More young people now want to start a business early in life. According to statistics, up to 51% of young people aged 14-25 have started a business or thought of starting one. If your kid shows some interest in entrepreneurship at a tender age, help them cultivate essential skills that’ll help them become successful. It could be a simple idea like creating a craft and selling it.
And while the intention may not be making a lot of money in the beginning, you can help them develop real-world entrepreneurial skills like problem-solving, money management, organization, and communication. Alina Morse, the founder of America’s famous Zolli Candy, conceived the idea of sugarless candies at the tender age of 7. Your kid can also do it. Here’s how to help your kid start a business.
Fine-Tune the Idea
The first step in helping your kid start a successful business is to fine-tune the idea. Allow them to pursue their passion but offer suggestions. Do not make entrepreneurship feel like work, show them it can be fun. If they do not have a specific idea yet, help them make a list of things that interest them most.
For instance, if they love pets, they could easily turn that passion into a pet-walking business. If they enjoy writing, help them start writing and publishing books early. The list is endless. Just ensure your kid’s business matches their passion.
Create a Business Plan
Explain to your kid the importance of creating a business plan and setting goals. Write down the equipment, supplies, financing, and the training they will need to be successful. I Need Cash Now, one of the top title loan companies online, says determining the upfront costs of a business can help small businesses avoid future pitfalls and remain on track. The earlier you introduce your kid to money management, the better.
The business plan should outline the products and services the child intends to offer and explain how they will turn their idea into a profit-making venture. Help them write down their business goals, including financial and marketing goals.
Fulfill the Legal Requirements
Child-run businesses require proper documents and permits just as their adult-owned counterparts. It’s essential to check with the local authorities what documents and licenses are needed if you intend to put up an official company. Note that different cities and states have different compliance requirements. Meeting all the legal obligations can protect them, especially if they are determined to run the business for a long time.
Teach them How to Think Like an Entrepreneur
Some of the most successful entrepreneurs have many traits in common. Introduce your kid to these traits as early as possible. Teach them about financial literacy and the importance of perseverance and risk-taking in business. Train them on creative thinking and explain goal-setting techniques.
To help them develop a love for serving and helping others, teach them the importance of volunteering. Ensure you’re only guiding them and let them do the work. Cultivating these traits early will help your child become a critical thinker and learn to always take responsibility for their actions.