What we do know is that everyone’s finances have been affected—whether due to last year’s mass layoffs, supply chain disruptions, or rising inflation rates—no one has been left out of this party!  It would seem natural, then, that many people across the planet are now setting up their own side gigs or quitting their jobs to be their own boss.  Sorry boss, it’s not me, it’s you.

While we can all acknowledge the fact that starting a new venture can be exciting, there are also multiple risks to keep in mind, so you don’t end up groveling back to your manager.  For all you list-lovers out there, here are some things to keep in mind:

(1) E-Commerce and Social Media:     We all know that social media has exploded during the past decade.  People that once refused to touch a computer are now glued to their phones—my mother included.  The impact this has had on commerce can’t be described within a few sentences, but if you’re up to it, it would make a great thesis topic (you’re welcome).  One thing I will focus on is reputation risk.  Social media is famous for its ability to make anyone famous overnight by going viral.  This is great because it gives everyone hope that they, too, can one day become a rockstar, even if they are still living in their grandma’s basement.  On the flipside, anything and everything you do is being watched.  Organizational reputations have been ruined within hours, sometimes with no return.  But all this wouldn’t affect your small, local side gig, would it?  You bet your bottom it would!  Before you start setting up shop and posting your wares you need to do a full, clean sweep.  Everything must go!  Those posts you posted on your personal social media pages 20 years ago may not be so appropriate now.  They can, and will, affect your bottom line, so go in there and delete anything related to:

• Political rants.
• Opinion pieces, especially ones relating to diversity, equity, equality, humanitarian beliefs, and (as of late) the ongoing debate on vaccination mandates.
• Current event opinions and rants.
• Negative reviews and, in particular, those related to other local businesses.
• Inappropriate jokes. If it’s a joke you wouldn’t tell your grandmother, or your boss, delete it.

(2) Regulations and Laws:           Regulations and laws help standardize commerce, both on the national and provincial level; they are there for a reason, even if we don’t necessarily like them.  Things to keep in mind include:

• Sole proprietorship versus incorporation
• Permits and licenses
• Industry-related requirements
• Federal and provincial tax requirements
• Target market(s).
  • Will you cater directly to the final consumer, or go after businesses?
  • Will you go after the entire market (mass marketing), or a select few (niche marketing)?
  • At the end of the day, who will want to buy your product or service and why?
• Competitors—what will the neighbours think? E-commerce has increased rivalry because firms and individuals now have access to markets they never even dreamt of.  Buyers are now able to buy the same exact product or service you are selling from anyone around the world.  Hooray for shopping choices, but it goes without saying that the next guy will try to undercut you or, perhaps even sabotage you with things like rating bombs.  The moral of the story: watch your back and play nice.

(3) Supply Chain:   If your business has anything to do with goods, or services which require parts or materials, you have to keep in mind not only the recent supply chain disruptions but also the fact that the Internet has distorted delivery expectations and patience for everyone.  Instant gratification is now the norm; gone are the days when we would order something from the Sears catalogue and wait weeks for the mail carrier to arrive.  Thank you Amazon Prime—you’ve ruined it for businesses across the globe!  The moral of the story, give your customers realistic expectations on delivery times and be prepared to calm down any angry ones who think that you control Canada Post.

(4) Going online:    Finally, long gone are the days where you could open a lemonade stand at the end of your driveway and wait for the dough to start rolling in.  If you’re not online, are you anywhere at all?  Not only do you need to be actively present on multiple social media channels, but you should also, at the very least, have an online website.  Thankfully, with businesses like Shopify and Wix, setting up a website is not as difficult as it used to be.  There are still, however, some things you need to make decisions on:

• Cataloguing system. The complexity of your catalogue will depend on your product line (i.e., what you’re selling).  By product, I am referring to both goods and services.
  • How will you set your catalogue up?
  • Will you have photos?
  • Will you have detailed descriptions?
  • Will you list prices or ask potential consumers to contact you?
  • Some online shops even go so far as to place each of their products or services on separate webpages.
• Payment processing. What types of payment will you accept?
  • Typical payment methods include debit card and credit card. More and more businesses, however, are now accepting PayPal and bitcoin.
  • If you have a physical location, consider payment options like Apple Pay and e-transfers, as well.
  • If you plan to go international, keep in mind that many non-developed countries typically pay through COD (cash-on-delivery). If you decide to forgo this method, you may be missing out on a very large market willing to hand over their cash.

While all this may seem overwhelming, fear not—there is so much more to stress out about!  This is not an attempt, by any means, to scare you from realizing your dreams.  It is, however, an attempt to help you get started on the right foot.

A couple of the Struggling Student Rants were noted by Voice readers, this one, from our October 15 edition, struck me as part of the Best of because of the no-nonsense advice it provides in a good readable manner.  It seems simple, but so many text-books show that it isn’t.

• Social media profiles (and reputation). Check!
• Laws and regulations. Check!
• Check!
• Porter and his forces; suppliers, buyers, and the competition. Check, check, check!

This, however, is just the beginning and there is still work to do, before quitting your day job, my friend.  What you now need to do is crucial: focus on what you’re selling.

You may be thinking, “What the heck is she smoking?  Of course, I know what I’m selling!”  But do you?  When you have your own skin in the game, it’s not always easy to see things in a clear light, and so many small businesses have suffered because of this.  They don’t know what they’re selling, and, as a result, who they need to be selling it to to actually sell it.

Let’s break it down a bit.  Your goal is to sell a good or service to a customer.  Customers are humans.  Humans, moreover, buy three types of goods and services—at the base level of which are needs.  Humans are needy—that’s all there is to it.  Needs are not something any one person (or organization) creates or invents; they are just there, and they are required for our survival.

We need food and water to stay alive; these are basic physical needs.  It doesn’t stop there, though; human needs are much more complicated.  Abraham Maslow, a US psychologist, claimed that we all act how we do (or buy what we buy) because of a hierarchy of priorities we intrinsically have—a checklist if you will.  His human motivation theory allows us to break these priorities up into categories, to see where our new business venture and products fits in.  Don’t forget, we’re trying to sell them!

1) Physical: Obviously, oxygen, food, water, and shelter come first as physical needs.  But we need to be more creative than that.  Physical needs also include procreation and death.  Companies that manufacture pregnancy tests—or coffins—know this and they all capitalize on these physical needs.  The reason is simple; these needs will never stop existing, and the company will (fingers crossed) never go out of business, so long as they make the right moves.

Yet most Westerners don’t even want to discuss these things with friends and family, let alone advertise goods or services relating to these needs.  So does your market offer fall somewhere along the ‘birth-to-death’ timeline in any way, shape, or form?  Take your time thinking about this.  On the one hand, you’ll have to get comfortable talking about—and marketing—goods and services considered either unpleasant or awkward to discuss.  On the other hand, you’re in luck—you’ll never go out of style!

2) Safety:  Once our bellies are full and we have a roof over our head, most of us tend to prioritize safety.  That is, we try to ensure our bellies remain full and that the roof over our head doesn’t (somehow) disappear or cave in.  Think about this from a bird’s eye perspective.  “Safety” doesn’t by default imply or refer to armoured trucks and fortified castles—although it certainly does if you’re a fan of Dwayne Johnson!  Personal protection goods and services, such as weapons or PPE, fall under this category, but so do medical alarms and safety trackers for children and the elderly, and various insurance coverages for our homes, vehicles, businesses, and lives.  Yet, it’s not just about getting physical.  If your good or service has to do with any form of job security, health and wellbeing, or environmental concerns, you fall under this umbrella too.  Safety-related categories include:

• Physical safety, including that of the mind, body, and overall quality of life.
• Shelter safety, such as interior and exterior security systems in our homes, occupational health and safety measures in the workplace, and safe municipal evacuation measures.
• Secondary safety measures, such as security features on the gazillions of smart gadgets we all now own, or the ones our vehicles are equipped with.
• Security services, there to keep us safe both in the event of a national disaster as well as through private services, such as bodyguards and security agencies.

You get the idea.  If your wares fall under any of these categories, you make sure that everyone stays safe!

 3) Love: As the saying goes, “Why can’t we all just get along?”  All humans want to, somehow, belong somewhere: a group, a club, a unit, somewhere.  We have social needs, required for our psychological and perceptual survival, no matter how introverted you think you are.

If you don’t believe me, just look at what happened to Tom Hanks and his volleyball, Wilson.  Wanting to belong to a ‘group’ or ‘club’ doesn’t translate to the need to belong to a soccer team, a debate club, or an elite exclusive private club for the affluent.  It means we want to fit in somewhere—anywhere.  This could be the longing to be part of a family unit, a group of friends, a team of coworkers, heck, even a street gang!  So how do you cater to ‘belongingness’?  Any good or service related to social activities, will do.  Think of family get-togethers; in-person and/or social networking events; products and services that promote togetherness, such as matrimonial services; religious gatherings; and so on.  The market offerings really are endless once you get the idea and start brainstorming.

4) Esteem: Maslow’s esteem needs are divided into two camps.  One camp relates to the need for respect from others, while the other camp relates to the need for respecting ourselves.  Respect from others often takes multiple forms; status, recognition, fame, and attention all fall under this category.  The other ‘esteem camp’—self-respect—can include a need for competence, mastery, self-confidence, independence, and so on.  So, how do goods and services cater to our search for esteem?

Some people seek status, fame, and recognition through their lifestyles.  Think luxury vehicles, expensive jewelry, lavish homes, and the latest fashions.  Others seek esteem through professional or academic recognition and accolades.  Yet, still others prefer more subtle methods.  AU students, for example, may try to fulfill the need for esteem through mastery of a subject, or attainment of a certificate or degree.  Let’s all be honest; we just want to feel good about ourselves.  If you and your product cater to this human need, figure out ways to make your customer feel better about themselves than the competition does.

5) Self-actualization: This one’s a tough one.  The Oxford English Dictionary defines self-actualization as “Realization or fulfilment of one’s true nature or ideal self, esp.  regarded as a human need.” In fear of sounding like a Gillette commercial, this one has to do with our need to be the best that we can be.

We may not all aspire to reach Gautam Buddha’s level of enlightenment, however we do all have a form of internal motivation in at least one area of our lives.  This might be an area we haven’t considered, may think of as trivial, or just go through the motions of as part of our everyday.  We want to be the best parent we can be, the best student we can be, the best pianist we can be, and so on.

And don’t forget about serving others.  We all know how Mahatma Gandhi and Martin Luther King Jr., for example, achieved their best selves by trying to create a better society.  Therefore, any good or service that caters to helping others fulfill their goals, improve their skills, or motivates them along their journey towards personal growth, belongs in this bucket.

These products or services don’t have to be motivational or enlightening themselves.  Self-actualization manifests for some through the arts, for example; people seek their ‘ideal selves’ through creative mediums, such as dance, music, and creating works of art.  As such, your product may simply be a paintbrush or a piece of coal, or you may offer dance classes during the weekend.  Thus, the question lies in how your dance classes or your lumps of coal help others be better versions of themselves.

As is apparent, needs aren’t simple at all.  We usually know that what we need doesn’t always coincide with what we want.  Adults are also great at distinguishing between what we need to buy versus what we don’t—regardless of the choices we make.

But, when it comes to recognizing a pure need, things are a little bit more complicated.  Thankfully, Abraham Maslow simplified this for us and already did the homework.  It does, of course, get more complicated than this.  If you want to find out more about Mr. Maslow, MKTG 396 and MKTG 406 both do a swell job at prepping you for that corporate gig.  In the meantime, your homework assignment for now is to determine what need your business is truthfully catering to, rather than what you thought it was, and how to make your customers needier!

However, for today, lets focus on Mr. Porter.  No, Porter isn’t my sister’s best-friend’s cousin (twice removed).  Mr. Porter is a US professor at Harvard Business School.  He is also a very well-known strategist and famous for his five forces, which AU also analyzes in depth in many of its courses.  These forces, or factors, are what we should all keep in mind as we begin any new business adventure—whether that venture means selling lemonade on the side of the street or going fully global with our cat sweater knitting side gig.

Bargaining Power of Suppliers

If you need products or parts, you need to take heed.  Unless you manufacture your own raw materials for your products or services, you need others.  Those others, the suppliers, have to be treated nicely—especially if there aren’t that many out there.

When supplies are limited (or raw materials are scarce) suppliers can easily raise their prices and renegotiate any previously agreed upon terms and conditions.  You need them, they don’t necessarily need you.  This applies to everyone no matter who they are, even Walmart.  Forging bad relationships with your suppliers will likely result in higher costs (which translates to lower profit margins), delays in receiving required inputs, or even not receiving them at all.  Obviously, this wouldn’t be a smart game to play; the consequences can be devastating, so be nice.

Bargaining Power of Buyers

Long gone are the days where buyers were left at the mercy of the proprietor.  We no longer take our horse and buggy to go into town, walk into the general store, and try to stay on the shopkeeper’s good side in fear he would price-gouge us.  Consumers now have most of the power.  This didn’t change very long ago; it only became reality when the Internet became mainstream.  Even as recently as the 1990s, buyers had to deal with, “this is the price, take it or leave it.”  Thankfully (for us shoppers) we can now take their business elsewhere if we don’t like the price or the terms.  Remember, though, you’re starting a business—you’re on the other side of the fence now, which means you cannot afford to take that stance.  While the customer isn’t always right, you need to be prepared to turn a blind eye once in a while and pick your battles.  If not, then you need to be prepared for your customers to drop you like a hot potato.

The Threat of Substitutes

The bargaining power of your buyers, subsequently, plays into the threat of any substitute products.  If buyers are able to easily switch your product or service for someone else’s, with little cost involved, you could be in big trouble.  Hence, the need to come up with something special and sparkly, that no one can copy easily.

While the Internet has seen product and service ideas taking off in the blink of an eye, especially with options like crowdfunding and start-up incubators, any idea can easily be replicated in the blink of an eye too.  Take Poo-Pourri® for example!  Yes, I went there, but, seriously—it’s the million dollar product idea; it solves a universal problem!  However, I’m not sure how full their cash register is.  Their product is quite pricey, and, if you do a simple online search, you can see for yourself that many were quick to copy this concept too, new and old brands alike, such as Mask®, Squatty Potty’s Unicorn Gold Toilet Spray®, Air Wick’s V.I.Poo®, Aesop’s Post-Poo®, and so on.  So, what’s to keep me from running to the bath, er, to the cheaper brand?

Barriers to Entry and the Threat of New Entrants

This will show you how easy it is to get into the game, but don’t start celebrating just yet if it seems extremely doable.  Chances are, others have thought of your idea too—and if they haven’t, they will.  You gave them the idea, which means they can get into the game just as easily as you were able to.  Therefore, there’s another side to this game that you must be willing to play as well.  Those already in the boxing ring must continuously try to keep the newbies out.  Tactics on how to do this are numerous; entire textbooks have been written about corporate sabotage, So make sure you do your homework.

Competition and Rivalry

This factor is the main and final influence, when deciding whether to move forward with your bright idea.  Obviously, when rivalry is high, there will be many competitors in the ring fighting for the cash.  You need to be especially vigilant for those which have an excessive cost associated with exiting the ring.  They’re not going anywhere because they have too much to lose should they decide to quit; it’s better for them to stay in the game.  Additionally, industries which have many competitors have little customer loyalty; buyers have many options to choose from.  Therefore, you need to know that what you have to offer is unique to the market and unique compared to others.

Obviously, there are quite a lot of decisions to make before running to the local radio station to inquire about advertising costs.  But fear not, there’s more to come in Part III.

References
Porter, Michael E. (2008). “The Five Competitive Forces That Shape Strategy”. Competitive strategy. Harvard Business Review. 86 (1): 78–93, 137. PMID 18271320.

What we do know is that everyone’s finances have been affected—whether due to last year’s mass layoffs, supply chain disruptions, or rising inflation rates—no one has been left out of this party!  It would seem natural, then, that many people across the planet are now setting up their own side gigs or quitting their jobs to be their own boss.  Sorry boss, it’s not me, it’s you.

While we can all acknowledge the fact that starting a new venture can be exciting, there are also multiple risks to keep in mind, so you don’t end up groveling back to your manager.  For all you list-lovers out there, here are some things to keep in mind:

(1) E-Commerce and Social Media:     We all know that social media has exploded during the past decade.  People that once refused to touch a computer are now glued to their phones—my mother included.  The impact this has had on commerce can’t be described within a few sentences, but if you’re up to it, it would make a great thesis topic (you’re welcome).  One thing I will focus on is reputation risk.  Social media is famous for its ability to make anyone famous overnight by going viral.  This is great because it gives everyone hope that they, too, can one day become a rockstar, even if they are still living in their grandma’s basement.  On the flipside, anything and everything you do is being watched.  Organizational reputations have been ruined within hours, sometimes with no return.  But all this wouldn’t affect your small, local side gig, would it?  You bet your bottom it would!  Before you start setting up shop and posting your wares you need to do a full, clean sweep.  Everything must go!  Those posts you posted on your personal social media pages 20 years ago may not be so appropriate now.  They can, and will, affect your bottom line, so go in there and delete anything related to:

• Political rants.
• Opinion pieces, especially ones relating to diversity, equity, equality, humanitarian beliefs, and (as of late) the ongoing debate on vaccination mandates.
• Current event opinions and rants.
• Negative reviews and, in particular, those related to other local businesses.
• Inappropriate jokes. If it’s a joke you wouldn’t tell your grandmother, or your boss, delete it.

(2) Regulations and Laws:           Regulations and laws help standardize commerce, both on the national and provincial level; they are there for a reason, even if we don’t necessarily like them.  Things to keep in mind include:

• Sole proprietorship versus incorporation
• Permits and licenses
• Industry-related requirements
• Federal and provincial tax requirements
• Target market(s).
  • Will you cater directly to the final consumer, or go after businesses?
  • Will you go after the entire market (mass marketing), or a select few (niche marketing)?
  • At the end of the day, who will want to buy your product or service and why?
• Competitors—what will the neighbours think? E-commerce has increased rivalry because firms and individuals now have access to markets they never even dreamt of.  Buyers are now able to buy the same exact product or service you are selling from anyone around the world.  Hooray for shopping choices, but it goes without saying that the next guy will try to undercut you or, perhaps even sabotage you with things like rating bombs.  The moral of the story: watch your back and play nice.

(3) Supply Chain:   If your business has anything to do with goods, or services which require parts or materials, you have to keep in mind not only the recent supply chain disruptions but also the fact that the Internet has distorted delivery expectations and patience for everyone.  Instant gratification is now the norm; gone are the days when we would order something from the Sears catalogue and wait weeks for the mail carrier to arrive.  Thank you Amazon Prime—you’ve ruined it for businesses across the globe!  The moral of the story, give your customers realistic expectations on delivery times and be prepared to calm down any angry ones who think that you control Canada Post.

(4) Going online:    Finally, long gone are the days where you could open a lemonade stand at the end of your driveway and wait for the dough to start rolling in.  If you’re not online, are you anywhere at all?  Not only do you need to be actively present on multiple social media channels, but you should also, at the very least, have an online website.  Thankfully, with businesses like Shopify and Wix, setting up a website is not as difficult as it used to be.  There are still, however, some things you need to make decisions on:

• Cataloguing system. The complexity of your catalogue will depend on your product line (i.e., what you’re selling).  By product, I am referring to both goods and services.
  • How will you set your catalogue up?
  • Will you have photos?
  • Will you have detailed descriptions?
  • Will you list prices or ask potential consumers to contact you?
  • Some online shops even go so far as to place each of their products or services on separate webpages.
• Payment processing. What types of payment will you accept?
  • Typical payment methods include debit card and credit card. More and more businesses, however, are now accepting PayPal and bitcoin.
  • If you have a physical location, consider payment options like Apple Pay and e-transfers, as well.
  • If you plan to go international, keep in mind that many non-developed countries typically pay through COD (cash-on-delivery). If you decide to forgo this method, you may be missing out on a very large market willing to hand over their cash.

While all this may seem overwhelming, fear not—there is so much more to stress out about!  This is not an attempt, by any means, to scare you from realizing your dreams.  It is, however, an attempt to help you get started on the right foot.

I recently found myself exploring career options at 40 and, while discussing my options with someone, they told me to go deliver pizzas.  This got under my skin.  It’s not the pizza delivery itself that set me off; work is work and pizza delivery persons can make great tips!  It was their condescending tone is what did the trick.

My initial reaction was anger.  A few days later, their comment and tone turned to hurt.  Fast-forward to the present day; the anger and hurt have turned into hell-bent resolve.  Knowing myself and my reactions, however, this will serve me well—they did me a favour.

Five years ago, I was lacking the confidence but managed to talk myself into signing up for my first AU course.  I was also considering a part-time undergrad program, so I disclosed my thoughts and my excitement to a friend at that time.  They laughed in my face and told me to be realistic—I hadn’t been in school for over 15 years, and they thought I should act my age rather than play “teenager.”  The same sentiment came over me then as did now; I was initially angry, then hurt, and, soon enough, so determined to prove them wrong that I became obsessed.  So, thanks, friend.

I was too young back then to understand that your biggest haters just might be your closest friends.  We’ve all been there.  We disclose our deepest, most embarrassing aspirations to someone, who then turns around and bursts our bubble.  They do this consciously or subconsciously, maybe out of spite or out of concern; but they do this regardless.  This is outside of our control, it’s not a reflection of you, but a reflection of how they feel about themselves.

Freud called this “projection” which is just a quick way to note unconsciously taking unwanted emotions or traits you don’t like about yourself and handing them over to someone else.  Ornstein and Ganzer (2005) explain how projection is, in essence, a defense mechanism.  By projecting an undesired trait onto someone else, the bully disowns that trait in their own subconscious.  Psychology always fascinated me and freaked me out a bit at the same time; nevertheless, it’s comforting to know that throwing negativity unto others is just a power play—something to sooth a wounded ego.  Now, what is within our control is how we react to these naysayers.

So when someone tries to shame you or make you feel incompetent, this is where you get to prove them wrong and come out on top; it all depends on how you look at it.

First, don’t be afraid to break the rules.  Being the underdog can be your secret weapon.  If you’re reading this, you’re either an AU student or considering AU—unconventional by typical standards.  You aren’t afraid to try something outside the norm to get where you need to.  You make your own path.  In contrast, most folks don’t take any path at all.  Those that do take a path and make it through to the other side, tend choose the path already laid out in front of them.  The few obstacles that do exist on these paths are easy for them to get through, since these individuals will either have the skill set or the help to do so, including the cheerleaders.  These marathoners will get to the finish line faster and with less effort, there is no doubt in that.

On the other hand, if the underdog plays by the same rules and takes that same path, you can bet your bottom they may not even make it to the end.  The odds are stacked against them.  This is similar to a cartoon I’ve come across in the past where some type of coordinator tests the IQ of a crow, a monkey, a penguin, an elephant, and a dolphin, by asking them all to reach the top of a tree!  Does this mean monkeys have a higher IQ than dolphins?  I’ll let you answer that question.

What I do know is that, aside from the crow and the monkey, if any of the others want to succeed they have to be unconventional and embrace divergent thinking.  It is terrifying to ignore everyone and follow your dreams but deciding to not play by the rules can open a whole new world for you.  History has plenty of unconventional leaders we can borrow examples from, all of whom, during their struggles, were either ridiculed or shunned for daring to not do what most did.

Second, despite being an overused cliché, if you’ve reached the bottom, cheer up!  There’s no other way but up.  It’s much easier to take risks and chase your dreams when you have nothing to lose.  Believe it or not, you now have the upper hand.  As Gracián (1982) put it, “Never contend with a Man who has nothing to Lose; for thereby you enter into an unequal conflict.”  If you prefer plain English:

Why don’t people with money and power realize that when they screw around with the little guy when they don’t have to—especially when it’s a little guy like me with not a damn thing to lose—sometimes the little guy is just going to get pissed off and stubborn up?  (Anderson, 2016, p.  128)

I’m certain you’ve all lived through a situation where someone didn’t expect you to come out on top or cheer for you.   Maybe your significant other doesn’t think you can quit smoking after the 17th billion try.  Maybe your parents don’t believe you will follow through on that undergrad or MBA.  Maybe your colleagues don’t believe in you when you tell them you will bring a critical project to successful completion.  Whatever the low expectation, it is disheartening.

But don’t fret!  Samir Nurmohamed, an assistant professor of management at the University of Pennsylvania,  explains that “underdog expectations” tend to have the opposite effect (2020).  To find out why anyone who is undermined performs better than their projected performance, he ran multiple experiments—in work settings, online settings, and lab settings.  The results showed that, “as opposed to having greater self-confidence or being more assertive, the desire to prove others wrong was what explained why those experiencing underdog expectations performed better.”

There was a catch to what Nurmohamed found, though, so beware.  It turns out that we tend to only perform better than expected when we don’t think very highly of the person critiquing us.  Plain English, we don’t give a rat’s ass about their opinion.  Something to perhaps make you want to reconsider your relationship with the friend giving the opinion.  When we do, however, value and respect that person’s opinion, be careful.  Being undermined and trying to turn the rage into fire can backfire.  It can cause anxiety, pressure, and perhaps even a lower sense of self-esteem.

At the end day, remember what you’re made of and why you’re here.  Remember why you’re doing another job than what you’d dreamed of, as well as what you’re getting out of it.  Remember there’s a reason for it all, whether that’s to pay the bills or gain the experience.  Whether you’re a cleaner, a fast-food worker, or whatever else you decide to do while you work on your dreams, realize that you are also a planner, an achiever, and are courageous enough to do what has to be done to make sure your dreams don’t stay dreams but turn into reality.  Unlike others.  Be grateful for this grit.  Many lack it and stick to complaining.  Life is too short to sit there crying over the hand you were dealt.  Deal with it; embrace the cards; and reshuffle them.

References
Anderson, J.  (2016).  The Never-Open Desert Diner: A Novel.  (p.  128).  Crown.
Ornstein, E.  D., & Ganzer, C.  (2005).  Relational social work: A model for the future.  Families in Society: The Journal of Contemporary Social Services, 86, 565–572.

The cojones are necessary because big changes are scary.  Especially if you’re a mature AU student and you have more obligations than you did when you were 20.  You may have children or others to support.  You may have a mortgage and a car loan, as well as multiple other financial responsibilities.  Disrupting your life to follow the pursuit of wealth, or at least a decent increase in income, by taking quite a few steps backwards sounds insane, and it’s also frightening, especially if your income or savings might take a hit.

The mandatory earplugs, on the other hand, are for the naysayers.  You have to place trust in yourself while utterly and completely ignoring those around you at the same time.  Those that object do not always do so out of malice or spite, they may genuinely care for your welfare and be frightened by big changes.  However, to make that desired pay increase a reality you have to follow your survival instincts, not theirs.  If they insist on blocking your path, you can always be the Trivial Pursuit guru and let them know that in 2020 the national weighted average pay raise was, at best, 2.6% for non-unionized employees while the annual inflation rate just hit 3.4% in April 2021.  Now, I’m no math whiz, but in my mind the only way to achieve an increase higher than the inflation rate, say every two years, is to find a position that provides at minimum a 6.8% pay increase.  Not only will this never happen if you stay within the same organization, but if you stick around past the two-year mark you will, on average, end up earning approximately 50% less over your lifetime—assuming you would retire in ten years.  I hope the naysayers are no longer still yapping in your ear.  Scared to take the leap still?

Many also worry that changing jobs too often reflects poorly on them, as professionals.  Everyone fears being labelled as a ‘job-hopper’ or as ‘unmarketable.’ People forget, though, that it’s the ‘job-hoppers’ that earn more money, grow bigger muscles, and as a result end up becoming more marketable than non-job-hoppers.  In most cases, the longer you stay at a job after the first couple of years, the more your skills degrade in value as you ease into the comfort of your everyday sleepy tempo.  This decomposition sneaks up on us because the opportunities to learn new skills degrades as we stick around in our current jobs.  In order to keep growing, we have to look for new learning opportunities all the time.  The only way to do this is to step outside of our comfort zone and take control.  Going to sleep on our career and relying on our boss to take care of it for us is just living in a false reality.  Therefore, if you find yourself labelled as a ‘job-hopper’ or as ‘unmarketable’ by a company’s decision-maker, I would just continue on your path and ignore them.  You wouldn’t want to work for that backwards-thinking organization for very long anyway.  Don’t sell yourself short and remember that only those who value you and your way of thinking deserve you!

If you’re still hesitating to take the leap after all this, think of standing at a crossroad with multiple paths to choose from.  Rather than choosing, however, we sit there, paralyzed in fear of making a decision we may regret.  So, we continue to analyze rather than just choose, hemming and hawing, continuously going over the choices and watching scenarios play out in our head.  In the meantime, the weeds all around us have slowly turned to roots and taken hold of our ankles, creating a stronger hold day by day and swallowing us up into their pool of mind-numbing poison ivy.  The days and seasons are ignored as they pass us by, along with the opportunities, while we continue to lie to ourselves about having all the time in the world and not being ready.  The more we analyze, the more time passes by—as we make way for others who are going down their chosen path and secretly wishing we could do the same.  And the days flow by indifferently…  day in, day out.

If you find yourself at this crossroad, one of the first things you need to do is to understand why you want a change in the first place.  Whatever your reasons, they are yours and yours alone.  Nonetheless, if your reason is the pay, you have to jump ship.  There’s no other way around it.  Most companies have one speed; usually in first gear.  If your skills are developing at higher currents than the sleepy pace of your workplace, you may have to find a different crew to join to be compensated and recognized for the value you bring to the table.  That may, fearfully, entail being stuck in a rowboat with no oars for awhile, with only Wilson for company.  Fear not; soon enough you’ll find another ship sailing down a faster moving river.  We simply have to learn to surrender to the current.

References
Sincero, J. (2017) You are a badass at making money: Master the mindset of wealth. (J. Sincero, Narr.) [Audiobook]. Penguin Audio.

Arun et al. explain how the original mobile phones were called “car phones” and created so people could talk while they drive (2019).  These phones were bulky—similar to a foot-long sub from Subway.  If my memory serves me correctly, these car phones were attached into leather briefcases because their operating system and battery were too large to fit into the phone itself.  When going on a road trip you would take your briefcase with you, as you would your luggage and purse.  These car phones were also extremely expensive.  Only those working in the C suite could justify the cost—the silver-haired CEO types we see in Hollywood productions, cruising down the Pacific Coast Highway in a company-provided Ford Thunderbird.

Cell phones as we know them today, no briefcase attached, made their debut in Canada in 1985.  Victor Surerus was the first cellphone customer in Canada at that time; open-handed Victor paid about $10,000 a year for his cell phone contract with Bell.  We most certainly cannot label Victor as a spend-thrift.  While there are now approximately 61 phone carriers in Canada, Chodorowicz, and Sciadas explain how the main players have always been Rogers Wireless, Bell Mobility, and Telus (1998), the three of whom have been going at it like hyenas fighting over a lone zebra carcass.  These “hyenas” had costs to bear, however; it wasn’t all unicorns and rainbows.  Canada is a vast country, spanning from one ocean to another.  The cost of building out the infrastructure for wireless communications was not cheap and these cell phone giants were not building towers and diggings for lines out of the goodness of their hearts.  They were—and are— in the business to make a buck.  As a result, when asked to justify their pricing strategy, the few cell phone carriers in our country have blamed the sparsely populated layout of our land.  However, one would think that 30 years later these networks have matured and more than recouped their costs.  It’s also a bit of a head-scratcher how other countries and continents, such as Australia for example, have larger geographical challenges than Canada but manage to offer faster network connection speeds and much cheaper to boot!

Another absurdity that makes you stop to think are two-way charges, also known as the ‘receiving party pays’ plan structure.  The total cost of a call or text message is split into two, between the caller and the recipient of the call.  This means that, while in the US and Canada you typically have to pay to both send text messages and make phone calls, as well as receive them.  This is, indeed, labelled “absurd” for those in other countries and a practice generally unheard of.  Imagine my surprise when returning to Canada ten years ago and I found out that if I have a flat tire in the middle of a prairie highway, not only can I not phone someone for help without being charged, but they also can’t phone me without charging me a pretty penny for being out of the city perimeter.  Better to wait for the coyotes I suppose and call 911 free of charge.  This is attributed to the fact that the numbering system in North America is geographical—like landlines.  You are charged based on your physical location at the time of the call.  In other countries however, there are designated ‘area codes’ for cell phone numbers versus land line numbers.  This practice has seemed to disappear in recent years; I’m not certain if our sympathetic carriers finally decided to listen to the public outcry.

Many argue that Canada’s telecommunications industry needs to be regulated, while others argue that it’s the competition—or lack thereof— that is the true culprit.  There is simply not enough competition in Canada to force these three to lower their prices.  According to a report by the Canadian Radio, Television, and Telecommunications Commission (CRTC), the three firms together control some 90.7 per cent of Canada’s wireless market.  Three decades after their initial takeover, the hyenas have learnt to get along better; at least, in the public eye.  Yet, they continue to hoard the fly-infested carcasses and guard the water hole so no one else can get near without paying the price.  This is why I say it’s now time to let the lions through for some healthy competition.

References
Ross, S. (2001). Alexander Graham Bell. (Scientists who Made History). (pp. 22-22). Raintree Steck-Vaughn.
Arun, K., Arun, P., Gowtham, K., & Meenachi, S. (2019). Mobile Phones: History And Growth. EPRA International Journal Of Research And Development (IJRD), 4(3), 45. https://eprajournals.com/jpanel/upload/837pm_11.Arun%20Kumar%20S-3013-1.pdf
Taylor, G., Middleton, C., & Fernando, X. (2017). A Question of Scarcity: Spectrum and Canada’s Urban Core. Journal of Information Policy, 7, 120-163.
Chodorowicz, D. and G. Sciadas. 1998. “The Cellular Telephone Industry: Birth, Evolution and Prospects”, Canadian Economic Observer. Catalogue No. 11-010-XPB, Vol. 11 No. 8. Ottawa: Statistics Canada.

Past debates surrounding the words, “money doesn’t bring happiness” have been the start of multiple relationship re-evaluations for me.  Claiming that money doesn’t bring happiness, to me, implies that poverty does [bring happiness].  Additionally, what I often have a hard time explaining— predominantly to those who refuse to listen to another point of view—is that while I don’t claim money, alone, is what will bring happiness, it is one of the most important tools in our belt, if not the key ingredient to life’s recipe.  However, it is simply that: a tool.

Many in our idealistic society claim that money is the least of what matters when compared to other characteristics and values, such as health, family, friendships, and the freedom of choice.  And I agree; these are important matters—more important than many other issues and current events.  I have found myself second-guessing my life choices many times this past year and trying to stop myself from faking my own death and moving to a deserted island; after all, I would be wholeheartedly stress-free eating fish and coconuts rather than worrying about how the stock market is doing and whether we will be able to retire on time.

And then I come to my senses.  What I will always point out is that money is what creates and backs up all of these causes.  It is the funding, or the R&D, behind the health, the family, the friendships, and the freedom to be.  Is money, in fact, evil, or is it well-intentioned?  Is it anything but what we want it to be?

More money isn’t going to improve your mindset; if you’re a glass-half-empty person—with or without money—you’ll be a miserable bastard regardless.  Buying more stuff won’t bring more joy into our lives.  We have all come across plenty of people with nice clothes or nice cars who are still the definition of wretched.  If anything, plenty of folks use shopping as an escape rather than dealing with what makes them unhappy—also labelled as shopping therapy.  On the flipside, buying “stuff” truthfully brings more joy—when that “stuff” includes food, clothing, and other necessities for your children or your family and loved ones.  So, I will, once again, point out that the pursuit of happiness without money is impossible.  I understand it’s be a hard pill to swallow, but money has an impact on happiness, no question about it!  Wattles (1910) explained it best:

Whatever may be said in praise of poverty, the fact remains that it is not possible to live a really complete or successful life unless one is rich.  No man can rise to his greatest possible height in talent or soul development unless he has plenty of money; for to unfold the soul and to develop talent he must have many things to use, and he cannot have these things unless he has money to buy them with.  (p.7)

Plain English: I’m not going to Harvard anytime soon, if I don’t have the eighty grand to back that up.  While moral codes surrounding finances vary from culture to culture, it’s no secret that wealthier societies tend to have better health care mechanisms (although that would be ambiguous and up for debate and personal preference), cleaner environments, and other conveniences that improve their citizens’ quality of life.  Aspiring for wealth or better living circumstances shouldn’t label one as an ethical egoist without examining all the facts.

The aspiration of wealth is usually for the pursuit of everyone’s happiness, for the good of all comrades.  Meeler (2008) explains how money brings about happiness because “[it] is a general device that can be used to get the specific things that make us happy.  As a result, money is valuable for what it can get you.  (p.  55).  In other words, there are things that only money is able to help us with.  Money buys time and experiences, which can make us happy.

But Kahneman et al suggest that the wealth-happiness correlation is an illusion.  “When someone reflects on how additional income would change subjective well-being, they are probably tempted to think about spending more time in leisurely pursuits … but in reality they should think of spending a lot more time working …” (2006, p.  1910).  I disagree.  Many may think of the ‘additional income’ factor as achievable through a higher-paying job within an organization, which entails added responsibilities.  On the other hand, perhaps they see it as an entrepreneurial venture with added headaches.  Yet, there are other roads to wealth; we just have to persevere in our search for them.

I’m not saying that filling out surveys or investing five grand in the next get-rich-quick-scheme is a good idea.  I’m saying be creative and persevere.  Just be careful not to be duped.

When we don’t make enough to support our families we’re forced into accepting jobs to be able to pay the bills; many of us even have to get a second job, resulting in less time spent with our loved ones.  Someone with plenty of money, on the other hand, is able to work at just one job, or has the luxury of being able to take time off to go on a drawn-out vacation, or spend more time with their loved ones.  When you have more money at your disposal, you decide what you spend it on, whether that be vacations, concerts, shopping trips, or on people we love.  On this note, when we have more disposable income, we can share more through giving.  After all, it’s true that we’re not going to the grave with it, isn’t it?  I see no other purpose in making money than to be able to share it.  Whether that’s sharing it with others you know, or others across the planet, whom, frankly, you couldn’t give a damn about but who still form part of the human race.  At the end of the day, not all of us want to be Rothschilds.

For some, being labelled “wealthy” purely entails having enough tucked away for a major—or minor—emergency; having a steady stream of income to pay for all your bills until you pass away; or having the roof over your head paid off and being in perfect health to enjoy that roof without worrying whether your RRSPs will be sufficient, or your bank decides not to refinance your mortgage.  Ultimately, wealth is measured by the beholder, but money is the yardstick.

References

Meeler, D., (2017).  Utilitarianism.  In Allhoff, F., Sager, A., & Vaidya, A.  J.  (2nd Ed.).  Business in ethical focus: an anthology.  (pp.  35-42).  (Original work published 2008).

Gladwell, M., (2005).  Blink: The Power of Thinking Without Thinking.  Back Bay Books.

Gladwell, M., (2013).  David and Goliath: Underdogs, Misfits, and the Art of Battling Giants.  Little, Brown and Company.

Kahneman, D., Krueger, A.  B., Schkade, D., Schwarz, N., and Stone, A.  A.  (2006).  Would You Be Happier If You Were Richer? A Focusing Illusion.  Science 312, 1908–1910.  doi: 10.1126/science.1129688

Wattles, W., 1910.  The Science of Getting Rich.  New York: Elizabeth Towne Publishing.

All kidding aside, Barb gave some amazing advice to a surprisingly common problem.  So common, in fact, that multiple posts and articles are written about how to tackle this North American pestilence every year.  I was floored after reading multiple Facebook threads about how people spend thousands every year, just to please two or three children and four in-laws.  I accept this; to each, their own after all.

What baffles me, however, is that these thousands are spent by people trying to climb out of the hole they dug themselves into, while simultaneously feigning surprise and claiming they weren’t prepared for Christmas expenses, that it caught them off guard!  All my imagination can muster up when hearing this is the Terry Crews look.  We are now far enough past Christmas to have come to our senses; we also have 10 months ahead of us to prepare for the next holiday season, just by having a little foresight and stop playing dumb.

The Damage is Done.

Barb suggested we prioritize our debt and work on the highest interest rate first.  While this is sage, mathematical advice I disagree with this.  Although most financial advisors will give similar advice, from a common sense point of view, debt has nothing to do with math and everything to do with mentality and the psyche.  If we have an extra $50 lying around and throw it at a $500 credit card debt, we will get a better sense of accomplishment than putting that fifty-dollar-bill towards a $50,000 debt, no matter the interest rate.  It’s a psychological boost.  We see the numbers change more drastically on the smaller balance, which makes us try harder to find another $10, $20, or $50 to put towards our debt load.  Next thing you know, your car is paid off four years earlier than expected!

This is called the Snowball Method and it tackles debts according to their balance, starting with the lowest one first.  The reason it’s so popular with those carrying a heavier debt load is because seeing the avalanche is overwhelming at best, whereas seeing a small victory, even if miniscule, helps us keep marching on.

Eat the elephant one bite at a time.  Next, Barb suggested we put aside a little bit each month—or pay period—to prepare for next Christmas.  I 100% agree here and can’t preach this loud enough!  It doesn’t have to be a substantial amount, but you should estimate how much you intend to spend on holiday gifts or birthday parties and set a budget for them.  I also know it’s tempting to go overboard with spoiling your loved ones.  Every little trinket on their wish list, however, will only put a temporary smile on their faces, it will not truly fill their hearts.  That’s only something you can do—with your presence, laughter, and the memories you create with those you love.

Once you set a reasonable budget for these occasions, you need to be strict about sticking to it.  No last-minute stocking stuffers or birthday surprises; only spend the cash you set aside.  Besides, if they love you more than your wallet, I doubt they want you to go broke.  Once your budget for each occasion has been set in stone, divide that amount by how much time you have left.  For example, we still have ten months until the next holiday season.  Putting $100 aside each month into the cookie jar isn’t so bad now compared to dishing out $1,000 next January.  However, you have to diligently feed that jar every month.  If you skip a couple months, to cover a few other items, this won’t work very well—trust me, I know.  If you do stick to the plan, though, you’ll be pleasantly surprised come Boxing Day when you find yourself out.. $0, zilch, nada.  My heart skips a beat just thinking about it!

Finally, a word of caution: under no circumstance are you to whip out that credit card (or any other means of payment) under the pretence that you’ve been diligently feeding the ‘gift fund’ every month and you aren’t under budget for once in your life.  Just like wearing over mitts to keep from scratching your face off when you get the chicken pox, do what you need to do and hide, freeze, burn, or shred those credit cards if you have to.  Stick to your original plan, write out your gift list just like you do your grocery list, and even do some market research to find the best prices out there.  Spend only what you have actually set aside and next January 1^st you’ll be toasting to the new, debt-free year ahead and thinking “maybe that cheapskate made a valid point after all.”

Us 80s kids were raised to believe that good math skills would reward us with higher wages, in almost every industry.  We were told those who did well in math—in high school or college—would end up with a higher income, a brighter future, and less likely to be unemployed.  “If you want to be rich, you better be good with numbers, math, algebra, calculus…” and the list went on, depending, of course, on the degree of your parents’ involvement in your curriculum.  However, correlation is not causation.  Lifelong students, those who embrace learning, may or may not earn more money.  Nevertheless, acknowledging that we do not know everything and not shying away from the difficult allows us to live our daily lives feeling more secure and confident in our abilities.  How you feel about something can determine the outcome.  Your fear, hopes, anticipation, or nonchalance will usually predict how you act—or react—to a situation and, likely, amplify any effects (Polyportis, Kokkinaki, Horváth and Christopoulos, 2020).  There are countless of studies out there both theorizing and proving this, so whether you think you’re good with numbers—or not—you know that you’re absolutely right, but it may just have nothing to do with your financial success.

This isn’t to say that knowing whether you’re losing money on your credit card interest versus any investment ROI you may have coming in is irrelevant.  You also need to be able to talk numbers with colleagues, potential business partners, and the bank if that is the industry or career path you’ve chosen.  If you’re in management, you should know what your company’s income statement is telling you to make the right decisions and not go over budget.  At the end of the day, math skills are to finance as milk is to peanut butter—corny joke, I know… However, most of the concepts have their basis from the math we learn in grade school; they are simply then taken a few steps beyond that.  This is nothing a good textbook and some trial and error can’t help you master.  I’ve also been told that many students who were never inclined toward math in grade school or high school tend to excel in the financial sector.  It’s not that they were stupid at the time; they simply couldn’t give a rats ass about how many chocolate bars little Tommy could fit into his backpack while riding his bike at 20 mph downwind.  They do, on the other hand, care about their sales level and commission.

If you, too, would like to give it another shot, Athabasca’s MATH 100, Developmental Mathematics is exactly what can help you face undergrad math courses head on.  I can personally vouch for this and I believe it was the best course selection I’ve made to date.  The content has applied to so many other courses down my path I’ve lost count; it’s also applied in real-life.  My only stupid decision was not keeping the physical textbook.  I can’t tell you how many times I’ve needed it since—both for my own courses and to show a few know-it-all managers a thing or two about basic multiplication and percentages.  You see, I no longer accept “because I said so” as a satisfactory argument.  Knowing your numbers also makes others second guess themselves before trying to pull a fast one on you, both on a personal level and as a consumer.  “Cognitive limitations create incentives for financial firms to pursue increased profits by systematically attempting to manipulate consumer behavior,” (Williams, 2007, p. 245).  Therefore, if they can take advantage of you, they absolutely will.  You must be willing to question things and dig deeper when you don’t understand what someone is trying to sell you, rather than walk away in fear of appearing ignorant.

The basis of any ignorance can be justified.  However, many take secondary education for granted while most people on this planet will not even make it into high school—never mind out of it.  The school system, until recently, also didn’t have a finance component either, neither at the primary school level nor at the secondary level.  Some schools are rethinking this and implementing finance education into their curriculum now.  However, we are still a long way from making any real progress.

There’s no need to feel bad, because we all need to make life decisions around money, in some shape or form, we were simply ill-equipped to do so from grade school.  The key question is, what are you doing about it now?  Using your upbringing as your crutch will not prevent others from taking advantage of you.  There is absolutely no excuse now with the infinite resources available to us, all with the click of a button—whether you are a math major or studying the Philosopher’s Stone.  Throwing those crutches away will feel amazing and tour financial habits, as a result of your confidence in balancing your budget, are what will determine your financial success.  There’s also a strong link between basic numerical skills and financial prosperity (Human Resources and Skills Development Canada, 2012).  Innumeracy, on the other hand, plagues far too many people (Paulos, 2001, pp. 3-4) and numeracy, on the other hand was determined to be ““by far the most … numeracy and financial literacy were both found to be predictors of wealth” by Smith, McArdle, and Willis (2010, p. 18).  So, if you want to be rich… pick up a book and learn how!

References
Williams, T. (2007). Empowerment of Whom and for What: Financial Literacy Education and the New Regulation of Consumer Financial Services. Law & Policy, 29(2), 226–256.
Paulos, J. A. (2001). Innumeracy: Mathematical illiteracy and its consequences (2nd ed.). New York, NY: Hill and Wang.
Smith, J. P., McArdle, J. J., & Willis, R. J. (2010). Financial decision making and cognition in a family context. In RAND Labor and Population (Ed.), Working Paper Series (pp. 1-36). Santa Monica, CA.