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6 Easy Steps for Teens Who Want to Start a Business

6 Easy Steps for Teens Who Want to Start a Business

By Thomas Walker

Teens with an entrepreneurial spirit and ambitious ideas may aspire to someday start their own business. Doing so can be financially lucrative and open doors to new opportunities — but if your kid has a good idea, why wait?

Teens can reap many benefits from starting a business, including developing money management skills, expressing creativity, and honing their problem-solving abilities. According to research, young people represent only 1.23% of small business owners, but teens can start to change that by following these six steps.

Choosing a Successful Business Idea

  1. Tap into skills and interests. Whether your teen has a business idea already or they’re seeking inspiration, it’s important for them to choose an idea that aligns with their skills and interests. If your teen has a knack for sewing, for example, starting a professional seamstress service makes more sense than offering car washes.
  1. Be realistic about feasibility. Teens should also develop a business idea based on what’s feasible. Few teens will have the resources to establish a brick-and-mortar retail store — at least not on their own — but starting an Etsy shop is a great way to make extra money. Most importantly, it’s accessible, so teens can get started without exorbitant expenses or unrealistic expectations.
  1. Leverage readily available resources. When formulating a business idea, teens can benefit from taking an inventory of their readily available business resources. Teens who are old enough to drive may have the resource of transportation, for example, and teens who are socially well-connected have the resource of potential customers.

Calculating Costs and Making a Profit

  1. Choose a business with low startup costs. There are many businesses with low startup costs that a teen can invest in. Ideas include personal courier services, a photography business, or offering English or math lessons. Teens typically have limited funding, so minimizing startup costs is one of the first steps toward ensuring that the business in question is profitable.
  1. Calculate labor, production, and inventory expenses. Accurately calculating the costs of a business is imperative. Startup expenses aren’t the only financial burden to shoulder. Teens must also consider monthly operating costs. For bigger businesses, these costs typically include labor, production, and inventory — but for a teen’s business, expenses may be smaller.
  1. Implement an invoicing process. Teens whose business includes sales should not underestimate the importance of invoices. Without one, payments may be delayed. Using a free invoice template can make invoicing easy and maintain a professional look. Templates can even be customized to include logos and branding. Teens can choose from an array of ready-made invoice templates and customize them with their business’ name, color scheme, and contact information.

Teens Can Earn and Learn by Starting a Business

Starting a business can be an incredibly exciting prospect for entrepreneurs of any age. It’s especially exciting for teens who are dipping their toes into the world of commerce. By choosing a successful business idea and accurately managing their business’s financial aspects, teens can earn extra money and learn valuable skills. Parents can support their kids in this endeavor by providing them with resources and connecting them with useful tools such as invoice templates.

See Also

Empower your teen to start a business and become an entrepreneur. Your support could help them develop the skills that will shape their future.

© 2022 Texarkana Parent Magazine. All Rights Reserved.

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