Instead of allowing your kid to spend his/her free time watching TV and playing video games, introduce them to small businesses that will keep them engaged. While these ventures shouldn’t necessarily earn revenues, helping your kid start a business instills invaluable life skills and experiences. It also helps the kid develop practical life skills, such as problem-solving, effective communication, organization, and money management. That said, consider the following tips to help your budding entrepreneur get started.
1.Help them Choose a Business
Unlike adults who engage in businesses based on profits, you should allow your kids to choose a business based on their passion. It is important to ensure that your kid engages in something they are passionate about, as it allows them to enjoy the entire experience. You can help them decide if they have no particular business idea by creating a business idea out of their favorite activities.
For instance, if your kid is interested in STEM and such topics, enroll them in the coder school where they can learn to code. With some coding knowledge, they can create basic computer games and programs that they can sell to other kids. Other intuitive business ideas for kids include;
- Lemonade seller
- Game and apps creator
- Kid’s book author
- Providing tutoring services
- Kid’s clothing designer
- Dog walker
- Pet grooming business
- YouTube personality, such as reviewing kid’s toys
- Face painter
- Kid’s bookseller and more
2.Establish a Plan with Goals
Formulating a good business plan goes a long way in ensuring the success of any business. However, this doesn’t mean that your kid should compile a CV and powerful pitch. For this case, encourage the kid to identify the key requirements and supplies they need to launch their business. For instance, if your kid is interested in the baking business, they should identify the necessary kitchen equipment required and write down the recipes they can bake.
That aside, help your kid create a time plan they need for their business and how they can balance business with other parenting activities at home. Besides a clear plan, have the kid write their goals. For instance, apart from expected revenue, what else do they want to benefit from their business. Ensure that you visit the goals regularly to evaluate the progress of the business.
3.Teach them Money Management
As mentioned, introducing your kid to business is a good way of teaching them fundamental money management skills. This includes several related skills, such as managing overhead costs and calculating profits. For younger kids, encourage them to practice totaling and counting change while teenagers should practice keeping track of business expenses and income.
That aside, with a business plan, you should consider being the investor in your kids’ business. However, before funding the initial capital, ensure that they itemize all the costs before launching. For a semi-formalized approach, call your kid to a meeting where they should pitch their business idea and sign a funding agreement.
Still, on money management, encourage your kid to open a bank account where they can keep their money. Encourage them to monitor their weekly and monthly income. Also, any other business expense should be withdrawn from the bank for them to understand how business expenses affect profit margins. This encourages them to make a smart investment and business expense choices.
4.Improve their Communication and Customer Service Skills
Even with a good business plan and excellent products and services, ineffective communication and customer service will negatively affect the business. Therefore, encourage your kid to improve his/her communication and customer service skills, which are the building blocks of a successful business.
Therefore, help your kid learn how to explain their products and services succinctly for potential customers to understand the value proposition of the business. Encourage them to listen and accommodate special requests from customers when necessary.
5.Work on the Legal Requirements
Businesses are subject to legal requirements, regardless of whether children or adults operate them. Therefore, teach your kid how to apply for licensing permits from your local and state authorities before launching. You should also help them develop an official company structure, even if they operate as a sole proprietorship.
Meeting the legal requirements includes paying taxes and observing other ethical business practices. Therefore, encourage them to file their tax returns and fill business income reports required by the law. Such practices help kids learn proper business frameworks at a young age.
Convincing your kids to engage in business activities instead of playing video games and binge-watching might be challenging at the start. However, this isn’t impossible. Always remember that entrepreneurship for kids should be a fun process. Also, teach your kid that it is okay to make mistakes and losses when running a business.