There are a number of indications that the economy is slowly picking up. In addition to a minor uptick in spending, jobless claims have fallen to 17-month low and CNN reports that “more than half (54%) of companies that froze salaries in 2009 are planning a thaw over the next few months.”

These stats may be just a ray of light for job seekers, but they’re excellent news for solo PR pros. It’s a known fact that hiring lags a recovery. So, what happens to that resource-strapped director of marketing who just got the go-ahead for a pet PR project, but hasn’t been given the green light to re-hire for the positions left vacant by laid off employees? They hire a consultant to help with the workload.

The upswing for PR consulting is upon us. And with each down cycle of the economy, more people have positive experiences with consultants, which result in more opportunities long-term. 2010 is the year we show our worth – let’s go get ‘em!

Are you seeing any signs of the upswing? How are you making the most of the current environment?

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But I don’t advocate everyone take the leap willy nilly. The truth is there are times when a look before you leap strategy might serve you best. As noted in that earlier post, this doesn’t mean you can’t be successful or go out on your own during this phase in the economy. You can! It’s just that different times call for different measures.

We’ve talked about the exciting consulting opportunities available for those who’ve experienced a layoff, but what about someone who is currently employed?

I recently asked the Twitter community, “Independent PR pros: what would you say to someone considering leaving a job right now to become a PR freelancer?”, and some of my wise and witty friends weighed in:

rachelakay @KellyeCrane From my short term as a freelancer – have a $ cushion. You cannot predict anything.

techpr @KellyeCrane I’d say (from experience) plan a multi-stage ramp-up before jumping. Then go!

JMLaw @KellyeCrane Have a client lined up. Good advice anytime, but especially now when the market is even more uneven than usual.

LScribner @KellyeCrane Lots of opps out there for consultants. Recommend getting out, make connections and using PR skills to market yourself.

rachelakay @KellyeCrane Oh also have a logo created. You can’t have anything else – cards, Web site, anything w//out it. First thing I did.

GreggPerry @KellyeCrane there is work to be done, and those who can offer senior-level experience and value have a leg up. That said, scary to let go.

DannyBrown @KellyeCrane Stay friends with your co. (they may contract u in future); have money for 6 mths without pay; network network network!!

rockstarjen @KellyeCrane let people know you’re making the leap as early as you can. you’ll want those referrals BEFORE you’re looking for them.

PRjeff @KellyeCrane Depends on the job. Employment doesn’t mean job security. It’s great to be in control of your own destiny.

zakmo @KellyeCrane be aggressive.

DannyBrown @KellyeCrane And have a rack full of wine for the doubting times

What do you think? If you’re one of those thinking about becoming a consultant, what are your thoughts on the matter (feel free to comment anonymously). If you’re a freelancer, how would you advise a friend considering this career path right now?

The video isn’t just funny, it’s an excellent illustration of how absurd these requests really are. If a client tries to work you over, stick to your guns! The value you’re providing to them remains the same — recession or no.

“We must be willing to get rid of the life we’ve planned, so as to have the life that is waiting for us”

– Joseph Campbell

The first time many people consider PR freelancing or consulting is the day they learn their job is no longer. If you’ve recently been laid off, or are concerned you might be, the time to think about working as a PR consultant is now.

This may be temporary while you simultaneously seek full-time employment, or you may find you love it so much you permanently join our ranks! As a newly-free friend recently told me, “I think we’re ALL gonna do a little consulting in the new economy.”

But where to begin? If you’re facing involuntary independent status, your head is likely reeling a bit, and that’s to be expected. Beyond the traditional job-seeking advice, here are a few consulting-related items to consider in the near-term:

• If you’re still technically employed, plan to take copies of any information your company policy allows, in particular those related to your network of contacts (including business cards and emails) and work samples. If possible, retrieve any personal information you may have on your company blackberry, laptop, etc. You’ll need that information to help secure your new consulting contracts.

• Don’t be ashamed of your status. Some of the industry’s foremost leaders and thinkers have announced publicly that their positions were eliminated in recent months. In this economy, there is no stigma against those that have been laid off, and there’s no need to apologize (even implicitly) as you network. Try to quell those demons. “Our doubts are traitors, And make us lose the good we oft might win, By fearing to attempt.” – Shakespeare

• Consider your health insurance options. If you’re married, take a look at the plans available through your spouse’s employer. If the selection is undesirable or you’re unmarried, you can usually obtain insurance coverage through your employer’s COBRA plan.   This will likely seem expensive, but it is worth doing near-term while you investigate your options further. It’s important to make sure your health insurance doesn’t lapse, since that can make it more difficult to get coverage later and subjects you to the whims of the insurance industry (e.g., pre-existing condition loopholes, application technicalities, etc. – ugh!).

• Don’t worry about a business structure, name, or any of those things that might feel overwhelming at the moment. You can do independent PR consulting under your own name, and as a “sole proprietor,” with no up-front paperwork required. When tax time comes, you’ll just use the Schedule C form to report your income and expenses.

• Speaking of expenses, start keeping track of them immediately. As you may know, you can deduct some of your job hunt expenses, but you can also deduct expenses if you do any kind of consulting. Just grab a folder and start stashing your receipts for anything professional, such as networking lunches, association dues, and meeting attendance fees. If you meet a colleague at their offices and you have to pay to park, that receipt goes in the folder. Buy some legal pads to write out your consulting ideas? Receipt in the folder! You get the idea… you’ll be surprised how quickly it adds up.

• And then there’s the big question: fees. If you worked with freelance PR pros in your previous position, you probably have an idea of what PR consultants are charging in your area. If not, an excellent resource is the annual Writer’s Market publication. In addition to being available for purchase, it’s also typically found in the Resources section of your local library. Though written primarily for freelance writers, Writer’s Market includes a “How Much Should I Charge” section that offers some guidance on hourly fees for PR activities. Keep in mind that the rates for freelance writers are often lower than those for experienced PR professionals.

• When it comes to setting consulting fees, the biggest newbie mistake is failing to consider the extra financial responsibilities you have as an independent. In particular, a full 15.3% of your income will go to the self-employed version of FICA (versus half of that — 7.65% — when you’re an employee). That’s in addition to your tax rate. Add it up, and you can easily find 40% or more of your pay going to Uncle Sam. Now before you go slamming your fist on your desk cursing the IRS, just remember it’s nothing to get upset about if you plan ahead and take this into account when setting your fees.

• Another mistake is forgetting that you now will be responsible for a variety of non-billable work (sending invoices, new business plans, etc.) related to maintaining your business.  You might have a billing rate in mind, but when you consider these factors you may find you should be billing considerably more than that. It will of course depend on your skills and experience — just be sure not to short-change yourself!  In many ways, the market will perceive your level of expertise based on your fee level.

This is just a quick-hit list of initial considerations.  It’s my hope that regardless of what direction you end up heading long-term, the result will be an even more satisfying career that brings you fulfillment and enriches your life.

Are you considering PR consulting, or have you recently “hung out your shingle” as a freelancer?  What issues are you finding most challenging? Veteran solo PR pros – what advice do you have for those just getting started?

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Whether you call it PR 2.0, New PR, or some other catchy moniker, it’s clear that public relations is moving into a new age. As we’ve noted, Modern PR means evolving, adapting and embracing new challenges. At the forefront of this evolution is PR’s incorporation of a more conversational approach to communications, made possible – and necessary – by social media.

Though it’s a common mistake in PR today, we should not look at social media as simply a new set of tools. It’s not just an emerging channel for pushing your same old messages, or a new medium to exploit with “viral marketing” campaigns. In fact, thinking in terms of “social media campaigns” misses the point entirely. Social media ushers in the era of two-way communications , and we must respond by entering the next wave of PR practice.

In essence, the next wave of PR is just the latest evolution in doing what PR has always done:  communicate, using the best methods at our disposal. As our focus moves away from one overly dominated by media relations, we now must look at employing all the methods available for communicating with the people who make up our publics. We must no longer think in terms of “hits,” audiences, and eyeballs, but instead create and participate in conversations and community.

But let’s be clear: the days of PR exerting at least some control over all of the public expressions regarding a company are over. Finito. Someone play Taps. Today, no one “owns” the message – an organization’s positioning is created organically as the result of its actions and the conversation around it. For example, if a company is saying things that clearly differ from reality, the crowd will set it straight. The people formerly known as the audience are no longer passive, and the time to recognize the affect on PR is now.

Such a shifting of the sands can feel very frightening and discombobulating to PR professionals, especially those of us who came along at a time when “control the message” was a mantra. But rather than fear the change, we should see that the next wave of PR actually presents unique opportunities for us and the organizations we represent.

The Next Wave and the Solo PR Pro
In the same way that one shouldn’t dabble in media relations, neither should you pretend to be social media savvy if you’re not. If you’re just getting started, the key is to start by listening. Join and participate in social media networks as an individual, long before you start interacting on behalf of clients.

The good news is that as consultants, we are already well-versed at being chameleon-like. Listening first, so we can fit into a new culture, is second nature to those of us who work in varied industries with a number of different organizations. Staying abreast of the latest theories from thought leaders by reading blogs and participating in conversations is critical as we all continue to learn and expand our understanding of what it means to do PR today.

The potential rewards for this effort are vast. Not only is PR as a whole changing, but confused organizations are hungry for savvy communications assistance, and who better to shepherd organizations into this unfamiliar communications territory than PR? And with in-house PR teams increasingly lean and strapped for time, who better to serve this role than an independent practitioner?

As outside consultants, we offer an excellent alternative for organizations currently locked in political battles over who should handle these initiatives. We’re also blissfully free of the social media site bans that large IT departments often put in place. Invest the time needed to become educated about the next wave, and then you can step up and take your rightful place as a PR consultant who leads rather than follows.

Obviously, the evolving PR landscape is an area we’ll continue to explore on this blog moving forward. What do you think? Are you seeing more consulting opportunities as a result of the changes? Are your clients thinking about these issues, or are they still in avoidance mode?

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More from the Modern PR series:

• Modern PR Series: What You Need to Know About Public Relations Today
• Modern PR: New Incentives to Behave Professionally
• Modern PR Pros and the Breaking News Dilemma
• Modern PR: The Media’s Changing with You or Without You
• Modern PR: The Next Wave (this post)

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