Summer holidays are ideal periods to introduce them to
business strategies, ethics and structures. Engaging them in creative ventures
instead of fiddling with their phones, watching movies and playing video games
would aid creativity.
Not every child is cut out for business however if you
identifying the trait in your youngster you could encourage them. A kid
business venture is not about making huge money but showing them the potential
of earning income, communicating and solving problems.
Select
a Business
The first course of action is to select a business. The
best way is to choose one that complements the child’s passion. Building a
small business this way would guarantee retentive interest and fun.
Encourage them to write a list of things they like such
as video games, pets and fast food. Someone interested in cooking could enjoy
making cookies, while those that love animals could gravitate to pet walking.
Those that love craft or have artistic skills could
develop tangible products. Brainstorm with the kid and develop the business
based on their passion.
Develop
a Product and Design a logo
The kid could design a log and choose a business name.
This visually represents a business and gives the kid purpose. The purpose is
to encourage creativity in a fun and leisure way. Make sure the product is
fully developed and quality.
Develop
a Plan
Every Business needs a good business plan. The plan
should highlight the type of product or service, sourcing and funding. Teach
them how to create a list of what they need to start the enterprise.
The list should include supplies, raw materials and
equipment. A cookies business requires an oven, flour, butter, baking tin,
tray, bowls, hand tools and baking gloves. Likewise dog walking involves good
dog leashes and other simple equipment.
Try not to
overstate profitability or success of the enterprise. However encourage
creative thinking and money saving techniques. Teach them about product
quality, safety and pricing.
Set Goals
It is very important setting goals to encourage active
participation in the business. The goals should include making the amount of
money possible.
Others are duration of enterprise, increasing production
or other realistic benchmarks. The goals are only to encourage the kid and not
a strict provision.
Invest
in your Kid
Once they have written a business plan and identified a product
they need funding. Every business
requires funding for startup and faster growth.
Look over their budget and invest money in the kid. Kids
businesses require very little funding and mostly encouragement. However make
sure they sow seed money from their pocket money before providing the extra
funds.
This way the child shows commitment by saving judiciously
for the enterprise. Encourage the kid to meet 10% -20% of startup fund, this is
not a hard and fast rule but a way to teach saving and budgeting. You could
make it fun by having a mock investors meeting to go over the business plan.
Customer
Service
The great thing about business is the ability to develop
customer service. This helps develop communication skill and confident. They
learn how to listen and solve problems themselves.
Make sure the small business conforms to any legal
requirements. The size, scope, geographical location and industry determine the
legality. Make sure the business is managed within the law and protect the kid
from any liability.
Labor
The labor requirements might involve friends, family and
neighbors. The business type would determine the labor requirements.
Most kid businesses are one man run and established.
However with growth the business might need additional labor.
Taxes
Sometimes a very simple business may become huge and make
lots of money. Although kid businesses are just meant to encourage entrepreneurship
you might have a small Bill Gates in your home.
Once the earnings start exceeding state provisions the kid
needs to pay self employment tax. The kid is still a dependent and a tax might
not be required yet. Find out your state laws on such issues to keep your kid
safe and work within the laws of the land.
Open
a Bank Account
Opening a bank account for your kid is always a good
plan. This teaches them savings and money management.
The account could be a joint account or kiddies account. Seeing
their money grow could encourage better participation.
Advertisement
The business could be focused on family neighbors or
friends. The kid could advertise by creating flyers, word of mouth, signs or
use online resources. Other potential customer base is school mates and other
kids.
Make sure the business is up and running before they
advertise. Please don’t pressure the kid but encourage them. Not everyone is
cut out for business but encourage creativity in a fun interesting way.
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