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Summer Youth Entrepreneurs
Entrepreneurial opportunities exist for motivated youngsters who have a desire to launch a new business. To help your child find a successful and satisfying niche in the marketplace this summer, have him tailor his interest to a community need and then take a creative but organized approach.
“First he should make a list of activities he enjoys and businesses that relate to those interests,” says Ronnie Cohen, executive director of a local financial literacy organization. “Next have him analyze the market. Consider not only what the customer needs but also what the competitor has to offer.”
This can be done by creating a questionnaire. Are people in the community interested in this type of business? How much are they willing to pay for this product or service? What are other companies with similar offerings charging? With this information your child will know if he has a marketable item to offer at a competitive rate.
Elias Harmon didn’t create a questionnaire but he did survey the situation. When the then 9-year-old boy noticed area lawn establishments grooming grass last summer, he seized the opportunity to rival their services.
“Elias knew he could use our lawn equipment to start a business, so he said, ‘I have this idea, what do you think?’” says his father Wayne. “Because of his age we suggested he start with people we knew. Then eventually he got a job caring for the lawn at the American Legion.”
Next decide if the business is going to be a sole or joint venture.
“One benefit to having a joint venture is two can produce more work than one,” says Ilona Figat, says junior entrepreneur instructor and consultant. “If your child is considering a partner, have him find someone who is equally passionate about this type of work but possesses different strengths so their skills complement one another.”
Cohen agrees but adds, “Problems can occur if one child does the majority of the work, but the profits are evenly split. To avoid this situation, have them spell out details and put it in writing before the business begins,” she says.
When selecting a name, choose one that clearly states the business mission and its offering. Consider adding rhymes, alliterations or catchy phrases so it can be easily remembered.
That’s the route Tatiana Lofton took. When she began her non-profit performing arts business at local senior centers last year, it was appropriately named, “Make a Joyful Noise.”
“In the industry when you can sing, dance and act, it’s called a ‘triple threat.’ Since she and the 22 members of her group can do that and more, that’s what she decided to call it,” says Veronica of her 15-year-old daughter.
Begin advertising by notifying family, friends and acquaintances. Print flyers and pass them out. Tack up posters with take-and-tear tabs that list services provided and a contact number. Or create computer-generated business cards
“To build business, suggest your child hand out extra flyers or business cards to current customers and say, ‘If you are satisfied with my services, pass along my name to friends,’” says Figat.
Tatiana found a virtually-free way to advertise. “I set up an account on Myspace.com to let others know what my company is about, all the performance dates and locations and where people can contact us,” says Tatiana. “At the end of each performance we also hand out flyers which lists the names of those who performed, what they did and my email and myspace.com addresses.”
Most important, count the cost. List the price of all supplies, tally the numbers and then figure out what it takes to produce a single product or service.
“Elias’s overhead was really low; his only cost was gas,” says Harmon. “Initially we fronted him the funds for that with the verbal agreement he would pay us back. He then set the price based on the amount of time it would take to do the job.”
Finally manage money wisely.
“Encourage your child to record his expenses and profits by making a chart in a notebook, using a ledger or creating a spreadsheet,” says Cohen. “Have him set goals as to where funds will be allocated—reinvesting in the business, saving some, spending some, even giving to a charitable cause.”
“Elias kept records on a little tablet,” says Harmon. “We did allow him to spend some of his profits but reminded him that just because he made ten dollars doesn’t mean he can buy ten dollars in candy.”
Overall Elias had a successful experience—so much so he’s back in business this year. “It kept him occupied and taught him about setting and achieving goals. Last year he was just excited to earn money. This year he wants to buy a drum set,” Harmon continues.
Tatiana’s business was fruitful too. “It’s taught her good relationship and leadership skills, the importance of giving back to the community and what the word ‘commitment’ really means,” says Lofton.`
Quick tips to get your child started in business:
- List your likes. Start by having your child make a list of activities he enjoys and businesses that relate to those interests. Find something he’s passionate about and wants to pursue.
- Materialize the market. Consider what the customer wants by creating a questionnaire. Is there a need for this type of service or product? If so, how much are people willing to pay?
- Complete a competitive analysis. Find out what other companies with similar products or services are offering and at what cost. If it is a service, do they charge a flat rate or by the hour? Then have your child ask, “How can I duplicate this offering for a little lower than market rate and still make a profit?”
- Team up or tread alone. Have your child consider if he wants to partner with a peer. If he is involved in a summer activity it may be best to team up with a friend who can help carry the workload. Suggest he find someone who is equally passionate about this type of business but possesses a different skill set so they complement one another. To prevent problems, detail in writing how responsibilities and profits will be divvied up.
- Name it and claim it. Choose a name that clearly states the business mission and its offering. Consider adding rhymes, alliterations or catchy phrases so it can be easily remembered.
- Advertising Agents. Advertise without spending a lot of money. Print flyers and pass them out to family, friends and acquaintances. Tack up posters with take-and-tear tabs that list services provided and a contact number. Or create computer-generated business cards. Have your child hand out extra flyers or business cards to current customers and say, “If you are satisfied with my services, pass along my name to friends.”
- Count the cost. List all of the supplies needed and the cost of each item. Then do a cost-of-goods sold and break it down to one unit: How much does it cost to make one item or provide service to one customer? This will help your child know how to set the price. If he has money in his savings account, suggest he use that to get the business started. Or loan it to him with the agreement it be paid back.
- Set a precedence. Predetermine products and services that will be offered and give clients a written description before the work begins to prevent potential customer dissatisfaction. When the service is complete, have your child give the customer a receipt and keep a duplicate for himself, particularly where cash versus a check is involved.
- Embrace good work ethic. Remind your child that he can earn the respect of customers by being punctual, dependable, honest, respectful, hard working and following through with commitments.
- Start with safety. Insist that your child inform you of his whereabouts at all times. Stress the importance of not talking with strangers while he is alone. Review safety rules if he will be working with equipment or machinery.
- Manage the money. Encourage your child to record his expenses, income and profits by making a chart in a notebook, using a ledger or creating a spreadsheet. Allow him to spend some of his earnings, but encourage him to reinvest in the business, save a portion and give some to his charity of choice.?
List of Resources
Subject-related juvenile books
A Pair of Red Sneakers
by Lisa Lawson.
Chickens! Chickens!
by Barbara Ann Porte.
The Fortune Teller
by Lloyd Alexander.
The Principal’s New Clothes
by Stephanie Calmenson.
So You Want to be an Inventor
by Judith St. George.
Toothpaste Millionaire
by Jean Merrill.
Tops and Bottoms
by Janet Stevens.
Who Wants a Cheap Rhinoceros?
by Shel Silverstein.
Other entrepreneurship resources
The Complete Idiot’s Guide to Starting Your Own Business
by Edward Paulson and Marcia Layton (guide).
Future CEO Stars. www.futureceostars.com (magazine).
A Kick in the Seat of the Pants
by Roger von Oech (guide).
A Whack on the Side of the Head
by Roger von Oech (guide).
www.entre-ed.org (organization).
www.younginventorshub.com (organization).
