Timing is everything and what to do about it

There's a saying in the investment world that goes something like "being early is the same thing as being wrong."

If you think a company is going to do terribly and the stock price is going to go down, you can bet against it. But, if you short it too early and the stock keeps rising for a while, you can go bankrupt, even if the stock price eventually goes down.

It's a situation in which you are correct about the company but lost anyway.

"The market can stay irrational longer than you can stay solvent."

This happens in the 1099 world too; sometimes timing and circumstance screws up your plans.

You may have a 1099 offer but the prime needs someone right away and you're committed to something else for a while.

That's a timing error.

Or you secured a 1099 gig but your security clearance crossover got screwed up so you have to take a different, less desirable gig.

That's a timing error.

You can't control all the potential things that can go wrong with timing but here are a few things you can do to help mitigate the risk:

• Don't bank on any single deal going through. Have multiple leads/projects in the pipeline.
• Have money in the bank to ride out the times you're not working. 6-12 months of savings is a good goal.
• If the timing is close but not perfect, see what you can negotiate. Maybe you can start a project later than the prime indicated if you ask or perhaps you can extend a current project.

The worst thing you can do is get your hopes up about a single 1099 project and have it not worked out. It is very discouraging.

Plan for the timing to be bad and things will eventually go your way.

Want the full playbook? Check out Going 1099.