Notes

Often times, kids like you want to earn spending money, but you may not be old enough to work at an afterschool or summer job. There may be another way to earn some extra cash. You may wish to become an entrepreneur, a person who starts a business. Use the steps below to begin thinking about how you might start your own business doing something you enjoy.

Step 1: Brainstorm
First, you need an idea. Think of a service or product that other people may need. Begin by thinking of
something you like to do that will help people. Mowing yards, babysitting, or walking other people’s dogs may work for some kids. If you like baking, you could start a cookie business. If you like being outside, you could start a garden-weeding service. You should pick something you enjoy and are good at doing.

Step 2: Do Your Homework
Next, you need to find out if anyone would be interested in paying for your service or product. This is called market research. To do market research, first think about who your customers might be. Will they be friends your age or adults in the neighborhood? Choose 5 to 10 people about the same age as your future customers, and ask them questions about your business idea. If you plan to sell a product, you will need to show a sample of it.

Here are some sample questions:

For a service

Would you be interested in a ___ service?

How often would you need this service?

How much would you be willing to pay for the service?

For a product

Would you be interested in buying a ___ like this?

How much would you be willing to pay for it?

What changes should be made to it?

Have you ever bought a ____ like this? What did it cost?

The answers will tell you if there is enough interest in your product or service and the amount people might pay for it. You also might find out whether or not people already use a similar product or service. If so, your product or service must be of a higher quality or offered at a lower price in order to compete.

Step 3: Plan the Business
If your market research shows that there is a demand for your business, the next step is to decide exactly how the business will work. Use these questions as a guide.

What equipment and supplies will you need? Where and how can you get them at the lowest cost to you? Is it possible to borrow some of the tools you will need?

How much time will you be able to spend on your business? While you may wish to spend evenings and weekends working on your business, you must think about time needed for school, family, and other activities.

How much will you charge for your product or service? You must charge enough to cover your costs and make a profit, but it must be a price that people are willing to pay. Remember to consider the prices of other competing products or services.

How will you let people know about your product or service? Will you put flyers on people’s doors or put up posters at a local grocery store?

Do you need help with your business? Who can help you? It can be easier to have a business if others work with you.

Step 4: Organize Business Responsibilities
Here are some of the jobs that a business owner must do. Not all of the jobs are needed in every business, so you will need to choose which are important for the success of your business. If you are working with one or more friends, you may wish to divide up the responsibilities according to what each friend does best.

Product designer

Product maker or service provider

Advertiser

Salesperson

Record keeper for income and expenses

The Bottom Line
Starting a business takes some thought and work, but the rewards can be worthwhile. Learning to be an
entrepreneur can help you develop knowledge and skills that you can use throughout your life. Besides, being a business owner is fun!