It happens all the time. In conversations with your kids you discover they actually have a genius idea that they could convert into a profitable business. Everyone knows that starting a business is a difficult process, but if you can sit down with your child and draw up a solid plan, you’re halfway to success! With good execution, you’ll be on your way to turning your child’s dream idea into a profitable reality. Below are 5 steps to help your child start their own business.
And before we get started, Explorer Hop has a program to help you get through every step! We are hosting our first Global Young Entrepreneurship Festival which runs from July 5th to August 26th and is open to youth ages 6-17 around the world. The festival allows participants to convert their bright idea into a profitable business through 5 stages. Participants will learn marketing, leadership, and networking skills throughout the festival. In the finale, participants will pitch their idea to a group of judges for a chance to win $500.
For more information visit: https://explorerhop.com/pages/entrepreneurship-festival
It Starts With A Bright Idea
Before your kid starts their business, they should have a solid idea or a specific niche they want to target. Think about what area your child has expertise in. Are they great at painting, cooking, making music, building, or writing. A business should be built around your child’s area of expertise or a topic they are passionate about. Passion is what will keep them striving towards building their business into a success. Your child doesn’t have to be an immediate expert in their field, they just need to have the passion and drive to become one.
Plan
This is where most kids, and adults, veer off course. Everyone has the potential to have a bright idea, but not everyone has the dedication to sit down and plan it out. Ideas can sound great in theory. Your child might be very excited about their new lemonade stand, or book idea, and that’s great! Now as a parent you have to sit down with your child and help guide their excitement into a feasible plan. When starting a business there are different types of plans to reach your goals. There are three types of plans you can discuss with your child:
Business Plan
This will go over all the essential components of the business. Ask them questions like:
What will the business do?
What’s special about the business?
Do you think people will support the business?
Growth Plan
A growth plan covers how your child will scale their business when it starts to grow. How will they keep up with the demand and what other ideas could they have in the future to maximize their profits. Ask questions like:
How long will it take to reach your goals?
How do you plan to do it?
What other ideas can you incorporate into your business?
Marketing Plan
The marketing plan allows your child to be very creative and come up with innovative ways to promote their business. It’s important as a parent to keep them focused during this phase. Always remind them about who their target audience is. An idea that might be fun and interesting for them, might not appeal to their customers. This leads us to our next step.
Finding Your Customers
This is the most important step in the process because customers will determine every decision your child’s business makes. Customers are key. Without customers there is no business. When starting a business you need to know who the product or services would suit the most. Again, identifying a target audience is important. If your child doesn’t know who their idea would appeal to, then they won’t have the best chance for success. When you ask your child: “Who would buy your book?” they will most likely answer “Everyone.” You have to encourage them to think a little deeper to discover who their target audience is.
The most successful businesses have a clear understanding of their audience. They know them better than they know themselves, and they form every decision based on their customer’s needs.
Building A Budget
When starting a business you need to have a set budget. It's important to keep track of where your money is going and how it is supporting your business. Budgeting is something that your child will have to consider when their business starts to grow. They should always keep extra money in a savings account for emergency purposes. And of course if your kids need support and you have the means, try to invest in them. This teaches them the value of having investors to support their business without the risk.
Looking At The Competition
Helping your kids find any potential competitors is Important because it helps them learn from their mistakes and success. Looking at the competition can also give your child new ideas for their business and introduces them to the competitive nature of business. Businesses compete against each other to provide high quality products, the best service, and low prices. They throw most of their budgets at market campaigns to build their brand and generate sales. Looking at the competition will give your child a firm understanding of what it takes to be successful.
In conclusion, the best way to help your child is to make this process as fun as possible! It’s a great time to bond with one another while working on something that could change both of your lives. We recommend making a checklist to complete all of these steps and help your child’s business take flight!
Starting a business can be a fun and exciting way to introduce your child to the world of entrepreneurship and investing. At Explorer Hop we specialize in making finance fun! We believe that the earlier kids enter the world of business and finance, the more success they’ll have! Our award winning Camp Millionaire program has made finance fun for thousands of kids around the world. You can sign up your child for our FREE demo session, taking place on June 26. During these demo sessions, kids will learn leadership and investment skills that will benefit them throughout their lives. Find out more by visiting the link below: