How Kids Can Successfully Start Their Own Business

Kids these days are led into believing that the best or only way that they can be successful in life is to pass through the regular education system by going from nursery and getting into a good college. While this is true, it also has its issues. The problem with the college system is that there are too many people doing the same thing and over the years, it has led to unemployment. There are other ways to become more successful and one of the ways to do this is through entrepreneurship.

Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs. In this article, I am going to give you some points and ideas to help your children start their own business, I will also point out some of the problems you might face and I will give you steps to ensure that you won’t make a silly mistake and deal with these problems if necessary. This article won’t necessarily be about making money but starting a business that provides invaluable life experience for kids and also develops their practical skills like money management, communication and problem-solving.

If your child shows interest in starting a business, here are some tips you might need:

1. Allow them to pursue their passion

It is important to make sure that your child is passionate about what he or she is doing; you should let them enjoy whatever they are doing. This way, they are least likely to lose interest and they continue to work gaining more experience and the business will continue growing. Ask your child what he or she wants to do and if they don’t know, tell them to write a list of their favorite things to do, For example, if your kid loves making colorful candles or if your child is very good a painting, you can start them up by selling candles or their paintings online. Eventually, they can also hold a workshop, teaching other kids how to do what they can and also make some money while giving lessons.

Let your children know that it is okay to think outside the box, let them know that not all ridiculous ideas are bad ideas and in the end, it’s a learning process, so results don’t matter entirely.

2. Make a plan or set your goals

Lack of direction and planning is one of the problems people face when setting up a business. Most people think all they need is a good idea and they run with it without planning or setting any goal and it only leads to more problems. This problem prevails because of not creating a thorough and detailed business plan.

Many young entrepreneurs are so excited about setting up their very own business that they fail to prepare a proper business plan. It helps in focusing on the goal and vision of the business. It determines the financial state of the business, the roadmap to follow, market research and analysis of the competition. A business plan is simply an investment in your business.

Let your kid think about the ways he or she can turn the ideas into a reality, let them figure out what they’ll need to start their business like the equipment, supplies, and training that might be needed and if the business booms, let them know how they’ll be getting supplies regularly to keep the business going. You should also let them write down their goals for the business including their financial goals and also what that they want to achieve. Make sure it’s fun and educational.

3. Introduce the concept of money management

Starting a business is a great way to introduce your child to the basic concept of money management skill, and eventually more complex topics like calculating gross profits and managing overhead. The older kids will be able to keep track of general income and business expenses while the younger ones can add up total prices and count change. You might have to give your child money to start their business or loan the money to them. This way, they also learn about taking loans.

4. Communication skills and customer service

Being an effective communicator and an empathetic listener are essential building blocks for entrepreneurship. Help your child develop skills on how to thoroughly explain their product/service and understand their business’ value proposition. Teach them the importance of customer service, and encourage your child to listen to and learn to accommodate special requests when needed.

5. Managing the legal requirements

When the business grows to a certain extent, it will require some legal requirements and apparently Child business owners are subject to the same rules and legal requirements as adults. You will have to find out if any local licensing or permits are needed by checking with your local city council. There are cases which may require you to create an official company structure, but only if you’re concerned that the business will take off or put your family’s assets at risk. You can decide the scope of your child’s business depending on how things go for you.

4. Competition

Competition is one of the problems that you might face as a young entrepreneur with a start-up business. Competition forces you to give your best. Having that challenge right on your heels pushes you to work harder and think deeper. You can also learn a lot from the successes and failures of a worthy adversary. Plus, competition just makes things much more interesting and a whole lot more fun.

Here are some tips on how to deal with competition:

• Never copy the competition: Follow your own path using your own ideas and develop on them do not look at what the competition is doing that way you can have a unique content
• Ignore the competition
• Don’t underestimate the competition: All competitors are different but the one thing that they have in common is that they all want to defeat you.
  • Play nice, not dirty: There is no reason not to get along. After all, competing businesses can co-exist in a community or an area.

Your kids will need your full support to successfully start their own business.