China is the second-largest economy in the world, and it stands poised to become the largest. China’s geopolitical power is also developing at a stunning pace. It has been predicted that China will have more impact on the world over the next 20 years than any other country. The world order is changing, and China is becoming its leader. But, contrary to the belief that China’s economic miracle is solely due to its government, the reality is that it has been fueled by its people’s pent-up ambition and entrepreneurial spirit. Private-owned companies account for about sixty percent of the country’s gross domestic product (GDP) and about 75 percent of the country’s jobs. The real secret to the Chinese economy s outstanding development has most to do with the nature and attitude of the Chinese people.
Entrepreneurship can teach children a range of skills from creativity to critical thinking and problem solving, yet there are potential challenges for young people and their parents, according to a clinical psychologist. Helping your kid’s start a business in China is a really good thing because the child will learn a lot and the business has the potential of growing into something really big.
In this article I will not just give you tips on ways to help your kids start a business but, I will also list some pros and cons that come with kids starting a business:
Starting a Business with Young Kids
Helping your kids start a business can be fun and the business could grow a become bigger than expected but in reality, not all good things come easy so before we get to the part where I drop tips on helping the kids start a business I am going to show to some pros and cons.
While young children need lots of love and attention, their needs are almost always straightforward and can be provided by other caring adults. If you are too busy to spend time with your kids, they’ll likely be fine in the care of your spouse, grandparents, nannies, or other caretakers, so it is advisable to spend a lot of time with your kids. This way, you get an insight into everything that they are doing and you get to be the one to help them with the business with no or less stress.
The parenting burden may fall unevenly on your significant other or other loved ones, requiring sacrifices on their part that could lead to resentment and conflict. Hiring external care is a viable but expensive option, costing more.
Tips To Help Your Kids Start a Business
1. Come up with a good business idea
Think of things you already know how to do, want to learn to do or simply enjoy. If you mow your parents’ lawn or wash their cars, for example, these are skills you could turn into your own business. You could also try making and selling crafts or jewelry, running a babysitting service or selling baked goods. It’s important that your child is passionate about whatever he or she is doing. You want them to enjoy the experience and not lose interest in a few weeks. Let the kids think of what they like and help them do some research on how to they can turn whatever it is into a business.
2. Financial literacy
One of the most important lessons you can teach your children is how to be financially literate. It is difficult to get by in the world today without knowing how to handle money. However, when schools cover this lesson, it falls short and lacks what is really needed to develop this skill. Children need to learn that the money they earn, no matter how large or small the amount, has value and can contribute to their success.
3. Set goals and make a plan
Write a simple business plan. This plan should include such things as how to turn your ideas into a reality where they will run your business, how much it will cost to run it, how they will take care of business activities and how much money they’ll need to get started. You should include your short and long-term goals for the business as well. Determine what training, if any, you will need. Find training materials if your business idea requires you to learn new skills.
4. Be their investor
Be the first to invest in there Childs business, once your child has created the plan, you’ll need to give them the money they need to launch. Raise the money you need to start your business. You may have enough from saved allowances, or you may ask friends and family members to invest in your endeavor. Start-up costs may include such things as licensing and training fees, money for advertising and money for supplies needed for your products or services.
Their business plan should itemize all the necessary upfront costs, so you’ll know exactly how much you’ll need to spend. If possible, you can stipulate that you’ll fund a certain level, provided they also contribute with their birthday money, allowance, or other savings. You can even create a mock investor meeting where they pitch their ideas, and then write up a short contract on the funding agreement; this will give them a hint of the reality of owning a business.
5. Open a Bank Account
Open a bank account in both your name and theirs. Let them see their money grow each week/month. If possible, business expenses should come out of this account so your child can get a more realistic sense of how expenses impact their profits teach them how to manage money and it will t. This will encourage them to make smart choices about how to invest in their business.
6. Make the business legal
Determine if you need to register and obtain a license to start your business and how much it will cost to do so. Children are subject to the same rules as adults, and certain types of businesses require a permit in order to legally operate, even if the business owner is just starting high school! In particular, food-service businesses will require permits as they grow. You can usually find out licensing information by calling your local city clerk or secretary of state. Or call an online filing service for help.
Depending on the type and scope of the business, you may want to consider forming an official company structure. While most kids operate as sole proprietors, this business structure can put your family’s assets at risk if something should happen with your child’s business venture.
7. It’s OK to fail
As adults, we know that we’re going to fail a few times on our way to success. However, any kind of disappointment can be devastating for your child and deter them from trying in the future. It’s up to you to help your child understand that failure is not such a bad thing. Share an example of one of your brilliant failures, or let them know that even icons like Steve Jobs had some massive failures along the way.
As entrepreneurs, our greatest lessons often come from failures. Discuss the experience with your child — get them thinking about what happened and what they could do differently. There’s always a chance for a brand new business next year.