{"id":3202,"date":"2013-04-04T10:02:22","date_gmt":"2013-04-04T15:02:22","guid":{"rendered":"http:\/\/www.cusjc.ca\/ottawainsight\/?p=3202"},"modified":"2017-11-19T19:21:42","modified_gmt":"2017-11-20T00:21:42","slug":"let-go-of-the-coattails-and-pull-up-the-bootstraps","status":"publish","type":"post","link":"https:\/\/www.cusjc.ca\/ottawainsight\/?p=3202","title":{"rendered":"Let go of the coattails and pull up the bootstraps"},"content":{"rendered":"

I spend at least an hour each day writing and rewriting cover letters, tweaking my resume, and tapping out cordial emails.<\/strong><\/p>\n

I\u2019m about to graduate.\u00a0 I\u2019m nervous.\u00a0 And I don\u2019t think I\u2019m alone in that sentiment.<\/p>\n

Maybe it\u2019s time to be our own bosses, and start our own businesses.<\/p>\n

But many graduates \u00a0are just starting to reel from the burdens of student debt.\u00a0 It\u2019s not like we have a savings account to put into new capital to start a small business.<\/p>\n

Mom and dad have already helped all they can, if at all.\u00a0 And banks are low-risk lenders, not likely to hand out a loan to someone who is young, inexperienced and racked with debt.<\/p>\n

Many students and recent graduates, myself included, are hesitant to take on a new load of debt.\u00a0 We were told post-secondary studies would be our ticket to a good life, and from the looks of the job market right now that sentiment was an exaggeration at best, and an all-out lie at worst.<\/p>\n

TUITION COSTS<\/strong><\/p>\n

The average undergraduate tuition in Canada is $5,366 a year, according to Statistics Canada. \u00a0A four-year degree for a student not living at home could run as much as $60,000.<\/p>\n

\u201cUniversity doesn\u2019t work if you have to borrow money to go,\u201d says Jason Simmons, who completed a graduate degree in molecular biology from the University of Western Ontario about three years ago.<\/p>\n

Because his parents earned a comfortable income, Simmons didn\u2019t qualify for provincial funding sources like the Ontario Student Assistance Program. He instead turned to a bank for the money, taking out a line of credit to finance his undergraduate and graduate studies.<\/p>\n

\u201cI figured getting a Masters degree would get me a decent job,\u201d says Simmons.\u00a0 \u201cAfter I got laid off from my first job, I spent about 40 hours a week applying for work, and it took nearly six months to get hired.\u201d<\/p>\n

Simmons is now working at a university, in his field of study, on a short-term contract.\u00a0 He makes ends meet by lifeguarding in the mornings and teaching first-aid classes on weekends.<\/p>\n

\u201cI pay $300 a month in interest alone,\u201d he says.\u00a0 \u201cThat\u2019s on top of the $700 of principal.\u201d<\/p>\n

But he realizes he\u2019s lucky to have a job in his field and part-time work lifeguarding.<\/p>\n

\u201cI know people who can\u2019t get shit,\u201d he says with a sigh.<\/p>\n

A DIFFERENT ROUTE<\/strong><\/p>\n

Do we really need to rely on job postings to scrape together a living?\u00a0 We are supposed to be an innovate bunch, us millennials.\u00a0 So why are we following those old methods of making it in life?<\/p>\n

Starting your own business, even if you have a great idea, can be a daunting thing to imagine, especially if you haven\u2019t yet established a financial base.<\/p>\n

Many young people, after getting turned down for a bank loan to start their ventures, might throw in the towel.\u00a0 But they shouldn\u2019t give up so easily. Until I started digging through the web for more information, I wasn\u2019t aware of how many programs are out there to help entrepreneurs with their ideas and with their finances.<\/p>\n

One such program is the Ottawa Community Loan Fund (OCLF), which provides startup capital and funding, along with training, to entrepreneurs aged 15 to 39 in Ottawa.<\/p>\n

COUNTING YOUR CREDIT SCORE<\/strong><\/p>\n

\u201cThe applicant\u2019s credit score is not the only consideration,\u201d says Michael Oster, president of the OCLF.\u00a0 \u201cEach applicant goes through a process, at the end of which, they are presented to our volunteer loan-review committee, comprised of experienced business people in Ottawa.<\/p>\n

The applicant is interviewed and given a chance to present his plan and answer questions.\u00a0 Then the loan-review committee says yes or no, and the final decision is left to the Canadian Youth Business Fund (CYBF), who oversees the OCLF.<\/p>\n

Oster says more people, especially young people and recent graduates, should consider proposing their ideas to the OCLF instead of a bank, because the OCLF offers better access to startup capital and simpler repayment plans.<\/p>\n

\u201cOur training loans require the applicant to pay only interest until two months after they completed the training and counseling we provide,\u201d says Oster.\u00a0 \u201cWe are certainly more forgiving when somebody runs into a problem and misses a payment.\u201d<\/p>\n

But Oster, not going into specifics, hinted at some changes that might be coming to the CYBF in early April, and is hoping as many people register for the program before the changes take effect.<\/p>\n

\u201cI think the program is going to evolve to reflect marketplace realities,\u201d he says.\u00a0 \u201cBut it is going to remain the most attractive program that I know of in Canada.<\/p>\n

\u201cThat\u2019s with respect to providing access to capital to people who can\u2019t get it at a time when they need it, and the mentoring we provide,\u201d says Oster.<\/p>\n

COMMUNITY LOAN FUND SUPPORT<\/strong><\/p>\n

Sean Simpson is one young entrepreneur whose business is benefitting from loans and guidance from the OCLF.\u00a0 He runs Mollie\u2019s Munchies, a one-man organic dog treat company named after his nine-year-old border collie.<\/p>\n

Simpson used the money to buy food processing equipment and for marketing expenses.\u00a0 Now three years in, Mollie\u2019s Munchies is turning a profit.\u00a0 Simpson mostly sells his treats at local farmers\u2019 markets, but he has his eye on more ambitious sales.<\/p>\n

\u201cOnce I can establish a brand I think I can get customers to start making regular orders online, and start shipping to places outside Ottawa,\u201d says Simpson.\u00a0 He is constantly trying to find new ways to establish his brand, be it on the Internet or on national television.<\/p>\n

Early next month Simpson and Mollie will be featured on Dragon\u2019s Den, CBC\u2019s hit show that pits entrepreneurs against well-established business people to seek venture capital.<\/p>\n

Simpson taped the episode back in September of 2012 and is remaining tight-lipped about the outcome until the episode airs.<\/p>\n

\u201cLet\u2019s just say, it was an incredible experience,\u201d is all he will say.\u00a0 But whatever the outcome, he\u2019s thankful to be getting the exposure.\u00a0 And he traces his business\u2019 success to the OCLF loan he received years ago.<\/p>\n

WE GOTTA RELY ON OURSELVES<\/b><\/p>\n

As of December 2012, the youth (people aged 14 to 24) unemployment rate was 14.1 per cent, twice that of the national average, according to the Statistics Canada Labour Force Survey.\u00a0 In January of this year, TD Economics said in a report that should youth unemployment stay at this level it would cost the Canadian economy close to $23 billion dollars over the next two decades.<\/p>\n

The report also indicated that even short stints of unemployment, six months to a year, has a dramatically negative effect on that person\u2019s earning potential later in life.<\/p>\n

At least people are talking about this.\u00a0 Economists are studying it.\u00a0 News outlets are picking up the story.\u00a0 And Finance Minister Jim Flaherty recently indicated that this country is not doing enough to give those looking for work the skills and training they need to land jobs.<\/p>\n

They say hindsight is 20\/20, and it\u2019s true.\u00a0 We all would play our hand a bit differently if given a do-over in life.<\/p>\n

And I can honestly say that if I was given just a few minutes to talk to 18-year-old me, I would tell him to find a decent job, build some credit, find some funding, and give this hard life a go on his own.<\/p>\n","protected":false},"excerpt":{"rendered":"

I spend at least an hour each day writing and rewriting cover letters, tweaking my resume, and tapping out cordial<\/p>\n","protected":false},"author":59,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[112,115,25,113,114],"class_list":["post-3202","post","type-post","status-publish","format-standard","hentry","category-personal-finanice-2013","tag-brad-clouthier","tag-ottawa-community-loan-fund","tag-personal-finance-2013","tag-preparing-to-graduate","tag-resume-writing"],"_links":{"self":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts\/3202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3202"}],"version-history":[{"count":12,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts\/3202\/revisions"}],"predecessor-version":[{"id":4457,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=\/wp\/v2\/posts\/3202\/revisions\/4457"}],"wp:attachment":[{"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cusjc.ca\/ottawainsight\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}