Secrets to Helping Your Child Start a Business

Kids that show a strong interest in business at an early age should be encouraged to pursue their entrepreneurial dreams. One of the best reasons that child entrepreneurs should be encouraged is because their business desires require them to obey their parents and be respectful of others if they want to succeed. There is a great deal of discipline that goes into being an entrepreneur, especially at a young age. When a child decides to go out and start a business, that child will need the guidance and support from their parents. Parents should also take the time to find the types of resources that they need to guide their children to financial success.

Parents, your kids want more money and they are willing to work for it. Kids are always looking for ways to make extra money. So, why not empower your kids to create wealth by launching their own business. Helping your child start a business is a good way to teach them the value of money and introduce a profitable moneymaking mentality that they will use for the rest of their lives.

Here are some tips and guidelines to help you assist your child in starting a business

1. Talk with your child about their passions

Talk about their favorite things and what they are good at doing. There’s at least one thing there that they can monetize right now. For instance, if your youngster loves playing with kids and watching over the babies, they should consider running a babysitting business. Or if he is really handy around the house and likes the outdoors, maybe he’ll be interested in running a lawn care service. Maybe your kid is incredibly outstanding and already tossing around some business ideas, talk with your teens and young children about their business ventures and encourage them to pursue their dreams.

As a parent, it’s good to stay open-minded about your kid’s passion. It is better to allow them to pursue their dream than to force your own dream on them. You have to keep in mind that they are kids and they are still learning about the ups and downs in life and they are still getting used to the world, so while helping them it is advisable to let them make their own decision and deal with the results, this helps them learn to think and also get back on their feet if something does not go their way.

2. Keep an open mind and remain supportive

I have seen a lot of young entrepreneurs whose parents tell to get a real job. If your child is showing passion to launch his/her own business let them proceed, they’ll figure it out eventually. Do not discourage their drive. Let them go out there and see what they’ve got. Support their decisions by getting them business materials to help them run their business better. Several successful entrepreneurs have gotten their first business loan from parents. If this option fits, go for it. Whatever action you take will have an effect on your child’s confidence, so infuse positive reinforcement into their entrepreneurial efforts and it will pay off with time.

3. Invest in your children’s dreams and teach them to invest as well

I once heard of a woman who decided to teach her fourteen year old how to invest by giving him five hundred dollars, opening an account and telling him to buy stocks. That was actually not the best idea because if the stocks went down, her kid would be likely to conclude that investing is a losing game and avoid the market altogether. That’s a problem. If the stocks went up, he’d think he was a genius and start placing bigger, bolder bets which could become a much bigger problem.

I think kids should learn about investing. They just need to know what really matters, and they need to be taught in ways that correspond to their age and their interests. Some of your kids are going to require some money when starting a business of theirs. Instead of giving them money to start, it is advisable to loan the money to them so when they start getting money, they can pay you back with interest. This will also give them some knowledge about taking loans and paying back with interest.

4. Hire your child

If you own a business, hire your child and you can begin to teach them how to run a business. Hiring your child is a great way to start, this way they get real-life experience and they can learn from you. Let your child explore the different areas of your business and develop a genuine interest. Don’t force your vision on your kids, allow them to try something new if they want, and they may want to join you as a partner or go off on their own. Either way, having exposure to running a business is a good experience overall. A child entrepreneur will need to learn skills such as money management, sales, and customer service.

Parents will have to teach their up-and-coming business professionals everything, from the value of the money to how to write a check. The young business professional will need to learn how to set prices and understand client expectations. It is important to teach a young entrepreneur that results are expected, especially when people pay for a product or a service. Children often imitate adults, which means that taking your child to a sales seminar may be a great way to get them to understand the importance of establishing strong relationships with clients.

5. Open a bank account for your young entrepreneur

Put the account in both your name and theirs and try to go over the bank statements with them monthly. Let them see their money grow when they put away savings and help them keep track of their spending when buying supplies or training materials for their business. This will give them a sense of responsibility and learn how to invest back into their own company.

These are some of the ways that you can help you child start a successful business.