What to do when things are going worse than expected

1. Clearly identify the situation

First of all, take stock

Pause briefly and establish: What is the current status? You should accept when you have an economic problem — that doesn't mean giving up, but starting the real work. Uncertainty arises here, as it usually does elsewhere, from lack of clarity and not solely from poor numbers.

Studies show: Entrepreneurs who conduct a structured situation assessment early make better decisions under pressure ^[1].

How to do it:

• Note down income from the last 3 months.
• Write down fixed costs, variable costs and private living expenses.
• Realistically estimate how long you can bridge with the current situation (liquidity reserve).

2. Secure liquidity

Low liquidity → high pressure. More liquidity → room to maneuver.

In a phase with declining income, securing your ability to pay is the most important lever – before you think about future ideas. Almost all crisis guides for freelancers and SMEs place this focus first ^[1].

Practical levers:

• Create a simple cash flow overview (inflows vs. outflows)
• Postpone non-essential expenses
• If necessary, adjust advance tax payments (Steuervorauszahlungen) → Vorauszahlungen anpassen
• Set priorities: wages, rent, insurance first

3. Review costs

Cutting costs must not mean cutting to the bone.

Not every expense needs to be eliminated. Decide with a view to the impact and duration of expenses. In a crisis, it can make sense to reduce your fixed costs before you block variable services.

Prioritization checklist:

• Essential: Things that secure your existence
• Can be paused: Temporary cuts without permanent damage
• Superfluous: Things that currently make no direct contribution to your business

4. Stabilize income

When revenue declines, the focus often shifts to internal problems. At the same time, one of the greatest opportunities lies in actively strengthening contacts, offers or visibility ^[1].

Measures that show results:

• Contact existing customers with concrete offers
• Reconsider pricing and service structure
• Inquire about funding programs or grants that specifically support freelancers

5. Broaden perspective and recognize opportunities

Difficult phases force you to question old patterns. This can lead you to find paths you hadn't seen before.

Examples of possible opportunities:

• Introduce additional or digital services.
• Test secondary income offers.
• Form collaborations with other freelancers.

Not every crisis is the same, but each contains learning impulses.

6. Seek exchange

Clear thinking needs space and perspectives.

Isolation amplifies the pressure, you deal alone and even more with your problems. Conversations with other freelancers, mentors or in professional networks provide new perspectives and relief ^[1].

Concrete ideas:

• Join a freelancer community
• Seek a conversation with an advisory center
• Look for exchange with like-minded people in your field

Your checklist for emergencies

1. Record status: income, costs, reserves
2. Secure liquidity → prioritize payments
3. Review costs consciously, don't cut in panic
4. Actively approach existing customers
5. Small steps create new momentum
6. Get support → professional + emotional

When things are going worse, it's first about ability to act and stability – not about perfection. Every measure that gives you room to breathe is a step forward.