-based consulting: a company needs something done—a system implemented, a strategy developed, a problem solved—and hires you to do it.
Fractional roles: you work part-time for one or more companies as a fractional CFO, CMO, COO, and so on.
Freelance services: editing, design, writing, bookkeeping, marketing—whatever your skill set.
Contract work: filling a specific role on a temporary basis.
Advisory or board work: advising companies in your area of expertise for a monthly retainer.
The key is that you’re selling expertise and outcomes, not just hours.
How to get started
Start with your network. Your first clients will almost certainly come from people you already know. Reach out to former colleagues, bosses, vendors, clients. Let them know what you’re doing and what kinds of problems you can solve.
Be specific about what you offer. “I do consulting” is vague. “I help mid-size companies implement their CRM system” is clear. “I edit academic manuscripts for publication” is actionable.
Start before you’re ready. You don’t need a website, business cards, or an LLC to take your first project. You can formalize later.
Set a rate and be willing to negotiate. A common starting point: take your previous hourly rate and add 30-50% to account for taxes, benefits, unpaid admin time, and gaps between projects. But early on, you may take less to build relationships.
The boring basics (don’t skip)
Set aside 25–35% of every payment for taxes. Make quarterly estimated payments if your income is significant. Track income and expenses from day one. Get a simple contract template that covers scope, timeline, and payment terms.
None of this requires perfection—just consistency. The people who get in trouble are the ones who spend everything and then owe $15,000 in April.
My own path
I was working for a boutique consultancy during the Great Recession. The firm was getting pounded, and I was trying to figure out how to get ahead of a potential layoff or the company folding.
I started asking people what value I produced. One person—who I found to be very wise even before they said this—told me the problem wasn’t the recession or anything else. The problem was that I had grown into my own style of consulting and needed to pursue it.
My wife Karen and I had always tried to live a life where we could survive on one income if we had to—so we’d never be extraordinarily stressed if one of us lost a job. We decided to give it a year to see how I did on my own.
The rest is history. Seventeen years later, I love consulting and working from home. It’s not for everybody. But I also think there are certain people it totally fits—and a layoff can be the silver lining that gives you the chance to try it out, when it might be much harder to try while you’re working full-time.
If you try it, protect the option
One more thing: if gig work starts to become real recurring income, consider forming an LLC. (See our earlier post on what an LLC actually is and when you need one.)
Even if you eventually go back to a W-2 job, having a small business structure in place gives you options. You can take on occasional projects on the side. You can build something slowly. You can test whether this path might work for you long-term without betting everything on it.
The layoff gave you the push. The gig work gave you the experience. The company structure gives you the option to do it again whenever you want.
The bottom line
A layoff can feel like losing your identity. But it can also be the beginning of something different—if you’re open to it.
Not everyone should become a consultant or freelancer. But if you have expertise, a network, and some financial runway, it’s worth considering. Know which type of person you are. Approach it accordingly. And if it works, you might find you don’t want to go back.
You might also like:
Parts 1 & 2 of this layoff series
“Why Everyone Should Have a Side Business” — the case for having one
“What Is an LLC, Really?” — when you need one
“SEP-IRA” — retirement savings for the self-employed