How to Start a Business for Your Kid

Teaching your kids entrepreneurship skill is beneficial and important. It teaches them organizational skills, time management, budgeting, commerce and other business knowledge. It provides an outlet for expression, creative thinking and responsibility.
Summer holidays are ideal periods to introduce them to business strategies, ethics and structures. Engaging them in creative ventures instead of fiddling with their phones, watching movies and playing video games would aid creativity.
Not every child is cut out for business however if you identifying the trait in your youngster you could encourage them. A kid business venture is not about making huge money but showing them the potential of earning income, communicating and solving problems.
Select a Business
The first course of action is to select a business. The best way is to choose one that complements the child’s passion. Building a small business this way would guarantee retentive interest and fun.
Encourage them to write a list of things they like such as video games, pets and fast food. Someone interested in cooking could enjoy making cookies, while those that love animals could gravitate to pet walking.
Those that love craft or have artistic skills could develop tangible products. Brainstorm with the kid and develop the business based on their passion.
Develop a Product and Design a logo
The kid could design a log and choose a business name. This visually represents a business and gives the kid purpose. The purpose is to encourage creativity in a fun and leisure way. Make sure the product is fully developed and quality.
Develop a Plan
Every Business needs a good business plan. The plan should highlight the type of product or service, sourcing and funding. Teach them how to create a list of what they need to start the enterprise.
The list should include supplies, raw materials and equipment. A cookies business requires an oven, flour, butter, baking tin, tray, bowls, hand tools and baking gloves. Likewise dog walking involves good dog leashes and other simple equipment.
 Try not to overstate profitability or success of the enterprise. However encourage creative thinking and money saving techniques. Teach them about product quality, safety and pricing.
Set Goals
It is very important setting goals to encourage active participation in the business. The goals should include making the amount of money possible.
Others are duration of enterprise, increasing production or other realistic benchmarks. The goals are only to encourage the kid and not a strict provision.
Invest in your Kid
Once they have written a business plan and identified a product they need funding.  Every business requires funding for startup and faster growth.
Look over their budget and invest money in the kid. Kids businesses require very little funding and mostly encouragement. However make sure they sow seed money from their pocket money before providing the extra funds.
This way the child shows commitment by saving judiciously for the enterprise. Encourage the kid to meet 10% -20% of startup fund, this is not a hard and fast rule but a way to teach saving and budgeting. You could make it fun by having a mock investors meeting to go over the business plan.
Customer Service
The great thing about business is the ability to develop customer service. This helps develop communication skill and confident. They learn how to listen and solve problems themselves.
Make sure the small business conforms to any legal requirements. The size, scope, geographical location and industry determine the legality. Make sure the business is managed within the law and protect the kid from any liability.
The labor requirements might involve friends, family and neighbors. The business type would determine the labor requirements.
Most kid businesses are one man run and established. However with growth the business might need additional labor.
Sometimes a very simple business may become huge and make lots of money. Although kid businesses are just meant to encourage entrepreneurship you might have a small Bill Gates in your home.
Once the earnings start exceeding state provisions the kid needs to pay self employment tax. The kid is still a dependent and a tax might not be required yet. Find out your state laws on such issues to keep your kid safe and work within the laws of the land.
Open a Bank Account
Opening a bank account for your kid is always a good plan. This teaches them savings and money management.
The account could be a joint account or kiddies account. Seeing their money grow could encourage better participation.
The business could be focused on family neighbors or friends. The kid could advertise by creating flyers, word of mouth, signs or use online resources. Other potential customer base is school mates and other kids.
Make sure the business is up and running before they advertise. Please don’t pressure the kid but encourage them. Not everyone is cut out for business but encourage creativity in a fun interesting way.


Post a Comment