How Kids Can Start Their Own Business
Whether you are bored and out of school for the summer or have been begging your parents to start a lemonade stand, it is possible for a kid to create a fun business that also makes a little spending money. Explore your hobbies and talents to determine the type of business you would like to get involved in, but realize that starting a business is hard work and requires discipline and determination to succeed.
Make a list of your favorite hobbies and activities. If you love pets, consider starting a dog-walking or pet-sitting service. If you enjoy the outdoors, consider a leaf-raking or lawn-mowing business. If you enjoy cooking, consider a lemonade or baked goods stand.
Sit down with a parent to create a business plan. If you plan to start a babysitting business, for example, you might need to take a CPR class. If you want to start a baked goods stand, you must choose and test recipes before bringing the treats to the public. Determine how much money to charge and how and where to sell your goods. If school is in session, also determine how you will balance school and homework with the business.
Save money to purchase supplies. Write down a list of every supply you buy and how much it costs, then add up each expense. You will need to make at least this amount of money before you will start making a profit. If you don't have enough money to start, ask your parents if they will give you a loan that you will pay back after your business gets started.
Talk to your parents about taxes. When starting your own business, even if you are under 18, you will need to pay taxes to the government. Although each state has different rules about how working children pay taxes, your parents can help you by including your income in their annual tax filings.
Don't give up. Even adults have a difficult time getting a business off the ground, and making a profit can be difficult when you are trying to pay off your initial expenses. After several months of hard work, however, your business should start to make money that you can put in a savings account or use to buy that new bike you always wanted.
Make signs advertising your new business and distribute them to your neighbors.
Do not go door-to-door or sell items by yourself. A parent should always be present.
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