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Kids in Business

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    When the Anderson kids grew bored one summer, their mom gave them an idea—go into business. Within a week, they started Yum-Yums, a cookie-based business that chased away the doldrums and made them deliciously rich by summer’s end. For Ben Thornhill, there was a different motivating factor. He wanted to raise money to buy a new skateboard. Since Ben liked pets, he sent out flyers to local residents letting them know he was available to care for their pets while they vacationed. It was an instant success! 

    Whether for saving, spending or keeping the season interesting, starting a summer business is a good way for tweens and teens to learn entrepreneurial skills.

Choose an Idea

To get your young person started in a business, help him make a list of what he likes to do and potential related businesses. Does he enjoy working in the garden? Perhaps he could weed for pay. Does he like to entertain children? Maybe he could babysit. “When Ben decided he wanted to start a business, we sat down and talked about what he could do,” says his mother Stephanie. “He has always loved animals, so it seemed a good fit for him to take care of other people’s pets.”

Once your young person has made a list, have him analyze the market. Are there people who live in your area with specific needs? Also look at small businesses in the community. Do any offer a similar service that he could provide at a lower cost?

Sole Proprietor or Joint Venture

Many small businesses are successfully run by one person. The key consideration is how much time your youngster can devote to the business. Involvement in a sports program may limit his available time and he may want to consider working with another family member or friend. For the Andersons, this was the best option. Their oldest, Brandon, had karate several times a week and several tournaments on the calendar. “While Brandon was at lessons, the girls and I mixed and baked cookies so they would be ready to sell the next day,” reports their mother, Kim.

A joint venture means less work for each individual and more growth potential for the business. But partners split the profits, and one party may feel he or she is doing more work than the other. “There were times the girls complained that Brandon didn’t help with the mixing and baking,” Kim says. “But I reminded them he was the one in charge of advertising and was always there when it came time to sell.”

Advertising Ideas

Before advertising, choose a name that fits, then spread the word. The best place to begin advertising is with family, friends, and neighbors. “One thing that made Ben’s business so successful was we lived in the same community for 10 years,” says Stephanie. “People knew our whole family and felt comfortable letting Ben take care of their pet.”

One of the cheapest, most effective ways to advertise is to print flyers and pass them around the community. Posters on bulletin boards are another good option, especially if the poster has tear-and-take tabs listing the service and a contact number. Other advertising options include business cards, newspaper ads, phone calls, and emails.

Count the Cost

Before your young person delves into business, have him list all of the supplies needed and the cost. If he has money in savings, he can use that to get the venture up and running. If not, perhaps you can loan it to him. That’s what the Andersons did. “When my kids started Yum Yums, they were pretty broke,” Kim states. “I told them I would pay for the initial supplies and they could reimburse me as the business took off.” Another option is doing extra chores around the house to raise money for start up.

Determine the Price

If your youth is making a product, such as Yum-Yum Cookies, visit a place that sells similar products--in the Andersons’ case, a local bakery. How much can your child reasonably charge to realize a profit? If your young person is providing a service, find out what his competitors charge for the same services and how they structure pricing. What are kids his age earning for doing similar work? One key question he should ask is, “Can I offer this product or service for a little lower than market rate and still make a profit?” If the answer is yes, he’s in business!

Policies and Practices

Before embarking on the business, have your youth determine exactly what services or products he will offer and communicate the information to future customers. If, for example, he starts a lawn mowing business, will he provide his own gas? Sweep the driveway? Trim? He may want to have a written description of what he provides. When the service has been completed, he should give the customer a receipt and make a duplicate copy for himself.

Even as a young person, he can earn his customers’ respect by maintaining good work ethics. Impress on him the need to be on time, respectful, and hard working. Satisfied customers may also provide word-of-mouth advertising, some of the most effective.

Establish safety rules from day one. Insist that your youth inform you of his whereabouts at all times. Avoid door-to-door sales. Stress the importance of not talking with strangers while he is alone. Remind him that if he ever feels uncomfortable, leave the situation and find a trusted adult immediately. Make sure he carries a cell phone while he is gone.

Record His Success

Being a successful entrepreneur means managing money wisely. Your youth can record his income, expenses, and profit in a notebook, ledger or computer program. This way he can see how much money he has put into the business and how much he has gleaned from it. Allow your tween/teen to spend some of his earnings, but encourage him to save some and put some back into the business. If he has borrowed money from you, he needs to pay you back. This is also a good time to talk about benevolent giving.

Once kids experience the accomplishment of working, earning, and spending, they may decide to keep going. That’s what Ben did. “He had so much fun taking care of other people’s animals, he kept the business going for several years,” concludes Stephanie. For the Andersons, Yum Yums was a summer experience. “By the time fall rolled around, my kids were ready to shift gears,” Kim finishes. “That’s okay, though. It was a great experience, and I’m glad they did it. My kids worked together for a common goal and learned a little about what it takes to run a business.”

Short on Business Ideas? Here are a few.

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