This article was contributed by:
Mike Abelson – Head of the Digital Marketing Department
Mike Abelson is the head of the Digital Marketing Department at Lendza for almost 3 years.
Before starting his work at Lendza, he helped a lot of entrepreneurs and startups to succeed through various marketing strategies and tactics. Previously, he partnered with CEOs and executives to grow their businesses, also build an audience and get more clients.
How a Kid Can Start a Business?
Kids aren’t too young to start a business. Teaching them how to become an entrepreneur at an early age can help children develop essential life skills, from money management to socialization, problem-solving, patience, and many more.
Starting a business can be fun for kids. Here’s how you can help them get started:
Decide on a Product or Service
Begin by helping your child choose the type of business he or she wants. It should be something that they find interesting, such as a hobby. For example, if your child loves making beaded jewelry, then she could sell her creations. If he loves animals, then maybe you can start a pet walking business.
When choosing a business, it needs to be something they enjoy doing (same goes for adults starting a business). This will keep your child motivated and inspired to keep going, no matter the challenges that lie ahead.
Develop a Business Plan
Once you and your child have chosen a business idea, it’s time to dig deeper into the details. Write down what you need to get started, such as equipment and supplies. If you think your child is ready, you can think of a full-scale business plan. If your business idea involves putting up a storefront or renting a commercial space, be sure to tackle your capital needs. See if you have enough money or if you need business financing to get started.
Teach Them How it Works
It’s important that from the very start, children know and understand the purpose of running a business. Sit with your child and teach the basics of entrepreneurship. Basically, their goal is to make a profit. Computing for the markup doesn’t have to be as complex as what it’s like in the real world. You can make this concept simpler by aiming to ‘double’ their money.
Don’t forget to talk about legal requirements and taxes. If your child’s earnings exceed $400, he or she will have to pay taxes already. Help them prepare for this ahead of time.
Keep it Simple
Your business plan should be easy for a young person to manage. It should be as simple as offering a product or service and getting paid for it. Can’t think of a simple business idea? Here are a few suggestions:
- Lemonade stand. Perfect for the summer season, preparing a delicious and nutritious lemonade from scratch is something even a five-year-old can do.
- Homemade cookie business. Kids love cookies. Let your child whip up you’re in-demand cookie recipe at home and start selling these goodies to the neighborhood. Surely, everyone wants a taste of homemade once in a while.
- Tutoring service. Perfect for older kids, tutoring service requires less to no capital at all. They can offer tutoring help to younger kids who need help with particular subjects in school.
Teach Them How to Manage Their Money
One of the most important things that your child should understand is how to grow their money. This is a perfect opportunity to teach them basic money management skills, including more complex ones like how to calculate gross profits and overhead. Make it easy for your child to understand these things. For example, on a piece of paper, create columns for business expenses and sales and ask him or her to track these items. Younger kids can be taught how to sum up purchases and count change.
Work on Their Customer Service Skills
As a business owner, your child needs to develop customer service and communication skills. Show him or her the right way to deal with people, how they should ‘sell’ their products or services, and how they should respond to feedback and suggestions.
Teach Them Marketing Skills
Behind every successful business is a good marketing strategy. Since most kids are very knowledgeable in using social media, encourage them to use it to promote their business by posting creative photos of their products or a nice poster for their service. Ask them to create colorful flyers too.
Encouraging your kids to start their own business is a great way to teach them essential life skills. Be sure to make the whole process fun and interesting. Most of all, let them make mistakes along the way. That’s how learning is supposed to be after all.