How to Make Money After Layoff: 4 Side Hustle Strategies That Actually Work

 Watch my AM Northwest segment on this topic at the end of the article for a quick summary.

The layoff wave continues to surge through 2025. According to recent data, over 77,000 tech workers have already been laid off this year across 332 companies, that's nearly 500 people per day. Major corporations like Microsoft (6,000 employees), Disney, and countless startups are cutting staff at unprecedented rates. If you've found yourself caught in this tide, you're not alone, but more importantly, you have options.

Before you panic or accept the first offer that comes your way, consider this: the freelance economy has grown to $556.7 billion globally, with 64 million Americans now participating in some form of independent work. That's 38% of the U.S. workforce, contributing $1.27 trillion to the economy annually. The gig economy isn't just a stopgap; it's a legitimate career path that's expected to encompass over 50% of the U.S. workforce by 2027.

Here's what I tell my clients who are facing this situation: this isn't just about surviving until your next job, it's about taking control of your financial destiny. I've watched too many brilliant professionals panic and take the first offer that comes their way, often at a significant pay cut, simply because they didn't realize they had other options. The truth is, some of my most successful clients discovered their highest earning potential not in traditional employment, but in creating their own income streams.

A strategic side hustle can keep cash flowing and your confidence high while you search for the right role. Here's your four-step roadmap to creating your own safety net.

1. Do a 10-Minute "Skill Sweep"

Before diving into the freelance marketplace, you need to identify what marketable skills you bring to the table. Research shows that 61% of successful freelancers use two to three skills in their weekly work, while 34% leverage more than three. The key is identifying skills that solve urgent problems.

I call this exercise the genius zone audit because most people severely underestimate what they're truly good at. When I work with clients on this, I always ask them: 'What do colleagues, friends, or family members constantly come to you for help with?' That's your first clue. The things that come naturally to you, so naturally that you don't even think they're valuable, are often exactly what others will pay premium prices for.

Action Steps:

• Write down your most marketable skills. Include technical abilities (coding, design, writing, planning, organizing) and soft skills (mediation, communication, problem-solving).
• List three things people always ask you for help with. These informal requests often reveal your most valuable—and marketable—talents.
• Circle the one that solves an urgent pain/problem. Focus on skills that save people time and money or help them out of a mess. These command premium rates.

The data backs this approach: freelancers in specialized, problem-solving roles earn significantly more. Web developers average $28-70 per hour, while those in finance and business operations can command even higher rates. In fact, 4.7 million independent workers in the U.S. now earn over $100,000 annually, a 57% increase from 3 million in 2020.

2. Craft a Flat Fee Summer Project Offer for a Small Business Owner

Small business owners are your sweet spot. Research indicates that 70% of SMBs in the U.S. have worked with freelancers at least once, with 81% planning to hire freelancers again. Even better? 83% agree that freelancers have greatly helped their business. After layoffs, 69% of employers hired freelancers to fill gaps.

I learned this strategy the hard way early in my career. I was undercharging and overdelivering because I was thinking like an employee, not a business owner. The game-changer was when I started packaging my expertise into specific, outcome-focused projects. For example, instead of saying I'll help with your operations, you can say I'll save you 10 hours a week and reduce your overhead by 15%. You'll find that business owners won't question your rates; they'll ask when you can start.

Small businesses, in particular, need support because they often can't afford full-time help. By packaging your expertise into a fixed-scope, flat-fee project, you remove the risk and make it easy for them to say yes.

Sample Offers:

If you're an operations pro: Create a "Back-Office Clean-Up Special" where you'll install software to organize files, automate invoices, and set up a task board for a flat fee of $2,500-5,000. Promise specific deliverables: "In 30 days, I'll reduce your admin time by 10 hours per week."

If you're a graphic designer: Bundle a "15-Post Social Media Refresh" with new templates, updated brand colors, and a style guide for $1,500-3,000. The average small business spends 6-10 hours per week on social media—you're giving them their time back.

If you're in marketing: Offer a "Quick-Win Marketing Audit" that identifies three revenue opportunities they're missing, complete with an implementation roadmap, for $1,000-2,000.

The key is specificity. Vague offers like "I do consulting" won't cut it. Define the scope, timeline, and outcome clearly.

Here's the key insight most people miss: small business owners don't buy hours, they buy results. When you can clearly articulate the transformation you'll deliver, price becomes secondary. I've seen clients double and triple their hourly rate simply by shifting from time-based to outcome-based pricing.

3. Hang Out Your Own Shingle

Let me be straight with you, launching your own business isn't for everyone, but it might be exactly what you need right now. I've had clients tell me that getting laid off was the best thing that ever happened to them because it forced them to bet on themselves. But the thing that separates those who succeed from those who struggle is that they don't just hang out a shingle and hope for the best; they do their homework first. And the numbers are encouraging. 85% of freelancers believe the best days are ahead for freelancing, and 65% of independent workers feel more secure than traditional employees because they have multiple income streams.

Service businesses are easiest to launch because there's often no inventory, minimal startup costs, and you can begin immediately. But don't jump in blindly.

Launch Strategy:

• Spend 3-5 days doing market research. Scan online forums, LinkedIn groups, and local business networks for recurring problems. Look for phrases like "Our books are a mess," "We need help with customer service," or "Our website isn't converting."
• Align market needs with your strongest skill. If you see multiple businesses struggling with email marketing and you're a copywriter, that's your niche.
• Activate warm contacts. Email former colleagues, friends, and LinkedIn connections with a simple message: "I'm launching [specific service] this summer to help [target audience] with [specific problem]. Referrals welcome." Research shows most freelancers (over 70%) find their first clients through existing networks.

Here's a pro tip: 90% of freelancers say clients want professionals with specialized skills. 

I tell my entrepreneurial clients that your network is your net worth, but only if you activate it strategically. Don't just announce that you're available for consulting. Be specific about who you help and what problem you solve. When people know precisely what you do, they can refer you confidently. Don't be a generalist. Pick a lane and own it.

4. Volunteer or Become an "Adult Intern" if Money Isn't Critical

Sometimes the best investment is strategic positioning. If you have a financial cushion (emergency fund, severance package, or spouse's income), consider volunteering or interning at a company where you'd love to work. This approach is efficient because relationships drive hiring. It's not just what you know, but who knows what you can do.

I know what you're thinking, Work for free? After I just got laid off? But hear me out. This strategy is about playing the long game, and it only works if you approach it strategically. I've seen this approach open doors that would have stayed locked for years otherwise. The key is choosing the right opportunity and negotiating a clear value exchange from day one.

Strategic Volunteering Framework:

• Pick a stretch company you'd love to join—one that would generally be out of reach.
• Offer 5-10 hours per week for specific projects, such as data clean-up, event planning, operations support, and content creation.
• Negotiate clear learning goals and résumé credit. Get it in writing so that you can list this experience and get a LinkedIn recommendation.
• Deliver exceptional value. When a position opens up, you'll be the insider candidate they already know and trust.

This strategy works because it reduces hiring risk. Companies spend an average of $4,000 to $15,000 to hire and onboard new employees. You become the obvious choice when they already know your work quality and cultural fit.

I had a client who used this exact approach after getting laid off from a Fortune 500 company. She volunteered 8 hours a week at a startup she'd been admiring for two years. Six months later, they offered her a role at 40% more than her previous salary. The difference? They already knew her work quality and cultural fit. She wasn't just another résumé in a pile; she had become family.

The Mindset Shift That Changes Everything

Here's what I want you to understand about this moment in your career. Getting laid off doesn't diminish your value; it just changes how you package and deliver it. I've worked with executives making six figures who were terrified to charge $50 an hour as a freelancer. Why? Because they were still thinking like employees instead of business owners.

The moment you start thinking about how to solve problems and create value, rather than how to find someone to hire me, everything changes. You stop being at the mercy of someone else's budget decisions and start building your own economic engine.

The Reality Check: Challenges and Solutions

I'm not going to sugarcoat this. Freelancing isn't all flexibility and freedom. It can come with real challenges, and anyone who tells you otherwise is selling you something. But here's what I've learned from coaching hundreds of professionals through career transitions: the biggest obstacle isn't usually the practical stuff like irregular income or finding clients. It's the mental shift from employee to business owner.

But with proper planning, these obstacles are manageable:

• Payment protection: Always use contracts, require 25-50% upfront, and consider platforms like Upwork that offer payment protection.
• Income stability: Aim for 3-5 recurring clients rather than one-off projects. Diversify across industries to protect against sector-specific downturns.
• Benefits gap: Factor in health insurance, retirement savings, and taxes (set aside 25-30% of earnings). Join professional associations for group insurance options.

Your Next 48 Hours

The best time to start was yesterday. The second-best time is now. In the next 48 hours:

1. Complete your skill sweep (10 minutes)
2. Research 10 small businesses in your network or local area (2 hours)
3. Draft one specific flat-fee offer (1 hour)
4. Send five emails to warm contacts announcing your availability (30 minutes)

Remember: 86% of freelancers work from home, 77% report better work-life balance, and 60% who left traditional jobs now earn more than they did before. The freelance economy isn't just surviving—it's thriving.

Being laid off doesn't mean being powerless; it means being liberated to think differently about your career. Some of my most successful clients look back on their layoff as the moment everything changed for the better. They discovered they could earn more, have more control, and create the professional life they actually wanted, not just the one they thought they were supposed to want.

The safety net isn't something that happens to you, it's something you create for yourself. And the best part? Once you build it, no one can ever take it away from you.

 Watch the TV segment on this topic on AM Northwest below: