To paraphrase a famous quote, history doesn't repeat itself, but it sometimes rhymes. Much has changed since the early '90s, but I think nearly everyone who clearly remembers that era is concerned about a downturn. In fact, I was one of the first to come right out and say that conditions are getting tighter. (One of the benefits of running an executive search firm is that I can see the weather brewing before it hits full force.)

Though virtually no one is "lay-off proof," a couple of strategies can help safeguard your position: be where the action is and make yourself indispensable. Follow the workload—take note of which bids you win and which ones you lose. Maneuver yourself so you're involved with the types of projects your firm does best. And if you've been operating in cruise control, it's time to hit the accelerator. Speak to your industry contacts (and re-connect with those you've lost track of), read up on trends, bone up on your technology skills. In other words, make sure management knows you're a player.

Of course, there may come a time when the projects simply may not be there (particularly in New York City if the stock market keeps heading south). Keep your resume up to date and start to put out feelers before the crisis point arrives at your firm. Also, don't be afraid to consider alternatives: facilities management, residential design and, of course, furniture dealers.

In terms of the big picture, this next year should be very interesting . . politics has an impact on our economic and business climate. Need I say more?

I work in the interiors department at a medium-size architectural firm that specializes in designing office environments for Fortune 500 clients. I have been here six years and make decent money. In addition, I have always done some "freelance" work—mostly residential, helping to design and interior decorate the houses or summer homes of corporate clients and others who hear about my work. I enjoy the residential side and it almost doubles my income. My boss, the partner-in-charge of the interiors department, just found out about the extent of my side business. She told me I would either have to stop "moonlighting" or they would fire me. Can they do that?
—Anthony in Chicago

Yes, of course they can fire you. The reality is that your boss is within her rights to expect that you won't be running a separate design practice, especially when the clients are a by-product of your first job. The real question here is whether you and your boss can strike some kind of balance. And the underlying issue is whether you can really do two jobs effectively And . . . do you really want to be a decorator? (Not that there is anything wrong with that!)

The scenario you described is not unusual. I know more than 100 designers who have freelance residential practices that are both enjoyable and lucrative. It's one of the "open secrets" of the design field. But it's rare that I hear of an ultimatum like the one you face. Which begs the question: Are you slacking off on your "day" job? It doesn't sound like the freelance work you do competes with your firm, but it certainly competes for your time. No company, or manager, likes to be taken advantage of. If you've been giving short shrift to your primary responsibilities, it would certainly explain the severity of the choice your boss gave you. You might ask to be allowed to keep your sideline projects going—but at a very scaled-back level—with the stipulation that your work performance must remain top-notch. This also means you won't be using office time or resources to arrange your freelance activities.

Another approach is to explain to your boss that you need the extra income to get by, and ask for a raise. This is a tricky tactic, however, because your boss might think you make plenty of money already. Or you might suggest that the firm could launch a residential practice and place you in charge. Clearly, you can't try to run your side business behind your company's back. But some type of compromise should be possible.